Four billion times a day, P&G brands touch the lives of people around the world

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.

 

Copyright © 2008 BUSINESSMONITORPK. All rights reserved.