The shares of the personal grooming product manufacturer plummeted up to 3 percent after the company’s parent Procter & Gamble Bangladesh terminated the distribution agreement.
With a market capitalization of Rs 27,792.58 crore, the shares of Gillette India Ltd were trading at Rs 8,529.20 per share, decreasing around 2.74 percent as compared to the previous closing price of Rs 8,769.65 apiece.
Reason for rise:-
According to the company filing, Gillette India Ltd’s parent company Procter & Gamble Bangladesh terminated the distribution agreement with the company, effective December 31, 2024. Due to this termination, the company will see a proportionate drop in net sales under this agreement. For FY24, net sales under the said Distributor Agreement accounted for 2% of the company’s total net sales. There is no material impact on the company’s profits due to this termination.
Financial Condition:-
Looking forward to the company’s financial performance, revenue zoomed by 4 percent from Rs 619 crore in Q1FY24 to Rs 645 crore in Q1FY25, but during the same period, net profit magnified by 26 percent from Rs 92 crore to Rs 116 crore.
Market leader position:-
Gillette India Ltd holds a dominant position in the Indian grooming products market, specifically in the razors and blades segment, with an estimated 50-60% market share. This significant share underscores the company’s strong brand presence and consumer trust built over many years of consistent quality and innovation
Future Outlook:-
Gillette India is well-positioned to sustain and potentially grow its market share by expanding into digital channels, focusing on rural markets, and continuing product innovation. As the Indian grooming market expands, particularly in the premium segment, Gillette’s established market presence is likely to support ongoing financial success.
Market Outlook:-
The Indian economy is showing positive signs with an 8.2% GDP growth and softening inflation, supporting consumption trends. The FMCG industry is witnessing emerging positive trends in both rural and urban markets, although concerns like declining rural wages remain a watchout.
Ratio analysis & shareholding pattern:-
In terms of major financial measures, the firm recorded a return on equity (RoE) of 42.38 percent and a return on capital employed (RoCE) of 53.26 percent for the fiscal year 23-24. Furthermore, the net profit margin was 15.63 percent throughout the same time.
According to the most recent shareholding pattern, the Promoters control 75 percent of the shares, while Foreign Institutional Investors own 1.84 percent. Retail investors hold the remaining 11.07 percent of the shares.
Company profile:-
Gillette India Limited manufactures and sells branded packaged, fast-moving consumer goods in the grooming and oral care markets. The company’s grooming business manufactures and distributes shaving systems and cartridges, blades, toiletries, components, and so on.
Written by:- Abhishek Singh
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