P&G to set up its biggest India plant in Andhra Pradesh

“The company has planned six business units at the proposed plant,which is expected to be operational by the end of December 2013,” an official told FE. The six units will be spread across beauty,grooming,health care,fabric and home care,and baby and family

care categories.

“The company would initially start with detergent manufacturing,which would have a capacity of over 300,000 tonne per annum,and is claimed to be the largest plant,” the official added. In fact,one of its flagship brand,Tide,was India’s first 1,000-crore brand in the year 2011. The company has four manufacturing plants across the country.

Besides,it has also planned for a distribution centre at the site to cater to the southern markets.

The state government has given a slew of incentives,including 50% VAT and CST reimbursement for a period of five years from the date of commencement of commercial production. The state Investment Promotion Board,which met recently,has issued a GO explaining the incentives given to P&G as per the revised industrial policy. In terms of employment to locals,the company has assured jobs for about 500 locals from one unit. This is

expected to increase when the other five units become functional.

In fact,the company had earlier considered Chennai as a possible site for its plant. Making products locally will help the it increase economies of scale and price its products aggressively vis-a-vis competitors.