Brand behind Head & Shoulders, Pampers exits Pakistan

American multinational consumer goods company Procter & Gamble Company (P&G) has decided to close its business in Pakistan and shift to a distributor model in the country, the company said in a notice on Wednesday.

In a notice to the Pakistan Stock Exchange, Gillette Pakistan Limited, a subsidiary of P&G, said the company has decided to discontinue its business in Pakistan as part of its “global restructuring program”.

The P&G brand itself might be an unfamiliar name in Pakistan, but the company has deep penetration in the country due to its multiple products being widely used in households. The company portfolio of brands includes Pampers, Ariel, head & shoulders, Vicks, Olay, and Safeguard.

“After consideration of a broad range of options, the Company has decided that a third-party distribution model is the most prudent way to continue to serve consumers in Pakistan at this time,” the company said.

Gillette Pakistan Ltd said it will convene a meeting of the Board of Directors to decide its future strategy, including the potential delisting of the company from the Pakistan Stock Exchange.

P&G will move its business and operating model in Pakistan to a third-party distributor model and serve consumers in Pakistan from other global destinations.

The company said it will “continue to operate the business in the ordinary course” until the exodus is complete “which may take several months”.

“Supporting this Company decision, P&G Pakistan and the supporting regional teams will begin transition planning immediately, with a focus first on P&G people.”

P&G said employees who might be impacted as a result of the decision will be considered for opportunities in other countries where the company operates, or they will be offered severance packages in line with local laws and company policies.