Procter & Gamble Health on Wednesday announced that it will discontinue production of injections at its manufacturing plant in Goa and will source injections portfolio of its products from a contract manufacturer. “We hereby inform you that the Company plans to source the injections portfolio of its products from a contract manufacturer, hence the Company shall discontinue production of injections at its manufacturing plant in Goa effective September 30, 2023,” the company said in a regulatory filing.
The injections portfolio, procured from the company’s manufacturing facility at Goa, accounted for revenue of Rs 102.92 crores during the financial year 2022-23, constituting 8.37 per cent of its total revenue, it said.
P&G Health stated that the discontinuation of the production at its Goa plant shall not have an impact on the continuity of sale of injections by the company. The company is outsourcing manufacturing of the said portfolio with an intent to achieve cost efficiency and supply optimisation.
Earlier in August, Procter & Gamble Health Limited had posted profit at Rs 29.82 crore for the fourth quarter of FY23, down 27.6 per cent as against Rs 41.19 crore during the same period last year, on account of higher material cost and one-time employee cost. P&G had reported revenue from operations at Rs 301.18 crore, up 1.8 per cent in comparison to Rs 295.89 crore during the corresponding quarter of the previous year. The sales was reported at Rs 306.6 crores, up 3 per cent on-year. The sales grew at low single digit against the headwinds of slowing down of the category in the quarter.