Hotline: 1800 102 2007
X
Search Business Opportunities
May, 17 2017

​Colgate Palmolive India's share drops 180 basis points in FY17

Colgate Palmolive India’s share in the toothpaste market fell the steepest in a decade by 180 basis points in FY17, as consumers increasingly shift to ayurvedic or herbal brands.

Colgate Palmolive India’s share in the toothpaste market fell the steepest in a decade by 180 basis points in FY17, as consumers increasingly shift to ayurvedic or herbal brands.

Colgate’s volume share fell to 55.5% in the year ended March, its lowest since 2012, according to the company's latest investor presentation. In contrast, rival Dabur's share grew by 140 bps in FY17, while Patanjali’s increased by 150 bps, underlining the growing demand for ayurvedic products and forcing most companies to launch herbal variants of toothpastes. Products with 'natural' ingredients now account for nearly a fifth of the overall toothpaste market.

Colgate’s share in India had consistently increased in the previous five years, as rivals, especially Hindustan Unilever, faltered. HUL, which sells Close-Up and Pepsodent brands, saw its share dip 50 bps to 19.6% in FY17. But FY17 has been particularly bad for the Indian unit as its annual volume shrank 2% amid 4% rise in net sales mainly due to price hikes.

Analysts said Colgate has lost share despite new launches in the natural segment, superior distribution channel compared to competitors and increase in its spends on advertising and promotions.

In an investor note, Anuj Bansal of Ambit Research, wrote, "We remain 'Sell' on Colgate till it’s able to arrest market-share loss in the toothpaste category, drive growth from the new category."

Comment
image
Related opportunities
  • Quick Service Restaurants
    Kathi Junction – brings the golden opportunity to start your..
    Locations looking for expansion New Delhi
    Establishment year 2009
    Franchising Launch Date 2009
    Investment size Rs. 5lac - 10lac
    Space required 100
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater NEW DELHI New Delhi
  • About Us: Global Academy Public School stands out as a master..
    Locations looking for expansion Madhya Pradesh
    Establishment year 2019
    Franchising Launch Date 2019
    Investment size Rs. 2lac - 5lac
    Space required 1500
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mandsaur Madhya Pradesh
  • Automobile maintanance related
    About Us: Since 1968 Koch-Chemie has stood for high-quality cleaning and..
    Locations looking for expansion Maharashtra
    Establishment year 2008
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 600
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • About Us: Join hands with Iris Florets - the happy play..
    Locations looking for expansion Telangana
    Establishment year 2014
    Franchising Launch Date 2015
    Investment size Rs. 5lac - 10lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Hyderabad Telangana
Insta-Subscribe to
Entrepreneur
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities