Colgate-Palmolive (India) Ltd

Colgate-Palmolive (India) is strongly focused in the Personal Care business which includes Oral Care. The Oral Care business accounts for over 90 per cent of the Company’s sales turnover.  It is having moat of market share with > 55% in oral care business.

The product range sold by the company in oral care (hygiene) are -

  • Toothpaste - Pastes, Gels, Powders, Polishes
  • Toothbrushes & accessories - Manual, Electric, Battery powered, Replacement toothbrush heads
  • Mouthwashes / Rinses - non medicated, medicated
  • Dental accessories / ancillaries - Dental flosses, breath freshners, cosmetic dental whitening products, dental water jets
  • Dental products like fixatives
  • Dental prosthesis cleaning solution

Brief History:  In 1806, devout Baptist English immigrant soap and candle maker William Colgate established a starch, soap, and candle factory on Dutch Street in New York City under the name William Colgate & Company.  In 1896, the company sold the first toothpaste in a tube, named Colgate Ribbon Dental Cream (invented by dentist Washington Sheffield).

Key growth drivers
  • Growing awareness of the importance of maintaining oral hygiene
  • Rising geriatric population
  • Growing prevalence of dental diseases
  • Increasing healthcare expenditure (coupled with rising disposable income)

The oral care/oral hygiene market is highly competitive, with a growing number of players operating at the regional level, which increases the pricing pressure.

The company is almost debt free and maintaining a healthy dividend payment.  As with rising awareness of oral hygiene and dental diseases, the company has good potential to grow in future and a good investment for long term.


NSE:COLPAL; BSE:500830

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