Gillette's Restructuring in India
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Case Code: BSTR129 Case Length: 15 Pages Period: 1984-2004 Pub Date: 2004 Teaching Note: Available |
Price: Rs.400 Organization: Gillette India Ltd. Industry: Consumer Products Countries: India Themes: Corporate Restructuring |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
The case focuses on the turnaround of Gillette India Limited (GIL) the Indian arm of the multinational Gillette Company. The Gillette Company entered the Indian market in 1984 through a joint venture as a minority shareholder and then garnered shares, so that it had three-fourths of the shares by 2002. During these two decades, Gillette followed inorganic growth by acquiring domestic companies in oral care, battery, blades and razors and stationery business. This diversification resulted in adding flab to the company's costs. With operating profits coming down, the company engaged in a restructuring exercise, which resulted in selling the same businesses the the company had acquired. The restructuring was successful and in 2003 GIL made a turnaround with net profit growth being the highest in the two decades of the company's presence in India.
Issues
The case is structured to achieve the following teaching objectives:
- How a company reaches a situation where restructuring is needed and how it goes ahead with restructuring
- The growth strategies followed by a company in international markets
- How transactions between joint venture partners evolve through the years.How a company adapts to the needs of local markets
- How decisions and practices of the parent company have an impact on the operations of the subsidiary. The relationship between the parent company and the subsidiary
Contents
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Introduction
Background Note
Segmentwise Information
Restructuring
Returns on Restructuring
Exhibits
Keywords
Gillette India Limited, Eveready Industries India Limited, Alkaline Batteries, Indian Shaving Products Limited, 7 O' Clock, Duracell India Limited, Wilkinson Sword India Ltd, Grooming Segment, Oral Care Segment, Colgate Palmolive, Hindustan Lever Limited (HLL), Dry Cell Battery, Acquisition, Branding
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