One of Gillette India's distributor - Procter & Gamble Bangladesh - has terminated the distribution agreement with the company, effective December 2024.
"As a consequence of this termination, the Company will have an impact of proportionate drop
in net sales under this Agreement. For the financial year 2023‐24, the net sales under the said
Distributor Agreement accounted for ~2% of the total net sales of the Company," Gillette India said.
The grooming segment accounts for 80% of Gillette India's business. Gautam Kamath, the CFO of Gillette India recently told analysts that the company has delivered mid-single digit sales growth over past 10 years. It clocked a cumulative annual profit growth of 23%, with return on equity at 5x during this 10-year period.
Last financial year, according to MEA data, Bangladesh is India’s largest trade partner in South Asia, and India is the second biggest trade partner of Bangladesh in Asia. In FY24, the total bilateral trade between the two nations was at $14.01 billion.
Indian businesses in Bangladesh have recently faced some scrutiny from the new interim government, after former PM Sheikh Hasina was ousted in a sudden development. The ties between the two countries too have taken a hit as Hasina had to flee to India after stepping down as the prime minister, following nationwide student protests.
According to some news reports, Western textile companies had temporarily halted new orders to Bangladesh after recent instances of violence.
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