Household market in india

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India - Household Products 0102 - 2080 - 2009

© Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

INDUSTRY PROFILE

Household Products in India

Reference Code: 0102-2080

Publication Date: November 2010

EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The Indian household products market grew by 6.7% in 2009 to reach a value of $2,691.5 million.

Market value forecast

In 2014, the Indian household products market is forecast to have a value of $3,599.7 million, an increase

of 33.7% since 2009.

Market segmentation I

Textile washing products is the largest segment of the household products market in India, accounting for

64.4% of the market's total value.

Market segmentation II

India accounts for 7% of the Asia-Pacific household products market value.

Market share

Unilever is the leading player in the Indian household products market, generating a 28.8% share of the

market's value.

Market rivalry

The Indian household products market is fairly fragmented with the top three players accounting for

43.8% of the total market value.

CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2�

MARKET OVERVIEW 6�

Market definition 6�

Research highlights 7�

Market analysis 8�

MARKET VALUE 9�

MARKET SEGMENTATION I 10�

MARKET SEGMENTATION II 11�

MARKET SHARE 12�

COMPETITIVE LANDSCAPE 13�

LEADING COMPANIES 15�

Unilever 15�

Nirma Limited 19�

Procter & Gamble Company, The 23�

MARKET DISTRIBUTION 27�

MARKET FORECASTS 28�

Market value forecast 28�

MACROECONOMIC INDICATORS 29�

APPENDIX 31�

Methodology 31�

Industry associations 32�

Related Datamonitor research 32�

Disclaimer 34�

ABOUT DATAMONITOR 35�

Premium Reports 35�

Summary Reports 35�

Datamonitor consulting 35�

CONTENTS



LIST OF TABLES

Table 1:� India household products market value: $ million, 2005–09 9�

Table 2:� India household products market segmentation I:% share, by value, 2009 10�

Table 3:� India household products market segmentation II: % share, by value, 2009 11�

Table 4:� India household products market share: % share, by value, 2009 12�

Table 5:� Unilever: key facts 15�

Table 6:� Unilever: key financials ($) 17�

Table 7:� Unilever: key financials (€) 17�

Table 8:� Unilever: key financial ratios 17�

Table 9:� Nirma Limited: key facts 19�

Table 10:� Nirma Limited: key financials ($) 20�

Table 11:� Nirma Limited: key financials (Rs.) 20�

Table 12:� Nirma Limited: key financial ratios 21�

Table 13:� Procter & Gamble Company, The: key facts 23�

Table 14:� Procter & Gamble Company, The: key financials ($) 25�

Table 15:� Procter & Gamble Company, The: key financial ratios 25�

Table 16:� India household products market distribution: % share, by value, 2009 27�

Table 17:� India household products market value forecast: $ million, 2009–14 28�

Table 18:� India size of population (million), 2005–09 29�

Table 19:� India gdp (constant 2000 prices, $ billion), 2005–09 29�

Table 20:� India gdp (current prices, $ billion), 2005–09 29�

Table 21:� India inflation, 2005–09 30�

Table 22:� India consumer price index (absolute), 2005–09 30�

Table 23:� India exchange rate, 2005–09 30�

CONTENTS



LIST OF FIGURES

Figure 1:� India household products market value: $ million, 2005–09 9�

Figure 2:� India household products market segmentation I:% share, by value, 2009 10�

Figure 3:� India household products market segmentation II: % share, by value, 2009 11�

Figure 4:� India household products market share: % share, by value, 2009 12�

Figure 5:� Unilever: revenues & profitability 18�

Figure 6:� Unilever: assets & liabilities 18�

Figure 7:� Nirma Limited: revenues & profitability 21�

Figure 8:� Nirma Limited: assets & liabilities 22�

Figure 9:� Procter & Gamble Company, The: revenues & profitability 26�

Figure 10:� Procter & Gamble Company, The: assets & liabilities 26�

Figure 11:� India household products market distribution: % share, by value, 2009 27�

Figure 12:� India household products market value forecast: $ million, 2009–14 28�

MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The household products market consists of retail sales of air fresheners, dishwashing products, general

purpose cleaners, textile washing products, toilet care products and other products which includes bleach,

furniture polish, insecticides and scouring products. The market is valued according to retail selling price

(RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report

have been calculated using 2009 annual average exchange rates.

For the purpose of this report Asia-Pacific is deemed to comprise Australia, China, Japan, India,

Singapore, South Korea and Taiwan.

MARKET OVERVIEW



Research highlights

The Indian household products market generated total revenues of $2.7 billion in 2009, representing a

compound annual growth rate (CAGR) of 7.2% for the period spanning 2005-2009.

Textile washing products sales proved the most lucrative for the Indian household products market in

2009, generating total revenues of $1.7 billion, equivalent to 64.4% of the market's overall value.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 6.0% for the five-

year period 2009-2014, which is expected to lead the market to a value of $3.6 billion by the end of 2014.

MARKET OVERVIEW



Market analysis

The Indian household products market grew at a strong rate during the period 2005-2009, led by strong

sales growth in the toilet care and dishwashing products categories. Overall market growth is expected to

decelerate in the forthcoming five years.

The Indian household products market generated total revenues of $2.7 billion in 2009, representing a

compound annual growth rate (CAGR) of 7.2% for the period spanning 2005-2009. In comparison, the

Chinese and Japanese markets grew with CAGRs of 7.9% and 2% respectively, over the same period, to

reach respective values of $17.3 billion and $18.1 billion in 2009.

Textile washing products sales proved the most lucrative for the Indian household products market in

2009, generating total revenues of $1.7 billion, equivalent to 64.4% of the market's overall value. In

comparison, sales of dishwashing products generated revenues of $220.1 million in 2009, equating to

8.2% of the market's aggregate revenues.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 6% for the five-year

period 2009-2014, which is expected to lead the market to a value of $3.6 billion by the end of 2014.

Comparatively, the Chinese and Japanese markets will grow with CAGRs of 6.3% and 1.9% respectively,

over the same period, to reach respective values of $23.4 billion and $19.8 billion in 2014.

MARKET VALUE



MARKET VALUE

The Indian household products market grew by 6.7% in 2009 to reach a value of $2,691.5 million.

The compound annual growth rate of the market in the period 2005–09 was 7.2%.

Table 1: India household products market value: $ million, 2005–09

Year $ million Rs. million € million % Growth2005 2,039.8 99,643.7 1,466.92006 2,196.3 107,291.5 1,579.5 7.7%2007 2,364.1 115,488.1 1,700.2 7.6%2008 2,523.2 123,260.5 1,814.6 6.7%2009 2,691.5 131,480.9 1,935.6 6.7%

CAGR: 2005–09 7.2%

Source: Datamonitor D A T A M O N I T O R

Figure 1: India household products market value: $ million, 2005–09


MARKET SEGMENTATION I



MARKET SEGMENTATION I

Textile washing products is the largest segment of the household products market in India, accounting for

64.4% of the market's total value.

The dishwashing products segment accounts for a further 8.2% of the market.

Table 2: India household products market segmentation I:% share, by value, 2009

Category % ShareTextile washing products 64.4%Dishwashing products 8.2%General purpose cleaners 4.8%Toilet care 1.3%Air fresheners 0.7%Other 20.7%

Total 100%


Figure 2: India household products market segmentation I:% share, by value, 2009


MARKET SEGMENTATION II



MARKET SEGMENTATION II

India accounts for 7% of the Asia-Pacific household products market value.

China accounts for a further 39.4% of the Asia-Pacific market.

Table 3: India household products market segmentation II: % share, by value, 2009

Category % ShareChina 39.4%Japan 38.0%India 7.0%South Korea 5.5%Rest of Asia-Pacific 10.0%

Total 100%


Figure 3: India household products market segmentation II: % share, by value, 2009


MARKET SHARE



MARKET SHARE

Unilever is the leading player in the Indian household products market, generating a 28.8% share of the

market's value.

Nirma Limited accounts for a further 8.7% of the market.

Table 4: India household products market share: % share, by value, 2009

Company % ShareUnilever 28.8%Nirma Limited 8.7%Procter & Gamble Company, The 6.4%Others 56.2%

Total 100%


Figure 4: India household products market share: % share, by value, 2009


COMPETITIVE LANDSCAPE




The household products market will be analyzed taking manufacturers of household products as players.

The key buyers will be taken as retailers, and chemical companies as the key suppliers.

The Indian household products market is fairly fragmented with the top three players accounting for

43.8% of the total market value.

The Indian household products market has the presence of leading players like Unilever, Nirma and

Procter & Gamble. Independent retailers are dominant in the market, and the smaller ones in particular

may not exert very strong buyer power. The fact that manufacturers of household products are able to

source some of their raw materials from only a relatively small number of suppliers boosts supplier power.

The existence of strong brands and the scale economies associated with the high-volume production

facilities prevent the threat of new entrants from becoming a significant factor. High exit barriers and fixed

costs tend to increase rivalry between manufacturers. In general, the intensity of competition in the global

household products market is assessed as moderate.

In the Indian household products market, the main distribution channels of the household products are

independent retailers with the distribution share of about 86% of the market value. Thus, the size of the

average buyer is significant, which enhances their negotiating position and therefore increases buyer

power. Household products are usually differentiated (in terms of color, brand, strengths, fragrance, etc.)

but their overall function is fairly standardized. Such lack of distinction of products increases buyer power.

A form of backward integration within the market is possible with buyers developing their own brands of

private-label household products. Switching costs for buyers are not particularly high, although retailers

are generally required to stock products of many different manufacturers to provide for customers' varied

preferences, which may diminish buyer power. Overall, buyer power is moderate in the Indian household

products market.

Inputs to the household products market include a wide range of specialized chemicals and also

packaging materials. Major chemical manufacturers serve to increase overall supplier power as they may

have the ability to negotiate favorable deals with manufacturers. Supplier power is also increased by the

fact that chemical manufacturers supply to a number of industries, which reduces their reliance on

revenues from the household products market. However, a number of household products manufacturers

have exhibited backward integration by producing raw materials required in the production of household

products. Some companies may be restricted to certain product formulas and this makes them reliant on

suppliers that can provide specific inputs that may be difficult to substitute. This tends to increase supplier

power even more. Overall supplier power in this market is assessed as moderate.

The household products market is difficult to enter on a small scale as the manufacturers of most

household products utilize inherently large-scale processes that require significant capital input to set up.

Also, producers need to distribute their products widely, which generally involves channels such as

supermarkets. These retail chains may have considerable buyer power, which reduces the prices that

manufacturers of household products can obtain. Such a factor may discourage smaller potential new




entrants, because in order to maintain profitability in the face of such buyer power, scale economies are

important. In addition to the aforementioned entry barriers, the cost of advertising, which is crucial for

success in this market, should also be considered as a deterrent for new entrants. Overall the likelihood

of new entrants is moderate.

The main threat of substitutes in the household products market is posed by homemade alternatives.

End-users may prefer these on the grounds of price, or because they can control what ingredients are

used in their preparation. However, any substitutes for household products need to be prepared, which is

a relatively time-consuming process requiring specific knowledge, and may not provide the desired

results, reducing the threat of household products substitutes. Furthermore, as the manufacturers are

now aware of the increasing demand for environmentally friendly and allergy free alternatives, they are

incorporating these qualities into their products, which, combined with their greater convenience, reduces

the threat of substitutes. Overall, the threat of substitutes in this market is moderate.

In the household products market, competitors are usually large, well-known, geographically-diversified

companies that operate in a number of other business areas such as personal care or pharmaceuticals,

which weakens rivalry between market players. These consumer products are generally mass-market

items, implying high fixed costs for large-scale production facilities, and investment in research and

development. Exit costs may also be high, for example, quite specialized fixed assets may need to be

disposed of. High fixed- and exit costs increase rivalry within the market. Moreover, players are fairly

similar to one another and offer fundamentally similar products, which intensify rivalry even further.

However, some household products manufacturers have developed strong brands, allowing them to

differentiate their products to some extent. Overall, rivalry in this market is moderate.

LEADING COMPANIES



LEADING COMPANIES

Unilever

Table 5: Unilever: key facts

Head office: Unilever House, 100 Victoria Embankment, London EC4Y 0DY, GBRTelephone: 44 20 7822 5252 Fax: 44 20 7822 5951 Website: www.unilever.com Financial year-end: December Ticker: UL, ULVR Stock exchange: New York, London

Source: company website D A T A M O N I T O R

Unilever is a global manufacturer and marketer of consumer goods in the food, personal and homecare

segments. Unilever operates under a dual structure. The group has two parent companies: Unilever NV

and Unilever plc. Unilever NV is a public limited company registered in the Netherlands, while Unilever plc

is a public limited company registered in the UK and Wales. The two parent companies, Unilever NV and

Unilever plc, along with the group companies, operate as a single economic entity: Unilever. It operates

through subsidiaries in Germany, Switzerland, France, the UK, the US, and China and has operations in

over 170 countries.

The group's primary operating segments comprises three geographic regions: Asia, Africa, Central and

Eastern Europe; the Americas; and Western Europe.

Although Unilever's operations are managed on a geographical basis, the group manages its products

under four categories: savory, dressings and spreads; ice cream and beverages; personal care; and

home care and other operations. These categories are Unilever’s principal product areas.

The savory, dressings and spreads product category includes products like soups, bouillons, sauces,

snacks, mayonnaise, salad dressings, olive oil, margarines, spreads and cooking products such as liquid

margarines, and frozen food products. Unilever's major brands in this segment includes: Knorr,

Hellmann's, Becel/Flora (Healthy Heart), Rama/Blue Band (Family Goodness), Calve, Wish-Bone, Amora,

Ragu and Bertolli. The company markets its frozen food products under Findus, Sagit, Cogesal and Iglo

brand names among others.

The ice cream and beverages product category includes sales of ice cream, tea-based beverages, weight

management products, and nutritionally enhanced staples sold in developing markets. Unilever's major

LEADING COMPANIES



brands in ice cream are sold under the international Heart brand which includes Cornetto, Magnum, Carte

d’Or and Solero, Wall’s, Kibon, Algida and Ola. Its tea-based beverage brands include Lipton, Brooke

Bond and PG Tips. In addition, Unilever has weight management products such as Slim Fast, and

nutritionally enhanced products include Annapurna and AdeS brands.

The personal care product category offers skin care and hair care products; deodorants and anti-

perspirants; and oral care products. The company offers six global brands are the core of company's

business in the mass skin care, daily hair care and deodorants product areas that includes Dove, Lux,

Rexona (including Sure and Degree), Sunsilk (including Seda/Sedal), Axe/Lynx and Pond’s. Other key

brands include Suave, Clear, Lifebuoy and Vaseline, along with Signal and Close Up in the oral care

category. In September 2009, the company announced a binding offer to acquire the personal care

business of the Sara Lee Corporation. The Sara Lee brand includes Sanex, Radox and Duschdas.

Home care and other operations include household products, such as laundry tablets, powders and

liquids, soap bars and cleaning products. Unilever's global brands in home care products include Cif,

Comfort, Domestos, Omo, Radiant, Surf and Sunlight brands. It also owns tea plantations to support its

consumer brands.

In India, it operates through its subsidiary Hindustan Unilever Ltd, and sells its home care products

through brands such as Surf Excel, Rin, Wheel, and Sunlight.

Key Metrics

Unilever generated revenues of $55.4 billion in the financial year (FY) ended December 2009, a decrease

of 1.7% as compared to 2008. The company's net income reached $4.7 billion in FY2009, a decrease of

33% over 2008.

Unilever’s home care and other category accounted for 17.5% of the total revenues in FY2009. During the

FY2009, home care and other segment recorded revenues of $9.7 billion, a decrease of 3.4% over 2008.

Asia, Africa and Central & Eastern Europe (including India), Unilever's largest geographical market,

accounted for 37.4% of the total revenues in FY2009. Revenues from Asia, Africa and Central & Eastern

Europe reached $20.7 billion in FY2009, an increase of 2.9% over 2008.

LEADING COMPANIES



Table 6: Unilever: key financials ($)

$ million 2005 2006 2007 2008 2009Revenues 53,397.0 55,122.6 55,880.5 56,347.7 55,374.3Net income (loss) 5,236.7 6,598.0 5,406.3 6,990.1 4,686.0Total assets 54,925.2 51,549.0 51,868.8 50,255.9 51,471.2Total liabilities 42,737.4 35,319.0 34,043.9 35,833.5 34,039.7Employees 206,000 179,000 174,000 174,000 163,000

Source: company filings D A T A M O N I T O R

Table 7: Unilever: key financials (€)

€ million 2005 2006 2007 2008 2009Revenues 38,401.0 39,642.0 40,187.0 40,523.0 39,823.0Net income (loss) 3,766.0 4,745.0 3,888.0 5,027.0 3,370.0Total assets 39,500.0 37,072.0 37,302.0 36,142.0 37,016.0Total liabilities 30,735.0 25,400.0 24,483.0 25,770.0 24,480.0


Table 8: Unilever: key financial ratios

Ratio 2005 2006 2007 2008 2009Profit margin 9.8% 12.0% 9.7% 12.4% 8.5%Revenue growth 3.3% 3.2% 1.4% 0.8% (1.7%)Asset growth 7.2% (6.1%) 0.6% (3.1%) 2.4%Liabilities growth 5.2% (17.4%) (3.6%) 5.3% (5.0%)Debt/asset ratio 77.8% 68.5% 65.6% 71.3% 66.1%Return on assets 9.9% 12.4% 10.5% 13.7% 9.2%Revenue per employee $259,209 $307,948 $321,152 $323,837 $339,720Profit per employee $25,421 $36,860 $31,071 $40,173 $28,749


LEADING COMPANIES



Figure 5: Unilever: revenues & profitability


Figure 6: Unilever: assets & liabilities


LEADING COMPANIES



Nirma Limited

Table 9: Nirma Limited: key facts

Head office: Nirma House, Ashram Road, Ahmedabad, Gujarat 380 009, IND Telephone: 91 79 27546565 Fax: 91 79 27546603 Website: www.nirma.co.in Financial year-end: March Ticker: 500308 Stock exchange: Bombay


Nirma is engaged in manufacturing of consumer and industrial products. It produces consumer products

such as soaps, detergents salts and scouring products under the brand name Nirma. Additionally, the

company, through its integrated operations, produces industrial products including soda ash and linear

alkyl benzene (LAB) in India. It also produces and sells other allied chemicals like sulphuric acid, alfa

olefin sulphonate, glycerine, single super phosphate, and edible salt. Nirma markets its products through

its wholly-owned subsidiary Nirma Consumer Care Limited. The company has operations in India and the

US.

The company operates in four segments: soaps and surfactants; pharma business; processed minerals;

and other businesses.

The soaps and surfactants division produces detergents, toilet soap and its ingredients. Its products

include beauty soaps, premium soaps, carbolic soaps, and detergent powders and cakes.

The pharma business offers medical devices such as syringes and needles. It also provides critical care

products such as amino acids, lipids, and propofals.

The processed minerals segment produces natural soda ash, boron and sodium sulphate through its

subsidiaries, including Searles Valley Minerals and Searles Valley Minerals Operations. Processed

minerals are manufactured in the US based production facilities and are marketed mainly in the US, Latin

America and Europe.

Nirma's other businesses provide single super phosphate, vaccum salt, iodized salt, tooth paste, and oil.

LEADING COMPANIES



The company's manufacturing facilities are located at Mandali in District Mehsana, Moraiya in District

Ahmedabad, Alindra in District Vadodara, Kalatalav in District Bhavnagar, Sachana in District Ahmedabad

and Searles Valley, Ridgcrest in the US.

Key Metrics

Nirma generated revenues of $945.8 million in the financial year ended March 2010, an increase of 1% as

compared to the previous year. The company's net income totaled $51 million in fiscal 2010, an increase

of 87.5% over 2009.

The soaps and surfactants segment accounted for 56.4% of the total sales generated by the company in

FY2010. This segment generated revenues of $533.4 million in FY2010, a decrease of 1.2% as

compared to 2009.

India accounted for 67.5% of the total revenues in FY2010. Revenues from India reached $638.3 million

in FY2010, an increase of 2.9% over 2009.

Table 10: Nirma Limited: key financials ($)

$ million 2006 2007 2008 2009 2010Revenues 449.1 468.9 549.5 936.5 945.8Net income (loss) 49.5 46.4 45.5 27.2 51.0Total assets 613.6 717.0 956.4 1,046.5 1,036.5Total liabilities 195.1 219.0 425.8 522.1 458.1


Table 11: Nirma Limited: key financials (Rs.)

Rs. million 2006 2007 2008 2009 2010Revenues 21,940.2 22,907.9 26,844.6 45,748.2 46,203.8Net income (loss) 2,419.9 2,264.2 2,225.1 1,330.0 2,493.3Total assets 29,974.1 35,025.4 46,720.5 51,120.5 50,631.9Total liabilities 9,533.0 10,700.1 20,800.9 25,505.8 22,378.3


LEADING COMPANIES



Table 12: Nirma Limited: key financial ratios

Ratio 2006 2007 2008 2009 2010Profit margin 11.0% 9.9% 8.3% 2.9% 5.4%Revenue growth 4.6% 4.4% 17.2% 70.4% 1.0%Asset growth (0.8%) 16.9% 33.4% 9.4% (1.0%)Liabilities growth (17.2%) 12.2% 94.4% 22.6% (12.3%)Debt/asset ratio 31.8% 30.5% 44.5% 49.9% 44.2%Return on assets 8.0% 7.0% 5.4% 2.7% 4.9%


Figure 7: Nirma Limited: revenues & profitability


LEADING COMPANIES



Figure 8: Nirma Limited: assets & liabilities


LEADING COMPANIES



Procter & Gamble Company, The

Table 13: Procter & Gamble Company, The: key facts

Head office: 1 Procter & Gamble Plaza, Cincinnati, Ohio 45202, USA Telephone: 1 513 983 1100 Fax: 1 513 983 4381 Website: www.pg.com Financial year-end: June Ticker: PG Stock exchange: NYSE


The Procter & Gamble Company (P&G) is a global manufacturer and marketer of consumer products.

The company markets more than 300 brands in over 180 countries spanning the Americas, Europe, the

Middle East and Africa (EMEA), and Asian region.

The company is organized into three Global Business Units (GBUs) and a Global Operations group. The

three GBUs are beauty, health and well-being, and household care. The Global Operations group

consists of the Market Development Organization (MDO) and Global Business Services (GBS).

The beauty GBU includes the beauty and the grooming businesses. The beauty business is comprised of

cosmetics, deodorants, prestige fragrances, hair care, personal cleansing and skin care. The key

deodorant brands offered by the company include Secret, Old Spice, Tag and Gillette. It also includes the

deodorant brands such as Show Time, After Hours, Pure Sport, Glacial Falls, Aqua Reef, Mountain Rush,

Arctic Force and Pacific Surge among others.

The grooming business includes blades and razors, electric hair removal devices, face and shave

products and home appliances. The key brands marketed by the grooming segment include Braun,

Fusion, Gillette and Mach3.

The health and well-being GBU includes the health care; and the snacks and pet care businesses. The

health care business includes feminine care, oral care, personal health care and pharmaceuticals. The

key brands marketed by the segment comprise Always, Crest, and Oral-B.

The snacks and pet care business includes pet food and snacks. The segment markets its products under

the brands Eukanuba, lams and Pringles. In the snacks business, the company sells potato chips through

its Pringles brand.

LEADING COMPANIES



The household care GBU includes the fabric care and home care; as well as the baby care and family

care businesses. The fabric care and home care business includes air care, batteries, dish care, fabric

care and surface care. The segment markets its products under Ariel, Dawn, Downy, Duracell, Gain and

Tide brands. The dish care products are offered under Cascade, Dawn and Joy brands.

The baby care and family care business offers baby wipes, bath tissue, diapers, facial tissue and paper

towels under the following brands: Bounty, Charmin and Pampers.

The MDO segment is responsible for developing go-to-market plans at the local level. The MDO includes

dedicated retail customer, trade channel and country-specific teams. The GBS segment provides

technology, processes and standard data tools to enable the GBUs and the MDO to better understand the

business and better serve consumers and customers.

The company is organized along five geographic regions: North America, Western Europe, Central &

Eastern Europe/Middle East/Africa (CEEMEA), Latin America, and Asia.

The company's North American operation covers Canada, Puerto Rico and the US regions. P&G has a

presence in every country in Western Europe. In Western Europe, the company operates about 35

manufacturing plants and markets over 100 brands. P&G's CEEMEA includes the Balkans, Central

Europe North, Central Europe South, Eastern Europe, Middle East, Sub Sahara, Turkey/Caucasia and

the Central Asian Republics. In Latin America, the company operates 19 manufacturing sites, 12

distribution centers and a service center in 14 countries. P&G's Asian operation covers China, Japan,

Korea, Hong Kong, India, Australia, New Zealand, Indonesia, Philippines, Singapore, Taiwan, Vietnam,

Thailand, Sri Lanka, Malaysia and Bangladesh.

In India, P&G operates in the household products segment through P&G Home Products Limited. The

company’s fabric care products include detergents and fabric cleaning soaps. Its key brands include Ariel

and Tide.

Key Metrics

The Procter & Gamble Company generated revenues of $78.9 billion in the financial year (FY) ended

June 2010, an increase of 2.9% as compared to 2009. The company's net income totaled $12.7 billion in

FY2010, a decrease of 5.2% over 2009.

The household care GBU accounted for 48.8% of the total sales achieved by the company in FY2010.

The household care GBU (including fabric care and home care; and baby care and family care

businesses) generated revenues of $38.5 billion in FY2010, an increase of 3.4% over 2009.

LEADING COMPANIES



Table 14: Procter & Gamble Company, The: key financials ($)

$ million 2006 2007 2008 2009 2010Revenues 68,222.0 74,832.0 79,257.0 76,694.0 78,938.0Net income (loss) 8,684.0 10,340.0 12,075.0 13,436.0 12,736.0Total assets 135,695.0 138,014.0 143,992.0 134,833.0 128,172.0Total liabilities 72,787.0 71,254.0 74,498.0 71,451.0 66,733.0Employees 138,000 138,000 138,000 135,000 127,000


Table 15: Procter & Gamble Company, The: key financial ratios

Ratio 2006 2007 2008 2009 2010Profit margin 12.7% 13.8% 15.2% 17.5% 16.1%Revenue growth 20.2% 9.7% 5.9% (3.2%) 2.9%Asset growth 120.5% 1.7% 4.3% (6.4%) (4.9%)Liabilities growth 69.1% (2.1%) 4.6% (4.1%) (6.6%)Debt/asset ratio 53.6% 51.6% 51.7% 53.0% 52.1%Return on assets 8.8% 7.6% 8.6% 9.6% 9.7%Revenue per employee $494,362 $542,261 $574,326 $568,104 $621,559Profit per employee $62,928 $74,928 $87,500 $99,526 $100,283


LEADING COMPANIES



Figure 9: Procter & Gamble Company, The: revenues & profitability


Figure 10: Procter & Gamble Company, The: assets & liabilities


DISTRIBUTION



MARKET DISTRIBUTION

Independent Retailers form the leading distribution channel in the Indian household products market,

accounting for a 86% share of the total market's value.

Supermarkets / hypermarkets accounts for a further 7.6% of the market.

Table 16: India household products market distribution: % share, by value, 2009

Channel % ShareIndependent Retailers 86.0%Supermarkets / hypermarkets 7.6%Convenience Stores 5.9%Others 0.6%

Total 100%


Figure 11: India household products market distribution: % share, by value, 2009


MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2014, the Indian household products market is forecast to have a value of $3,599.7 million, an increase

of 33.7% since 2009.

The compound annual growth rate of the market in the period 2009–14 is predicted to be 6%.

Table 17: India household products market value forecast: $ million, 2009–14

Year $ million Rs. million € million % Growth2009 2,691.5 131,480.9 1,935.6 6.7%2010 2,866.2 140,015.7 2,061.3 6.5%2011 3,039.5 148,481.3 2,185.9 6.0%2012 3,217.4 157,169.2 2,313.8 5.9%2013 3,403.5 166,261.4 2,447.7 5.8%2014 3,599.7 175,846.3 2,588.8 5.8%

CAGR: 2009–14 6.0%


Figure 12: India household products market value forecast: $ million, 2009–14


MACROECONOMIC INDICATORS




Table 18: India size of population (million), 2005–09

Year Population (million) % Growth2005 1,091.0 1.6%2006 1,107.6 1.5%2007 1,124.1 1.5%2008 1,140.6 1.5%2009 1,156.9 1.4%


Table 19: India gdp (constant 2000 prices, $ billion), 2005–09

Year Constant 2000 Prices, $ billion % Growth2005 648.8 9.1%2006 711.8 9.7%2007 776.8 9.1%2008 832.5 7.2%2009 892.5 7.2%


Table 20: India gdp (current prices, $ billion), 2005–09

Year Current Prices, $ billion % Growth2005 764.4 15.7%2006 872.7 14.2%2007 1,127.4 29.2%2008 1,244.6 10.4%2009 1,403.0 12.7%





Table 21: India inflation, 2005–09

Year Inflation Rate (%)2005 3.3%2006 6.9%2007 8.1%2008 8.4%2009 10.9%


Table 22: India consumer price index (absolute), 2005–09

Year Consumer Price Index (2000 = 100)

% Growth

2005 115.6 3.3%2006 123.6 6.9%2007 133.6 8.1%2008 144.8 8.4%2009 160.6 10.9%


Table 23: India exchange rate, 2005–09

Year Exchange rate ($/Rs.) Exchange rate (€/Rs.)2005 44.1154 54.83372006 45.3188 56.85962007 41.3570 56.58982008 43.8145 64.11152009 48.8500 67.9264


APPENDIX



APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,

analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys

and supported by analysis from industry experts using highly complex modeling & forecasting tools,

Datamonitor’s in-house databases provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst

commentary, company profiles and macroeconomic & demographic information, which enable our

researchers to build an accurate market overview

Definitions – Market definitions are standardized to allow comparison from country to country. The

parameters of each definition are carefully reviewed at the start of the research process to ensure they

match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest

industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative

and qualitative data to be combined with related macroeconomic and demographic drivers to create

market models and forecasts, which can then be refined according to specific competitive, regulatory

and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and

up-to-date

APPENDIX



Industry associations

International Association for Soaps, Detergents & Maintenance Products

Square Marie-Louise 49, B-1000 Brussels, Belgium

Tel.: 33 2 230 8371

Fax: 33 2 230 8288

www.aise-net.org

Related Datamonitor research

Industry profiles

Global Household Products

Household Products in Asia-Pacific

Household Products in Europe

Household Products in the United Kingdom

Household Products in Sweden

Household Products in Spain

Household Products in Norway

Household Products in the Netherlands

Household Products in Italy

Household Products in Germany

Household Products in France

Household Products in Denmark

Household Products in Belgium

Household Products in Russia

Household Products in Poland

Household Products in Hungary

Household Products in the Czech Republic

Household Products in Australia

Household Products in Taiwan

Household Products in South Korea

APPENDIX



Household Products in Singapore

Household Products in Japan

Household Products in China

Household Products in Brazil

Household Products in the United States

Household Products in Mexico

Household Products in Canada

Household Products in South Africa

APPENDIX



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