P & G Hygiene Targets 10% Rise In Exports

Procter & Gamble Hygiene and Health Care (P&GHH) has projected a 10 per cent growth in exports for the year 2001-02. "We expect a 10 per cent growth in exports for 2001-02. We would not like to put any figure to domestic sales," said A Chhabra, executive director and company secretary, on the sidelines of the annual general meeting (AGM).

Earlier, at the AGM, Bharat V Patel, company chairman said the global slowdown and the recent terrorist strikes in the US may have a impact on the company's sales. "The company is preparing to continue growing during the economic slowdown," Patel said.

 

One of the challenges before P&GHH is to reduce the prices of products. Prices are high as a result of huge amounts of tax building into prices, Patel said. On the other hand, the company is looking at improving profits by reduction in distribution and manufacturing costs.

P&GHH is setting up a website and when it is developed the company will do business through Internet. Regarding the share buyback scheme, Patel said, "We have no plans to go for a buyback."

P&GHH is a 65 per cent subsidiary of the US consumer goods major Procter & Gamble Co. The company has discontinued Tampax tampons from the market due to a unfavourable consumer response. The company test-marketed the product in Chennai and Madurai.

P&GHH will be focusing on two core categories -- healthcare (Vicks) and feminine hygiene (Whisper). The company will also be increasing its advertising expenditure compared with last year.

It had curtailed adspend for one of its product Vicks Action 500 because of the problems in getting the raw material (ingredient) for the product.