P&G to manufacture personal care products locally for Indian market

By Pooja Kondhia

- Last updated on GMT

Related tags: Personal care

P&G to manufacture personal care products locally for Indian market
P&G is to begin manufacturing personal care products locally for the Indian market as part of its sustainability efforts and an increased focus on growing its presence in the emerging market.

At present a large number of P&G’s beauty and personal care products are imported in to India, involving extra distribution and transportation costs.

With the decision to manufacture goods locally, the personal care giant is cutting down on its operational costs as well as keeping in line with its sustainability initiatives and reducing its carbon footprint.

The personal care player says it is now en route to reaching its goal to decrease the use of truck transportation by 20 percent by the year 2020.

Expansion with minimized environmental impact

In addition to reducing its environmental impact, P&G is striving to expand its presence in the Indian market, which is currently dominated by personal care giant Unilever.

India is an important market for P&G and one where we've seen great growth​”, a P&G spokesperson told CosmeticsDesign.com USA.

According to Euromonitor, beauty and personal care in India saw a 14 percent increase in 2010 which is expected to continue into 2011-12 with 13 percent growth.

As part of expanding its presence in India, P&G is extending its reach into rural areas with the expertise of local manufacturers and contractors. According to Euromonitor, rural areas account for 70 percent of the country’s population.

Underlining the fact that consumer understanding to be a key area of focus and a reason for using local expertise, the P&G spokesperson added, “We have to manufacture close to the consumer, ​[as] the needs of the Indian consumer are different than others​”.

Irina Barbalova, head of beauty and personal care research at Euromonitor reiterated the growth potential of India, telling CosmeticsDesign.com USA:

Characterized by strong growth in middle class income and increased spending on beauty …India has an enormous untapped potential, with a number of major beauty and personal care players’ commitment to expand in this market a strong testament to this​.”

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