P&G creates local Indian goods
India - Procter & Gamble is planning to manufacture goods in the Indian market locally, taking away some of the costs typically incurred from imports.
"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," Tapan Buch, chief financial officer at P&G Hygiene and Healthcare Ltd. said.
Since early 2000, the company has been shifting production to from the US to lower cost Southeast Asian countries which are closer to China and India, Economic Times reported.
P&G's Home Products segment has recently approved an investment plan of Rs360 crore, while previously approving an investment of Rs345 crore in May.
Bush explains that the money will be going into its existing multi-product manufacturing facility to reach a greater group of customers.
"The investments will be broad based in terms of categories and will purely depend on how capital intensive each segment is at the moment," he added.
The company may also be looking to set up two additional factories in Hyderabad and Chennai, but this has been unconfirmed.
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