Consumer goods major Proctor & Gamble India today said it has decided not to renew its contract manufacturing arrangement with its Himachal-based contractor JHS that makes Tide detergent, due to latter's financial instability. "It is a non-renewal of one of our contracts with JHS for Tide, which was due to expire by June-end. The decision for non-renewal of the contract has been taken after discussions with JHS, and is a result of the financial instability at JHS, which could result in violations of contractual obligations," P&G said in a statement. P&G, however, said it intends to continue its contract manufacturing with JHS for its oral care brands. JHS, which is a listed company, employs 550 workers at the Kala Amb plant that makes Tide. When asked about the fate of the employees, P&G said, "we have fulfilled all contractual obligation with JHS. We trust JHS to act in the best interest of its employees." P&G also said the company will continue making long-term investments at its Baddi plant.
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