The Hindu Business Line : Gillette drives biz growth post merger with P&G

Personal care products' company Gillette has consolidated its businesses in India post global merger with Procter & Gamble and has put in place a new distribution set-up for itself.

During the first six months (April - September 2006), sales have grown 5 per cent to Rs 241 crore compared with the same period last year while the operating profit before tax has increased nearly 12 per cent to Rs 65 crore. "This is due to best in class effort towards integration of business and ensuring continued focus on the key revenue drivers and cost synergies," the Gillette India Director, Mr Ashok Chhabra, told Business Line.

Early last year, in a worldwide merger, Procter & Gamble acquired shaving products' company Gillette for about $55 billion.

Mr Chhabra said with Gillette India Ltd (GIL) relocating its headquarters to Mumbai, the company is on the lookout for buyers for its office space near Delhi. The office space is spread across 67,000 sq ft.

He said post acquisition, Gillette as a part of P&G, has been able to further accelerate growth and enhance the reach of its brands by leveraging synergies such as access to efficient distribution set-up; bigger scale to improve efficiencies and effectiveness with suppliers.

The company, which operates in three segments namely grooming, oral care and portable products, has also put in place a new distribution structure. "The new distribution structure has significantly increased Gillette's direct coverage, enhanced wholesale coverage and help service more retailers and reach more consumers efficiently," he said. Though he did not disclose investment plans, Mr Chhabra said investments behind marketing campaigns to promote Vector Plus with cricketer Irfan Pathan as its brand ambassador indicates the company's commitment to build Gillette as a brand.

"We have been making all the right investments to meet business needs," he said.

More Stories on : Performance | Personal Products

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page