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GILLETTE Finalllll

Gillette was founded in 1901 and began expanding globally in the 1920s. It introduced many innovations for razors over the decades, including adding more blades. Gillette India was incorporated in 1984 and is now co-owned by P&G and others. It faces competition in India from local companies. While Gillette India saw strong growth in the late 1990s and early 2000s, its profits have since declined due to higher costs and competition. However, it aims to boost rural sales and efficiency going forward.

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112 views

GILLETTE Finalllll

Gillette was founded in 1901 and began expanding globally in the 1920s. It introduced many innovations for razors over the decades, including adding more blades. Gillette India was incorporated in 1984 and is now co-owned by P&G and others. It faces competition in India from local companies. While Gillette India saw strong growth in the late 1990s and early 2000s, its profits have since declined due to higher costs and competition. However, it aims to boost rural sales and efficiency going forward.

Uploaded by

vijaysingh_83
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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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

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