Till now, P&G imports most of its premium products manufactured in other countries to India for sale. The imports add an additional overhead to its products which put them on an unaffordable premium product shelves. The decision of P&G is to invest Rs. 700 crores to enhance the production capacity of P&G firms in India so that they can cater to the demands of its products and distribute them through its 1.3 million outlets across the country.
No doubt that P&G has made a well calculated move by deciding to enhance the production of its premium and mass premium products in India. Whether it is going to be successful or not remains to be seen.
Article “P&G Plans Big Move, to Make More Locally” by Mr. Sagar Malviya in The Economic Times dated 14th November 2011
The writer of this article, Abhay Shankar is a PGP student of Indian Institute of Management, Raipur and has done his B. Tech (Chemical Engineering) from BIT Sindri. Prior to joining IIM Raipur, Abhay was working at Vedanta Aluminium Ltd. Abhay can be reached at email@example.com