Lahore Garrison University

Name Ali Zaib

Roll no 063
Section B
Prepared for Ma’am Samreen

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Recommendation………………………………………………………………………………………………………………..

Executive Summary

This report is based upon the analysis of last three years (2017, 2108 & 2019) of
Colgate Palmolive limited. And also the analysis of corporate governance and
unethical work perform is the company.

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For this purpose, I studied last three years’ annual report of Colgate Palmolive
limited and extract data on excel sheet to analyses the difference of data or result
that were given on annual reports.
After getting data through the report, I analysis the further data and then finalize
my report by giving the recommendations and conclusion.

Acknowledgement
I am very thanks full to Allah Almighty who give me this opportunity
and power to complete this report.

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I would also like to Thank Ms. Samreen Hamid for giving me this
opportunity and giving us knowledge about business ethics and
corporate governance which help me out how to write this report
properly.

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Company Introduction
Introduction
Colgate-Palmolive Pakistan, formerly known as National Detergents Limited, (
‫تان‬7‫ پاکس‬7‫امولِیو‬7‫ولگیٹ پ‬7‫ )ک‬is a Pakistani consumer goods company which is a subsidiary
of American multinational company Colgate-Palmolive and Pakistani
company Lakson Group. It was founded in 1977 and is based in Karachi, Pakistan.

History
In 1981 launched first product double action Brite. In 1983 company launched
express power, which was Pakistan's first Ploy-Bag Packed Detergent. In 1985
entered into licensing agreement with Colgate Palmolive Company USA, And
Also launched Max Dishwashers Liquid. In 1986 company introduce Palmolive
soap and Also Launched it. In 1988 company launched their unique product named
as Colgate Toothpaste. In 1990 Colgate Palmolive Company USA acquired 30%
equity and named changed to Colgate Palmolive Pakistan Limited. In 1992
company Launched Bonus, which were known as First low priced Detergent
Powder. In 1995 they launched Max dish wash bar. In 1996, Company Gross Sales
Crossed Rs. 1 billion. In 2001 Acquired Sparkle toothpaste. In 2003 Company
Introduce their new product and launched it with the name of Colgate Herbal
Toothpaste. In 2004 Sulphonic Acid plant made Operational. In 2006 they
Launched Colgate Misvak. In 2007 Launched Colgate MaxFresh. In 2009
Implemented SAP ERP. in 2010 their net profit crossed Rs. 1 billion. In 2011, the
Sundar Factory Made Operational and Laminate Tube Factory in Kotri made
Operational and they Also launched new product Colgate Sensitive base. In 2014
Company Launched Colgate sensitive pro-Relief. In 2015 they started the local
product of Toothbrushes. In 2016, launched Palmolive Shampoo. In 2017, They
launched colgate Plax and in 2018 they started Loacal Production of Colgate total,
Production of CSPR and launched Max APC Nationwide.

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Vision:
We are committed to ensure that consumers can continue to use our products for
the quality, reliability and superior performance.

Mission:
To become a fast growing consumer goods industry by developing and delivering
innovative new products to consumers and marketing them more efficiently.

Corporate information (Noel Wallace)

Governance is an ongoing commitment shared by our Board of Directors, our
management and all Colgate people. Colgate’s Board of Directors believes that
good corporate governance accompanies and greatly aids our long-term business
success. Colgate’s key strategic business priorities are growing sales through
engaging with consumers, developing world-class innovation and working with
retail partners; driving efficiency on every line of the income statement to increase
margins; generating strong cash flow performance and utilizing that cash
effectively to enhance total shareholder return; and leading to win by staying true
to our culture, developing Colgate people and focusing on all of our stakeholders.
Colgate’s Board has been at the center of these key strategies, helping to design
and implement them, and seeing that they guide the Company’s operations.

Board of directors
 IQBAL ALI LAKHANI (Director & Chairman)
 ZULFIQAR ALI LAKHANI (Director & chief executive officer)
 AMIN MOHAMMED LAKHANI (Director)
 ALIYA SAEEDA KHAN (Director)
 KAMRAN Y. MIRZA (Director)
 SHAHID ALI BUKHARI (Director)
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  PETER JOHN GRAYLIN (Director)
 XUAN DAI (Director)

Board of Committee

HR&R Committee
In accordance with the requirements of Code of Corporate Governance (CCG), a
Human Resource and Remuneration (HR & R) Committee comprising of Four
members has been established. The Terms of Reference of the Committee have
been approved by the BOD.
 KAMRAN Y. MIRZA (Director)
 IQBAL ALI LAKHANI (Director & Chairman)
 ZULFIQAR ALI LAKHAR (Director)
 ALIYA SAEEDA KHAN (Director)

Audit Committee
 ALIYA SAEEDA KHAN (Director)
 IQBAL ALI LAKHANI (Director)
 AMIN MOHAMMED LAKHAN (Director)
 KAMRAN Y. MIRZA (Director)

Core Principles
Those following are the core principle of the organization,
 Caring
 Global Teamwork
 Continues improvement

Corporate Governance policies

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  Director independent standard
 Board guidelines on significant corporate Governance issues
 Independent board candidate qualification

Structure Management:

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Stakeholders of Company

External
 Government of Pakistan
 Public
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  Labor Union

Internal
 Employee
 Management

Linked
 Customer
 Supplier
 Lender
 Traders
 Competitors

Departments of Organization
 Administration
 Marketing
 Purchasing
 Human Resource
 Finance

Products

 Colgate toothpaste
 Palmolive Soap

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  Brite
 Bonus
 Softlan
 Express
 Lemon Max

Competitors

 Close up
 English toothpaste
 Macleans
 Surf axel
 Arial
 Dentonic
 Khas toothpaste powder

Financial Ratios
Items 2017 2018 2019
Debt/Equity 0.0694444 0.0694444

EPS 56.59 56.6 61.01

As we the following ratios, company have good performance in earning
per share of last three years in 2017, 2018 and 2019 while if we see Dept
equity’s Ratio its remain constant.

Total Revenue
Items 2017 2018 2019

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Revenue 3256 3257 3511

The company has constant revenue in 2017 and 2018, if we see the total
revenue of 2019 it goes up to 3511 which is showing us that there is
increase in total revenue.

Market Capitalization
Items 2017 2018 2019
Market Capitalization 132.471 181.212 119.408

The market capitalization of 2017 and 2019 were not much good if we
see the 2018 M.C it was much better than both years.

SWOT Analysis

Strengths:

 Strong marketing team

 Aggressive strategies

Weakness:

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  Lack of capital
 Inadequate financial resources

Opportunity:

 Growing demand for consumer good (brand items)

 Extended their product line
 Tapping the rural market in developing economics
 Usage rate

Threats:

 Other FMCG companies

 Close up
 Arial

Analysis:

As I go through the report of last three years, I found that

company have much of data is not present in their reports
like stock share, net profit margin, sales growth, ROE%

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ROA%, dept. assets and share price. All of these data are
missing in their final year report. Some of their entries
were also not present in the reports.

Much of the entries in excel sheet are similar like no of

director’s, audit committee and etc.

Conclusion
No doubt Colgate Palmolive is one of the best running organization.
They were introducing multiples of new and innovated product year by
year. The team managing the brand is dynamic and in spite of limited
resources, has able to come up with new innovative marketing strategies,
giving Colgate a competitive edge over oral care product.

Recommendation
They must have to build their code according to SECP code. The
internal audit must have to provide proper data and information in their
annual reports. They have to work more on their market cap to enhance
the market sale. They must have to increase their efforts to increase the

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market capitalization. They must have to enhance their financial
resources.

References:
 https://www.ravimagazine.com/marketing-analysis-of-colgate-
palmolive-pakistan/
 https://colgate.com.pk

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