Monday, December 16, 2019

HUL,P&G take divergent routes in India

The world's top consumer goods company -Unilever and Procter &Gamble(P&G)- has got different strategies for the Indian market. Uniliver focuses on both organically and inorganically growth, P&G approach has been about achieving balanced growth in terms of top-line and bottom line.
this made P&G a smaller unit in comparison to its global rival in India in feminine care baby care, health care, and male grooming.
P&G is the leading health care with Vicks and male grooming with Gillette and pampers with baby care.
Uniliver on the other side is a tough competitor for P&G with detergents(Ariel/Tide), shampoos(Pantene/Head & Shoulders) and oral care (Oral-B) in India.
It was also reported by Edelweiss that Hindustan Uniliver could become the largest subsidiary for its parent by the financial year ended 2027 (FY27), surpassing the US unit, currently the biggest for the global major contributing 16 percent to its top line.
For Uniliver, India is a great opportunity and it has the second largest market share for  Uniliver, contributing about 10 percent of the turnover
Sanjiv Mehta, HUL's Chairman, and Managing Director said volume-wise India has already the largest in the world for Unilever, with 98% of households in the country using on for more of the company's brands.

P&G India, which includes two listed arms and one unlisted company contributes 2.2 percent to the global parents' top line of nearly Rs5 trillion.
P&G said that the company will be focusing on India for superior productivity and strengthening its organization.

The company has combined the top line and bottom line and has moved sharply upwards for regulatory filings. Data from the registrar of companies show unlisted company P&G which includes its key products which include its detergents and shampoo business.

Male grooming major Gillette, best known for its razors reported 10% growth year on year profit growth for the financial year ended June 2019, to nearly Rs253 core. Some analysts said that P&G would continue to lag HUL in the future despite its priority being India.

The merger GSK consumer into HUL nearing completion by January-February next year will make Uniliver the largest food company in the country, ahead of Nestle India.

P&G said it would push presence into rural areas where it gets fourth of its overall business, building a strong retail network and launch variants in its existing segments.

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