GILLETTE INDIA LTD.

Presented by:
Ankit Shah- 91 Kruti Shah- 92 Monil Shah- 93 Paras Shah- 94 Samay Shah- 95 Shradha Shah- 96

Brief History Of Gillette

Founded by King C. Gillette on September 28,1901 in Boston, Massachusetts Initially named as American Safety Razor Company Began its worldwide expansion in UK, Germany, Denmark, Italy & Canada from 1920 Changed the name to The Gillette Company in 1952

Gillettes Great Brands

Gillettes Firsts

Safety razor (Gillette Safety Razor 1901) Razor marketed specifically to women (Milady Dcollete, 1916) Razor dispenser (1946) Stainless Steel blades (Super Stainless, 1963) Double-blade razor (Trac II, 1971) Disposable double-blade razor (Good News!, 1971) Razor with a pivot point (Atra, 1977) Razor with a lubricating strip (Atra Plus, 1985) Razor with spring-loaded blades (Sensor, 1990) Razor with microfins (Sensor Excel, 1995) Razor with three blades (Mach3, 1998) Razor with battery power (M3Power, 2004) Razor with five blades (Fusion, 2006) Razor with rear trim blade (Fusion, 2006)

Interesting Facts About Gillette

1.2 bn consumers per day use the companys products Market capitalization of $3.76 bn
Ranked 129 by Forbes 500, 2002 issue.

Mergers & Acquisitions

Name of the Company Acquired Papermate (USA) Braun AG SA DuPont Jafra Cosmetics Eraser Mate Oral-B Labs Inc. Year 1955 1967 1971 1973 1979 1984

Contd

Mergers & Acquisitions

Name Of the Company Acquired Waterman Parker Pen Holding Ltd Duracell International Year 1987 1993 1996

Gillette India
Incorporated on February 9th, 1984 in Rajasthan Incorporated as Razor Blades and Shaving Systems Now known as Gillette India Ltd Co-owned by House of Poddar Enterprise Gillette, USA -24% stake

Management of Gillette India

S K Poddar Chairman Zubair Ahmed Managing Director R A Shah Director B S Mehta Director C R Dua Director Subhash Bansal Director Devdas Baliga Company Secretary

Indian Competitors
Reckitt Benckinser (India) BASF India Ltd. Henkel (India) Ltd. HLL

Gillette Strategies
Focus on Branding across price lines Brand Coverage Focus on Volume Sales Heavy Investment in Advertisement Concentration on its Core Business

SWOT Analysis

Strengths
-- Strong Brand Equity -- Market Leadership -- Well-diversified Portfolio -- Turnaround in Operating Performance

Weaknesses
-- Profitability highly dependent on Core Business -- Over reliance on a single Customer

SWOT Analysis

Opportunities
-- New product launches -- Price increase in premium products -- Growth potential in other countries

Threats
-- Imitations of products -- Competitive environment

Financials-Gillette India
(Amt in Crores)
Dec 1999 Dec 2000 %tage Growth

Sales Turnover Total Income Net Profit Current Asset Earnings Per Share

2500 2353 194 494 15.1

5168 4966
264 1622 8.1

106.72 111.04
36.08 228.34 -46.35

TURNAROUND (1999-00)

In 1998 Net Profit took severe beating Started a three pronged restructuring program - Functional Excellence - Strategic Re-look - Financial Turnaround

P&Gs Takeover of Gillette

Signed an acquisition deal on January 28th,2005 Transaction is valued at approximately $57 bn Terrific fit A portfolio of $21 bn brands Complementary expertise in health and personal care Acquired Gillette India on June 10,2006

News and Problems Faced

Current Market value of stock-RS 860. Strong Competition Unorganized Sector Volume driven and Low margins Huge Advertising cost- Brand Building High Duplicity of products Shrink in Profits

Financials-Gillette India
(Amt in Crores)
Jun '05 Jun '06 %tage Growth

Sales Turnover Total Income Total Expenses Operating Profit Net Profit Earnings Per Share

112.09 116.67 85.72 26.37 17.57 5.39

139.48 147.56
133.47 6.01 5.92 1.82

24.43% 26.47%
55.70% -77.20% -66.30% -66.23%

Future Growth Prospects

Tapping Rural Markets Improving Operational Efficiency