The Hindu Business Line : P&G to stop VapoRub export to Asian countries

PROCTER & Gamble Hygiene and Health Care Ltd (P&GHH) will stop exporting Vicks VapoRub (VVR) to Asian countries, come February 1, the company today told the BSE.

"India will continue to be the supplying hub of VVR for Procter & Gamble subsidiaries in Asia. However, the product will be directly exported by the contract manufacturer to simplify processes. This change will not significantly affect sales of the company," it added. The Hyderabad-based Makson India Private Ltd is the contract manufacturer for this product.

VVR exports formed less than 5 per cent of P&GHH's turnover and continues to be on the declining mode, the company said. The profit too will not be affected following the stoppage of VVR exports as the company in terms of its agreement with P&G, Singapore, will receive compensation to commensurate the loss in profits that will have accrued up to June 2006.

Meanwhile, P&GHH has clocked an 18 per cent growth in sales and 11 per cent growth in net profit for the second quarter ended December 31, 2003. The company achieved sales of Rs.167.25 crore during the quarter, as compared to Rs 141.32 crore in the corresponding period last year. Profit after tax (PAT) stood at Rs 39.32 crore, the company said in a communiqué here today.

For the six-month period ended December 31, P&GHH achieved a sales of Rs 296.38 crore, a growth of 19 per cent over last year's Rs 249.83 crore. Sales of its core categories, healthcare and feminine hygiene, grew by 17 per cent. PAT increased by 12 per cent to Rs 61.38 crore during July-December 2003 from Rs 54.89 crore in the same period last year.

PGHH also said it has appointed Mr Pramod Agarwal as an Additional Director of the company with immediate effect.

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