Procter & Gamble (P&G) announced that consumption during the April-June quarter was the fastest in six quarters. This growth was attributed to the tapering off of inflation and a recovery in volume growth. P&G, known for its popular brands such as Pampers, Vicks, and Tide, is investing aggressively in its supply chain to meet the demands of fluctuating market conditions.
P&G CEO in India, LV Vaidyanathan, stated that the company is investing significantly to strengthen its supply chain advantage. The company aims to be better positioned to handle larger capacity and higher ranges of demand volatility. This investment in the supply chain is referred to as Supply 3.0, which represents the next generation of a synchronized, sustainable, and resilient supply chain, amplified by data analytics. The CEO highlighted the importance of data analytics in the company’s strategy.
The fast-moving consumer goods market in India witnessed a 7.5% volume growth during this period. P&G reported that demand unlocked capital investments and initiated a positive investment cycle. Additionally, rural growth showed signs of improvement, with 1.4% volume growth in the non-food sector after four consecutive quarters of decline.
P&G has been a key player in the Indian market, investing ₹20,000 crore over the past two decades. The company is already among the top 10 markets globally for P&G. Despite competition from Hindustan Unilever (HUL), P&G has gained market share in segments such as sanitary napkins and shaving razors, positioning itself as a market leader in these categories. The company attributes its success to continuous innovation.
According to Vaidyanathan, technology is playing a crucial role in P&G’s growth strategy. The company is using data-driven insights to customize media outreach and enhance go-to-market operations. It is also driving digital transformation within the organization to improve productivity. Moreover, P&G is leveraging artificial intelligence (AI) and machine learning (ML) to expand availability and service at stores.
In conclusion, P&G India is witnessing faster consumption growth, driven by the recovery in volume growth and decreasing inflation. The company’s investment in strengthening its supply chain, referred to as Supply 3.0, aims to handle higher demand volatility and increase capacity. P&G’s focus on innovation and technology is positioning it as a leader in the consumer goods market in India.
