Procter & Gamble (P&G) partners with India’s Jindal Stainless to cut costs on specialised razor blade steel, safeguarding profits as tariffs loom under Donald Trump’s second term.
Procter & Gamble (P&G), the maker of Gillette razors, has shifted its supply chain to source specialised stainless steel from India’s Jindal Stainless, as per a report on Business Standard. This strategic move aims to mitigate the impact of potential tariffs under US President-Elect Donald Trump’s administration, protecting the company’s profit margins.
The stainless steel used in Gillette razors is highly specialised, designed to prevent nicks and cuts, and produced in bulk by a limited number of global manufacturers, none based in the US. Import records analysed by Reuters reveal that P&G began sourcing from New Delhi-based Jindal Stainless in 2022, importing over 4.2 million kilograms in three years.
Jindal’s competitive pricing—20-25 per cent lower than Japanese and Swedish suppliers—gives it an edge. Previously, P&G relied heavily on pricier imports from Japan’s Proterial and Sweden’s Alleima. However, data shows a sharp decline in imports from these suppliers, with Alleima shipments ceasing entirely in 2024.
Jindal, a long-time partner of P&G, has focused on creating value through quality and reliability rather than price alone. P&G praised the supplier in an internal blog earlier this year, citing consistent high performance.
The move aligns with P&G’s broader efforts to optimise supply chains amid escalating costs. During Trump’s first term, the company faced $1.4 billion in external costs, including tariffs. With Trump pledging new tariffs on major trading partners, companies like P&G are pre-emptively diversifying suppliers.
The Gillette division, P&G’s smallest by revenue, has struggled in recent years due to pandemic-driven lifestyle changes and competition from budget razor brands. By leveraging cost-effective Indian steel, P&G positions itself to maintain market competitiveness and navigate uncertain economic conditions.
