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NEW DELHI: Patanjali Ayurved could be far from overtaking India's FMCG market leader
Hindustan UnileverNSE 0.39 % as Baba Ramdev desires. In April last year, Ramdev said
Patanjali's target was Rs 20,000 crore to Rs 25,000 crore turnovers in the next three to five years.
But it seems the company is far from the ambitious finishing line. It closed the last financial year
at around the same level as the previous fiscal year’s revenue, Rs 10,000 crore.
However, there could be a bigger worry for Patanjali than flat revenues. According to a recent
Credit Suisse report, consumer offtake has declined in many product categories. While the
company continues to hold sway over toothpastes with Dant Kanti, and in ghee, incremental
gains in these categories are said to have declined. "Patanjali is facing headwinds with FY18
sales growth flat YoY after a 100% CAGR for the past four years. Several categories are seeing
declining offtake levels, most prominent among them being honey and hair care. Even strong
segments such as toothpaste are seeing market shares plateau," says the report.
Conclusion: This news from Economics Times describe the ethical behavior of Patanjali that it
created its brand image from Yoga with the help of brand ambassador Baba Ramdev and using
it Patanjali branding, Although consumer offtake has declined in many product
categories.
2. Analyze the CSR initiatives adopted by the organization and how it has been
useful in better corporate financial performance.
Introduction:
Patanjali is working towards a better nation, healthier society and wealthier farmers. It
personifies the essence of Corporate Social Responsibility because profits of Patanjali Ayurved
Ltd are not for any individual but are for the betterment of the society.
This theme is reflected in the every aspect of our working and management. Our focus area are
education and healthcare.
CSR Budget
The total budget for the CSR projects is decided by the CSR Committee in accordance with
applicable provisions of the Act and the CSR Rules.
Activities:
· Kushthrogi
· Research and development
· Patanjali Gramodyog
· Patanjali Food Research
Focus Area:
Modern Education through Gurukul System
· For girl child
· For poor students
Healthcare
· Facilities
· Research and Development
Monitoring Mechanism:
To ensure transparency and effective implementation of the CSR programs undertaken by PAL,
a robust monitoring mechanism will be instituted, providing for periodic monitoring at multiple
hierarchies using following indicative means:
· Monthly Progress Report
· Quarterly Progress Report
· Video Conferencing Site
· Visits Documentary evidence including photographs, films and videos.
· Other in – house monitoring mechanisms, as determined by Work Centre CSR Review
Committee/CSR Task Force at Corporate Office.
Approach:
1. Working through trusts, societies established by Patanjali Ayurved Ltd.
2. Collaborating with various organization, registered as Trust or Section 8 company under the
Companies Act, 2013 or Society or NGOs or any other form of non-profit entity incorporated
in India that specialize in activities covered under our focus area.
3. Contribution to various funds which are aligned with our Vision and Mission e.g.
PATANJALI AYURVED LIMITED wants to conduct its affair in fair and transparent manner
by adopting the highest standards of professionalism, honesty, integrity and ethical behavior. The
honesty, integrity and sound judgment and performance of the Directors and the Senior
Management are key criteria for the success and for building a good reputation of the Company
also it can help Management/employees to increase their commitment towards the organization.
Therefore, the Company has made this policy to comply with the formal annual evaluation made
by the Board of Directors of its own performance (self-appraisals) and that of its committees and
individual Directors as mentioned under the provisions of 134(3)(p) of the Companies Act,
2013. The Nomination & Remuneration Committee shall evaluate the performance of each
Board of Director as per subsection (2) of Section 178 and based on the functions of the Board of
Directors as indicated under Schedule IV (as per section 149) annexed to the Companies Act,
2013 and the Rules made there under.
OBJECTIVE:
This Policy aims to:
Ensure compliance of the applicable provisions of the Companies Act, 2013 (as amended or
re-enacted from time to time) relating to the evaluation of performance of the Directors and
the Board.
Manage the affairs of the company in transparent manner.
To adopt the ethical business policies.
To strive for promoting healthy competition in the market and thereby to sustain the interest
of the consumers.
To implement good corporate governance.
Three key functions—business development, daily functioning and supply chain—are managed
by three persons close to Ramdev. We profile them below :
He works daily from 7 am to 10 pm through the week. He says he is doing the job of five people.
When he began the journey 10 years ago on personal loans, Balkrishna didn't think Patanjali
would come this far.
"Bharat handles the daily operations and manages most of the running around, and is actually the
backend of the company while Baba and Acharya strategise on the company's growth vision,"
Abneesh Roy of Edelweiss Securities told ET last year after visiting the Patanjali headquarters.
Corporate governance is a concept, rather than an individual instrument. It includes debate on the
appropriate management and control structures of a company. It includes the rules relating to the
power relations between owners, the board of directors, management and the stakeholders such
as employees, suppliers, customers as well as the public at large.
Corporations around the world are increasing recognizing that sustained growth of their
organization requires cooperation of all stakeholders, which requires adherence to the best
corporate governance practices. In this regard, the management needs to act as trustees of the
shareholders at large and prevent asymmetry of benefits between various sections of
shareholders, especially between the owner-managers and the rest of the shareholders.
In India, corporate governance initiatives have been undertaken by the Ministry of of Corporate
Affairs (MCA) and the Securities and Exchange Board of India (SEBI). The first formal
regulatory framework for listed companies specifically for corporate governance was established
by the SEBI in February 2000, following the recommendations of Kumarmangalam Birla
Committee Report. It was enshrined as Clause 49 of the Listing Agreement. Further, SEBI is
maintaining the standards of corporate governance through other laws like the Securities
Contracts (Regulation) Act, 1956; Securities and Exchange Board of India Act, 1992; and
Depositories Act, 1996.
The Ministry of of Corporate Affairs had appointed a Naresh Chandra Committee on Corporate
Audit and Governance in 2002 in order to examine various corporate governance issues. It made
recommendations in two key aspects of corporate governance: financial and non-financial
disclosures: and independent auditing and board oversight of management. It is making all
efforts to bring transparency in the structure of corporate governance through the enactment of
Companies Act and its amendments.