P&G Overhauls Steel Supply Chain, Turns to India for Gillette Razors
In a strategic move aimed at mitigating the impact of potential tariffs under the incoming US administration, Procter & Gamble (P&G), the maker of Gillette razors, has shifted its sourcing of specialized stainless steel to India. The steel is used in the production of Gillette razors, which are famous for their thin, precision-engineered strips designed to prevent cuts and nicks.
P&G’s decision to source this high-grade steel from New Delhi-based Jindal Stainless marks a significant change in its supply chain strategy. The move is expected to help the company offset rising costs due to potential tariffs that may be imposed by US President-Elect Donald Trump’s administration. Steel for Gillette razors has traditionally been sourced from Japan and Sweden. However, tariffs on imports from these regions had significantly increased costs, forcing P&G to reevaluate its sourcing strategy. According to US import records reviewed by Reuters, P&G has been shifting its steel procurement from Japan’s Proterial and Sweden’s Alleima to Jindal Stainless. The company, which already had a long-standing relationship with Jindal for supplying steel to non-US markets, began importing large quantities of steel from Jindal into the US starting in 2022. P&G has since sourced more than 4,283,569kg of stainless steel from Jindal over the past 36 months.
Experts point out that Jindal Stainless is able to produce razor-grade steel at 20-25% lower costs than its competitors, primarily due to the cost advantages in labor-intensive production. This price advantage makes the Indian manufacturer an attractive choice for P&G, especially in light of increasing tariffs. The decision to turn to Jindal Stainless also comes as P&G braces for potential tariffs under President-Elect Trump’s incoming policies. During Trump’s first term, the company faced $1.4 billion in external costs, including tariffs, which eroded its margins. With Trump’s emphasis on protectionist policies, consumer product makers like P&G have had to adapt by restructuring their supply chains to reduce costs and avoid supply disruptions.
P&G’s Chief Financial Officer, Andre Schulten, recently stated that the company is prepared to adjust its supply chain depending on how Trump’s administration decides to implement tariffs. Despite this uncertainty, P&G remains optimistic about the long-term prospects of its grooming division, which has shown signs of recovery despite previous struggles. Jindal Stainless, the world’s largest manufacturer of stainless steel for razor blades, has been a key supplier for P&G in India and other global markets for over two decades. The Indian company has been able to meet P&G’s stringent quality requirements, and P&G executives have praised Jindal for “consistently performing at high levels.” Although Jindal Stainless has not commented specifically on the steel supplied to P&G, Abhyuday Jindal, managing director of the company, emphasized that the company prioritizes creating value for its customers rather than relying on price alone.
The shift to Indian steel is part of P&G’s broader strategy to maintain competitive margins amidst increasing pressure in the razor market. While the company has long been a leader in the grooming space, it has faced increasing competition from lower-priced alternatives like Dollar Shave Club and Harry’s. During the pandemic, sales of Gillette razors dipped as many men grew beards, leading to a further slowdown in demand. Despite these challenges, P&G has successfully worked to reposition its brand through product innovation and targeted marketing. The steel sourcing change, while operational, fits into this broader strategy of ensuring long-term sustainability for its grooming division.
