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Monday, December 7, 2015

Simple Businesses : Colgate Palmolive (India)


  • Incorported in India in 1937
  • Subsidary of US based Colgate-Palmolive - Majority share still owned by its parent
  • Operates in India as a standalone company - without any subsidary or JV or associate company
  • Market leader in
    • Toothpaste category : 57.6% share
    • Toothbrush category : 43.3% share
    • Oral care business accounts 90% of topline
    • Also has a portfolio of personal care products under Palmolive brand.
  • Launched new products to sustain and increase market share
    • Colgate 360 toothbrush
    • Colgate Total Charcoal Deep clean tooth paste
    • Colgate Zig Zag Black tooth brush
    • Colgate Sensitive Pro relief enamel repair
  • Debt free company for last 1 decade
  • Bonus issued in 1:1 ratio in Sept 2015.
  • Very high Return on Equity : Big Positive : 82.6% in FY 2015 and 99.1% in FY 2014
  • Current PE is 43.8 and P/BV is 33.5.
Colgate is the best bet on the oral hygiene market without exposure to any other businesses.
No doubt, Colgate is among the most visible and strong brands across products and services in India.

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