P&G Hygiene and Health Care Reports Positive Consumption Trends in India

Positive trends emerging in consumption, green shoots visible: P&G Hygiene and Health Care

New Delhi: Positive trends are emerging in consumption from rural and urban markets, inflation has been softening consistently and the financial outlook will continue to attract investments, Procter & Gamble Hygiene and Health Care Ltd (PGHHC) top officials said on Wednesday. Rural demand is expected to keep up as over 75 districts have received either normal or above normal rainfall. Moreover, with the government's intervention, issues on wages and rising unemployment should stabilise in the near term, PGHHC management said in an investors and analysts call led by its Managing Director and CEO, P&G India, V Kumar. However, in the nearer term, Procter & Gamble group firm also anticipates some challenges to continue, though it remains confident in the dynamic and integrated nature of our strategy to navigate the difficulties, he said. "We are definitely seeing green shoots in rural consumption, primarily behind good monsoon softening inflation. The category demand is growing healthily, with category sales and users growing in double digits," said PGHHC CFO Mrinalini Srinivasan. PGHHC operates in the feminine care category with the brand Whisper and Cough & Cold segment with Vicks. The company is market leader in both segments, having nearly half the market. As part of its "strategic approach", PGHHC recognises the significance of growing consumption and creating value in various markets, she said. "The festive season aligns with a crucial buying period in the retail industry, and we have developed comprehensive plans to cater to both rural and urban markets through traditional retail, modern retail and e-commerce channels, with strategic partners, with our customers focused," Srinivasan said. Feminine care contributes about 70 per cent of its revenue, while healthcare is about 30 per cent, she said. Responding to a query on distribution, she said over the last three years, PGHHC's reach and coverage has grown more than 1.5 times. "Even in the feminine hygiene category, we have grown our distribution footprints over 1.2 times in the last few years," she added. The company is also leveraging the power of data and digital transformation. It has developed an in-house artificial intelligence and machine learning algorithm that analyses consumer behaviour patterns. "With this, we have transitioned from cluster level planning to store or neighbourhood-level planning. This model is helpful for the consumer in making their desired products available in store, and helpful for the store owners in helping them maximise sales, optimising inventory and significantly reducing non-moving stock," she added. PGHHC, which has entered into the sleep category with Vicks ZzzQuil -- a nutraceutical sleep supplement -- believes that this is an emerging markets and is increasing its presence in the segment. "In India, conditions such as occasional sleeplessness continue to be under-diagnosed and under-treated due to limited awareness. To address this, we are focusing on a multi-channel and integrated approach on ways to address occasional challenges of sleep onset," Srinivasan said. On the growth of quick-commerce in FMCG channels, Srinivasan said India's quick commerce has experienced a 22 per cent rise in monthly active users when compared on India's top five quick commerce websites in July versus in January this year. "While currently a small channel, it is growing rapidly for us, and it is expected to continue to drive the growth across FMCG as the channel expands to multiple locations, the penetration and frequency of use differ significantly by geography and demographics," she said. PGHHC has "invested in developing a deep understanding of the consumer behavior on quick commerce, which tells us that their paths to purchase is unique, focus disproportionately on convenience in this channel". The company, which follows the July-June financial year, reported a 7.34 per cent in revenue at Rs 4,205.70 crore in 2024.

Positive trends visible in rural and urban consumption, trends says P&G Hygiene and Health Care

Procter & Gamble Hygiene and Health Care Ltd on Wednesday said it is witnessing emergence of "positive consumption trends" in both rural and urban regions on the back of softening of inflationary pressures and above normal monsoons. The company said that while rural wages and unemployment levels will be key monitorables but expects these to stabilise in the near term due to government interventions. Procter & Gamble Hygiene and Health Care sells Whisper, Vicks and Old Spice. In India, P&G is represented by four entities which include P&G Hygiene and Health Care, Gillette India, P&G Home Products and P&G Health. Declining rural wages On an investor call, Mrinalini Srinivasan, CFO, Procter & Gamble Hygiene and Health Care Ltd said, "In the FMCG industry, positive trends are finally emerging in consumption, both rural and urban... Inflation has been consistently softening... Monsoon across 75 per cent of the country's districts has been either normal or above normal, and rural demand is expected to keep up with these positive trends. The watch-out though is declining rural wages and rising unemployment, both of which should stabilise in the near term with government's recently announced interventions." The FMCG major said that while it anticipates some challenges in the near term, it remains confident that it will navigate these difficulties to drive "sustained business results." In the June quarter, the FMCG industry reported about 4 per cent volume growth and is expected to end 2024 at mid-single digit growth. Stating that consumption remains underdeveloped in several categories, Srinivasan added that the company sees strong potential in driving category growth to meet the evolving consumer needs and aspirations by "doubling down on the company's integrated growth strategy." Talking about the company's focus on Supply 3.0 initiatives, V Kumar, MD, Procter & Gamble Hygiene and Health Care Ltd, and CEO, P&G India said the company is seamlessly leveraging on data, analytics, automation and Artificial Intelligence technology to enable speed and effectiveness in manufacturing processes and operations and make its products available to consumers swiftly. a Feminine care segment is leading the growth for PGHH and contributes nearly 70 per cent to its revenues. "We are the market leaders in the feminine care category which now stands at ₹3,400 crore. We expect double-digit growth to continue over the next three years for the category," said Srinivasan. Quick commerce The FMCG major said that it has grown its distribution reach by "more than 1.5x times" over the last three years. It is also betting big on quick commerce channel which is expanding to new locations. "While currently a small channel, quick commerce for us is more than doubling year-on-year," she said while adding that the channel's growth is driven by consumers increasingly seeking convenience. In a separate investor call for Gillette India Ltd, the company's management said that growth in oral care segment, which consists of Oral B toothbrushes, has been "slow" due to intense competition in the entry tier segment but it has continued to "maintain" its "business size in the category" despite these challenges. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on September 18, 2024