New Delhi, Feb. 2: Gillette India has posted its highest-ever annual net profit at Rs 61.22 crore, a jump of 37 per cent over the previous financial year.

The company has proposed a dividend of 85 per cent (Rs 8.50 per share) for 2004. Last year, the company had announced a similar dividend.

The company did not comment on the fallout of Procter and Gamble?s (P&G) $57-billion takeover of Gillette Company of the US last Friday. Speculation has swirled that one of the local arms of P&G in India will make an open offer for the Gillette stock and the blades-and-razor company could then cease its independent existence. There was no word from Gillette India on this.

In 2004, the company recorded an impressive increase of 12 per cent in net sales at Rs 406.31 crore.

During the year, the company generated a surplus cash of Rs 57 crore. The company said it continued to be a zero-debt company. Another highlight of the year was the fact that it was featured as one of the 25 best employers in India in a Hewitt study spanning 272 companies and 75,000 employees, Gillette said.

?Our key achievement has been a profitable growth, with healthy franchise of our brands,? said managing director Zubair Ahmed.

The company's grooming business grew 14 per cent. During the second quarter of 2004, the company launched the triple blade shaving system ? Gillette Mach3 Turbo.

During the financial year, the company?s oral care business clocked an 8 per cent growth.

The company said during the year, it consolidated its leadership in the alkaline batteries segment, growing volumes by 41 per cent.

In the personal care category, Gillette India registered a sales volume growth of 10 per cent.