The Hindu : P&G to outsource Vicks Vaporub from Hyderabad

Online edition of India's National Newspaper
Friday, Oct 04, 2002

Business

Business

P&G to outsource Vicks Vaporub from Hyderabad

MUMBAI OCT. 3. Procter & Gamble Hygiene & Healthcare (PGHH) will outsource manufacture of Vicks Vaporub exports to Hyderabad-based contract manufacturer, Maksons.

As part of this deal, Maksons would purchase land, building and machinery of P&G's Hyderabad factory, where Vicks Vaporub was now being manufactured, from PGHH for an undisclosed amount, the company informed the Bombay Stock Exchange today.

This transition would take place over the next three to four months, it said adding, the outsourcing arrangement would enable PGHH to continue exporting Vicks Vaporub to Australia, Japan and other Asian countries at more competitive rates.

The entity was also working closely with its 60 employees at the Hyderabad plant to assist them with transfer opportunities to other P&G sites.

The PGHH Managing Director, Shantanu Khosla, said, ``This was a tough business decision and in no way reflects on the quality and dedication of our employees at the plant. We will do our best to transfer them to other P&G sites and help them find alternative employment opportunities by providing career counselling, retraining and financial support.''

The company would continue to manufacture Vicks Vaporub for domestic sale at its Kundaim plant in Goa. This arrangement would help PGHH achieve cost-efficiencies and stay competitive in the market, it said.

This move would, however, not affect the interest of PGHH's shareholders, the financials or availability of its brands in India, it added. — PTI

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