P&G (PGHH) and Gillette India (GI), both publicly traded subsidiaries of Procter & Gamble India, shared an optimistic outlook in their recent investor calls, highlighting that despite facing ongoing macroeconomic headwinds, a favorable monsoon season could help stimulate demand across India.
Kumar Venkatasubramanian, CEO of P&G India and Managing Director of both PGHH and GI, addressed investors, saying, “Although we anticipate the volatile macroeconomic conditions to persist, our best course of action is to reinforce our dynamic and market-focused strategies aimed at achieving balanced growth in both revenue and profitability, while driving value creation.”
During PGHH’s investor call, CFO Mrinalini Srinivasan pointed to emerging positive trends within the Indian fast-moving consumer goods (FMCG) sector, noting improvements in both urban and rural markets. She highlighted, “Inflation has been steadily easing, with July and August registering below the Reserve Bank of India’s medium-term target of 4%.
Moreover, monsoon conditions have been either normal or above average in 75% of the country’s districts, which we expect will sustain rural demand alongside these favorable trends.” Srinivasan did, however, caution about potential challenges such as falling rural wages and increasing unemployment rates. Yet, she expressed optimism that recent government initiatives would help stabilize these issues in the near future, providing a boost to consumption patterns.
She elaborated, “Looking ahead, we foresee some continued hurdles, but we remain confident in our adaptive and integrated strategy. This approach will help us navigate the complexities and continue meeting the needs of our consumers while driving sustained business results.”
Echoing similar sentiments, Gautam Kamath, CFO of Gillette India, discussed the company’s improved financial performance, particularly its structural margins, which have seen an increase of 200 basis points this year. Kamath attributed this improvement to productivity enhancements across various cost areas, as well as innovations in premium product segments that are encouraging consumers to trade up, reflecting their evolving aspirations.
Kamath further explained the company’s efforts to expand its reach, stating, “Over the past three years, we’ve expanded our coverage by more than 1.5 times.” Additionally, he highlighted the development of an in-house artificial intelligence (AI) and machine learning (ML) algorithm, which is designed to analyze consumer behavior patterns and tailor P&G product offerings at the store level.
This technological advancement has enabled the company to shift from cluster-based planning to a more localized, store-specific and neighborhood-oriented strategy. Kamath also discussed the upcoming festival season, noting its significance for the retail sector. He revealed that P&G has devised comprehensive plans to tap into both rural and urban markets by leveraging a variety of retail channels, including traditional outlets, modern retail, and e-commerce.
Strategic partnerships with key customers, he added, are centered on fostering joint value creation during this pivotal season. Both PGHH and GI are navigating a complex economic landscape with a clear focus on innovation, market expansion, and strategic execution, positioning themselves for sustained growth despite near-term challenges.
Procter & Gamble (P&G) India, a leading subsidiary of the global P&G corporation, is a major player in the Indian consumer goods market. It offers a wide range of products across categories like personal care, hygiene, and healthcare. Renowned for brands like Gillette and Whisper, P&G India focuses on innovation, sustainability, and enhancing consumer lives.
