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P&G Plans New Plant in India

November 22, 2005

INDIA: Procter & Gamble plans to build a manufacturing unit for shampoo in India as the domestic market has shown growth in terms of volume, according to a top company
official at P&G.
At present, the company imports the entire range of its shampoo, which includes Head & Shoulders, Pantene and Rejoice, from Thailand and other Asian countries and manufactures detergents Tide and Ariel in Mandideep (Madhya Pradesh) and sanitary napkins Whisper and Vicks in Kundaim (Goa).
“We are toying with the idea of a third manufacturing unit,” said P&G executive director, hygiene and healthcare, Ashok Chhabra. Asked whether the company would tinker with shampoo prices, he said, “We will continue with the same price positioning.”
At present, P&G has a 20-25% market share in the Indian shampoo market, which is growing at a rate of about 7% annually.
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