GILLETTE INDIA LTD.

Brief History Of Gillette

 Founded by King C. Gillette on September
28,1901 in Boston, Massachusetts
 Initially named as “American Safety Razor
Company”
 Began its worldwide expansion in UK, Germany,
Denmark, Italy & Canada from 1920
 Changed the name to “The Gillette Company” in
1952
Gillette’s Great Brands
 Gillette’s Firsts
 Safety razor (Gillette Safety Razor 1901)
 Razor marketed specifically to women (Milady Décolletée, 1916)
 Razor dispenser (1946)
 Stainless Steel blades (Super Stainless, 1963)
 Double-blade razor (Trac II, 1971)
 Disposable double-blade razor (Good News!, 1971)
 Razor with a pivot point (Atra, 1977)
 Razor with a lubricating strip (Atra Plus, 1985)
 Razor with spring-loaded blades (Sensor, 1990)
 Razor with microfins (Sensor Excel, 1995)
 Razor with three blades (Mach3, 1998)
 Razor with battery power (M3Power, 2004)
 Razor with five blades (Fusion, 2006)
 Razor with rear trim blade (Fusion, 2006)
Interesting Facts About Gillette
 1.2 bn consumers per day use the
company’s products

 Market capitalization of $3.76 bn

 Ranked 129 by Forbes 500, 2002

issue.
Mergers & Acquisitions
Name of the Company Acquired Year
Papermate (USA) 1955
Braun AG 1967
SA DuPont 1971
Jafra Cosmetics 1973
Eraser Mate 1979
Oral-B Labs Inc. 1984
 …Contd

Mergers & Acquisitions

Name Of the Company Acquired Year
Waterman 1987
Parker Pen Holding Ltd 1993
Duracell International 1996
 Gillette India
 Incorporated on February 9th, 1984 in
Rajasthan
 Incorporated as Razor Blades and
Shaving Systems
 Now known as Gillette India Ltd
 Co-owned by House of Poddar Enterprise
 Gillette, USA -24% stake
Management of Gillette India
 S K Poddar  Chairman
 Zubair Ahmed   Managing Director
 R A Shah  Director
 B S Mehta  Director
 C R Dua  Director
 Subhash Bansal  Director
 Devdas Baliga  Company Secretary
 Indian Competitors
 Reckitt Benckinser (India)
 BASF India Ltd.
 Henkel (India) Ltd.
 HLL
Gillette Strategies
 Focus on Branding across price lines
 Brand Coverage
 Focus on Volume Sales
 Heavy Investment in Advertisement
 Concentration on its Core Business
SWOT Analysis
 Strengths
-- Strong Brand Equity
-- Market Leadership
-- Well-diversified Portfolio
-- Turnaround in Operating Performance
 Weaknesses
-- Profitability highly dependent on Core Business
-- Over reliance on a single Customer
SWOT Analysis
 Opportunities
-- New product launches
-- Price increase in premium products
-- Growth potential in other countries
 Threats
-- Imitations of products
-- Competitive environment
 Financials-Gillette India
(Amt in Crores)

Dec 1999 Dec 2000 %tage Growth

Sales Turnover 2500 5168 106.72

Total Income 2353 4966 111.04
Net Profit 194 264 36.08
Current Asset 494 1622 228.34
Earnings Per Share 15.1 8.1 -46.35
TURNAROUND –(1999-00)
 In 1998 Net Profit took severe beating
 Started a three pronged restructuring
program
- Functional Excellence
- Strategic Re-look
- Financial Turnaround
P&G’s Takeover of Gillette
 Signed an acquisition deal on January 28 th,2005
 Transaction is valued at approximately $57 bn
 Terrific fit
 A portfolio of $21 bn brands
 Complementary expertise in health and personal
care
 Acquired Gillette India on June 10,2006
 News and Problems Faced
 Current Market value of stock-RS 860.
 Strong Competition –Unorganized Sector
 Volume driven and Low margins
 Huge Advertising cost- Brand Building
 High Duplicity of products
 Shrink in Profits
 Financials-Gillette India
(Amt in Crores)

Jun '05 Jun '06 %tage Growth

Sales Turnover 112.09 139.48 24.43%

Total Income 116.67 147.56 26.47%
Total Expenses 85.72 133.47 55.70%
Operating Profit 26.37 6.01 -77.20%
Net Profit 17.57 5.92 -66.30%
Earnings Per Share 5.39 1.82 -66.23%
 Future Growth Prospects
 Tapping Rural Markets
 Improving Operational Efficiency