P&G Licenses Camay Soap To India’s Nirma

Procter & Gamble Hygiene and Health Care Ltd., Bombay, said Tuesday it has licensed its Camay brand of soaps in India to Nirma Ltd. because it plans to concentrate on just four markets. Under terms of the agreement, Nirma will have an exclusive right to manufacture and market the Camay brand of soap in India, said Ashok Chhabra, executive director of P&G. He didn’t disclose the financial arrangements, but said that the agreement is valid initially for of five years.

“They (Nirma) are the best suited for that (selling toilet soaps),” said Mr. Chhabra. “The arrangement is due to the fact that we’ve decided to focus just on the best four segments.”

Nirma is one of the largest detergent and soap manufacturers in the country with a sales of nearly $400 million for the year ended March 31. Procter & Gamble will focus on hair care, feminine care, health care and fabric care, Mr. Chhabra said.

P&G hopes to grow revenue and profits in the current year, despite market concerns about a likely slump in demand in the vital rural market following a poor monsoon that may hurt agricultural income.

“It’s a tough phase. But we are taking steps to ensure growth,” he said.

For the quarter ended June, Procter & Gamble posted a 12.7% on-year drop in net profit to $3 million. Sales fell 9.8% to $18.7 million.