eCONOMIC tIMES

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eCONOMIC tIMES

  1. 1. Economics Times News <ul><li>Presented by:- </li></ul><ul><li>Ritesh Abrol </li></ul><ul><li>MBA- 2(C) </li></ul>
  2. 2. P&G takes 20% price cut, J&J may follow suit <ul><li>Procter & Gamble India (P&G) has decided to cut prices of select products even as input costs have started pinching FMCG companies thanks to rising costs of raw materials and transportation. </li></ul><ul><li>The maker of feminine hygiene care and baby care brand Pampers, has taken a 20% cut in the consumer price of hygiene care brand and a 12% drop in the price of Pampers Active Baby. The price of feminine hygiene care, which is a low-priced brand in the company’s portfolio, has come down from Rs 24 to Rs 20 for a pack of eight units, while the price of Pampers Active Baby (pack of five) has become lesser by Rs 10 at Rs 70. </li></ul>
  3. 3. <ul><li>With P&G is taking a price cut, rival Johnson & Johnson may also follow suit, leading to a price war of sorts. </li></ul><ul><li>Analysts said it was difficult for companies to raise prices in feminine hygiene and baby care segments which do not have a higher saturation level like laundry. The penetration of feminine hygiene products in India is 12% as compared to 64% in China. </li></ul><ul><li>High taxation is one of the reasons why companies would find it difficult to reduce prices in this category. The last Budget had levied a 10% excise duty on sanitary napkins, which was previously exempt from excise duty. </li></ul>
  4. 4. Amway planning second facility in India <ul><li>Amway India, a direct selling Fast Moving Consumer Goods (FMCG) company, planned to set up their second manufacturing facility in the country in South India. </li></ul><ul><li>The company, a 100 per cent subsidiary of US-based Amway Corporation, had been witnessing a 25 per cent year-on-year growth in its revenues. </li></ul><ul><li>Company officials later said the second facility would cater to the growing south and western markets while the present facility (at Baddi) would focus on northern and eastern markets. </li></ul>
  5. 5. <ul><li>Noting that the company in March 2010 had made an additonal investment of Rs 55 crore in the facility here taking the total investment since 2005 to 105 crore, Singh said it had been able to tripe its production at the plant, with the commissioning of four more production lines. </li></ul><ul><li>Amway India currently offers over 115 products in five categories including nutrion and wellness (29), personal care (14), home care (14), cosmetics (52) and great value products (6). </li></ul>
  6. 6. GCPL eyes Rs 1K cr sales from GoodKnight in next 3 years <ul><li>FMCG player Godrej Consumer Products is looking to expand the global footprint of its mosquito repellent 'GoodKnight' and achieve a sales target of Rs 1,000-crore in the next three years from the brand. </li></ul><ul><li>'GoodKnight--25 year-old mosquito repellent' is already an over Rs 500-crore brand and currently enjoys a share of 24 per cent in the estimated Rs-2,300 crore Indian household insecticide market. </li></ul><ul><li>The product is available in Sri Lanka, Bangladesh, Nepal and other SAARC nations. According to a company official, GCPL is looking at introducing it to the African markets soon. </li></ul>
  7. 7. Motorola hopes to launch tablet computer by early 2011 <ul><li>Mobile phone giant Motorola is looking at launching its tablet computer early next year, as the firm hopes to expand its product line beyond cell phones. &quot;Hopefully, that's early next year. The tablet would be Motorola's answer to Apple's iPad, which has dominated the market since its launch in April this year&quot; </li></ul>
  8. 8. <ul><li>Thank you </li></ul>

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