1

2
3
4
Source : HH Panel Data 5
 Whitening

Multi Benefit

Sensitivity

Family

Low Price
Point

Freshness

Naturals

LUPs

Source : AC Nielsen (new panel data) 6

 Value

Mid Tier

Kids

Premium

Sup Prem

Source : AC Nielsen (new panel data) 7

Competition 1

Competition 2

Competition 3

Competition 4

Competition 5

Competition 6

Competition 7

Source : IPSOS BVC 2018 Report 8

Source: Economic Times , Brand Equity Annual Survey 9
10
 11
Source: BRUMO Study 2017
12
13
14
15
16
17
18
19
20
21
21
22
22
23
23
24
25
26
27
28
•
•

• •

•
•

29
30
31
•
•
•
•
•
•
•
•

32
 Volume share Value share
16 18
16.6 16.5 16.6
15.9 16.2 15.8
13.6 13.6 13.9 13.5 16
15.4
14 13.2 14.9
12.6 12.9 12.9 12.4
12.8
12.3 12.5 13.6 13.6
14
12 12.4
12.0
12
10 2016 –
Power Freeze
10
8
8
7.2 7.5 8.1
6 2007 – 6.9 7.5 7.8
6.2 6.5 6 7.0 7.1
Citrus Blast 6.9
5.8 6.5
5.3
4 2018 – 5.5
4.5 4
Freeze Strom
3.8
2 2.8 2 3.0 3.1 3.2
2.3 2.4 2.4

0 0
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018
Colgate Competitor Colgate Competitor

Continuous product upgrade ensured Max fresh gained volume share inspite of premium
pricing
33
34
35
36
37
 Product Speed to Drive
Innovation
Stewardship Market Profitability

 State of the art facility in Piscataway Technology Campus in US works on advanced research
programs to meet evolving consumer needs with over 600 scientists focused on innovation
̶ Customer insight driven innovation to develop value added products
̶ Investment to create necessary infrastructure and generate resources with required expertise in
diverse technology fields of interest
̶ Creating similar facilities at different location with same level of investment would be very
expensive
 Colgate Palmolive has 7 Strategic global technology centers
̶ USA, Mexico, Brazil, Switzerland, China, Australia & India
 In Oral Care, approx 1,780 patents were granted in 2017 to Colgate with the five year average ~4x
of the nearest competitor

38
New product development 01
and Technology transfer
02 Flavor development
Clinical and knowledge 03
management
04 Fundamental research
Analytical and
microbiology 05
assessments Statistical and
06
technology insights
Product data management/ Product safety
assessment / Pharmaco & Cosmeto 07
vigilance Cross category
08 research and
innovation
Intellectual property 09
protection
10 Regulatory and
packaging support
Quality, EOHS, Training and 11
people development

39
40
41
42
43
44
45
46
47
48
49
Sanand Toothpaste Baddi Toothpaste

Goa Toothpaste Sricity Toothbrush

50
51
52
53
54
 Access to World’s Leading Brand in Oral Care & Personal Care
 Wide product portfolio across categories
 Global R&D base developing customer insight driven value added
products
 Clinical testing of the developed products
 Learnings from experiences across 200 countries
 Support across multiple functions like marketing, manufacturing,
supply chain management amongst others

Royalty% has been consistently maintained @5%

55
 Volume share

15.7

6.3

Overall market share New products

Existing products are Colgate dental cream and Cibaca
Key new products: Max Fresh, Active salt, Total, Sensitive, Visible White and SAN

Market Shares have been strong despite competitive action, due to innovation pipeline.
New product development has been the key driving force

56
57
58
4,500 (%)
10 year CAGR – 11% 4,159
3,955 3,951 66.0
4,000 3,838 65.0

3,545 64.0
3,500 3,285 62.9 64.2
3,084 61.5
62.0
3,000 60.7 62.6
60.4
2,624 60.0
2,500 60.0 60.4
2,221
59.5
1,962
2,000 58.0
1,695

1,500 56.0 56.3

1,000 54.0

500
52.0

-
50.0

2015-16*

2016-17*

2017-18*
2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

Apr-Dec18
Rs. Crores

Net Sales Gross Margin %

59
1,200 800
1,112
10 year CAGR – 15% 10 year CAGR – 11%
700 673
1,000 939 944 926
600 581 577 578
822 559
540
800 497
500
657 664 446
423
403
576
600 400
511
479
290
300
400 336 232
273 200

200
100

0 0

Rs. Crores Rs. Crores

EBITDA PAT

6060
DPS
(Rs.)

25 24

20

15 14 14

13
12
11
10 10 10
10
8
8

-
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16* 2016-17* 2017-18* Apr-Dec18

* Numbers from FY 15-16 onwards are as per IND AS

61
Year Shares Value
1978 IPO - 250 6,250
1994 Rights - 1,280 25,600
2019* Holdings – 28,160 35,078,912

*As on Feb 14, 2019

Dividend Received 5,228,459

(includes Capital reduction)

Compounded return of 25% since the IPO

62
 Sales/Volume

Margin

Non-variable
Overhead

Advertising

Operating Profit

6363
 Net Sales +6.3% growth

Gross Margin 64.9% to NS

Advertising 12%

EBITDA +130 bps

PAT +13%

6464
 Competitor 1
Competitor 2

Competitor 3

Source : AC Nielsen (new panel data) 65

 ~3X

15.2
11.4

Consistently gaining market share

66
67