The Hindu Business Line : Price cuts not due to competition, says P&G

PROCTER & Gamble, which recently cut the prices of its detergent brands Ariel and Tide by 20-50 per cent, insisted on Thursday that the price reduction is not competition-centric, but a result of improvements in distribution, manufacturing and procurement processes.

In Chennai, at a press conference to announce the price cuts, Mr J.P. Kuehwlein, Brand Manager-Fabric & Home Care, ASEAN-Australasia-India, P&G, said he expected volumes to increase as a result, but wouldn't say by how much.

Asked about the possibility of further price cuts, especially in the light of a likely response from competitors, Mr Kuehwlein said price movements always exist in a dynamic market, but ruled out a drastic cut as has been seen now.

The company also said there are no immediate plans to launch new brands in the popular segment, which constitutes over half of the Rs 4,000-crore detergents market in India.

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