Ecolab Clinches HRM Award in China

Leading cleaning and sanitation products company Ecolab Inc (ECL - Analyst Report) has been named as one of the top 100 companies in China for human resource management for two years in a row.

The Minnesota-based company was awarded by 51jobs Inc. (JOBS - Snapshot Report), the leading integrated human resources service provider in China, for its commitment towards talent recruitment, employee training and development, and corporate social responsibility initiatives.

Sponsored by 51jobs Inc., the 100 Best Human Resource Management (“HRM”) Companies award focuses on identifying the outstanding companies in the field of HRM in China and is the most comprehensive human resources award in the nation. Hundreds of prospective awardees are identified through initial screening of thousands of companies operating in China followed by data collection, detailed analysis and in-depth interviews. 

Ecolab forayed into the Chinese market way back in 1987 by setting up a manufacturing facility in Shanghai. Currently, Shanghai is the company’s headquarters, training facility and R&D center in China.

Ecolab leads in cleaning, sanitizing, pest elimination and food safety solutions with annual sales of roughly $6 billion. The company is investing in strategic areas such as product innovation and sales organization while rationalizing operating costs to enhance margins.

We believe Ecolab’s strong international presence will continue to boost sales in the upcoming reporting periods, buoyed by the emerging markets. Asia-Pacific and Latin America represent the key growth engine for the company’s overseas operations.

While Ecolab’s strong international exposure (especially in emerging markets) and recovery across its end-markets are encouraging, aggressive competition and raw material inflation remain a concern.

Ecolab is faced with aggressive competition from the likes of Clorox (CLX - Analyst Report) and Church & Dwight (CHD - Snapshot Report). We are also wary about the potential dilutive impact of the hefty restructuring expenses on the company’s bottom line. We are currently Neutral on the stock.

Read the full analyst report on ECL

Read the full analyst report on CHD

Read the full analyst report on CLX

Read the full analyst report on JOBS