After 13 years as P&G MD, Shantanu Khosla, 55, quits

28 May,2015

By Sagar Malviya


Procter & Gamble India’s managing director Shantanu Khosla is stepping down effective June 30, 2015, leaving behind a company that is struggling to grow its shares amid intense competition. The company announced his move on the BSE without elaborating on his replacement.


The 55-year-old Khosla became part of P&G when it acquired Richardson Hindustan in 1985. In his tenure spanning nearly thirty years at P&G, Khosla led several business units around the globe. Later, in 2002, he took over the leadership of India operations of the company in June 2002. In 11 years under Khosla, P&G’s revenues have multiplied about six times at roughly 9,000 crore across three companies.


Khosla, an IIT Bombay and IIM Kolkata alumnus, is leaving the company at a time when it has lost share in over two-thirds of its business, a struggle reminiscent of its parent company that has now put over 100 brands on the block to focus on core business.


The Indian unit of world’s largest consumer products company ceded ground in products ranging from detergents, skin creams and shampoos to disposable razors and sanitary napkins. Experts said this resulted from P&G’s lack of innovation and focus on higher margins amid aggressive strategies adopted by its rivals to increase their market share.


In the past two years, P&G has invested over Rs 2,000 crore in India, especially to set up manufacturing units to reduce dependence on pricier imports. However, big investments have taken a toll on its profitability, with the unlisted P&G Home Products, which houses laundry and shampoo brands, posting a loss of Rs 100 crore for 2013-14, on sales of Rs 5,381 crore.


P&G in India including two subsidiaries, Procter & Gamble Health & Hygiene, which markets feminine hygiene brand Whisper and Vicks anti-cold balm; and Gillette India, maker of razors and other shaving products had annual revenues of Rs 9,274 crore during 2013-14.


Source:The Economic Times

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