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BM: You have had an experience
of 25 years with Proctor & Gamble; first I would like you to
explain to the readers the history of your organisation. When
and how did it start off in Pakistan, how did it progress over
the years and how do you see it today?
Looking at the background I would want to start off by telling
you that Proctor & Gamble itself is a global company and it has
been around for 172 years. Its operation in Pakistan started off
in the year 1991 and it is a coincidence how even back then, it
was I who came here in 1990, and then a year later in 1991, we
set up our organisation here and started our business. We
started off with skincare and hair care products and today it
has been almost 19 years since we started our operation in
Pakistan.
BM: You started this business in the year 1991 after coming
to Pakistan, then again in the year 2006 you were reinstated
here. What was the difference that you saw when you were here in
1991, and when you came back in 2006?
The biggest difference is that, back in 1991 we were only just
starting our business here so obviously the entire organisation
was at its infancy and therefore we had to face whatever
challenges a company has to face during its start-up. When I
returned in the year 2006, this organisation had completely
established here, all of its functions were operating and the
business had grown significantly since the start-up. This was
all about Proctor & Gamble. As far as the market is concerned,
the biggest difference was that the income levels in Pakistan
had increased considerably in 2006 as compared to 1991. Because
of this, the branded consumer goods, as well call them, for
example shampoos, soaps and detergents had expanded incredibly
in the market and we also observed a great deal of
sophistication in the branded market as well.
BM: I would like to talk about some of the problems you faced
back in 1990, like you just mentioned that the purchasing power
has increased today compared to then, maybe the poverty rate has
decreased since then but we have seen a significant hike in
other problems, such as the electricity and logistics problems
and at the same time other issues that have worsened so much
over these 16 years, what was their impact on your organisation
and the marketing?
Well, over the years I think some of the problems have worsened
but some of them have improved a great deal as well.
BM: Do you think the ones that improved over the time have
off-set the ones that became even worse than before?
I don't think I can say that, but generally as far as Proctor &
Gamble is concerned, in 2006 it became a little easier for us to
do business because the market had grown significantly over this
time and the supply chain facilities had improved a great deal
in Pakistan, the IT infrastructure had improved and the entire
media environment, if you look at it from the point of view of a
marketing company, the most important thing besides the
manufacturing is making sure we reach our consumers and to
convey our message to them. So as compared to 1990-91 the media
had grown very rapidly and by 2006, we had a great deal of
approaches through it. So basically, we observed a lot of
improvements in the marketing department during this time.
BM: When you came back in 2006, I was reading one of your
statements on your website saying that Pakistan has the most
challenging and exciting environment. Three years on, I would
like to ask you, would you still say the same about Pakistan?
Yes I still believe strongly in what I said back then, there
were challenges then and there are challenges today as well,
there are always different challenges involved in a business
like ours. Pakistan's challenge is such that, it is a big
country with a population of approximately 170 Million people,
there are many different income disparities. There big cities
have an entirely different infrastructure whereas the small
cities and towns as well as villages have a different
environment. So all these challenges are in place, but the most
interesting and exciting thing about Pakistan is that there is a
very dynamic environment here, the population is huge and mostly
comprises of young people, so to reach these young people with
branded products and to market them is something that always
appeals to and is exciting for someone in this business. It was
exciting back in 2006 and it still is very exciting.
BM: Let's talk about the initial years, you mentioned earlier
than a lot of challenges have to be faced by an organisation or
business right after it gets established, it has to suffer
losses and there are many other difficulties that need to be
dealt with. You must have had a great deal of co-ordination with
the foreigners and foreign companies, do you think their
patience or tolerance level is more than us Pakistanis? Because
when a businessman or an entrepreneur starts his business here,
and suffers losses initially he quickly jumps to the conclusion
of winding up the business to prevent further losses and of
doing something else instead. This is not common among the
foreigners, they too suffer losses initially and they wait for
the right time to strike again. Does this really happen?
I cant answer the same for everyone but as far as Proctor &
Gamble is concerned, as I mentioned earlier, we are a company
that has been around for 172 years now, so now we plan for the
next 100 years, figuratively speaking. See whenever we enter a
new country, we always have a long term plan for it, for example
in case of Pakistan, we knew what kind of challenges we will be
facing, we knew the total population. We knew we were dealing
with a growing population that mostly comprised of young people
and therefore establishing a business here was going to be a
tough challenge, we knew it was going to take some time and
obviously we knew that no business starts blooming from the very
first day, businesses always take time to get fully established.
I believe that if you look at it from a long-term view and if
you have made the correct planning according to it, then I think
you can manage it in a systematic way.
BM: You have been managing it quite well with the help of
your vision. We have even seen the implementation of your vision
which includes the investment of $100 million, I would like you
to please tell us about your plant through which you are
bringing foreign investment into Pakistan?
I would like to tell you that the business that we have in
Pakistan, we are currently marketing 7-8 brands here actively.
Out of those we already have a plant in the HUB area that
manufactures the Safeguard Soap, at another location we are
carrying out the operation of repackaging of pampers. Our hair
care and detergent products are currently being imported, but I
think that the market has developed so much, that manufacturing
these products locally would make more sense. So what we have
just announced is that, we have acquired quite a large piece of
land at Port Qasim and that will be the future site for Proctor
& Gamble manufacturing. We have already started the construction
of one plant there, its foundation was laid in December and that
plant will manufacture detergents. At the same place we will
later install a plant for the manufacture of diapers. So the
$100 million investment that you spoke of is for the
installation of these two plants at Port Qasim.
BM: If you strategically view the market, what do you see?
Pakistan as a consumer industry is a whole segment on its own,
what do you think? What are the opportunities that you see here
keeping the population in view, what are the factors that drive
you to keep pursuing your vision with commitment?
The biggest interest factor of Pakistan is the fact that it is a
fairly large country, there is a huge population here and there
are many young people in that population that make majority of
it. Another thing is the fact that the consumers here in
Pakistan, whether they are upper class consumers or middle class
income consumers, or the lower income class, they all prefer
branded products. They have the assurance that they will find
the desired quality in these products so we have observed here
in Pakistan that all the good quality products are doing quite
well and have been fairly successful in the market. We at
Proctor & Gamble strive to manufacture such products and that is
why when we look at the market, we have a sense of confidence
that high quality products have the potential to succeed in this
market and they will. |