Procter and Gamble Co.’s publicly listed subsidiaries in India have done well in the June 2012 quarter to support the company’s 21 percent organic sales growth. Organic growth strips out the effect of foreign exchange and acquisitions on growth. India saw the highest growth among the BRIC countries for P&G, and much better than the 10 percent growth in its developing markets.
Procter and Gamble Hygiene and Health Care Ltd sells Vicks and Whisper products in India, and its sales rose by 27.8 percent to $62 million. Gillete India which is still traded separately from P&G grew by “only” 15 percent, pulled down by sluggish battery and oral care sales; shaving sales were actually up 22 percent.
What this means
Indian consumers are continuing to spend vigorously. Giants such as Unilever are grew at over 10 percent this quarter. Indian companies such as Dabur also grew similarly. In fact 13 out of 18 consumere companies posting a volume growth in line with or better than expectations, as per a report by Edelweiss Securities. New entrants to India can make big progress there, provided they take time to understand what make Unilever and Dabur tick and where their place in the food chain will be.
How we can help
Amritt consultants can help new entrants find the quick path to revenue and the most sustainable path to profits, (which may not be very quick). But India is where the action is today. if you are a CPG / FMCG company with aspirations.
