The consumer goods empire he co-founded had tapped into a wave of Hindu nationalism after the election of Prime Minister Narendra Modi in 2014. Customers were snapping up Patanjali Ayurved's affordable, Indian-made products such as coconut oil and ayurvedic remedies, in a mounting threat to foreign companies that had bet big on India.
Ramdev, a household name whose TV yoga shows are watched by millions, has been the public face of Patanjali since it was set up in 2006 and remains its brand ambassador - his bearded face smiles down from ubiquitous billboards and hoardings in Indian villages. One ex-employee said issues included not having long-term deals with transporters, which complicated planning and increased costs. Patanjali executives also lacked the software needed to effectively track sales, another former worker said.
Balkrishna denies there have been quality issues, noting that India's national laboratories accreditation board has approved Patanjali's central lab.Patanjali products marketed as ayurvedic come under the regulatory purview of the Ministry of Ayush, created in 2014 to promote alternative therapies including Ayurveda. The ministry did not respond to a request for comment on Patanjali's product quality.
Two managers at stores of leading Indian retailers and two mom and pop stores owners, all in Mumbai, said they were only keeping a handful of Patanjali products in stock due to faltering demand.
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