P&G India's sales cross $2 billion, but growth rate falls

Mumbai: Procter & Gamble (P&G), the world's largest consumer goods maker, crossed the $2-billion sales mark in India, more than three decades after entering the country. The Cincinnati, US-based consumer goods maker clocked an 8% increase in sales at its Indian unit in FY24 while net profit rose 10%.

A year ago, sales had grown 15% while profit expanded 26%, indicating that P&G's growth rate halved amid falling demand in the Indian consumer goods market after the pandemic-induced boom.

P&G India reported sales of ₹17,429 crore and net profit of ₹1,583 crore in FY24 across its four companies-pharmaceuticals firm P&G Health, shaving products maker Gillette, P&G Health & Hygiene and P&G Home Products. In India, P&G competes mostly with Unilever's local unit Hindustan Unilever (HUL), which is over three times its size.

P&G said it delivered balanced growth in profit and revenue in a challenging operating environment thanks to its integrated growth strategy.

"A focused product portfolio of daily use categories where performance drives brand choice, superiority of product performance, packaging, brand communication, retail execution and consumer and customer value, productivity to fund this superiority and innovation, constructive disruption across the entire value chain, and an agile and accountable organization-are all aimed at delivering sustainable, balanced growth and value creation," said Kumar Venkatasubramanian, chief executive officer at P&G India.

The company's biggest arm, P&G Home Products, an unlisted entity that makes Tide detergent, Pantene shampoo and Pampers diapers, saw profit rise 37% to ₹574 crore while net sales grew 11% to ₹9,413 crore in the last financial year, according to the latest regulatory filings.

The company controls more than half the market for sanitary napkins and shaving razors, and has consistently gained shares in these segments despite being the market leader.

This January, ET reported that P&G engaged management consultancy McKinsey & Co to reorganise its businesses for becoming more agile and to accelerate growth. The company evaluated the possibility of having a more simplified operating structure that integrates portfolios and combines the heft of the supply chain with a leaner cost structure.

"We are driving industry-leading efforts in areas like data-led optimisation of the supply chain. In fact, data and technology are shaping the way we serve our consumers and customers consistently," Venkatasubramanian said.

P&G has invested more than ₹20,000 crore in the past two decades in India, which is already among its top 10 markets globally. In June 2023, the company said it will invest ₹2,000 crore in Gujarat to set up an export hub that will make healthcare products, especially digestives.