New Delhi: Procter & Gamble Hygiene and Well being Care Ltd (PGHH), the maker of Whisper, Vicks, and Previous Spice, is seeing a gradual revival in rural consumption, at the same time as city demand stays beneath stress.
This divergence in shopper sentiment is more likely to affect near-term development within the fast-moving shopper items (FMCG) sector, a prime firm government mentioned on Thursday.
“Demand within the FMCG, business continues to evolve. Whereas the non-food inflation continues to remain beneath RBI’s (Reserve Financial institution of India’s) medium-term goal of 4%, consumption developments are nonetheless shifting,” mentioned Mrinalini Srinivasan, chief monetary officer, PGHH, throughout the firm’s digital analyst day.
With monsoon final yr and rural wages selecting up, rural demand is exhibiting indicators of wholesome restoration. “City demand will not be following the identical development. Quite the opposite, city India continues to face monetary challenges. Whereas the federal government has introduced interventions within the finances, we count on the affect of those on city consumption to take a while,” she mentioned.
Within the close to time period, a few of the challenges are anticipated to proceed, Srinivasan mentioned whereas sustaining a “cautiously optimistic” outlook for the longer term.
With the regular authorities and personal funding and optimistic financial indicators, there certainly are causes to be optimistic, she mentioned. “However one should control the evolving world commerce insurance policies, which is able to have an effect on inflation and doubtlessly demand,” Srinivasan added.
“Nonetheless, we stay assured within the dynamic and built-in nature of our technique to assist us navigate the difficulties and proceed to serve and delight customers and to drive sustained, balanced outcomes
FMCG volumes grew 4% within the 12 months ended 31 March, per researcher Kantar.
Additionally Learn: India’s FMCG divide unbranded merchandise surge in city, branded holds robust in rural
Monetary Efficiency and Enterprise Overview
For the 9 months ended 31 March 2025, the corporate reported internet gross sales of ₹3,374 crore, a 3% enhance in comparison with the corresponding nine-month interval.
Revenue after tax reached ₹636 crore, up 7% over the identical interval. This nine-month reporting interval is a results of the corporate’s transition to a brand new fiscal yr calendar, from its earlier 1 July to 30 June cycle.
Procter & Gamble, the Indian subsidiary of the American multinational shopper items large, operates by numerous entities in India, providing a variety of merchandise together with shampoo (Head & Shoulders), detergents (Ariel), child care (Pampers), and residential care (Ambi Pur).
Its Indian operations additionally embrace two main listed firms: Gillette India (female and male grooming) and PGHH (feminine hygiene and healthcare).
Over the last fiscal yr, PGHH reported “balanced” development throughout each the female hygiene and cough and chilly segments, alongside one in every of its strongest innovation pipelines lately. PGHH holds half the market share for branded ladies’s hygiene merchandise in India, promoting sanitary napkins beneath the Whisper model.
“This has been potential as a result of our focus has truly been to develop and construct the class, and that is what we’ll proceed to concentrate on. We can’t touch upon the longer term launches and plans. We nonetheless have vital alternatives for development, each on consumption and innovation within the classes we play,” she mentioned.
Price Administration and Distribution Enlargement
The corporate has been intensifying its cost-cutting efforts and implementing better productiveness measures, notably in response to excessive uncooked materials prices.
“Particularly final yr, by our productiveness interventions, PGHH achieved financial savings of over ₹93 crores. That’s the gas that permits us to reinvest in superiority throughout the 5 vectors and keep forward of what customers need,” mentioned Kumar Venkatasubramanian, CEO, PGHH.
Srinivasan famous that structural margins have improved considerably, regardless of mid-single-digit inflation in uncooked supplies and manpower, and elevated advert spends.
“…now we have nonetheless been capable of enhance our internet margin by about 60 foundation factors, pushed by our deliberate efforts on productiveness throughout all value buckets, in addition to innovation within the premium segments to allow customers to commerce up according to their aspirations,” she defined.
The corporate, which additionally sells male grooming merchandise beneath the Previous Spice model, mentioned has expanded its distribution community by including a million shops within the final three years.
