New Delhi [India], August 9 (ANI/BusinessWire India): Oxford Economics today published its independent analysis of the significant economic impact of Reckitt Benckiser Group plc (“Reckitt”) in India, one of Reckitt’s top three markets. As a global leader in health, hygiene, and nutrition products, Reckitt contributed a total of INR78.8 billion (£775 million) to India’s Gross Domestic Product (GDP) in 2021.
The report[2] assesses the value Reckitt brings to the Indian economy and society by combining three key impacts: Gross Domestic Product (GDP), employment and government receipts in 2021.
Other report highlights include:
High GDP multiplier – Reckitt has a GDP multiplier of 2.5, almost double that of the average chemical and pharmaceutical manufacturing company in India. That means for every INR 1 million in GDP Reckitt generated in 2021, its expenditure on inputs and wages stimulated an additional INR 1.5 million in the local economy.[3]
Supportive Supply chain – Over 95 per cent of Reckitt’s local procurement is with suppliers in India.
Employment enabler – Reckitt’s employment multiplier in India is 21[4], almost 6 times the national average. “Our research demonstrates the significant contribution that a large and successful global company like Reckitt can make to the Indian economy; supporting employment opportunities, improving public health, and advancing social development across the country,” said Adrian Cooper, CEO of Oxford Economics. “Reckitt has also invested in improving community access to the highest quality hygiene, wellness and nourishment among the local population.”
The report highlights Reckitt’s contribution to wider social development in India, including its Research and Development (R&D) initiatives, upskilling its workforce and promoting gender inclusion, and supporting local communities to lead healthier and more hygienic lives.
Laxman Narasimhan, CEO of Reckitt, commented: “We’re extremely proud of our strong roots in India and the world-leading R&D and IT facilities we’ve established here. India is a great source of talent for our business and the local supply chain is key to our success. In line with the Government’s ‘Make in India’ campaign, 95 per cent of Reckitt’s local procurement is with Indian suppliers.”
Gaurav Jain, Reckitt’s SVP South Asia, commented: “As a fixture of Indian households since 1934, we’re delighted to publish this report ahead of India’s 75th Independence Day celebrations. Oxford’s independent assessment underlines our commitment to building on this strong heritage. We look forward to supporting India’s economic growth, employment opportunities and solving societal challenges for years to come.”
Reckitt partners with the Government of India, non-governmental organizations (NGOs), industry associations and other organisations to tackle societal challenges. Its key social impact programmes in India include: The Dettol Banega Swasth India Campaign, which works towards improving people’s behaviours around health and hygiene, reaching 116 million people since it launched in 2014.
The Dettol School Hygiene Education Programme, which teaches children hygiene behaviours like hand washing and has educated 20 million children in five critical hygiene settings – at home, school, within neighbourhoods, personally and during illness.
The Reach Each Child Programme, which has saved 6,500 children from death and illness from malnutrition. The Harpic World Toilet College Programme, which provides India’s sanitation workers with greater economic prosperity, increased dignity, and a safer working environment, has trained over 15,800 workers.
https://www.reckitt.com/sustainability/purpose-led-brands/the-economic-impact-of-reckitt-in-india/
[1] This is measured as the average gross valued added contribution to GDP produced by each Reckitt employee.
[2] The modelling is underpinned by Oxford Economics’ bespoke Global Sustainability Model (GSM) that analyses a company’s economic impact across three core channels of direct impact, indirect impact and induced impact.
[3] The total GDP impact is 2.5 times the direct GDP impact alone. In other words, for every INR1 million GDP that Reckitt itself generated in 2021, its expenditure on inputs and wages stimulates a further INR1.5 million of GDP across the country.
[4] Reckitt India’s employment multiplier in 2021 is 21, meaning every 100 jobs in Reckitt supported 2,000 jobs in other parts of the Indian economy.
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