P&G out to double market share with P2.5-B expansion

Cabuyao, Laguna—Procter & Gamble Philippines Inc. is undertaking a P2.5-billion expansion of its plant here to boost its capacity to produce popular diaper brand Pampers by up to 40 percent and double its market share in three years.

In an interview with reporters, P&G Philippines president and general manager Siddik Tetik said the expansion would allow the consumer goods giant to take advantage of the country’s population growth by producing more diapers to serve both the domestic and international markets.

“Our baby care business is related to overall population growth. With this expansion, we’ll be selling to the domestic market and also exporting to Indonesia, initially,” Tetik said on the sidelines of the groundbreaking ceremony here on Friday.

“The population of the Philippines is expected to grow by 2 percent year-on-year. This brings more potential for our baby care business. We’re currently the leading brand,” he added, referring to Pampers.

Tetik said the plant expansion would allow P&G Philippines to double its market share in the diaper market within three years.

In a separate interview, P&G Philippines plant manager Fanny Wu said the expansion would boost the capacity of the company’s baby care line by 10 million cases, or by 30-40 percent.

The first new line should be ready for production by next year, with a utilization rate of 70-80 percent, Wu added.

The new lines, she said, would feature the latest technologies and would have higher throughput and higher speed. It would also produce less waste and more eco-friendly products.

Before the new lines are commissioned, Wu said employees who would be involved in the production process would be sent to China and Japan for training.

Meanwhile, Tetik said sales across all of the company’s brands registered double-digit growth last year, making 2010 the highest ever growth year for the company.

This could be attributed to the recent national elections and higher consumer confidence with the entry of the new administration.

This year, growth across all segments should slow down, but only because of last year’s huge base. Growth should still be double-digit for all brands, Tetik said.

The bulk of the company’s sales come from its fabric care line, he said. The fastest growing segment, however, was the personal cleansing and skin care line, with the baby care line likewise registering high growth numbers.

“Our investments are focused on these growth categories,” Tetik said.

The company’s Cabuyao plant currently manufactures fabric and home care brands Ariel, Downy, Joy, Mr. Clean, and Tide; personal cleansing and skin care products Safeguard, Zest, Secret, and Old Spice; feminine care brand Whisper; and baby care line Pampers.