Gillette India shares declined by nearly 3% after Procter & Gamble Bangladesh, one of its key distributors, terminated their distribution agreement, effective December 31, 2024. The company announced that this termination would lead to a proportionate drop in net sales, with sales from the distributor agreement contributing approximately 2% of Gillette India’s total net sales for FY 2023-24.
The grooming segment, which makes up 80% of Gillette India’s business, continues to drive the company’s growth. CFO Gautam Kamath recently shared that the company has achieved mid-single-digit sales growth over the past decade, with a cumulative annual profit growth of 23% and a return on equity at 5x during the same period.
Bangladesh is India’s largest trade partner in South Asia, with bilateral trade reaching $14.01 billion in FY24. However, recent political developments, including the ousting of former Prime Minister Sheikh Hasina, have impacted Indian businesses in the region. Gillette India is among the companies feeling the effects.
As of 9:35 am, Gillette India shares were trading 2.73% lower at ₹8,532.85 on the NSE.
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