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P&G Manufacturing Indian Products Locally


MUMBAI, India—In keeping with its sustainable efforts, rather than import goods into India, Procter & Gamble is planning to manufacture its products for the Indian market locally. Currently, a chunk of its personal care goods—Olay brand and Pampers—are imported; but producing these types of products locally will allow the Company to produce these goods at a lower cost, allowing them to potentially offer lower-priced products.

“You should expect a large part of production locally in the long term, so that most of them are 'made in India' products, given the growing size and scale of our business," said Tapan Buch, chief financial officer at P&G Hygiene and Healthcare Ltd., as reported by the Economic Times.

Funds have been allocated to upgrading its manufacturing facilities. “The funds will be utilized to expand our manufacturing base, primarily at Bhopal in Madhya Pradesh. The investments will be broad based in terms of categories and will purely depend on how capital intensive each segment is at the moment," Buch said. "For instance, we could invest more on baby care products as a major part of it is imported."

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