Procter and Gamble (P&G), among the largest consumer goods companies in the world, has made a key corporate announcement about shutting down their manufacturing and commercial activities in Pakistan. This also involves the termination of the business operations of their subsidiary, Gillette Pakistan Limited.
The exit was officially announced by a notice to the Pakistan Stock Exchange (PSX) on Thursday with Gillette Pakistan Limited confirming the exit as part of the wider global restructuring at P&G.
Based on the disclosure, the relocation is in line with the strategic analysis of the operations of P&G around the world, according to which the company is dropping some of its markets in order to streamline its portfolio and concentrate on the areas which have a higher growth opportunity.
P&G is an international company with the brands of Pampers, Ariel, Head and Shoulders, Gillette, and Always, which had long been present in Pakistan. The move to close the operations can be regarded as one of the biggest changes in the local FMCG industry, since the company was instrumental in the formation of the consumer goods industry in the country.
Gillette Pakistan Limited, which manufactures and markets grooming products, will also cease its operations in line with the parent company’s plan. The company assured that it will comply with all regulatory requirements during the winding-down process and maintain transparency with its stakeholders.
The withdrawal of P&G is another step of the multinationals reducing its operations in Pakistan, casting doubts on the investment environment and business friendliness in Pakistan. More information on the schedule of the wind-down and its effect on employees and consumers is likely to be released in the weeks ahead.
, one of the largest consumer goods companies in the world, has in a major move decided to close manufacturing and commercial activities in Pakistan. This includes the termination of business operations of its subsidiary, Gillette Pakistan Limited.){kind=link}