Colgate-Palmolive, the country’s largest oral care company, proposes to double down on a wider set of fast-moving consumer goods (FMCG) categories, as it eyes a presence beyond oral hygiene.
The company, best known for its Colgate Strong Teeth, Max Fresh and Visible White toothpastes, is looking to get some of its international brands into India in hair care, home care and pet care, Prabha Narasimhan, MD & CEO, Colgate-Palmolive India, said in her first media interaction since taking charge a year ago.
The company is also talking to legacy companies and direct-to-consumer brands for possible acquisitions in non-oral care, she said. It will also introduce more products under the Palmolive umbrella, the only non-oral care brand currently in its India portfolio, which is into personal wash such as hand, body wash, face wash and shower gels.
“On Palmolive, we have a range outside of India, which is wider than what exists here. We will bring the best of that range, which is suitable for this country. Apart from that, we also have other brands outside of India. We are assessing what part could be relevant here. For instance, we have hair, home care, pet care and many other categories which are within our consideration set for India,” Narasimhan said.
Globally, Colgate has a range of soaps (Softsoap, Protex, Sanex), household cleaners (Ajax, Fabuloso), fabric care (Fluffy, Cuddly), deodorants, dish washers (Axion, Palmolive), surface cleaners, shampoos and pet nutrition as part of its FMCG portfolio. Non-oral care gives Colgate around 50-55% of its revenue globally, according to analysts tracking the company, with oral care contributing the other half (45-50%).
In India, Colgate has been largely skewed towards the oral care category, with an over 50% share of the domestic toothpaste market. The oral care business gives Colgate over 95-96% of its revenue, according to sector experts, with the contribution from personal care being small at the moment.
Narasimhan, who is the first person from outside of Colgate India to be hired directly as MD of the company in over two decades, is keen to change this business mix going forward. Palmolive, she says, has a strong brand equity, which can be leveraged well in the marketplace.
“Palmolive has an under-served equity. It has existed for 73 years in India and has a 60% plus awareness in a fragmented market of personal care. The onus is on us to translate this high level of latent equity into actual sales,” she says.
On oral care, the company has a three-pronged strategy. One is to drive growth in both toothpastes and toothbrush categories. Second is to drive science-based premiumisation and oral beauty, largely in urban areas. The third aspect is to drive penetration and volume growth in rural areas.
“At an external level, we are seeing green shoots in certain rural markets,” she says. “Rural consumption is coming back and that is happening as inflationary pressures moderate, which augurs well for us,” she says of the company’s rural strategy.
Colgate will focus on tapping the 55% rural consumers who are currently not brushing their teeth regularly to drive volume growth, Narasimhan said. Besides, it has a 90% market share at the below-`40 price point, providing scope for taking consumers up the value chain.
In urban areas, the focus will be on segments such as whitening, freshness and sensitivity. The company also expects its electric toothbrush range for kids and adults to take off well and contribute to growing the share of its premium portfolio in the future.