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Oct 21, 2012, 08.31 PM IST
FMCG major Procter & Gamble (P&G) plans to infuse more than Rs 1,500 crore over a period of time in its unlisted Indian arm P&G Home Products Ltd to ramp up operations in the country.
"The company (PGHP) is now entitled to issue up to maximum of two crore equity shares of Rs 10 each at a premium of Rs 760 a share to the parent entity namely P&G Overseas India BV,” a P&G spokesperson told PTI in an emailed response.
Although the spokesperson reiterated that the increase in authorised capital only allowed the possibility of infusion which will be spread over the medium to long term, based on business requirement, the value of the transaction will come to over Rs 1,540 crore.
"The increase in authorised capital in Procter & Gamble Home Products Ltd is in line with P&G’s long-term focus on India as a key developing market, and one that the parent company continues to invest behind," she said. The fund will be used to support ongoing business activity, capital expansions for P&G operations and meet working capital needs in India, she added.
P&G India, which markets brands, including Vicks, Ariel, Tide, Whisper, Pantene, among others, has been achieving double-digit growth consistently for over a decade and is one of P&G’s fastest growing markets globally. "For now, this is an authorised capital increase and provides us with the flexibility to infuse capital in the future should the need arise," she said.
P&G operates under three entities in India. Procter & Gamble Hygiene and Health Care Ltd and Gillette India Ltd are the two listed entities while PGHP is 100-percent subsidiary of the US-based parent company. The company caters to over 650 million consumers across India and has presence in various verticals including beauty and grooming, household care and health and well being segment.
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