New Delhi: Colgate-Palmolive (India) Ltd is planning to increase investment in its core brands and explore new opportunities for growth, said Prabha Narasimhan, the managing director and chief executive officer. In FY23, its revenues stood at ₹5,279 crore. The Colgate brand has a significant share in India’s toothpaste segment. However, its portfolio under the Palmolive brand, offering products such as body wash and hand wash, is relatively small. In an interview, Narasimhan shared her views on the company’s strategy to strengthen the core and expressed a strong intention to acquire local brands. Edited excerpts:
What is the mandate from the global headquarters on the India business?
Our single mandate is driving growth. China, the US and India sit in the global strategy as the called out countries. The global headquarter, like any other company, is cognizant of the potential of this market. We are a highly profitable firm, therefore, the more growth we drive, all other lines will move as well. So that’s really our single mandate.
You spoke on green shoots in rural consumption. Now in the run-up to an election year will rural revival be more sustained?
Given that we are beginning to see these green shoots and a little bit of revival, we are cautiously optimistic. As I said it is more structural than temporary. Let’s see, time will tell. It also depends on what happens to the monsoon. In fact, many factors come into play, such as what happens to inflation.
Who could have predicted that inflation was going to be where it was over the last year and who could have predicted covid-19? We’re struggling to do the long-term predictions. So, I’m loathe to making long-term predictions. At this point, we are seeing this uptick that seems more structural and not intervention-led. So, let’s hope between that, and the work we will do to drive consumption, it will be more consistent.
You spoke about doubling down on brands and looking at areas such as whitening in oral care and growing the Palmolive brand. Will the India investments over 5-10 years be significantly higher than earlier?
The biggest thing we strive to do is to drive growth, and I don’t think there is anything we do will comes in its way. If the investment is in advertising, it will be for growth, if it’s for better quality products, it’s for driving growth. If it is about bringing Colgate’s global offering or investment into an inorganic target making sense, it will be that. Really the focus is to make sure we drive growth, everything else is in the process of getting there.
While, maintaining financial discipline, sustainability and governance and all good things we are known for, the primary focus is growth.
But will the investments be slightly turbocharged?
As soon as we find something where return of turbocharging investment makes sense to drive growth, absolutely yes. It is about profitability. The faster we grow, more the money we will make.
What’s your view on the 68% rise in gross margin in Q1?
I’m actually very proud of the gross margin of the firm. What it allows us to do is to make sure that we are investing back into continuing to build this fabulous brand.
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Updated: 23 Aug 2023, 12:02 AM IST