According to ORG-retail audit data for the urban north zone market, HLL's value market share in toothpaste has increased to 43.6 per cent in January from 41 per cent in December 1998, while Colgate's share has dropped to 43.1 per cent from 45.6 per cent during the period.

However, in terms of volume, Colgate still reigns high with a share of 45 per cent vis-a-vis 41 per cent for HLL in January. Analysts said that given the fact that the realisation per tonne for Levers is higher as compared to Colgate, HLL's share in value is higher and this has enabled the multinational to reach leadership position in value terms faster.

Says Inquire Indian Equity Research equity analyst Ayaz Motiwala, the maximum contribution ofaround 75 per cent to HLL's sales break-up comes from Close-Up, the silica based toothpaste, which gives a higher realisation per use as against a chalk paste (all white pastes are chalk pastes). In the case of Colgate, white pastes contribute maximum to the sales, and thus the company has higher volumes, says Motiwala.

The HLL's portfolio consists of brands like Close Up and Pepsodent, and their variants. Colgate's basket includes the Cibaca brand of toothpaste in addition to Colgate Total, Colgate Gels, Colgate Double Protection and Colgate Dental cream. Products of the two companies are comparable in terms of pricing.

The north zone consists of markets like Delhi, Punjab, Haryana, Himachal Pradesh, Rajasthan, Uttar Pradesh and Jammu & Kashmir. The All India toothpaste market in the month of January was valued at Rs 93 crore, and the north zone contributed around 29 per cent to this.

Analysts say that the development comes as a small victory for HLL which has been `on the prowl' for market share inthis segment. The toothpaste market has seen heavy activity on the advertising and marketing fronts from both sides. This is clearly visible from the market place skirmishes between the two multinationals.

HLL's strategy in the toothpaste market was two-pronged: the first being the launch of Close-Up which created a disruption in the market place and the brand has, as of today, notched up a share of close to 20 per cent. The second step was to back Close Up with another strong brand and build this equity to hit out directly at the leader's flagship brand. Thus was born Pepsodent to take on Colgate Dental Cream head-on.

Today, HLL's share in the overall market stands at 32 per cent while Colgate is still the clear leader with a share of around 56 per cent. Besides the North zone, HLL is said to have won similar battles in toothpastes in other spots like Bihar and Tamil Nadu.

The company is perceived to have taken a decision to consolidate its energies in those areas where the company was strong in thetoothpaste market since the beginning. These are the areas where Close Up had been well received and the company decided to consolidate its efforts in these growth-led markets to increase its share of the pie bit-by-bit.