Colgate-Palmolive India may increase product prices in upcoming quarters, according to a TOI report. The company wants to protect profit margins amid rising raw material costs. These cost pressures have emerged due to ongoing West Asia tensions. However, Colgate said inflation remains a concern despite considering price-sensitive consumers.
Company Protects Small Packs Amid Rising Costs
During the annual investor day call, CEO and MD Prabha Narasimhan explained the company’s approach. She said Colgate increased the weight of smaller packs last year. The move helped pass GST reduction benefits to customers. According to Narasimhan, the company continues maintaining that change.
She added that Colgate protected customers who faced the highest impact. The company has kept increased grammage in its Rs 10 and Rs 20 packs. Narasimhan said this approach provides customers with “great value.” Meanwhile, Colgate-Palmolive India has already increased prices slightly in recent quarters.
Premium Products Become Company’s Growth Focus
While managing input costs, Colgate-Palmolive India is focusing on premium products. The company aims to increase sales through higher-value offerings. It said its premium business is growing six times faster than the overall market rate.
Narasimhan highlighted growth opportunities in premium toothpaste and toothbrush segments. Colgate competes with Hindustan Unilever’s Pepsodent and Closeup brands. It also competes with Haleon’s Sensodyne and Patanjali in oral-care categories.
Additionally, Colgate continues strengthening its core brands. These products remain important for volume growth. The company plans to improve packaging and product experience through this strategy.
Rural Markets Support Sales Growth
Colgate said rural market sales volume increased due to better product availability. Rising income and greater oral health awareness also supported growth. However, the company did not comment on future rural demand amid below-normal monsoon rainfall.
Narasimhan expressed disappointment with the performance of personal-care brand Palmolive. To improve direct-to-consumer and e-commerce presence, Colgate-Palmolive India partnered with Bombay Shaving Company. The partnership will manage business across these channels.
The company’s strategy comes as FMCG firms balance customer purchasing ability and rising input costs. Therefore, Colgate plans to combine selective pricing, premium products and volume-based growth. The company aims to maintain this approach amid the current inflation environment.
