Procter & Gamble Hygiene & Healthcare (PGHH) has decided to outsource the manufacture of Vicks Vaporub exports to contract manufacturer Maksons Ltd., Hyderabad, the company informed BSE today.
This is an outsourcing arrangement, which will enable PGHH to continue exporting Vicks Vaporub to Australia, Japan and other Asian countries, but at more competitive rates, whilst maintaining its high quality PGHH will continue to manufacture Vicks Vaporub for domestic sale at its plant at Kundaim, Goa. This arrangement will help PGHH achieve cost-efficiencies, stay competitive in the market and the contract manufacturer to expand his manufacturing base and optimally utilize the plant to deliver quality products at competitive prices. This move will not affect the interest of PGHH''s shareholders, the Company''s financials or the availability of its brands in India.
As a part of this deal, the contract manufacturer will purchase from PGHH; land, building and machinery of P&G''s Hyderabad factory, where Vicks Vaporub is currently being manufactured, for an undisclosed amount. This transition will happen over the next three to four months. PGHH is working closely with its 60 employees at the Hyderabad plant to assist them with transfer opportunities to other P&G sites. Those who do not find such transfer opportunities will be provided career counseling, retraining and financial support to assist them to transition to new beginnings.
Shantanu Khosla, Managing Director (PGHH), said, "People have always been the foundation of our success and we appreciate the commitment and outstanding contribution made by our employees at the Hyderabad plant. 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 counseling, retraining and financial support."