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Revitalizing Growth: Gillette India's Strategic Moves to Shave Off Weakness and Unlock Potential

  • Weak topline growth performance: 5-year CAGR at 7.8%, 10-year CAGR at 5.5%

  • Reasons for weak performance: Decline in shaving frequency among men, increasing trend of sporting beards influenced by sportsmen and movie stars, lack of presence in Trimmers/Electric Shavers market, sale of Duracell business by parent company

  • Strong revenue growth in FY21: ~20% growth following a ~10% sales decline in FY20 due to Covid-related disruptions

  • Momentum during FY21-FY23E: Relative and absolute momentum at ~10% CAGR, in line with top peers

  • Changing factors/potential improvements:

    • Strong growth in women's shaving products under Gillette Venus brand, driving overall topline growth

    • Gillette Venus leading in brand recall and sales, cited ease of usage, better pricing, and fewer rashes/allergies as driving factors

    • Entry into electric shaving products/trimmers/epilators market with Braun brand, which is a major player globally

    • Campaigns targeting influencers like cricketers as brand ambassadors to shape consumer habits

    • Potential for premiumization in Oral Care segment, with Oral B brand as the second largest in the toothbrush category

  • Financial outlook:

    • Low one-year forward P/E multiple, attractive valuation after a significant decline in stock price

    • Healthy return ratios with ROCE of over 40%


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