GILLETTE INDIA LIMITED

VISION:  To build Total Brand Value by innovating to deliver consumer value and customer leadership faster, better and more completely than our competition.

MISSION: The Gillette Company is a globally focused consumer products marketer that seeks competitive advantage in quality, value-added personal care and personal use products. We are committed to building shareholder value through sustained profitable growth.

BACKGROUND

GIL has manufacturing plants in 51 locations, 20 countries serving almost 200 countries globally.

PORTFOLIO OF BRANDS 1. BLADES AND RAZORS2. ORAL CARE3. PERSONAL CARE4. DURACELL5. BRAUN

JOINT VENTURE• Kolkata based Poddars in 1984 named the venture as Indian shaving Products

Limited (ISPL)• In 1993, it acquired 51% stakes

MARKET LEADERS

SEGMENTATION

1. GROOMING13% market share in shaving products

8% market share in razors and blades

2. ORAL CARE Competitors:• Hindustan Lever Limited (22.5% market share)• Colgate Palmolive (30.5% market share)• GIL (10% market share)

3. BATTERYCompetitors:• Novino• Nippo• BPL• Eveready• Energizer

RESTRUCTURING ACQUSITION MODE

1998: ORAL CARE DIVISION OF PARLE • Launched in 1996 and was targeted at Upper segment of the Market• Faster Growth• GIL started strengthening their presence in Oral Care Market

1998: GEEP NON-ALKALINE BATTERIES FROM GEEP INDUSTRIAL SYNDICATE

RESULTS:Prudent sales doubledOral B went from 200 million to 450 million in sales

Sales after acquisition of Geep went down from 1.5 billion to 1 billion

WHAT CAUSED THE FAILURE?

1. NO VISUAL MERCHANDIZING

2. LESS BRANDING

3. LESS USE OF TECHNOLOGY

4. UNSUCESSFUL MANAGING RURAL BUSINESS

5. TRADE OUTSTANDING

NOW WHAT?• Consolidate all the operations

• Merged companies Duracell, ISPL, Wilkinson Sword India Limited in 2000 and

named it as Gillette India Limited

WHY MERGE?

PITFALLS:

STRATEGIES ADOPTED• Started Focusing on cost reduction and productivity improvements• Sold Manesar Plant to Duracell Belgium for $6.5 million• Gillette funded GIL and it’s borrowings were retired

RESULTS:• In 2002, reduction in operation cost, working capital and raw material cost• Sales increased by 100%

YEAR 1999 2000Operating Profit 19% 12.5%

Debt Equity 0.3:1 0.5:1

Return on net worth 22% 11%

A mistake that multinationals make is to push global brands in a one-size-fits-all strategy. Gillette's strategy of spending time and resources understanding Indian consumers' needs proved to be the key to its success.

Dhruwi Sadrani Sanjana Soni