P&G plans for growth in India

02 November 2009

NEW DELHI: Procter & Gamble, the world's biggest advertiser, is aiming to attract some 500 million new customers to its products in India over the next five years, as it seeks to boost sales in what is regarded as a key future growth market.

As previously reported, the Cincinnati-based firm has outlined its intentions to increase the size of its global customer base by 1 billion people in the short-to-medium-term, taking it to a total of 5 billion overall.
More specifically, it is hoping to raise the amount spent per consumer in China and India from $3 (€2.03; £1.82) and $1 per head, respectively, at present to around $20, which is the current average total recorded in Mexico.

Sumeet Vohra, the US corporation's marketing director in India, has now predicted "we will add half a billion new consumers by 2014" in this one country alone.

This would mean the company's penetration level in India would extend to around 75% of the entire population, which is estimated to be approaching some 1.3 billion people.
P&G's operations in the Asian nation are divided into three separate units, each of which covers a specific aspect of its broad portfolio of products, and two of which are listed locally.

Of these, Procter & Gamble Hygiene and Healthcare posted revenues of 774 crore rupees ($164.9m) in the year to June, while Gillette India recorded sales of 662 crore rupees over the same period.

As it is not listed in India, Procter & Gamble Home Products, which houses brands from Tide to Pantene, does not release sales figures, but it is estimated to generate revenues at least matching those of its two counterparts combined.

Pampers, the nappy brand, is one of P&G's major success stories in India at present, having taken market leadership just two years after being launched in the rapidly-developing economy.

Olay, its skincare brand, has also quickly picked up a 6% share of its category in the country, where sales in the anti-ageing segment as a whole have doubled in the recent past.

Alongside developing its distribution network, it is thought the multinational operator will heighten its focus on rural consumers, who are expected to be among the key drivers of growth in the FMCG market going forward.

Data source from Livemint; additional content by Warc staff