Colgate Palmolive India – Important 2020 Annual Report Takeaways

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Colgate Palmolive India
Source: FY20 Annual report

A Quick History of Colgate Palmolive India

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).

Letter from Noel Wallace

Source: Company’s website

Company’s Value

We are Colgate-Palmolive, a caring, innovative growth company that’s reimagining a healthier future for people and our planet.

Our three fundamental values – Caring, Teamwork, and Continuous Improvement – are a part of everything we do.

These values are reflected not only in the quality of our products and the reputation of our Company but also in our dedication to serving the communities.

Some Heart-Warming Stories from Colgate Palmolive India

Colgate Palmolive India Chairman’s Message

I am pleased to inform you that Colgate Palmolive India continues to be the most trusted oral care brand in the country for the 9th consecutive year as reported by the latest Brand Equity-Nielsen consumer survey of The Economic Times.

Innovation continues to be a key driver for growth.

The past year saw a healthy stream of innovation being brought to the market. Pivotal among these was the relaunch of our flagship variant, Colgate Dental Cream Strong Teeth.

This patented technology helps to strengthen teeth from within. It was created over a decade of research with more than 18,000 people in over 20 clinics and is a true revolution in oral health.

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The year also saw the launch of Colgate Charcoal Clean from Colgate Palmolive India. India’s first black toothpaste with an exhilarating flavor.

The kids’ portfolio was strengthened with the launch of the ‘Zero’ line catering to the new and emerging needs of our consumers.

The toothbrush business of Colgate Palmolive India saw the launch of Zig Zag Neem and Charcoal as well as our entry into the Battery operated segment with the launch of our B150 series.

The Colgate Palmolive India portfolio saw some ‘on-trend’ innovation including the launch of our Luminous Oils range of Body Wash and Liquid hand soaps.

In response to an amplified focus on health and hygiene, we also launched our Colgate Palmolive India Hand Sanitizer. We stepped up our focus on e-commerce with a fully dedicated cross-functional team.

Our progress in advanced analytics included the use of tools such as predictive modeling to improve the quality of assortment across retail environments.

Board of Directors of Colgate Palmolive India

Board of Directors - Colgate Palmolive India
Board of Directors - Colgate Palmolive India
Board of Directors - Colgate Palmolive India
Board of Directors - Colgate Palmolive India

Sustainability Initiative by Colgate Palmolive India

Elevating Oral Health in India:

Our flagship Bright Smiles, Bright Futures program, launched in 1976 to spread awareness among children about oral care, has touched the lives of over 170 million children across the rural and urban landscape to date.

In the past year, over 7 million children have benefitted from this program.

Save Water Campaign:

Water is one of the key pillars of our sustainability agenda.

After a successful implementation of water programs in Bihar and West Bengal in partnership with the Water For People, India Trust, we launched our water program in Maharashtra, one of the most affected water-scarce regions.

The program has already enabled the availability of community water across villages.

Initiatives towards the Environment:

U.S. Green Building Council has awarded TRUE Zero Waste Platinum Certification to all 4 of our manufacturing plants at Baddi, Goa, Sanand, and Sri City.

This helps us drive Colgate Palmolive India success in environmental sustainability by diverting waste from landfills using the principles of reuse, recycle, and reduce throughout our supply chain.

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Our Sanand and Sri City manufacturing plants are LEED-certified

CSR Activities by Colgate Palmolive India

Guinness World Record

In our continuous endeavor to keep India Smiling, Colgate Palmolive India received a Guinness World Record for most people brushing simultaneously at a single venue in November 2019.

26,382 people smiled their way through this record-breaking brushing event.

It is yet another statement of Colgate’s commitment to elevating the Oral Health consciousness in the country.

Financial Overview of Colgate Palmolive India:

Colgate Palmolive India Fundamentals

New Launches by Colgate Palmolive India

Business Performance of Colgate Palmolive India

Net Sales for the financial year 2019- 20 stood at Rs 4,487.57 crores against Rs 4,432.44 crores of the previous year.

Net Sales increased by 1.2% in comparison to the previous year.

Net Profit after tax for the financial year 2019-20 was Rs 816.47 crores, an increase of 5.3% over the previous year.

Despite challenging business and economic environment, your Company continues to sustain its leadership position in both the Toothpaste and Toothbrush categories during the financial year 2019-20.

Also Watch: Colgate Palmolive India Brand Talk by Arvind Chintamani, VP

Modern Trade and E-Commerce

Modern Trade continued to grow aggressively on the back of innovative new products, shopper engagement, new store openings, and strong engagement with all the retailers.

Cash & Carry stores focused and worked on increasing their distribution footprint in general trade thereby aiding both the availability and distribution of products.

The e-commerce channel continued on its exponential growth trajectory.

In an economy that has ever-increasing smartphone penetration, increasing digitization backed up with cheap mobile data, e-commerce is bound to continue to have strong growth in the years to come.

A dedicated team of experts has been set up to work closely with all key customers to ensure that Colgate is ahead of all its competitors in all the categories it operates and thereby ensure that CP growth is in line with the growth of the e-commerce industry.

Technology Absorption:

The Company continues its efforts on various Research & Development (R&D) activities using technology received from Colgate-Palmolive Company, U.S.A., for the development and manufacture of oral care products.

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The technology received by the Company is being absorbed and adapted to the demands of the local market.

The following are some R&D and technology absorption efforts made by the Company during the year:

1. Adapted technology for products using both local and/or imported raw materials and flavors.

2. Prepared laboratory and pilot plant batches and set tentative product specifications.

3. Completed product stability tests, microbiological tests, analytical tests, and method validation.

4. Optimized various manufacturing processes and filling trials.

5. Tested new product or formula among sensory expert panel Members and consumers.

6. Finalized product formulations, process, and product quality specifications.

7. Identified alternate local raw material vendors.

8. Reviewed and approved product claims and provided clinical documentation support.

9. Worked in partnership with the Early Research and Product Development partners in the U.S. to bring new actives/ ingredients into the toothpaste.

10. Worked with the cross-category research team in the U.S. on highly advanced instrumentation techniques to generate scientific data support to the products.

New technologies imported, allowed the Company to have a strong presence in key benefit segments of the Oral Care market viz., Cavity Protection, Gum Health, Tooth Pain Relief, Anti-Sensitivity, Natural Protection, and Freshness and Personal care market i.e. Shampoos, Shower Gels, and Liquid Hand Soap.

R&D Expenditure

Share Price Performance During the Year

Changes in Key Financial Ratios

10-Year Overview of Colgate Palmolive India

That’s all for now and stay tuned for more annual report takeaways. Hope you got something out of this post.

Disc: The above content is only for educational purposes & not a reco. Please do your own research or contact your financial advisor before making any investment decision.

Read more Research Reports on Indian Companies here.

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