Noel Wallace, the Chairman and CEO of Colgate-Palmolive, is bullish and excited about India, anticipating a demand recovery in rural markets.
“In India, we will see the continued return to the rural segment, the vitality of the rural segment, which will bode well for volume as we move forward. We have some strong innovation plans for India, around our core businesses. We are excited to see that obviously be delivered in the market and executed,” Wallace told investors during its earnings call.
“So India, very strong results across the board, 9% organic, continued strong pricing and sequentially better volume in that market. I would likewise say we remain very excited and bullish on the market in India.”
In the realm of oral care net sales, India stands as the third-largest market for this global company. With a firm grip on half of the oral care market in the country, Colgate’s products are distributed to over 1.7 million stores nationwide. Over the past decade, the toothpaste category in India has witnessed a remarkable growth, adding 430 million users—an equivalent number to the combined populations of the United States and Germany.
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Nevertheless, oral care consumption in India remains considerably low. Even in comparison to other developing markets like the Philippines and Brazil, India lags behind, with these countries respectively consuming 1.8 times and 3.1 times more oral care products despite their smaller populations.
“The team is doing an exceptional job finding added distribution points to make sure we continue to capitalise on investment strategy. So bullish on India, good results and sequentially right where we would like to see their business today and setting us up for ultimately another strong year in 2024,” Wallace added.
During the quarter ending December, Colgate achieved an 8.1% sales growth, indicating a low single-digit volume increase. Notably, the toothpaste category exhibited double-digit growth, with a low single-digit volume expansion, signifying a reversal from the previous year’s decline in volumes.
Analysts noted that the company continues to work on innovation-led growth. For instance, it relaunched its flagship brand Colgate dental cream with a better formulation, doubled down on the Colgate Strong Teeth relaunch by expanding reach and availability, and also relaunched Colgate Max Fresh with a new proprietary technology.
“Colgate aims to improve performance by increasing the consumption frequency through core products, driving premiumisation with science-based innovation, expanding distribution of personal care portfolio and improving product assortment with the help of technology,” said a report by Antique Stock Broking.