gillette_finalllll

8/9/2019 GILLETTE_Finalllll

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GILLETTE INDIA LTD.


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BriefHistory OfGillette 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 in1952


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Gillettes GreatBrands


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Gillettes Firsts Safetyrazor(GilletteSafety Razor1901)

Razormarketedspecificallyto women (Milady Dcollete, 1916)

Razordispenser(1946)

StainlessSteel blades (SuperStainless, 1963)

Double-bladerazor(Trac II, 1971)

Disposabledouble-bladerazor(Good News!, 1971)

Razorwithapivotpoint (Atra, 1977)

Razorwithalubricatingstrip (Atra Plus, 1985)

Razorwithspring-loaded blades (Sensor, 1990)

Razorwith microfins (SensorExcel, 1995)

Razorwiththree blades (Mach3, 1998) Razorwith batterypower(M3Power, 2004)

Razorwithfive blades (Fusion, 2006)

Razorwithreartrim blade (Fusion, 2006)


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Interesting Facts About Gillette 1.2 bn consumers per day use the

companys products

Market capitalization of $3.76 bn

Ranked 129 by Forbes 500, 2002issue.


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Mergers & AcquisitionsName of the Company Acquired Year

Papermate (USA) 1955

Braun AG 1967

SA DuPont 1971

Jafra Cosmetics 1973

Eraser Mate 1979Oral-B Labs Inc. 1984


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Contd

Mergers & Acquisitions

Name Of the Company Acquired Year

Waterman 1987

Parker Pen Holding Ltd 1993

Duracell International 1996


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Gillette India Incorporated on February 9th, 1984 in

Rajasthan

Incorporated as Razor Blades andShaving Systems

Now known as Gillette India Ltd

Co-owned by House of Poddar Enterprise Gillette, USA -24% stake


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ManagementofGillette 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


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Indian Competitors Reckitt Benckinser (India)

BASF India Ltd.

Henkel (India) Ltd.

HLL


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Gillette Strategies Focus on Branding across price lines

Brand Coverage

Focus on Volume Sales

Heavy Investment in Advertisement

Concentration on its Core Business


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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


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SWOT Analysis Opportunities

-- New product launches

-- Price increase in premium products

-- Growth potential in other countries

Threats

-- Imitations of products-- Competitive environment


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Financials-Gillette India(AmtinCrores)

Dec 1999

Sales Turnover 2500

Total Income 2353

Net Profit 194

Current Asset 494

Earnings Per Share 15.1

Dec 2000 %tage Growth

5168 106.72

4966 111.04

264 36.08

1622 228.34

8.1 -46.35


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TURN

AROUN

D (1999-00) In 1998 Net Profit took severe beating

Started a three pronged restructuringprogram

- Functional Excellence

- Strategic Re-look

- Financial Turnaround


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P&Gs TakeoverofGillette

Signed an acquisition deal on January 28th,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


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N

ews 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


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Financials-Gillette India(AmtinCrores)

Jun '05

Sales Turnover 112.09

Total Income 116.67

Total Expenses 85.72

Operating Profit 26.37

Net Profit 17.57Earnings Per Share 5.39

Jun '06 %tage Growth

139.48 24.43%

147.56 26.47%

133.47 55.70%

6.01 -77.20%

5.92 -66.30%1.82 -66.23%


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Future Growth Prospects Tapping Rural Markets

Improving Operational Efficiency

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