Gillette India share price slipped 2 percent in the opening trade on September 25 after its distributor Procter & Gamble Bangladesh terminated the distribution agreement.
At 09:21am, Gillette India was quoting at Rs 8,577, down Rs 192.65, or 2.20 percent, on the BSE.
On September 24, distributor Procter & Gamble Bangladesh notified about the termination of the distribution agreement with Gillette India, effective December 31, 2024.
There will be an impact of proportionate drop in net sales under this agreement, company said.
The company indicated that this agreement contributed approximately 2% to its total net sales for the financial year 2023-24.
However, Gillette stated that there would be no material impact on its profits from this change.
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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.
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.
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.
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