Johnson, P & G May Face Action

The industry ministry is contemplating prosecuting Johnson & Johnson (J&J) and Procter & Gamble (P&G) for alleged manufacture of sanitary towels, an item reserved for small-scale industries (SSI).

According to ministry sources, the department has identified the two multinationals for alleged violation of SSI norms on the ground that while the companies had been given permission to manufacture and market sanitary napkins, ministry investigation has revealed that the companies were also manufacturing sanitary towels.

"Our investigations have shown that, instead of manufacturing and marketing sanitary napkins, the two companies are also producing towels reserved for SSIs," ministry sources said.

However, they refused to clarify whether the ministry has already identified a prosecuting officer and whether show-cause notices have been sent to the two companies, if at all they have to be.

 

An official spokesperson for Johnson & Johnson clarified that the company manufactures sanitary protection products. He said, "Sanitary protection products are not reserved for small sector. What is reserved (for SSIs) is sanitary towels. What we manufacture is high technology sanitary protection products (important brands include Stayfree and Carefree). Sanitary towels is an unsophisticated crude devise traditionally used by Indian women during menstruation."

An official spokesperson for P&G did not elaborate the type of sanitray protection products which the company produces and stated that since it is not aware of any move by the ministry to prosecute P&G, it has no comments to offer.

In a case relating to SSIs recently, industry minister Sikander Bakht had rejected a proposal of General de Confiteria India Ltd (GCIL) to include in its present activities marketing and distribution of confectionery items and chewing gums manufactured by small-scale sector despite the FIPB recommendation for its clearance.

P&G (whose Whisper is the market leader) and J&J, which has brands like Carefree, Stayfree, Stayfree Silky Dry, Stayfree Secure and Stayfree Spirit under its stable, dominate the Rs 130-crore, 350-million pieces sanitary napkin market in India which has been growing by six-seven per cent a year.

However, the penetration of branded sanitary napkins in the country is abysmally low at around 10 per cent. In contrast, the penetration level is a whopping 65 per cent in Philippines and 41 per cent in Indonesia. Even in India, a healthcare products like shampoo has a reasonably high penetration level of 30 per cent.

The untapped 90 per cent of the potential market for branded sanitary napkins is perceived as a tremendous prospect for manufacturer of low-end products.

As an effort to tap this area, Kimberly-Clark Lever Ltd, a 50:50 joint venture between Hindustan Lever and the $7-billion US paper products company Kimberly-Clark Corporation, has launched its Kotex brand.

Priced at Rs 20 a pack of 10, Kotex is targeted at first-time users and those that make do with home-made pads.