Procter & Gamble Hygiene and Health Care Ltd (PGHH)
has terminated its three-year distribution alliance with
Marico Industries for its Old Spice, shaving cream, lotion
and talcum powder, Pampers diapers and Ariel detergent
the same time, PGHH announced its decision to license
the Old Spice trademark and business to the Goa-based
Menezes Cosmetics Pvt Ltd for an undisclosed fee with
effect from December 1, 2002. Pampers will be distributed
by P&GHH and Ariel by P&G Home Products.
agreement with Menezes Cosmetics covers a period of ten
years and is limited to the Old Spice business in India
covering after shave lotion, shaving cream and talcum
powders under the Old Spice brand, according to the company.
Cosmetics is part of the 92 year-old CMM Group of Companies,
which introduced Old Spice in India in 1969 and marketed
it till 1993.
present Menezes Cosmetics markets body sprays, aftershave
lotions and shaving creams under the XM brand in India.
Old Spice is viewed as a strategic fit for the company
due to its business focus on the fragrances category.
move will impact PGHH''s sales to the tune of 3 per cent
(Rs 16 crore annually) but will not impact its profitability
since the estimated license fee revenues are expected
to be higher than the profits currently generated by PGHH
on the Old Spice business, according to the company.
intends to focus on its core categories in India, feminine
and health care. Old Spice does not fit into the above
categories and MCPL will be able to realise the full potential
of Old Spice," said Bharat Patel, chairman of PGHH.
has already handed over the marketing and manufacturing
licence for an undisclosed fee to Nirma. P&G is not
too keen on pumping in the money needed in a competitive
market for brands like Camay or Old Spice.