P&G SHOWS CONFIDENCE IN PAKISTAN'S ECONOMY

INAUGURATES SECOND STATE OF THE ART PLANT AT PORT QASIM

AMANULLAH BASHAR
(feedback@pgeconomist.com)

Dec 13 - 19, 2010

With the inauguration of the second state-of-the art plant at Port Qasim, the Procter and Gamble (P&G) showed its commitment and confidence in the economic potential and strength of Pakistan last week.

The state of the art Ariel Plant designed to manufacture premium detergent brand Ariel in Pakistan by combining breakthrough technology with world class innovation at Port Qasim was inaugurated by Acting Governor Sindh, Nisar Ahmad Khuhro.

It may be recalled that P&G established its soap manufacturing facility in 1994, which was said to be the first of its kind manufacturing facility in Hub to produce water-purifying technology PUR. To date, P&G PUR plant in Hub has made more than two billion liters of clean drinking water available globally.

The inauguration ceremony of Port Qasim plant was attended among others by global and regional P&G executives including Werner Geissler, Vice Chairman, P&G Global Operations; Dimitri Panayiotopoulos, Vice Chairman, P&G Global Household Care; Laurent Philippe, Group President, Central Eastern Europe , Middle East & Africa and senior management from the P&G regional and Pakistan offices. In addition, senior members of the corporate and government sector were also present at the event. The newly instated US Ambassador to Pakistan Cameron Munter also attended the ceremony.

This new investment by P&G in Pakistan stems from the company's purpose-inspired growth strategy to touch and improve lives of more consumers in more parts of the world. P&G has been in Pakistan for only two decades and in this short time, the company has launched several premium quality brands to serve Pakistan consumers. This landmark investment is expected to create about 3,500 direct and indirect jobs in the country over the next ten years. This Ariel plant is also estimated to create hundreds of millions of dollars in local value addition to the Pakistan economy resulting in significant local supplier base development over the next ten years.

According to the Vice Chairman P&G Global Operations P&G's, purpose-inspired growth strategy enables the company to reach the underserved and un-served consumers with increased presence in emerging and developing markets. With a population of 180 million people, Pakistan has been identified by P&G as a high potential emerging market and this hallmark investment bears testimony to its long-term outlook on the country. P&G brands in Pakistan are amongst leading household names in their respective categories. "We are hopeful that in times to come Pakistan will offer us an even stronger platform to live our company purpose of touching and improving lives of consumers, now and for generations to come."

The Ariel plant is based on cutting edge technology comparable to the best P&G plants in the world to ensure high quality local production of Ariel. Ariel is serving consumers in more than 135 countries and it is the trusted ally of Pakistani women by constantly delivering on its promise of tough stain removal and superior overall cleaning. Since its launch in Pakistan in 1997, Ariel has been touching and improving the lives of Pakistani consumers through premium quality product offerings and social cause projects. The new Ariel plant will produce Ariel formulation called Prozim - cleaning clothes better in one wash versus two washes of ordinary detergent.

Nisar Ahmad Khuhro paying tributes to commitment of P&G in the economy remarked that establishment of this state-of-the-art Ariel plant in Pakistan is indeed a landmark event. It is a moment of great pride for us that P&G's globally renowned, premium detergent brand Ariel will now be manufactured in Pakistan, he said. This plant investment brings with it great business opportunities for the local suppliers, numerous direct and indirect jobs as well as community development initiatives.

Speaking on the occasion, Vice Chairman, P&G Global Household Care highlighted the key aspects of the Ariel Plant and said: "This Ariel plant investment is a cause for celebration and pride both for P&G and Pakistan as well as for our employees, consumers and partners. It has realized extensive local skill development with over 70 Pakistanis given more than 4,000 hours of international training in several P&G locations & technical centers. The plant invested in developing local supplier base capability even before startup; currently 40 percent of the raw and packing material cost is sourced within Pakistan. Local suppliers that we have developed in design, construction and maintenance are now helping other P&G projects in South Africa and Nigeria. In addition, the plant has been designed to integrate the latest sustainability innovations, technological equipments, and e-systems to minimize impact on environment. This Ariel plant is a zero effluent plant completely recycling waste water for industrial use.

This milestone investment is expected to create hundreds of millions of dollars in local value addition in Pakistan resulting in significant local supplier base development. This plant has realized extensive local skill development with over 70 Pakistanis given more than 4,000 hours of international trainings in several P&G locations & technical centers. This plant is estimated to create about 3,500 direct and indirect employment opportunities over 10 years. Local suppliers in design, construction and maintenance, developed during the course of this project are now helping other P&G projects in South Africa and Nigeria. The company plans to double local supplier base next year. Moreover, this plant will create a large export potential for the country.

The P&G Detergent Plant at PQA combines technological advancement with sustainable practices. In line with the company's recently announced global vision to enhance sustainable business practices, the new plant at PQA employs the highest standards of manufacturing and design principles to ensure earth, energy, and water care. It supports the company's long-term sustainability vision on reducing consumer and manufacturing waste, which go to landfills and designing products while maximizing conservation of resources.

BACKGROUND

Procter & Gamble is a global company established 173 years ago. Since inception, P&G has delighted consumers with premium quality brands. Today, P&G markets its brands in more than 180 countries touching the lives of 4 billion people each day across the world.

P&G commenced operations in Pakistan in 1991 with the goal of becoming the finest consumer goods company in the country. Today, P&G provides Pakistani consumers with premium quality brands such as Ariel, Always, Pampers, Safeguard, Head and Shoulders and Pantene. These brands are amongst leading household names in their categories, providing convenience, care, and value to Pakistani consumers, thereby enhancing quality of life.

P&G has identified Pakistan as a high potential emerging market. To date, the company has invested significantly in Pakistan to touch and improve the lives of Pakistani consumers. Some of the major contributions include:

Created about 4500 jobs through direct and indirect channels.

Establishment of a Greenfield Ariel Plant at Port Qasim Authority, a state-of-the-art manufacturing facility comparable to the best P&G plants in other countries.

P&G strives to fulfill its purpose of improving the everyday lives of Pakistani consumers through not only its brands but also its various community programs. In line with its corporate cause entitled 'Live, Learn, and Thrive', P&G has launched several community programs that have reached over 19 million Pakistanis to date. These programs include:

Setting up 60 informal schools in slum areas of Karachi and Thatta with NGO partner Health Oriented Preventive Education (HOPE) having educated 2000 children to date.

Establishment of three seismic-complaint schools with the READ foundation in Muzzaffarabad and rural Islamabad having provided quality education to 3000 children to date.

Establishing a P&G Home in the SOS Village in Islamabad which will house 10-12 orphan children.

Having educated seven million mothers about healthy development of babies through the Pampers Hospital Education program and Mobile Clinics.

Awareness about feminine health and hygiene amongst 5.5 million young girls through the Always school education program

Educated seven million children on basic hygiene and the importance of washing hands through the Safeguard school education program.