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Analysis of Fmcg

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Submitted By sunajbani
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Introduction
P&G Hygiene and Health Care (PGHHCL) was incorporated in 1964. P&G India launched in India with sanitary napkins under the brand Whisper which brought a sudden change in Indian female hygiene category. Company is currently involved in manufacturing, marketing and distribution of hygiene and health care products. It is one of India’s fastest growing Fast Moving Consumer Goods (FMCG) companies which have great successful brands like Vicks & Whisper.

Qualitative Analysis * P&G currently announced the opening of a new Innovation Center in Beijing also known as Beijing Innovation Center (BJIC). The company can expect to have reinvested a lot of the earnings to grow in future. For this center, the company has invested around 80 million US dollars. * P&G has taken the initiative of gaining on untapped markets by entering those markets and marketing their products aggressively. P&G has opened a plant in South Africa which has created more opportunities for the company. The company focuses on purpose inspired growth strategy and to expand both markets and categories as their main strategy. The factory is a Pampers factory which started operations in 2009 and till now in 2010 has doubled its capacity.

Quantitative Analysis (Exhibit ) * The company has always maintained a zero debt policy. The Debt/ Equity ratio has remained 0 over the years. With a high growth industry, the company can raise debt and investors can see even more value in the company. Operating Profit margin and Net Profit margin have continuously increased over the 5 years from 19.62 to 27.25 and 17.32 to 25.02 respectively which is a good sign of the company’s operating efficiency. * Current ratio of the company has increased from 1.5 to 2.3 over the past 5 years which again is an excellent sign of the company. The risk involved therefore for the company to meet its short

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