Procter and Gamble India Limited P&G is a 65% subsidiary of the US$ 35 bn global giant Procter & Gamble,
USA. P&G is a market leader in the anti-cold healthcare (Vicks), feminine
care (Whisper sanitary napkins) and men's toiletries (Old
Spice) businesses. It also manufactures Clearasil cream.
The parent has 3 companies in
India - P&G India, P&G Home Products (a 100% subsidiary) and P&G Distribution.
distribution is largely urban with a combined reach of 0.5 m outlets.
acts as a contract manufacturer of detergents (Ariel)
and shampoos (Head & Shoulders, Pantene) for P&G
Home Products, which markets the aforesaid products.
(Anti-cold) segment (40% of FY98 revenues)
This segment consists of menthol-based
products in numerous forms like rub and cream, tablets and cough
drops, lozenges and inhalers.
brand Vicks operates in all the aforesaid forms and is the No. 1
brand with 35% market share in the Rs 4 bn anti-cold healthcare segment. Overall, this segment is growing at 17-18% per annum. Vicks
main competitors in this segment are Amrutanjan, Zandu
and Warner-Lambert (Halls).
Care (13% of FY98 revenues)
dominates the Rs 1.8 bn sanitary napkins market with a 50% market
share (in value terms). Whisper operates in the premium range,
meaning high margins and low volumes.
This segment is growing annually
at 25-30%. The segment has low awareness and penetration levels (10-12%
in urban areas). P&G competes with Johnson & Johnson (Stayfree, Carefree) and Kimberley
Clarke-HLL (Kotex, Secure).
Toiletries (12% of FY98 revenues)
products consist mainly of Old Spice range of shaving cream,
after-shave lotions, hair cream, deodorants and talcum powder in this segment.
In shaving cream,Colgate Palmolive is the market leader with 28% market share, followed
by Old Spice at 16%.
is the market leader with more than 50% share. P&G
competes with HLL's
Denim and Park Avenue of JK Helene Curtis in this segment. The Rs 1.5 bn
men's toiletries market is growing 15-20% per annum.
manufacturing (35% of FY98 revenues)
the Ariel range of detergents and Head & Shoulders
range of shampoos for P&G Home Products. It enjoys
assured net margins (cost plus 5%)
on these products.
P&G manufactures Clearasil an anti-acne cream, which has been
at 5-6%, compared to the industry average of 15%. Lakme,
Ponds, Charmis and Fair & Lovely are the other major brands in this
Parent focus on P&G
All future product launches in fabric-wash, hair-care, cosmetics and oral-care
segment will take place through this 100% subsidiary.
Though it will shield P&G
from high costs of product launches and brand building, at the same time
it will deprive it of leveraging P&G,USA's global brands and high growth areas.
to focus on its three businesses - healthcare, feminine care and skin care
through brand extensions. It will also provide manufacturing base for group
has proposed changing its name to Procter and Gamble Hygiene and Healthcare
to better reflect the nature of its business.
Procter & Gamble Hygiene and Health Care has announced the first quarter results of the financial year ended June 2017 (1QFY17). The company's sales rose by 12.5%YoY while net profit rose by 50.1% YoY during the quarter.
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