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India: P&G to set up its biggest India plant in Andhra Pradesh
India: P&G to set up its biggest India plant in Andhra Pradesh

India: P&G to set up its biggest India plant in Andhra Pradesh

MARKETING NEWS - Jun 11th, 10:10

FMCG major Procter & Gamble (P&G) India is enhancing its manufacturing capabilities and expanding its footprint by setting up its largest plant at Kothur Mandal in Mahaboobnagar district of Andhra Pradesh. The company will be investing R370 crore in the plant through Procter & Gamble Home Products.  

According to senior officials in the state government, the company has already acquired about 170 acre of land, which will make this plant one of the biggest units in Asia. The proposed plant would manufacture products in fabric and home care, oral care and baby care, among others. P&G operates through three entities in India; Procter & Gamble Hygiene and Health Care, Gillette India, and another 100% subsidiary of the parent company in the US called Procter & Gamble Home Products.

"The company has planned six business units at the proposed plant, which is expected to be operational by the end of December 2013,'' an official told FE. The six units will be spread across beauty, grooming, health care, fabric and home care, and baby and family care categories.

"The company would initially start with detergent manufacturing, which would have a capacity of over 300,000 tonnes per annum, and is claimed to be the largest plant," the official added. In fact, one of its flagship brands, Tide, was India's first 1,000-crore brand in 2011. The company has four manufacturing plants across the country.

Besides, it has also planned a distribution centre at the site to cater to the southern markets.

The state government has given a slew of incentives, including 50% VAT and CST reimbursement for a period of five years from the date of commencement of commercial production.

The state Investment Promotion Board, which met recently, has issued a GO explaining the incentives given to P&G as per the revised industrial policy. In terms of employment to locals, the company has assured jobs for about 500 locals from one unit.



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