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September, 2006 Pragati Maidan, New Delhi, India |
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Procter `N` Gamble hygiene to leave your pockets `clean`.
Company to hike product prices.
“We are evaluating the possibility of hiking prices.” Bharta patel, Chairman, Procter & Gamble Hygiene and Healthcare Ltd was quoted saying during the third notional FMCG Conclave organized by the confederation of Indian Industry held in Mumbai. However, there was no further elaboration on this subject
Later however, a spokesperson from the company confirmed that due to increase in the cost of raw materials, the company has to evaluate all options.
The company is a listed arm of the global FMCG giant. P&G requires petroleum-based jelly as a key ingredient for one of its products and significantly, FMCG companies are considering an increase in prices following the global hike in petroleum prices.
The detergent business of the company is routed through another arm of FMCG. The detergent segment has seen an intense price war this year and it does not seem to have reached its peek yet. The important players in this price war have been India’s largest FMCG company Hindustan Lever Ltd and P&G.
The chairman also mentioned that indirect taxes account for 22- 35% of the cost of FMCG companies in India as compared to 14- 17% in China and 12% in Indonesia. Hence, for the sector to grow in India it was important to introduce the national good and service tax, contemplated by the government.
“If the retail sector grew in a big way, there is a chance of GDP to increase by 1.5%” predicted, Bharat Patel.
Date: 22-Dec-2004
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