Procter & Gamble Hygiene and Healthcare (PGHH) and Gillette India (GI), both listed entities of Procter & Gamble India, said in their investor conferences that despite near-term macroeconomic challenges, an above-normal monsoon will help revive demand in India.
Both companies are listed entities of Procter & Gamble India, Kumar Venkatasubramanian, CEO of P&G India and MD, PGHH and GI told investors: “While we expect the volatile macro dynamics we have been experiencing to continue… our best path forward remains to double down on our dynamic and constructive market strategy to deliver balanced top and bottom line growth and value creation.”
On the PGHH call, Mrinalini Srinivasan, Chief Financial Officer, said positive trends are finally emerging in India’s fast-moving consumer goods (FMCG) industry, across urban and rural areas.
“Inflation has been moderating steadily, with July and August closing below the RBI’s medium-term target of 4 per cent. Monsoon rains in 75 per cent of the country’s districts have been normal or above normal, and rural demand is expected to keep pace with these positive trends,” Srinivasan said.
However, he warned of declining rural wages and rising unemployment, but said both should stabilise in the near term with the government’s recently announced interventions, which should bode well for consumption trends.
“In the near term, we expect some challenges to continue to emerge. However, we remain confident in the dynamic and integrated nature of our strategy to help us navigate through the challenges and continue to serve underlying consumers and drive sustained business results,” he added.
Gautam Kamath, CFO of GI, said its core margins this year have improved significantly by around 200 basis points, driven by the company’s productivity efforts across different cost segments as well as innovation in premium segments to enable consumers to improve their consumption habits in line with their changing aspirations.
“We have been increasing our coverage consistently and effectively. Over the past three years, our reach and coverage have grown by more than 1.5 times,” he explained.
He also mentioned that the company has developed an in-house AI and machine learning algorithm that analyses consumer behaviour patterns to personalise a range of P&G products at the store level. With this, the company has moved from cluster-based planning to store- and neighbourhood-based planning.
“The festival season coincides with the crucial shopping period in the retail industry, and we have developed comprehensive plans to serve both rural and urban markets through traditional retail, modern retail and e-commerce channels, with strategic partnerships with our customers focused on joint value creation in the season,” he added.
First published: September 18, 2024 | 21:05 IS
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