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Time of India
18 hours ago
- Business
- Time of India
Colgate Palmolive to introduce more brands in India from its global portfolio
FMCG major Colgate-Palmolive (India) plans to introduce more brands here from the company's global portfolio to upscale its play in India -- one of the drivers for its growth, MD & CEO Prabha Narasimhan said on Monday. The company, having presence in the country with two brands - Colgate and Palmolive - currently operates in the oral care and personal care, and is in "active ongoing conversation" with the parent firm for expanding the portfolio. "We are very excited about what all we can do in India, both with our existing brands and portfolio, and with what we can do with the things that we can bring in from the globe. We have tremendous support from our global counterparts in terms of their excitement about what we can achieve in India," Narasimhan told PTI. About the Palmolive brand, which is currently operating in the personal care space with a premium body wash and hand wash range, Narasimhan said, they have tremendous potential and grow at 20 to 30 per cent CAGR. When asked as whether Colgate-Palmolive India Ltd (CPIL) will extend the brand Palmolive in new segments, she added she would rather focus on introducing more brands. "Actually, more than extending the brand Palmolive, we have a lot of products portfolio that is available globally. We are looking to see what of that product portfolio can legitimately be brought into India and make sense for the Indian consumer, and leverage the strengths that Colgate Palmolive India has. So that's a very active ongoing conversation," she added. CPIL, which has been operating in India for the last 88 years, currently contributes around 4 to 5 per cent of the global revenue of the Midtown Manhattan, New York City-based multinational consumer products major Colgate-Palmolive Company. According to Narasimhan, "in the coming years, the contribution of India will certainly increase." India, with its over 1.4 billion population, is always a "central part" of Colgate's global strategy and is now among five markets, which are called out as being the drivers of growth. "If you listen to our global CEO... who was speaking even recently at a conference where he talked about the fact that India will add more middle-class people in the next few years than any other country in the world, and therefore represents a tremendous opportunity for us," she said. Besides, on the channel side, CPIL, as per its strategy, is also extending its play into the fast-growing e-commerce channels , by adding more digital-first brands, exclusive to online sales channels. It has launched Colgate Purple and Max Fresh Sensories range, mouthwash sticks, which is for a small audience in the market. "We have quite a few, and we have a pipeline of many more," she added. However, she also added that traditional trade, which is neighbourhood kirana stores, is actually the bulk of CPIL's business and critical for the company. It has a "tremendous relationship" with its distributors, many of whom have been with it for decades. Earlier in May, All India Consumer Products Distributors Federation (AICPDF), an umbrella body of FMCG distributors pan-India, had called for the suspension of the purchase of all products of CPIL in Maharashtra, alleging deep discounting by it in favour of quick commerce channels. However, Narasimhan said there is "enough room" for all the channels in the market. Talking about the trend of consumers becoming more health-conscious, seeking better products and organic options, Narasimhan said consumers buy benefits and CPIL has the right science to deliver all of these benefits. Recently, the oral care segment has witnessed heightened competition, where several brands have launched their toothpaste based on ingredients derived from traditional ayurveda and organic options. "Indian consumers are sensible enough to know that they look for a benefit, they find products that deliver to that benefit, and that's our primary job," she said.
Time of India
a day ago
- Business
- Time of India
Colgate Palmolive to introduce more brands in India from its global portfolio
FMCG major Colgate-Palmolive (India) plans to introduce more brands here from the company's global portfolio to upscale its play in India -- one of the drivers for its growth, MD & CEO Prabha Narasimhan said on Monday. The company, having presence in the country with two brands - Colgate and Palmolive - currently operates in the oral care and personal care, and is in "active ongoing conversation" with the parent firm for expanding the portfolio. "We are very excited about what all we can do in India, both with our existing brands and portfolio, and with what we can do with the things that we can bring in from the globe. We have tremendous support from our global counterparts in terms of their excitement about what we can achieve in India," Narasimhan told PTI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like When Alone - Wrap Foil Around Your Doorknob (Here's Why) Life Hacks 101 About the Palmolive brand, which is currently operating in the personal care space with a premium body wash and hand wash range, Narasimhan said, they have tremendous potential and grow at 20 to 30 per cent CAGR. When asked as whether Colgate-Palmolive India L Ltd (CPIL) will extend the brand Palmolive in new segments, she added she would rather focus on introducing more brands. Live Events "Actually, more than extending the brand Palmolive, we have a lot of products portfolio that is available globally. We are looking to see what of that product portfolio can legitimately be brought into India and make sense for the Indian consumer, and leverage the strengths that Colgate Palmolive India has. So that's a very active ongoing conversation," she added. CPIL, which has been operating in India for the last 88 years, currently contributes around 4 to 5 per cent of the global revenue of the Midtown Manhattan, New York City-based multinational consumer products major Colgate-Palmolive Company. According to Narasimhan, "in the coming years, the contribution of India will certainly increase." India, with its over 1.4 billion population, is always a "central part" of Colgate's global strategy and is now among five markets, which are called out as being the drivers of growth. "If you listen to our global CEO... who was speaking even recently at a conference where he talked about the fact that India will add more middle-class people in the next few years than any other country in the world, and therefore represents a tremendous opportunity for us," she said. Besides, on the channel side, CPIL, as per its strategy, is also extending its play into the fast-growing e-commerce channels, by adding more digital-first brands, exclusive to online sales channels. It has launched Colgate Purple and Max Fresh Sensories range, mouthwash sticks, which is for a small audience in the market. "We have quite a few, and we have a pipeline of many more," she added. However, she also added that traditional trade, which is neighbourhood kirana stores, is actually the bulk of CPIL's business and critical for the company. It has a "tremendous relationship" with its distributors, many of whom have been with it for decades. Earlier in May, All India Consumer Products Distributors Federation (AICPDF), an umbrella body of FMCG distributors pan-India, had called for the suspension of the purchase of all products of CPIL in Maharashtra, alleging deep discounting by it in favour of quick commerce channels. However, Narasimhan said there is "enough room" for all the channels in the market. Talking about the trend of consumers becoming more health-conscious, seeking better products and organic options, Narasimhan said consumers buy benefits and CPIL has the right science to deliver all of these benefits. Recently, the oral care segment has witnessed heightened competition, where several brands have launched their toothpaste based on ingredients derived from traditional ayurveda and organic options. "Indian consumers are sensible enough to know that they look for a benefit, they find products that deliver to that benefit, and that's our primary job," she said.
Yahoo
22-05-2025
- Business
- Yahoo
Colgate-Palmolive (India) Ltd (BOM:500830) Q4 2025 Earnings Call Highlights: Strong Rural ...
Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Colgate-Palmolive (India) Ltd (BOM:500830) reported a 6.5% growth in revenue for the financial year 2024-2025, driven by mid to high single-digit volume growth in the toothpaste category. The company maintained strong margins, with an EBITDA margin of 32.6%, supported by efficient cost management and brand investment. Significant brand investment of 822 crores was made, making Colgate one of the largest advertised FMCG brands in India. The company launched several successful products, including the Colgate Purple toothpaste, which has been the most successful innovation in the last decade. Rural growth outpaced urban growth for the third consecutive quarter, indicating strong performance in rural markets. Urban demand, particularly in the bottom 70% of urban India, has been soft, impacting overall volume growth. Competitive intensity in the market remains high, with significant trade spending by competitors affecting pricing and margins. Volume growth was flat in the last quarter, with pricing contributing negatively to growth. The company faces challenges in managing channel conflicts between general trade and emerging channels like e-commerce. Despite premiumization efforts, pricing mix growth was missing for the full year, indicating challenges in achieving desired price growth. Q: Can you elaborate on Colgate's strategy in the sensitive toothpaste segment and how it compares to competitors? A: Our focus is on driving gum health, as 46% of oral health issues are related to gums. We aim to offer a comprehensive range of products, including toothpaste, mouthwash, and toothbrushes, to address these concerns. Our long-standing partnership with dentists, supported by initiatives like the oral health movement, strengthens our position in this segment. (Respondent: Unidentified_3) Q: With high promotional intensity in the toothpaste market, when do you expect it to normalize? A: We increased promotional spending to drive distribution and sales gains. While there may be temporary fluctuations, we believe the focus will eventually shift back to brand preference and product superiority. Our investments in brand superiority and innovation will help maintain our competitive edge. (Respondent: Unidentified_8) Q: How is Colgate addressing the challenges in the mass market segment, particularly with the Colgate Strong Teeth variant? A: The mass market, especially the bottom 70% of urban India, is under pressure, impacting volumes. However, rural areas and the top 30% of urban consumers remain resilient. We expect the situation to improve, with rural growth continuing and urban demand recovering in the latter half of the year. (Respondent: Unidentified_3) Q: What is the outlook for gross and EBITA margins for FY26, considering competitive intensity and input costs? A: Our priority is to drive top-line growth while maintaining competitiveness in trade and product superiority. We do not target specific margin levels but focus on doing the right things to achieve sustainable growth. (Respondent: Unidentified_8) Q: How does Colgate manage channel conflicts between general trade and emerging channels like e-commerce? A: We ensure parity pricing across channels and focus on moving consumers to premium products in modern trade and e-commerce. Over half of our e-commerce portfolio now consists of premium products, which helps manage channel conflicts and drive growth. (Respondent: Unidentified_3) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
