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khokhadream
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Quote khokhadream Replybullet Topic: Gillette - A close shave!
    Posted: 21/Nov/2007 at 12:05pm
Well this applies to overall fmcg space. But you need to take into account that indians were not using gillette products initially and there is huge shift from traditional to more advanced and braded products inspite of the regular growth. Gillette being undisputed world leader will grow in india as well.
If you look at the past two quarters it is growing 40%
 
 
 
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Vivek Sukhani
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Quote Vivek Sukhani Replybullet Posted: 21/Nov/2007 at 10:32pm
Originally posted by smartcat

Gillette is a FMCG company - and as popularly quoted by analysts, FMCG companies will grow at GDP (8%) + Inflation (6%) = 14% rate per annum.
 
Although I believe its wrong for me to indulge in someone else's thought process, but I liked Smartcat's comment and hence this post. Your posts are indeed full of humour, but may I know Smartcat which analysts are you talking about? I rarely come across anyone bullish on FMCG, and at times I feel like as if I am a loner fighting it out with best of best minds, while advocating for FMCG companies.....
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India_Bull
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Quote India_Bull Replybullet Posted: 21/Nov/2007 at 10:49pm
Lot of people were bullish on HLL few years ago   and when I was studying for my MBA, HLL was the dream company in my mind to work for , but no one is bullish on the FMCG companies as Smartjee said, however Sharekhan throws out some buy calls on FMCG companies occasionaly.
When FMCG companies come to limelight or stock prices appreciate , one should safely assume end of the bull run !!
India_Bull forever Bull !
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Vivek Sukhani
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Quote Vivek Sukhani Replybullet Posted: 21/Nov/2007 at 10:52pm

Ten years hence people will use IT as a substitute for FMCG for this piece of observation regarding the end of bull market, Sandeep.....
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smartcat
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Quote smartcat Replybullet Posted: 21/Nov/2007 at 11:41pm
When I don't remember the name of an analyst, I just call him a suit boot waley. So do you think this formula is correct? 
 
FMCG sector = GDP + Inflation
 
Of course, there would be individual companies that might grow at a faster rate because of new product launches.
 
If you look at the past two quarters it is growing 40%
 
Is this sustainable? The article mentions that the growth was due to synergies with P&G. There will still be synergies next year but growth rate might not be this high.
 
And I didn't know that Duracell was a Gillette brand!
 
 
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basant
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Quote basant Replybullet Posted: 21/Nov/2007 at 7:10am
Actually Gilette screwed itself up by over paying for the Duracel brand. Sometimes I wonder whether the country to country comparisions can go down so well. For example we have Sikhs in India who never shave; there are several muslims who also like to keepa  beard; many sadhus and mahatamas also sport beards so that blanket comparision with india and US on shaving has these fine prints which are never discussed.
 
These three categories make up for some 20% of India's population.
 
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Vivek Sukhani
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Quote Vivek Sukhani Replybullet Posted: 21/Nov/2007 at 8:24am
Gillette has a wonderful pricing power. only the valuations may be something which should be considered. Its an area where the biggest predator of the moment, ITC will not be making a fpray. So that ways its a a safer FMCG bet.
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sajanvm
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Quote sajanvm Replybullet Posted: 21/Nov/2007 at 9:19am

Will Gillette merged into P&G in India ?

I hold P&G - its a 2 product company but is a cash generating machine - ofcourse, they are all unloved nowadays.
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