With increased expenditure on oral healthcare in the country, Colgate Palmolive India Ltd expects continued strong growth for the next several years backed by the company's focus on innovation.
While India has made ''giant strides'' with oral health initiatives, in the last few decades, the population and segmentation expanse offer opportunities to explore new avenues towards enhancement of oral health in the country.
''With increased awareness around this topic, we are seeing increased expenditure on oral healthcare. Well-informed on the perils of neglect, people are actively seeking preventive solutions leading to an increase in demand for effective oral care products from trustworthy brands, thereby contributing to good oral hygiene,'' the company said in its annual report for 2021-22.
Though the penetration of the oral care category in India is over 95 per cent, more than 80 per cent of people do not brush their teeth at night, Colgate Palmolive India Ltd (CPIL) said.
''This against the backdrop of increasing oral diseases, up to 77 per cent suffering from gum problems every year, up to 71 per cent children (12 years old) and up to 86.4 per cent adults 35-45 years from cavities, presents a situation that needs immediate attention,'' it said.
CPIL gets around 95 per cent of its sales turnover from oral care.
''The predominant business of the company continues to be oral care and the outlook for the oral health industry is positive given the size of the opportunity,'' CPIL's annual report said.
The company believes that its ''business will continue to grow strongly in the next several years on the back of its experience in operating in a growth environment and its continued focus on capturing significant opportunities through innovation and operational excellence''.
Besides, the company has also entered into the face cleansing category under its brand Palmolive and is excited about the opportunities in the segment.
For years, CPIL said, it has been successful in identifying and meeting consumer needs within its core categories, through its focus on the introduction of innovative products and the deployment of consumer and shopper insights into new products.
It has also taken big steps in the journey of digital and data transformation. In FY22 CPIL launched the 'Smile Store Program' -- a transformation initiative focused on assortment build-up in retail, applying data science models and rich shopper data.
''The results are encouraging with a double-digit increment in our monthly average assortment per store. The programme continues to gain momentum and is becoming an effective lever to drive our distribution excellence and new product launch go-to-market,'' said CPIL.
Digital transformation continued to be a key priority for its business operations. It has leveraged several channels to reach out and engage with its stakeholders, including full-funnel omni-channel performance marketing, driving rural reach and building regional content.
''We remain committed in building capabilities for the future. Our amplified efforts in the world of digital and analytics have resulted in strong growth in our e-commerce business, strengthening our leadership position across platforms,'' said CPIL managing director Ram Raghavan, while addressing shareholders.
For the financial year ended on March 31, 2022 CPIL's net sales were at Rs 5,066 crore.
''Our sales crossed a significant milestone - Rs 5,000 crore, another first while delivering strong profit growth (+4.1%) and strong EBITDA (31%) and gross margins (67%),'' Raghavan said.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today