P&g company analysis

Report by: Abhay chavan

Procter & Gamble

American global corporation based in Cincinnati, Ohio.

P&G is the world's largest consumer goods company that markets more than 300 brands in over180 countries.

ranked 86 in the 2012 fortune 500 list with a revenue of $ 82.5 billion.

As of 2008, P&G is the 23rd largest US company by revenue and 14th largest by profit.

Chief Executive Magazine named P&G the best overall company for leadership development in its list of the "40 Best Companies for Leaders

  P&G India

subsidiary of world’s largest consumer goods company Procter & Gamble .

largest and amongst the fastest growing consumer goods companies in India.

established in 1964 and Regilional office in Mumbai.

serves over 650 million consumers.

Its presence pans across the Beauty & Grooming segment, the Household Care segment as well as the Health & Well Being segment.

P&G operates under three entities in India - 1. “Procter & Gamble Hygiene and Health Care Limited”

and 2. “Gillette India Limited”,3. “Procter & Gamble Home Products”.

Has a direct reach of 1.3 million outlets across India.

invested in the country via its five plants and over nine contract manufacturing sites.

creates 26,000 jobs directly and indirectly.

Procter & Gamble, will build its largest manufacturing plant in

the Indian sub-continent in Hyderabad by investing 345 crore.

FOUNDERS

William Procter, a candle maker, and James Gamble, a soap maker, emigrated from England and Ireland respectively.

History: William Procter, a candle maker, and James Gamble, a soap maker,

immigrants from England and Ireland respectively who had settled earlier in Cincinnati, who met as they both married sisters, Olivia and Elizabeth Norris, formed the company initially. Alexander Norris, their father-in law called a meeting in which he convinced his new sons-in-law to become business partners. On October 31, 1837, as a result of the suggestion, Procter & Gamble was born.

In 1859, sales reached one million dollars. By this point, approximately eighty employees worked for Procter & Gamble. During the American Civil War, the company won contracts to supply the Union Army with soap and candles. In addition to the increased profits experienced during the war, the military contracts introduced soldiers from all over the country to Procter & Gamble's products.

1879

James Norris Gamble, son of the founder and a trained chemist, develops an inexpensive white soap equal to high-quality, imported castiles. Inspiration for the soap’s name – Ivory

History of P&G 1882

Harley Procter convinces the partners to allocate $11,000 to advertise Ivory nationally for the first time. Ivory’s purity and floating capability are first advertised across the country in the Independent, a weekly newspaper

1890 — 1945

A Company Built on Innovation. By 1890, P&G was selling more than 30 different types of soap, including Ivory. Fueled by full-color print ads in national magazines, consumer demand for P&G soaps continued to grow. To meet this increasing demand, the Company expanded its operations outside Cincinnati, with a plant in Kansas City, Kansas, followed by a plant in Ontario, Canada. As each new plant opened

1890-1896

After running the Company as a partnership for 53 years, the partners incorporate to raise additional capital for expansion. William Alexander Procter, son of the founder, is named the first president

Values

P&G Brands and P&G People are the foundation of P&G’s success. P&G PeopleBring the values to life as we focus on improving the lives of the world’s consumers.

PRINCIPLES P&G Show Respect for All Individuals The Interests of the Company and the

Individual Are Inseparable P&G Strategically Focused in Their Work Innovation Is the Cornerstone of P&G

Success P&G Are Externally Focused Value Personal Mastery Mutual Interdependency Is a Way of Life P&G Seek to Be the Best

ORGANIZATION STRUCTURE

Chairman of the Board, President and Chief ExecutiveThe Procter & Gamble Company

A. G. Lafley

Board of Directors of P&G in India

Mr. Shantanu Khosla Mr. B. S. Mehta Mr. G. C. Das Managing Director Chairman Director

Mr. C. R. Dua Mr. Anil Kumar Gupta Mr. Pramod AgarwalDirector Director Director

Ms. Sonali Dhawan Ms. Jessica Rastogi Director Deputy Company Secretary & Compliance Office

Top Management of P&G

SALES & SHARE MARKET INFORMATION

Sales Information of 2014

NET SALES ($M)

%TOTAL SALES

NET EARNINGS($M)

%TOTAL EARNINGS

BILLION DOLLAR BRANDS

BEAUTY $19,507 24% $2,739 23% HEAD & SHOULDERS, OLAY, PANTENE

GROOMING $8,009 10% $1,954 17% GILLETE, MACH3, FUSION

HEALTH CARE $7,798 9% $1,083 9% Crest, Vicks, ORAL-B

FABRIC AND HOME CARE

$26,060 32% $3,039 26% ARIEL,DURA CELL,TIDE

BABY AND FAMILY CARE

$20,950 25% $2,940 25% BOUNTY, ALWAYS, CHARMIN, PAMPERS

Share Market Details

Market Cap (Rs Cr): 16,606

EPS – TTM (Rs): 84.22

P/E Ratio (x): 60.68

Latest Div. (%): 275.00

Div. Yield (%): 0.53

Book Value / Sh. (Rs): 308.96

P/B Ratio (x): 16.56

Face Value(Rs): 10

P&G INDIA BRANDS

Ariel Introduced in 1991, Ariel was the first to bring

the 'compact detergent' technology, the enzyme technology for safe and superior stain-removing power and the 'smart eyes' technology into India, with an aim of becoming India's best stain removal detergent. Ariel contains safe ingredients for all fabrics under recommended usage conditions for laundry. The Ariel product range in India includes different variants to meet your specific needs like Ariel OxyBlu, Ariel Oxyblu Ultramatic, Ariel Front O Mat, Ariel 2in1.

Duracell

Duracell batteries have a history of providing dependable power when and where you need it the most. Our range of Batteries gives you the right power for all your device needs, providing up to 10x performance.

Gillette Gillette® has been at the heart of men’s

grooming for over 100 years. Each day, more than 600 million men around the world trust their faces and skin to Gillette’s innovative razors and shaving products designed for the unique needs of men – helping them to look, feel and be their best every day. The razor range in India includes Gillette Vector, Gillette Mach3, Gillette Mach3 Turbo, Gillette Guard and Gillette Mach3 Turbo Sensitive and Gillette Fusion.

Head & Shoulders Since 1950, Head & Shoulders has been at the

forefront of scalp and hair science, significantly advancing the treatment of dandruff and scalp problems. Along with professional advice and expert insight we have a wide range of products to care for your scalp and nurture your hair.

Head & Shoulders is available in 8 variants in India including Men Hair Retain, Complete Care for Dry Scalp, Anti Hair fall, Smooth & Silky, Cool Menthol, Clean & Balanced, Thick & Long & Silky Black.

Tide Tide is the World’s Oldest & Most Trusted Detergent

brand and is the Market Leader in 23 Countries around the world. Launched in India in mid-2000, Tide provides ‘Outstanding Whiteness’ on white clothes & excellent cleaning on coloured clothes as well. Tide’s Fabric Whitening Agents clean clothes without bleaching or removing colour from a garment. The Tide range in India includes Tide (Detergent) and Tide (Bar with Whiteons). Tide Naturals was launched in India in December 2009. Packed with the benefits of lemon and chandan, it provides great cleaning while keepin€g the hands soft.Vicks

Vicks has long been invested in the science and research of respiratory health and through that dedication has developed a wide range of therapeutic products that offer effective relief for all the major signs and symptoms of the common cold, flu and sinus pain and pressure. The Vicks product range in India includes Vicks Cough drops, Vicks Vaporub, Vicks Inhaler, Vicks Vapocool, and Vicks Action 500 Extra.

Oral-B Oral-B continuously strives to work closely with

the dental professionals and deliver high quality products, which make us leaders* in the $ 4.5 billion toothbrush category, marketing toothbrushes for children & adults, as well as inter-dental products such as Dental Floss. In India, Oral-B has an innovative range of toothbrushes including Cross Action Pro-health 7 Benefits, Cross Action Pro-health Superior Clean and Advantage Sensitive toothbrush. Oral-B’S floss range includes Ultra Floss & Essential Floss.

Pampers As a result of constant research and innovation in

understanding the needs of babies at various stages of development, Pampers Active Baby has been voted as the best diaper by Indian moms with the guarantee of superior dryness for an uninterrupted sleep of 12 hours. Pampers has an answer for all your needs with its innovative product range that includes Pampers, Pampers Active Baby, Pampers Active Baby Pants, all designed especially for providing a night of Golden Sleep for the baby.

COMPETITOR

MAIN COMPETITOR

HINDUSTAN UNILEVERDABUR INDIACOLGATE-PALMOLIVEITC (Indian Tobacco Company)GSK (GlaxoSmithKline Consumer

Healthcare)MARICOEMAMI

CORPORATE SOCIAL RESPONSIBILITIES

  Shiksha : Padhega India. Badhega India.

P&G’s flagship Corporate Social Responsibility Program Shiksha is an integral part of our global philanthropy program - Live, Learn & Thrive. Now in its 8th year, Shiksha has till date helped 280,000 underprivileged children access their right to education. The program has built & supported over 140 schools across India, in partnership with NGOs like Round Table India (RTI), Save the Children (STC), Army Wives Welfare Association (AWWA) and Navy Wives Welfare Association (NWWA), amongst others.