FROM TRUST CRISIS TO TRUST REBUILDING A Case-Cum-Research Study of Patanjali’s Product Controversies, Consumer Confidence, Business Risk and a Proposed “Shakti Upahar” CSR Initiative for Women Aged 55+

 

FROM TRUST CRISIS TO TRUST REBUILDING

A Case-Cum-Research Study of Patanjali’s Product Controversies, Consumer Confidence, Business Risk and a Proposed “Shakti Upahar” CSR Initiative for Women Aged 55+

Abstract

Patanjali emerged as one of India's most prominent Ayurveda-oriented FMCG brands by combining indigenous positioning, affordability, extensive distribution and strong consumer recognition. However, controversies surrounding misleading health-related advertisements, regulatory action against selected Ayurvedic products, allegations concerning honey quality and a later dispute over cow-ghee quality created significant reputational and regulatory challenges.

The present case-cum-research study examines whether these controversies should be interpreted as evidence of an overall business decline or, alternatively, as a trust and governance crisis occurring alongside continued financial growth in important parts of the Patanjali group. The distinction is important because Patanjali Ayurved's revenue from operations declined from ₹7,533.88 crore in FY23 to ₹6,460.03 crore in FY24, whereas Patanjali Foods reported revenue from operations of ₹31,721.35 crore in FY24, ₹34,156.97 crore in FY25 and ₹40,169.58 crore in FY26. Thus, the evidence does not support a simple conclusion that “Patanjali is declining”; rather, it indicates a more complex situation involving regulatory risk, consumer trust, product-quality perceptions and structural growth in Patanjali Foods.

The study uses secondary-data analysis, percentage-growth analysis, comparative financial analysis and a proposed primary consumer survey methodology. The paper develops hypotheses relating product-quality concerns, misleading claims, trust and purchase intention. Since no primary survey observations were supplied, inferential consumer statistics are presented as a research design rather than fabricated results.

The study further proposes “Patanjali Shakti Upahar”, a phased CSR/social-support programme providing product kits of approximately ₹1,000 to economically vulnerable women aged 55+, with priority to widowed, divorced, separated and never-married women. The paper argues that gifting alone cannot repair damaged trust. CSR must be accompanied by transparent quality assurance, evidence-based communication, independent testing, grievance redressal and measurable social-impact reporting.

Keywords: Patanjali, consumer trust, product quality, misleading advertising, Ayurveda, FMCG, CSR, women aged 55+, brand reputation, business risk, regulatory compliance.

 

1. INTRODUCTION

The Indian FMCG market has increasingly witnessed competition between conventional multinational brands and indigenous brands positioned around Ayurveda, natural products, tradition and national identity. Patanjali became an important example of this transformation.

The brand's rapid expansion was supported by Ayurveda-based positioning, affordable pricing, extensive distribution and strong association with Baba Ramdev and Acharya Balkrishna. The uploaded case identifies three major structural vulnerabilities: dependence on charismatic leadership, expansion across numerous product categories and repeated regulatory friction surrounding health-related claims.

The central research problem is therefore not merely:

“Is Patanjali's business declining?”

The more meaningful research question is:

“Can a consumer-trust and regulatory-compliance crisis weaken a powerful indigenous FMCG brand even when parts of the Patanjali business continue to grow financially?”

This distinction provides the foundation of the present case.

 

2. CASE BACKGROUND

Patanjali Ayurved was co-founded by Baba Ramdev and Acharya Balkrishna and expanded rapidly after 2006. Its competitive positioning was built around:

Ayurveda;

Indian cultural identity;

affordable pricing;

mass distribution;

natural-product positioning;

strong founder visibility; and

aggressive promotional communication.

Its product portfolio expanded into toothpaste, personal care, biscuits, juices, edible oils, honey, ghee, wellness products and Ayurvedic medicines.

However, the same strategy created potential vulnerabilities. The original case identifies brand dilution, dependence on leadership personality and regulatory disputes over disease-related claims as structural risks.

 

3. STATEMENT OF THE RESEARCH PROBLEM

Patanjali has experienced several high-profile controversies involving:

misleading health-related advertising;

regulatory action involving Ayurvedic/pharma products;

allegations concerning honey purity;

quality concerns relating to cow ghee;

consumer complaints and negative publicity;

reputational pressure among some urban consumers.

The original case argues that these developments could weaken consumer trust and create business risk.

However, the financial evidence requires a more nuanced interpretation.

Patanjali Ayurved's revenue from operations fell by approximately 14.25% between FY23 and FY24, but this was influenced by business restructuring and transfer of businesses within the group. At the same time, Patanjali Foods continued to report record revenues.

Therefore, the research problem is formulated as:

“To what extent do product controversies and regulatory scrutiny constitute a threat to Patanjali's consumer trust and long-term brand sustainability, despite continued financial growth in major group businesses?”

 

4. OBJECTIVES OF THE STUDY

The study has the following objectives:

O1

To examine the major product-quality and advertising controversies associated with Patanjali.

O2

To analyse the potential effect of regulatory scrutiny on consumer trust.

O3

To distinguish between Patanjali Ayurved's financial performance and Patanjali Foods' financial performance.

O4

To analyse whether the available financial data support the proposition of overall business decline.

O5

To develop a research framework linking product quality, regulatory compliance, consumer trust and purchase intention.

O6

To propose a CSR/social-support initiative for economically vulnerable women aged 55+.

O7

To develop measurable indicators through which the proposed CSR initiative can be evaluated.

 

5. RESEARCH QUESTIONS

RQ1

What are the major sources of reputational risk for Patanjali?

RQ2

Have product and advertising controversies resulted in an observable deterioration in the financial performance of Patanjali's major business entities?

RQ3

Does consumer trust mediate the relationship between perceived product quality and purchase intention?

RQ4

Can a transparent CSR initiative contribute to rebuilding brand trust?

RQ5

Can “Shakti Upahar” become a sustainable social programme rather than a short-term publicity campaign?

 

6. REVIEW OF THE CASE EVIDENCE

6.1 Misleading Advertising and Regulatory Scrutiny

One of the most serious controversies involved health-related advertising.

The Supreme Court's August 2024 judgment documented claims concerning the ability of Patanjali products to cure ailments such as blood pressure, thyroid problems, diabetes and asthma, and examined violations of undertakings given to the Court.

The supplied case reports that in April 2024 the Uttarakhand State Licensing Authority suspended licences for 14 products associated with Patanjali/Divya Pharmacy. The case also records subsequent contempt proceedings and publication of public apologies.

Research implication

For an Ayurveda-oriented brand, credibility is a strategic asset. A consumer who purchases a product because it is perceived as natural, safe and trustworthy may react particularly strongly when the brand is associated with misleading claims.

 

7. HONEY CONTROVERSY

Honey represents a particularly sensitive category because consumers associate it with purity and naturalness.

The supplied case discusses allegations regarding sugar-syrup adulteration and concerns arising from independent testing. It also notes the importance of the issue because purity is central to Patanjali's natural-product positioning.

Research interpretation

The paper does not treat allegations as legally established facts. Instead, they are treated as reputational events capable of influencing consumer perceptions.

This distinction is important in academic research:

Complaint/allegation → media exposure → consumer perception → trust → purchase intention

is a research pathway, not proof that every allegation is factually established.

 

8. COW GHEE QUALITY CONTROVERSY

The supplied case reports that a Patanjali cow-ghee sample collected in 2020 failed specified quality tests at state and national laboratories, particularly on the Reichert–Meissl value. A ₹1.4 lakh fine was subsequently imposed on the manufacturer, distributor and retailer. Patanjali disputed aspects of the testing and sampling process.

The research significance lies less in the monetary size of the penalty and more in the symbolic importance of ghee.

Ghee is closely connected with:

Indian tradition;

household consumption;

religious practices;

purity;

nutrition; and

Patanjali's indigenous brand image.

Therefore, a quality controversy involving ghee can generate a disproportionate reputational effect compared with the financial value of the fine.

 

9. THE CRITICAL FINANCIAL QUESTION: IS PATANJALI REALLY IN DECLINE?

This is where the present paper differs from a simple narrative of decline.

The supplied case highlighted financial stress and declining FMCG performance indicators.

However, updated company disclosures show that Patanjali Foods recorded:

Financial Year	Revenue from Operations (₹ crore)	YoY Growth
FY24	31,721.35	—
FY25	34,156.97	7.68%
FY26	40,169.58	17.60%

Patanjali Foods itself described FY26 as a record year, with revenue from operations crossing ₹40,000 crore.

The FY24–FY26 compound annual growth rate is approximately:

CAGR = [(40,169.58 / 31,721.35)^(1/2) − 1] × 100

CAGR ≈ 12.53%

Interpretation

The financial evidence therefore rejects the simplistic hypothesis:

“Patanjali as a business is experiencing continuous financial decline.”

Instead, the more defensible conclusion is:

“Patanjali faces a significant trust and regulatory-risk problem, while Patanjali Foods has simultaneously demonstrated strong revenue growth.”

This distinction materially improves the academic quality of the case.

 

10. PATANJALI AYURVED VS PATANJALI FOODS

A major analytical issue is the tendency to treat the entire Patanjali group as one financial entity.

The available evidence shows:

Indicator	Patanjali Ayurved	Patanjali Foods
Business nature	Ayurveda/FMCG/wellness	Edible oils/FMCG/food/HPC
FY23/FY24 evidence	Revenue from operations declined	Revenue remained strong
FY25	—	₹34,156.97 crore revenue from operations
FY26	—	₹40,169.58 crore revenue from operations
Primary risk examined	Regulatory/brand trust	Margin, commodity and FMCG execution
Interpretation	Greater reputational sensitivity	Stronger current financial momentum

Patanjali Ayurved's FY24 revenue from operations was reported at ₹6,460.03 crore, down 14.25% from FY23. However, the reduction cannot be interpreted simply as consumer rejection because group restructuring and transfer of businesses affected comparability.

 

11. STATISTICAL ANALYSIS

11.1 Nature of Data

The present paper uses:

company financial disclosures;

reported regulatory events;

case evidence;

secondary demographic information;

publicly available company information.

No primary consumer questionnaire dataset was supplied.

Therefore, inferential tests such as chi-square, Pearson correlation and ANOVA cannot honestly be reported as completed tests of consumer responses.

Instead, the paper uses appropriate secondary-data calculations and provides a framework for future primary testing.

 

12. DESCRIPTIVE FINANCIAL ANALYSIS

Table 1: Patanjali Foods Revenue Trend

Year	Revenue ₹ crore	Absolute Change	Growth %
FY24	31,721.35	—	—
FY25	34,156.97	+2,435.62	+7.68%
FY26	40,169.58	+6,012.61	+17.60%

Finding

Revenue growth accelerated between FY25 and FY26.

The company's FY26 revenue was approximately 26.47% higher than FY24.

Thus, financial evidence does not establish a continuous decline in Patanjali Foods.

 

13. PROFITABILITY ANALYSIS

Patanjali Foods reported FY25 EBITDA of approximately ₹2,079 crore and FY26 EBITDA, excluding exceptional items, of approximately ₹1,931.52 crore. FY26 therefore presents an important distinction between revenue growth and profitability pressure.

Table 2: Revenue–Profitability Interpretation

Indicator	FY25	FY26	Interpretation
Revenue from operations	₹34,156.97 cr	₹40,169.58 cr	Strong growth
Revenue growth	—	18.99%	Positive
EBITDA excluding exceptional items	₹2,079.06 cr	₹1,931.52 cr	Lower
EBITDA margin	6.09%	4.79%	Margin pressure
Overall conclusion	Growth	Growth + margin pressure	Mixed performance

Finding

The company demonstrates a revenue-growth/margin-pressure paradox.

This is strategically important.

The business cannot be described as collapsing, but neither can growth alone be interpreted as complete business health.

 

14. FMCG AS A HIGH-MARGIN GROWTH ENGINE

In FY26, the FMCG segment generated approximately ₹11,188 crore of annual revenue, representing about 27.6% of revenue from operations, while contributing approximately 61.13% of annual EBITDA.

Table 3: FMCG Strategic Importance

Indicator	FY26
FMCG annual revenue	≈ ₹11,188 crore
Share of company revenue	27.60%
Share of EBITDA	61.13%
Strategic implication	High-margin growth engine

Interpretation

This finding is particularly significant for the case.

If consumer trust improves in the FMCG portfolio, the company may have substantial potential to improve the quality of its earnings.

Therefore:

Trust repair → FMCG credibility → stronger premiumisation → better margins

can be considered a strategic pathway.

 

15. HYPOTHESIS DEVELOPMENT

For a future primary consumer survey, the following hypotheses are proposed.

H01

There is no significant association between perceived product quality and consumer trust in Patanjali.

H11

There is a significant association between perceived product quality and consumer trust in Patanjali.

 

H02

There is no significant relationship between perceived misleading advertising and consumer trust.

H12

There is a significant negative relationship between perceived misleading advertising and consumer trust.

 

H03

There is no significant relationship between consumer trust and purchase intention.

H13

There is a significant positive relationship between consumer trust and purchase intention.

 

H04

There is no significant difference in Patanjali purchase intention across different age groups.

H14

There is a significant difference in Patanjali purchase intention across different age groups.

 

16. PROPOSED PRIMARY RESEARCH DESIGN

A future empirical study should collect data from approximately 300 Patanjali consumers.

Suggested sampling

Population: Patanjali consumers in India

Sample size: 300

Sampling: Convenience/purposive sampling, with demographic quotas

Suggested locations:

Madhya Pradesh

Uttar Pradesh

Rajasthan

Delhi-NCR

Maharashtra

Questionnaire dimensions

Each variable can be measured using a five-point Likert scale:

1 = Strongly Disagree
2 = Disagree
3 = Neutral
4 = Agree
5 = Strongly Agree

 

17. VARIABLES FOR STATISTICAL TESTING

Variable	Measurement
Product Quality	5-point Likert scale
Product Purity	5-point Likert scale
Advertising Credibility	5-point Likert scale
Regulatory Trust	5-point Likert scale
Brand Trust	5-point Likert scale
CSR Perception	5-point Likert scale
Purchase Intention	5-point Likert scale
Repurchase Intention	5-point Likert scale

Demographic variables:

age;

gender;

income;

education;

residence;

occupation;

frequency of Patanjali purchase.

 

18. PROPER STATISTICAL TEST PLAN

Table 4: Statistical Tests

Research Objective	Variables	Appropriate Test
Test relationship between quality and trust	Quality, Trust	Pearson/Spearman correlation
Test advertising and trust	Advertising, Trust	Pearson/Spearman correlation
Test trust and purchase intention	Trust, Purchase intention	Pearson correlation
Compare purchase intention by age	Age groups, Purchase intention	ANOVA
Compare two gender groups	Gender, Trust	Independent-samples t-test
Test association between awareness and purchase	Awareness × Purchase	Chi-square
Test questionnaire reliability	Multiple Likert items	Cronbach's alpha
Identify underlying dimensions	Quality, trust, CSR etc.	Factor analysis
Predict purchase intention	Trust, quality, CSR	Multiple regression

 

19. WHY THESE TESTS ARE APPROPRIATE

19.1 Chi-Square Test

Chi-square is appropriate when both variables are categorical.

For example:

Awareness of Patanjali controversy × willingness to purchase

The null hypothesis would be:

H0: Awareness and purchase willingness are independent.

 

19.2 Pearson Correlation

Pearson correlation can measure the direction and strength of association between approximately continuous composite scale variables.

For example:

Brand Trust ↔ Purchase Intention

Expected relationship:

Positive

 

19.3 Spearman Rank Correlation

Spearman correlation should be preferred if the data remain ordinal or violate assumptions of Pearson correlation.

 

19.4 ANOVA

One-way ANOVA can examine whether mean purchase intention differs among:

18–30;

31–45;

46–60;

61+.

Decision rule:

If p < 0.05 → reject H0.

 

19.5 Independent-Samples t-Test

This can compare mean trust scores between two groups, such as:

male vs female;

controversy-aware vs controversy-unaware.

 

19.6 Cronbach's Alpha

Cronbach's alpha should be calculated for multi-item constructs.

A commonly used interpretation is:

Alpha	Interpretation
≥ 0.90	Excellent
0.80–0.89	Good
0.70–0.79	Acceptable
0.60–0.69	Marginal
< 0.60	Weak

 

20. PROPOSED REGRESSION MODEL

A multiple regression model can be specified as:

PI = β0 + β1PQ + β2AT + β3BT + β4CSR + ε

Where:

PI = Purchase Intention
PQ = Perceived Product Quality
AT = Advertising Trust
BT = Brand Trust
CSR = CSR Perception
ε = Error term

The expected signs are:

β1 > 0
β2 > 0
β3 > 0
β4 > 0

The model would allow researchers to determine which factor has the greatest explanatory power for purchase intention.

 

21. CASE ANALYSIS: TRUST AS THE CENTRAL VARIABLE

The case suggests that the most important intangible asset at risk is not merely sales but trust.

The relationship can be represented as:

Product controversy

↓

Negative media/public discussion

↓

Perceived quality uncertainty

↓

Lower brand credibility

↓

Reduced consumer trust

↓

Lower purchase/repurchase intention

↓

Potential long-term brand damage

However, the financial evidence indicates that this chain is not automatically producing immediate group-wide revenue decline.

This is a crucial case finding.

Financial performance may lag reputational deterioration.

A company can continue growing while simultaneously accumulating long-term trust risk.

 

22. CSR PROPOSAL: “PATANJALI SHAKTI UPahar”

22.1 Concept

The proposed initiative is a festival-based social-support programme providing a product kit worth approximately ₹1,000 to economically vulnerable women aged 55+.

Priority may be given to:

widowed women;

divorced women;

separated women;

never-married women;

women living alone;

economically vulnerable women.

The original case proposes the same broad concept and identifies older women as a potentially underserved group.

 

23. OBJECTIVES OF SHAKTI UPahar

The programme should pursue two distinct objectives:

Social objective

To provide useful household, personal-care and nutrition-oriented products to economically vulnerable older women.

Corporate objective

To rebuild trust through demonstrable social responsibility.

The second objective must never dominate the first.

Otherwise, the programme risks being perceived as advertising disguised as charity.

 

24. PROPOSED GIFT KIT

A ₹1,000 kit could contain a combination of:

Food products

ghee;

honey;

edible oil;

suitable food/health products.

Personal care

toothpaste;

soap;

shampoo;

aloe vera or similar personal-care product.

Wellness

Only products legally and medically appropriate for the target group should be included.

The original proposal similarly suggests food, personal-care and wellness items.

Important safeguard

The CSR programme should not make disease-cure claims about products included in the kit.

 

25. PHASED IMPLEMENTATION MODEL

The original case estimates much larger possible national scenarios, including one million, five million and ten million beneficiaries.

However, a more financially prudent research recommendation is to begin smaller.

Table 5: Recommended Pilot

Phase	Beneficiaries	Product Value @ ₹1,000	Purpose
Phase I	100,000	₹10 crore	Pilot
Phase II	250,000	₹25 crore	Expansion
Phase III	500,000	₹50 crore	Multi-state
Phase IV	1,000,000	₹100 crore	National-scale pilot

These figures represent product-value assumptions only. Logistics, administration, verification and impact-assessment costs must be separately budgeted.

 

26. DELIVERY MODEL

The programme should use:

credible NGOs;

self-help groups;

municipal institutions;

community organisations;

elderly-welfare organisations;

suitable government-linked beneficiary databases, subject to applicable privacy and legal requirements.

The original case similarly proposes SHGs, NGOs, Anganwadi networks and local welfare institutions as delivery partners.

 

27. GOVERNANCE STRUCTURE

A credible CSR programme should establish a three-level governance mechanism.

Level 1: Corporate CSR Committee

Responsible for:

budget;

policy;

programme design;

compliance.

Level 2: Independent Implementation Partner

Responsible for:

beneficiary identification;

distribution;

documentation;

grievance handling.

Level 3: Independent Social Auditor

Responsible for:

verification;

leakage assessment;

beneficiary feedback;

impact assessment.

 

28. KEY PERFORMANCE INDICATORS

Table 6: CSR Evaluation Framework

KPI	Measurement
Number of beneficiaries	Actual beneficiaries
Female beneficiaries 55+	% of total
Vulnerable beneficiaries	%
Distribution completion	%
Leakage	%
Beneficiary satisfaction	Mean score
Brand trust before programme	Mean score
Brand trust after programme	Mean score
Purchase intention before	Mean score
Purchase intention after	Mean score
Complaints after programme	Number
Independent audit completion	Yes/No

 

29. CSR IMPACT HYPOTHESIS

A separate experimental or quasi-experimental study can be conducted.

H05

There is no significant difference in brand-trust scores before and after exposure to the Shakti Upahar programme.

H15

There is a significant improvement in brand-trust scores after exposure to the Shakti Upahar programme.

For the same respondents measured before and after the intervention, a paired-samples t-test can be used if assumptions are reasonably satisfied.

If the data are substantially non-normal/ordinal, the Wilcoxon signed-rank test would be an appropriate alternative.

This is a much more statistically defensible way of testing whether CSR actually rebuilds trust.

 

30. COST–BENEFIT LOGIC

The proposal should not assume that every ₹1 of CSR expenditure generates ₹1 of additional sales.

Instead, the programme should be evaluated through:

Social Benefit + Trust Improvement + Reputation Improvement + Long-term Customer Retention

A simple CSR effectiveness index could be developed:

CSR Effectiveness Index =

0.30 Social Benefit

0.25 Trust Improvement

0.20 Beneficiary Satisfaction

0.15 Brand Reputation Improvement

0.10 Governance/Transparency Score

The weights should be validated through expert consultation rather than treated as universally correct.

 

31. STRATEGIC RISK MATRIX

Table 7: Patanjali Risk Assessment

Risk	Probability	Impact	Overall Risk
Product-quality controversy	High	High	Very High
Misleading advertising allegation	Medium–High	High	High
Consumer trust erosion	High	High	Very High
Competitive pressure	High	Medium	High
Leadership/personality risk	Medium	High	High
CSR leakage	Medium	Medium	Medium
CSR perceived as publicity stunt	High	Medium	High
Financial burden of mass gifting	Medium	High	High

 

32. SWOT ANALYSIS

Strengths

Strong brand recognition;

indigenous/Ayurveda positioning;

extensive distribution;

broad product portfolio;

established FMCG presence;

strong FMCG growth within Patanjali Foods.

Weaknesses

reputational dependence on founders;

regulatory controversy;

trust concerns;

product-quality perception risk;

possibility of brand dilution.

Opportunities

evidence-based Ayurveda;

premium natural products;

transparent quality testing;

women-focused CSR;

elderly-care initiatives;

stronger urban consumer engagement.

Threats

stricter regulation;

competitor innovation;

negative social-media narratives;

quality-related incidents;

consumer switching;

retailer/channel pressure.

 

33. DISCUSSION

The central finding of this study is that financial growth and reputational risk can coexist.

Patanjali Foods' financial trajectory demonstrates strong growth:

₹31,721 crore → ₹34,157 crore → ₹40,170 crore

between FY24 and FY26.

At the same time, controversies documented in the case create potential long-term trust costs.

Therefore, the study rejects a binary interpretation:

“Patanjali is either successful or failing.”

Instead, the case demonstrates a dual condition:

Financial dimension

Strong growth in Patanjali Foods

Reputation dimension

Elevated regulatory and consumer-trust risk

Strategic implication

The company should therefore avoid responding to controversy only through advertising.

The appropriate response is:

Quality → Compliance → Transparency → CSR → Consumer Trust → Sustainable Growth

 

34. MANAGERIAL IMPLICATIONS

34.1 Establish Independent Quality Assurance

Third-party testing should be expanded for sensitive categories such as:

ghee;

honey;

edible oils;

Ayurvedic products.

The original case recommends stronger quality-control systems and publication of testing information.

 

34.2 Shift from “Cure” to “Evidence”

Health communication should be based on:

permitted claims;

scientific evidence;

regulatory compliance;

transparent product information.

 

34.3 Separate Founder Image from Product Credibility

The brand should increasingly communicate:

“The product is trustworthy because the system is trustworthy.”

rather than:

“The product is trustworthy because the promoter says so.”

 

34.4 Make CSR Measurable

The proposed Shakti Upahar programme should publish:

beneficiary numbers;

expenditure;

distribution geography;

audit findings;

grievance data;

beneficiary satisfaction;

social-impact results.

 

35. POLICY IMPLICATIONS

Regulators should ensure that:

misleading health claims are consistently monitored;

testing standards are transparent;

enforcement is brand-neutral;

consumer grievance systems are accessible;

quality failures are communicated clearly;

Ayurvedic and FMCG companies maintain evidence-based communication.

 

36. LIMITATIONS OF THE STUDY

The study has several limitations.

First

The research is primarily based on secondary information.

Second

No original consumer survey dataset was supplied; therefore, actual consumer-level inferential statistics cannot be claimed.

Third

Media allegations and regulatory findings should not be treated as equivalent evidence.

Fourth

Patanjali Ayurved and Patanjali Foods are different entities and their financial figures should not be mechanically combined.

Fifth

The proposed CSR costs are scenario estimates rather than an approved Patanjali budget.

Sixth

A direct causal relationship between controversy and revenue cannot be established from the available data alone.

 

37. FUTURE RESEARCH AND ANALYTICAL FRAMEWORK

The present case establishes that Patanjali's controversies cannot be evaluated solely through financial performance. Product-quality perceptions, advertising credibility, regulatory confidence and corporate social responsibility may jointly influence the consumer's overall evaluation of the brand. Consequently, future empirical investigation should examine the relationship between these variables at the consumer level.

A multi-state consumer study involving approximately 300–500 Patanjali consumers would provide a stronger empirical basis for evaluating whether the controversies discussed in this case have translated into measurable changes in consumer attitudes and behavioural intentions. The respondents' perceptions could be examined across the dimensions of product quality, perceived purity, price fairness, advertising credibility, regulatory trust, brand trust, CSR perception, satisfaction, purchase intention, repurchase intention and recommendation intention.

The analytical framework treats brand trust as a central intervening construct rather than considering consumer purchase intention as a direct consequence of product quality alone. A consumer may perceive a product as reasonably priced and of acceptable quality but may nevertheless hesitate to purchase it if doubts concerning advertising credibility or regulatory compliance have weakened confidence in the brand. Conversely, credible quality assurance and visible social responsibility may strengthen trust and subsequently improve behavioural intentions.

Accordingly, the principal relationship examined in the framework is:

Perceived Product Quality → Brand Trust → Purchase Intention

This relationship implies that product quality may influence purchase intention both directly and indirectly through brand trust. Brand trust therefore becomes a potential mediating variable between the consumer's evaluation of the product and the consumer's intention to purchase.

The model is further strengthened by incorporating Advertising Credibility and CSR Perception as explanatory variables. Advertising credibility is particularly relevant because the case involves regulatory scrutiny associated with product claims. CSR perception is relevant because the proposed “Patanjali Shakti Upahar” initiative represents an attempt to create a stronger social connection between the company and vulnerable consumers.

The resulting conceptual relationship can therefore be expressed as:

Product Quality → Brand Trust → Purchase Intention

Advertising Credibility → Brand Trust

CSR Perception → Brand Trust

Brand Trust → Satisfaction → Repurchase Intention

Brand Trust → Recommendation Intention

This framework allows the research to move beyond the question of whether consumers “like” or “dislike” Patanjali and instead examine which factors statistically explain continued purchasing behaviour.

37.1 Measurement and Reliability Analysis

The constructs would be measured through multiple Likert-scale statements. Before examining relationships between variables, the internal consistency of the questionnaire would be assessed through Cronbach's alpha.

A satisfactory reliability coefficient would establish whether items intended to measure concepts such as brand trust, perceived quality, advertising credibility and CSR perception are sufficiently consistent to be combined into composite scales.

Descriptive statistics—including mean, standard deviation, frequency and percentage—would then establish the overall pattern of consumer perceptions.

This stage is important because a high average score for product quality combined with a low average score for advertising credibility would indicate that the consumer problem is not necessarily the physical product itself but the credibility of the communication surrounding the product.

37.2 Relationship Analysis

The association between the major constructs would subsequently be examined using Pearson correlation where the assumptions for parametric analysis are satisfied. Where the data are ordinal or substantially depart from parametric assumptions, Spearman's rank correlation would provide a more appropriate alternative.

Particular attention would be given to the relationship between:

perceived product quality and brand trust;

perceived purity and brand trust;

advertising credibility and brand trust;

CSR perception and brand trust;

brand trust and satisfaction;

brand trust and purchase intention;

satisfaction and repurchase intention; and

purchase intention and recommendation intention.

A strong positive relationship between product quality and brand trust would indicate that improvements in perceived quality are associated with stronger confidence in the brand. A negative relationship between perceived misleading advertising and trust would, conversely, demonstrate the reputational cost of communication practices that consumers perceive as unreliable.

Correlation, however, would be interpreted as association rather than proof of causality.

37.3 Demographic Differences

Consumer attitudes may also differ according to demographic characteristics.

An independent-samples t-test would be appropriate for comparing the mean scores of two groups, while one-way ANOVA would be appropriate where more than two groups are compared.

For example, purchase intention could be compared across age categories such as:

18–30 years;

31–45 years;

46–60 years; and

above 60 years.

Similarly, differences in brand trust could be examined across income or educational groups where the grouping structure is statistically appropriate.

A statistically significant ANOVA result would indicate that at least one group differs from another. Appropriate post-hoc testing would then be required to identify the specific group differences.

37.4 Categorical Association

The Chi-square test of independence would be used for categorical variables.

For example, the relationship between awareness of Patanjali's controversies and categorised purchase intention could be examined.

The analytical question would be:

Does awareness of regulatory and product-quality controversies occur independently of consumers' willingness to purchase Patanjali products?

If the Chi-square test produces a statistically significant result at the 5% level, the null hypothesis of independence would be rejected, indicating that the observed association between controversy awareness and purchase intention is unlikely to be attributable solely to sampling variation.

37.5 Factor Structure of Consumer Perceptions

Because product quality, purity, advertising credibility, regulatory trust and CSR perception may contain overlapping dimensions, exploratory factor analysis would be useful for identifying the underlying structure of consumer perceptions.

Factor analysis could determine whether apparently separate questionnaire items actually cluster around broader dimensions such as:

Product Credibility

Communication Credibility

Institutional Trust

Social Responsibility

Behavioural Loyalty

This would help establish whether consumers evaluate Patanjali through several independent dimensions or through a smaller number of underlying psychological constructs.

37.6 Multiple Regression Analysis

Correlation alone cannot determine the relative contribution of different explanatory variables. Therefore, multiple regression analysis could be employed with purchase intention as the dependent variable.

A simplified model may be expressed as:

Purchase Intention = β₀ + β₁(Product Quality) + β₂(Advertising Credibility) + β₃(Brand Trust) + β₄(CSR Perception) + ε

The regression coefficients would indicate the direction and relative contribution of each independent variable while controlling for the effects of the other variables.

For example, if brand trust demonstrates the largest statistically significant standardized coefficient, it would suggest that trust is a more important determinant of purchase intention than any individual product attribute.

Such a finding would have significant managerial implications because it would indicate that improving packaging, pricing or promotional frequency alone may not be sufficient to restore consumer confidence.

37.7 Mediation Analysis

The most important extension of the proposed framework is the examination of brand trust as a mediating variable.

The proposed pathway is:

Product Quality → Brand Trust → Purchase Intention

The analytical question is not simply whether product quality predicts purchase intention, but whether part of this effect operates through consumer trust.

If the indirect effect is statistically significant, the study would provide evidence that product quality contributes to purchase intention partly because consumers interpret quality as a signal of organisational reliability.

The same logic could be applied to CSR perception:

CSR Perception → Brand Trust → Purchase Intention

A significant indirect effect would indicate that CSR may influence consumer behaviour not merely by creating goodwill but by strengthening confidence in the organisation.

37.8 Proposed Integrated Research Model

The overall analytical model can therefore be represented as:

Product Quality
↓
Brand Trust
↓
Purchase Intention
↓
Repurchase Intention / Recommendation Intention

with:

Advertising Credibility → Brand Trust

and

CSR Perception → Brand Trust

while Satisfaction may operate as an additional behavioural pathway between purchase experience and repurchase intention.

The model provides a mechanism for examining Patanjali's situation as a trust-recovery problem rather than simply a sales problem.

37.9 Statistical Decision Framework

For inferential testing, the conventional significance level of 5% (α = 0.05) may be adopted.

The general decision rule would be:

p < 0.05: reject the null hypothesis;

p ≥ 0.05: fail to reject the null hypothesis.

However, statistical significance should not be interpreted independently of effect size, confidence intervals, sample characteristics and practical significance. A statistically significant relationship may have limited managerial importance if its effect size is very small.

37.10 Analytical Significance of the Proposed Framework

The proposed empirical framework extends the present case in three important ways.

First, it separates financial performance from consumer perception. Strong revenue growth does not necessarily establish strong consumer trust.

Second, it identifies brand trust as a potential mechanism through which product quality, advertising credibility and CSR influence purchase behaviour.

Third, it allows the proposed “Shakti Upahar” initiative to be evaluated empirically rather than assuming that CSR automatically improves reputation.

The ultimate empirical question therefore becomes:

Whether improved product credibility, transparent communication and socially responsible action can rebuild consumer trust sufficiently to influence satisfaction, purchase intention, repurchase behaviour and recommendation intention.

This approach would transform the Patanjali case from a descriptive account of controversies into a testable consumer-behaviour and strategic-management research model.

 

38. RESEARCH FINDINGS

Based on the evidence analysed, the following findings emerge:

Finding 1

Patanjali has experienced significant regulatory and reputational controversies.

Finding 2

The advertising controversy represents a particularly serious threat because it directly affects credibility.

Finding 3

Ghee and honey controversies are strategically important because purity is central to the brand's identity.

Finding 4

The evidence does not support an unconditional conclusion that the entire Patanjali business is in decline.

Finding 5

Patanjali Ayurved experienced a decline in revenue from operations from FY23 to FY24, but business restructuring affects interpretation.

Finding 6

Patanjali Foods recorded strong revenue growth from FY24 through FY26, reaching ₹40,169.58 crore in FY26.

Finding 7

FY26 demonstrates a revenue-growth/margin-pressure combination rather than a simple financial decline.

Finding 8

The FMCG segment is strategically important because it contributes a disproportionately high share of EBITDA relative to revenue.

Finding 9

CSR can support reputation repair but cannot substitute for quality assurance.

Finding 10

The proposed Shakti Upahar programme should therefore be implemented only as part of a broader trust-rebuilding strategy.

 

39. CONCLUSION

Patanjali represents an important Indian management case because it demonstrates how brand ideology, entrepreneurship, cultural identity, product positioning, regulatory compliance and consumer trust interact in the FMCG industry.

The company built extraordinary market visibility through Ayurveda, affordability and indigenous positioning. Yet the controversies around advertising and product quality demonstrate that strong brand identity can become a vulnerability when credibility is challenged.

The financial evidence also produces an important research lesson.

It would be inaccurate to describe the entire Patanjali business as being in continuous decline. Patanjali Foods recorded revenue from operations of ₹31,721.35 crore in FY24, ₹34,156.97 crore in FY25 and ₹40,169.58 crore in FY26.

Therefore, the real strategic challenge is not simply sales survival.

It is:

“Can Patanjali convert financial strength into sustainable consumer trust?”

The proposed Patanjali Shakti Upahar initiative could contribute to that objective by supporting economically vulnerable women aged 55+, particularly widowed, divorced, separated and never-married women.

But the programme should not become merely a festival publicity campaign.

The strongest strategic model is:

QUALITY + COMPLIANCE + TRANSPARENCY + CSR + CONSUMER TRUST = SUSTAINABLE BRAND RECOVERY

Patanjali's next phase should therefore move from personality-led credibility toward system-led credibility.

That transformation would represent a stronger and more sustainable form of brand rebuilding than advertising alone.

 

40. REFERENCES AND SOURCE BASE

Supreme Court of India. Judgment concerning Patanjali Ayurved misleading advertisements and related contempt proceedings, August 2024.

Patanjali Foods Limited. Investor Relations and Annual Reports. Official company disclosures. Patanjali Foods Investor Relations

Patanjali Foods Limited. FY2023–24 financial results.

Patanjali Foods Limited. FY2024–25 financial results.

Patanjali Foods Limited. FY2025–26 financial results.

Patanjali Foods Limited. Corporate presentations and investor disclosures. Patanjali Foods Corporate Presentations

Patanjali Foods Limited. Business Responsibility & Sustainability Report FY2024–25.

Economic Times. Report on Patanjali Ayurved FY24 revenue and business restructuring.

Uploaded case material: Patanjali Products, Public Complaints, and Business Risk: A Case-cum-Research Paper with a CSR Proposal for Women Aged 55+.