Colgate-Palmolive (India) Ltd is looking at opportunities to drive premiumisation in the health, therapeutic toothpaste and oral beauty segments for metro and urban cities, as per the latest annual report of the company. Colgate-Palmolive (India) Ltd (CPIL) also sees a "significant room" to deepen the penetration of oral care adjuncts like floss and mouthwash.
"Outside of oral care, the company sees opportunity in skin care, hair care, bath & shower products that have the largest market size within the beauty & personal care segment," it said. Rising incomes, rising aspiration and the democratisation of availability through e-commerce have led to rapid growth in these categories, CPIL added.
"There is also an opportunity for premium and innovative products in metros and urban cities in the space of family health, therapeutic toothpaste and oral beauty," it said. Besides, CPIL is committed to building a strong personal care portfolio leveraging the high recall of the brand Palmolive as well as considering relevant opportunities from the Colgate-Palmolive global portfolio.
"The equity of Palmolive is under-served at the moment and there is clearly an opportunity to build a robust personal care business, as the brand has a 60-65 per cent awareness level, which is difficult to build in a fragmented market," it said. Presently, Palmolive's product portfolio includes premium body wash and hand wash.
According to CPIL, now oral health issues are becoming more prevalent around the world and in India, as a result of rapid changes in lifestyles, living standards, and an increase in sugar-rich diets. Though after the pandemic, there has been a rise in awareness of oral hygiene, there is still work to be done.
"Per capita usage of toothpaste remains low in India and driving this represents an opportunity for category growth," said the annual report. It further said that approximately only 20 per cent of urban consumers brush the recommended twice-a-day and around 55 per cent of rural households do not brush daily.
"The industry is also expanding as a result of increased premiumisation, customer demand for more tailored solutions, and a growing number of active practising dentists," it said. India adds about 25,000 qualified dentists a year, CPIL said.
CPIL, whose products reach over 1.7 million stores, had net sales of Rs 5,188 crore in FY23.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
