The Hindu Business Line : `It is too early to predict impact'

THE global acquisition of The Gillette Company by Procter & Gamble, announced today, is expected to create the largest consumer goods company worldwide, but implications of this deal for Gillette in India were not clear.

At present, Gillette India is a subsidiary of the US parent with foreign promoters directly holding 41.02 per cent stake. Indian promoters hold 44.11 per cent of the company's equity whereas the Indian public holds 7.63 per cent, as on December 31, 2004.

When contacted, the company Managing Director, Mr Zubair Ahmed, told Business Line: "I have heard nothing from the headquarters at Boston yet, so I am unable to comment on any implications the acquisition may have for India. I can only say that this acquisition will create the largest consumer goods company worldwide with strong global brands."

Asked about P&G's intention to cut jobs globally after the acquisition is completed, he said, "what can I say to this" while declining to comment further on the matter.

Gillette India posted Rs 44.82 crore net profit on Rs 363 crore net sales in the 12-months ended December 31, 2003. For the third quarter ended September 30, 2004, the company posted Rs 15.6 crore net profit on Rs 107.35 crore net sales.

Meanwhile, Mr Shantanu Khosla, Country Manager of P&G India, said in a statement: "It is too early to predict the impact of the Gillette acquisition on the P&G India business. We will keep you posted on the details as and when the impact of this acquisition crystallises at the country-by-country level."

P&G is present in India through two companies - the listed arm P&G Hygiene and Healthcare Ltd and P&G Home Products Ltd.

It is present in healthcare, feminine care products, detergents and shampoos, with well-known brands including Vicks, Whisper, Pantene and Ariel. For the year ended June 30, 2004, the listed arm posted Rs 577.24 crore net sales with Rs 92.17 crore net profit.

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