Cashing in on India’s logistics potential, P&G to set up INR 2000 crore export hub

Procter & Gamble  has invested INR 2,000 crore to set up an export hub in India on the back of robust growth, the company’s country CEO LV Vaidyanathan said adding that the company is very “optimistic” in the mid and long-term prospects of India.

He said, Procter & Gamble (P&G) India will continue to grow categories that are currently undeveloped and bring product propositions that are meaningful to the quality-conscious Indian consumer.

In the last three years, P&G has driven consistent double-digit growth in both the topline and bottomline. “Business has basically moved from the last couple of years seeing high single growth. Now we are starting to see very nice growth and hope to see some kind of momentum going and accelerate from where we are,” Vaidyanathan said.

The maker of popular brands such as Ariel, Gillette, Head & Shoulders, Oral-B, Pampers, Pantene, Tide, Vicks and Whisper – follows July to June financial year. “Year is coming to an end and business was doing very well. Our topline was growing in high singles and bottomline in double-digit. This year, we are closing the year accelerating the business,” he said.

P&G India operates here with four entities- Procter & Gamble Hygiene & Health Care, Procter & Gamble Health, Gillette India and Procter & Gamble Home Products (non-listed) – and has a total turnover of around Rs 16,000 crore.

India is among the top ten markets for P&G globally and the company is very ‘optimistic’ about it in the long-term prospects, said Vaidyanathan adding that “We are pretty optimistic about the growth prospects and the prospects for creating value here in India,”

 India’s demographics, its large youth population and the distinct shift, from consumers being price-conscious to value-conscious has been the reason behind the enthusiasm of P&G for the Indian Market.

Besides, digital infrastructure which has been created in both urban and rural India is “incredible” and offers “unique” growth opportunities for the company, Vaidyanathan said.

P&G India has announced that it will invest Rs 2,000 crore here to set up a new personal healthcare manufacturing facility in Gujarat, marking the ninth plant of P&G in India, where it has invested INR 8,200 crore in the last decade and INR 20,000 crore in the last 25 years. “This facility will be for healthcare digestives space. That’s a pretty substantial investment which we are making and this one is going to be focused on exports,” he said adding this is in line with ‘Make-in-India’ initiatives and will work as an export hub.

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