In the spring and summer of 2000, P&G experienced one of the most demanding challenges in its history.

After missing earnings commitments, the Company's stock declined dramatically, resulting in a loss of nearly $50 billion in market capitalization. A.G. Lafley, who became CEO in June 2000, reaffirmed P&G's Purpose and Values and refocused the Company on the few choices necessary to get the business back on track: growing its leading categories and brands with its largest retail customers in its top geographic markets while accelerating growth in health, beauty and personal care and in fast-growing developing markets. In the five years that followed, P&G increased sales more than 40%, doubled profits, generated more than $30 billion in free cash flow, and delivered more than $70 billion in shareholder value. In 2005, P&G merged with The Gillette Company following the acquisitions of Clairol and Wella earlier in the decade. With a portfolio of 22 billion-dollar brands and a market capitalization of nearly $200 billion, P&G established itself as one of the ten most valuable companies in the world by respecting

the consumer as boss and fulfilling its Purpose: touching lives and improving life every day.

P&G Introduction
Founded in 1837, Procter & Gamble is one of the largest consumer products companies in the world. In fiscal year 2007, it had annual revenue of US$ 68.2 billion, and ranked 74th on Fortune 500 list of the world's largest corporations.

P&G has operations in more than 80 countries, with more than 300 brands on market in 160 countries. These include beauty care, household care and Gillette products. Three billion times a day, P&G brands touch the lives of people around the world. P&G Greater China business includes Mainland China, Hong Kong and Taiwan, which were established in 1988, 1987 and 1985 respectively.

Procter & Gamble entered Mainland China in 1988 by establishing its first joint venture - P&G (Guangzhou) Ltd. Headquartered in Guangzhou, P&G China currently has operations in Guangzhou, Beijing, Shanghai, Chengdu, Tianjin, Dongguan and Nanping, and a technical center in Beijing.

In 20 yeas, P&&G has made remarkable achievements in following areas:

Building Leading Brands:- P&&G is the largest consumer products company in China, with annual sales of US$2 billion. We are in No. 1 market share position in all categories where we compete. Rejoice, Safeguard, Olay, Pampers, Tide and Gillette are currently No.1 brands in China's hair care, personal cleansing, skin care, baby care, powder detergent and male grooming category respectively.

Registering Strong Business Growth:- P&&G Greater China is one of the fastest growing markets in the world. It is at No.2 position in volume, and among the top 5 markets in value.

Building A Best-in-Class Organization:- Together with company business growth, P&G's China staff has grown rapidly. Over 97% of our Chinese workforce is made up by Chinese nationals. P&&G China exports more managerial staff to other P&&G markets than the other way around.

Committing to Being A Good Corporate Citizen:- P&G has donated over 80 million yuan (US$10 million) to various charity causes in China, with Project Hope being the largest recipient of P&G corporate charity donations.

Companys profle
The Procter & Gamble Company (P&G), incorporated on May 5, 1905, is focused on providing consumer packaged goods. The Companys products are sold in more than 180 countries primarily through mass merchandisers, grocery stores, membership club stores, drug stores and high-frequency stores. As of June 30, 2012, P&G was organized into two Global Business Units (GBUs): Beauty and Grooming and Household Care. The GBUs contain a total of five segments: Beauty; Grooming; Health Care; Fabric Care and Home Care and Baby Care and Family Care. Sales to Wal-Mart Stores, Inc. and its affiliates represent approximately 14% of its total revenue during the fiscal year ended June 30, 2012 (fiscal 2012). On December 30, 2011, Helen of Troy Ltd. acquired PUR water purification products business (PUR) from the Company. Effective June 1, 2012, P&G announced that it has completed the sale of its Pringles business to Kellogg Company. Beauty In beauty care, the Company offer a variety of products, ranging from deodorants to cosmetics to skin care, such as its Olay brand, which is the facial skin care brand in the world. It also operates in fragrances market, through its Dolce & Gabbana, Gucci and Hugo Boss fragrance brands. Grooming The Companys grooming products include blades and razors, electronic hair removal devices, hair care appliances, pre and post shave products. Its brands include Braun, Fusion, Gillette and Mach3. The Company holds approximately 30% of the male shavers market and over 40% of the female epilators market. Health Care In the healthcare market it operates in various categories, such as feminine care, gastrointestinal, incontinence, rapid diagnostics, respiratory, toothbrush, toothpaste, other oral care, other personal health care, and vitamins/minerals/supplements. Its brands include Always, Crest, Oral-B, Vicks. Fabric Care and Home Care In this segment, the Company offers a variety of fabric care products, including laundry detergents, additives and fabric enhancers; home care products, including dishwashing liquids and detergents, surface cleaners and air fresheners; batteries; and pet care.Its products include Ace, Ariel, Dawn, Downy, Duracell, Febreze, Gain, Iams, and Tide. In batteries, the Company has over 25% of the global battery market share. Baby Care and Family Care The Baby Care and Family Care products include baby Wipes, diapers and pants, paper towels, tissues and toilet paper. Its brands include Bounty, Charmin, and Pampers.

Board of Directors - Mr. Saroj Poddar - Mr. Shantanu Khosla - Mr. Bansidhar S Mehta - Mr. G C Das - Mr. C.R. Dua - Mr. Akshay Poddar - Mr. Anil Kumar Gupta - Ms. Nayantara Bali - Mr. Pramod Agarwal Non Executive Chairman Managing Director Director Director Director Director Director Director Director

- Mr. Amit Vyas

Company Secretary

Hierarchy structure

financial statement
Currency in Millions of US Dollars
Revenues TOTAL REVENUES Cost Of Goods Sold GROSS PROFIT Selling General & Admin Expenses, Total OTHER OPERATING EXPENSES, TOTAL OPERATING INCOME Interest Expense Other Non-Operating Expenses, Total Other Non-Operating Income (Expenses) Merger & Restructuring Charges Impairment Of Goodwill Gain (Loss) On Sale Of Assets EBT, INCLUDING UNUSUAL ITEMS As of: Jun 30 2009 Restated 76,694.0 76,694.0 38,690.0 38,004.0 22,630.0 22,630.0 15,374.0 -1,358.0 397.0 397.0 ---14,413.0 Jun 30 2010 Restated 77,567.0 77,567.0 37,042.0 40,525.0 24,793.0 24,793.0 15,732.0 -946.0 -2,588.0 -2,588.0 --2,670.0 14,868.0 Jun 30 2011 Restated 81,104.0 81,104.0 39,859.0 41,245.0 25,750.0 25,750.0 15,495.0 -831.0 130.0 130.0 --203.0 14,997.0 Jun 30 2012 83,680.0 83,680.0 42,085.0 41,595.0 25,675.0 25,675.0 15,920.0 -769.0 -1,844.0 -1,844.0 -1,052.0 -1,576.0 2,106.0 12,785.0 4 Year Trend

Income Tax Expense Minority Interest In Earnings Earnings From Continuing Operations EARNINGS FROM DISCOUNTINUED OPERATIONS NET INCOME NET INCOME TO COMMON INCLUDING EXTRA ITEMS NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

3,733.0 -10,680.0 2,756.0 13,436.0 13,244.0 10,488.0

4,017.0 -110.0 10,851.0 1,995.0 12,736.0 12,517.0 10,522.0

3,299.0 -130.0 11,698.0 229.0 11,797.0 11,564.0 11,335.0

3,468.0 -148.0 9,317.0 1,587.0 10,756.0 10,500.0 8,913.0

P&Gs structure has removed many of the traditional overlaps and inefficiencies that exist in many large companies.

Global Business Units (GBUs) focus solely on consumers, brands and competitors around the world. They are responsible for the innovation pipeline, profitability and shareholder returns from their businesses. Market Development Organizations (MDOs) are charged with knowing consumers and retailers in each market where P&G competes and integrating the innovations flowing from the GBUs into business plans that work in each country. Global Business Services (GBS) utilizes P&G talent and expert partners to provide best-in-class business support services at the lowest possible costs to leverage P&Gs scale for a winning advantage. Lean Corporate Functions ensure ongoing functional innovation and capability improvement.

We have been utilizing this structure for over a decade, and continue to see faster global expansion of new innovations, better in-market execution and increased savings from purchasing scale and outsourcing partnerships.

Conclusion

P&G has received external recognition for its approach to sustainable development. For the second year running P&G holds first place within the Dow Jones Sustainability Index non durable household products group and reports its work annually under the Global Reporting Initiative (GRI) guidelines. The GRI promotes international harmonisation in reporting of environmental, social and economic performance statistics, in order to promote a more open environment for responsible decision making (www.globalreporting.org). This case study illustrates how P&G has innovated to develop a range of products and services that are helping to provide a better quality of life for everyone, as well as business opportunities for itself. It demonstrates that it is perfectly possible for companies that take environmental protection, social responsibility and economic development seriously not only to survive, but to flourish.