However, in the nearer term, Procter & Gamble group firm also anticipates some challenges to continue
New Delhi: Positive trends are emerging in consumption from rural and urban markets, inflation has been softening consistently and the financial outlook will continue to attract investments, Procter & Gamble Hygiene and Health Care Ltd (PGHHC) top officials said on Wednesday.
Rural demand is expected to keep up as over 75 districts have received either normal or above normal rainfall. Moreover, with the government’s intervention, issues on wages and rising unemployment should stabilise in the near term, PGHHC management said in an investors and analysts call led by its Managing Director and CEO, P&G India, V Kumar.
However, in the nearer term, Procter & Gamble group firm also anticipates some challenges to continue, though it remains confident in the dynamic and integrated nature of our strategy to navigate the difficulties, he said.
“We are definitely seeing green shoots in rural consumption, primarily behind good monsoon softening inflation. The category demand is growing healthily, with category sales and users growing in double digits,” said PGHHC CFO Mrinalini Srinivasan.
PGHHC operates in the feminine care category with the brand Whisper and Cough & Cold segment with Vicks. The company is market leader in both segments, having nearly half the market.
As part of its “strategic approach”, PGHHC recognises the significance of growing consumption and creating value in various markets, she said.
“The festive season aligns with a crucial buying period in the retail industry, and we have developed comprehensive plans to cater to both rural and urban markets through traditional retail, modern retail and e-commerce channels, with strategic partners, with our customers focused,” Srinivasan said.
Feminine care contributes about 70% of its revenue, while healthcare is about 30 per cent, she said.
Responding to a query on distribution, she said over the last three years, PGHHC’s reach and coverage have grown more than 1.5 times.
“Even in the feminine hygiene category, we have grown our distribution footprints over 1.2 times in the last few years,” she added.
The company is also leveraging the power of data and digital transformation. It has developed an in-house artificial intelligence and machine learning algorithm that analyses consumer behaviour patterns.
“With this, we have transitioned from cluster-level planning to store or neighbourhood-level planning. This model is helpful for the consumer in making their desired products available in store and helpful for the store owners in helping them maximise sales, optimising inventory and significantly reducing non-moving stock,” she added.
PGHHC, which has entered into the sleep category with Vicks ZzzQuil — a nutraceutical sleep supplement — believes that this is an emerging market and is increasing its presence in the segment.
“In India, conditions such as occasional sleeplessness continue to be under-diagnosed and under-treated due to limited awareness. To address this, we are focusing on a multi-channel and integrated approach on ways to address occasional challenges of sleep onset,” Srinivasan said.
On the growth of quick-commerce in FMCG channels, Srinivasan said India’s quick commerce has experienced a 22 per cent rise in monthly active users when compared to India’s top five quick commerce websites in July versus January this year.
“While currently a small channel, it is growing rapidly for us, and it is expected to continue to drive the growth across FMCG as the channel expands to multiple locations, the penetration and frequency of use differ significantly by geography and demographics,” she said.
PGHHC has “invested in developing a deep understanding of the consumer behaviour on quick commerce, which tells us that their paths to purchase are unique, focus disproportionately on convenience in this channel”.
The company, which follows the July-June financial year, reported a 7.34 per cent in revenue at Rs 4,205.70 crore in 2024.
