Financial Daily from THE HINDU group of publications
Tuesday, Jan 29, 2002
Financial Daily from THE HINDU group of publications Tuesday, Jan 29, 2002 |
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Markets
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Impact Gillette India: Restructuring afoot BL Research Bureau
THE news that Gillette Inc US proposes to infuse funds into Gillette India by way of a capital grant may provide a temporary boost to the Gillette India stock price. The company has also announced its intention of stopping production at its Duracell facility due to its relatively high cost structure. The company hopes to keep up the supply of Duracell batteries for the domestic market through imports from overseas. That the company has initiated some restructuring moves to reduce its losses is a welcome development. But the actual quantum of the "capital grant" and size of the write-offs, if any, from the stoppage of production at the Duracell plant, may have more important implications for the valuation of the stock over the longer term.
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