Colgate - Another New Beginning, But Challenges Persist: Motilal Oswal

Motilal Oswal Report

Colgate Palmolive India Ltd.’s new Chief Executive Officer Prabha Narasimhan unveiled her plans to drive growth in oral care, increase premiumisation in the category, and focus on the non-oral care business as part of its annual investor day. Key takeaways from the day include the following:

• India is one of the three key countries for Colgate globally, and thus, highly important from a global perspective.

• From a growth perspective, the company plans to focus on rural areas where 55% of the population do not brush daily and in urban areas where only about 20% of the households brush twice a day.

• Slower growth in the naturals category in the last couple of years where Colgate is relatively under-indexed also enables some stability to its plans.

• From a toothbrush perspective, the company’s focus will be on-

  1. hastening replacement of toothbrushes (from once in every six months in urban areas and from once every 15 months in rural areas); 2. gentle toothbrushes, and

  3. powered toothbrushes, which is a nascent category.

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