 "p&g, Procter & Gamble, tide")
Procter & Gamble Hygiene & Health Care (PGHH) described the near-term market growth outlook for the fast-moving consumer goods sector as "cautiously optimistic".
At its first-ever investor day, which the company held for both its entities – PGHH and Gillette India, the firm noted that commodity prices continue to remain high. It hasn't seen the easing of cost pressures as anticipated.
"This implies that bottom-line pressures will persist. Of course, this could vary depending on the specific commodities that influence each industry," said Gautam Kamath, chief financial officer at Gillette India, while addressing investors.
He also stated that the company managed to offset headwinds through a mix of sensible pricing and its productivity programme.
While speaking at the PGHH investor event, Kamath, who holds the post of vice president-finance, said, "We anticipate volume consumption growth within the FMCG category to be in the mid-single digits over the next five to seven years."
He further noted that there are several categories where consumption is underdeveloped, and the company sees an opportunity to expand these sectors by a double-digit figure.
"To turn this into reality, the role we envisage for companies like P&G is to continue raising awareness and education. We aim to make our products available to consumers at diverse price points and retail channels and continue to please them with excellent propositions at the right value," Kamath said.
While discussing Gillette India, the company revealed that its market share is at an all-time high, exceeding 60 per cent. It plans to maintain its focus on integrated growth strategies to ensure robust growth in both the category and its market share.
In discussing feminine hygiene, which is part of PGHH, the company indicated that the figures are roughly 62 per cent for urban India and 35 per cent for rural areas.
"There is a considerable opportunity to boost penetration, even in urban localities," Kamath remarked. Additionally, the category has experienced twentyfold growth over the past two decades.
