Colgate is making the right moves, though valuations offer little cheer
Subscribe to enjoy similar stories. Colgate Palmolive (India) Ltd has had a good run in recent quarters and continues to make efforts to boost growth. At its analysts meeting on Wednesday, the management, among other things, highlighted an interesting development under its ‘oral health movement’ initiative.
The oral care company has launched universally accessible AI-based dental screenings. Here, a consumer needs to scan QR codes available on over 800 million packs and upload three pictures, following which an AI dental screening report will be released through WhatsApp. The consumer can then opt for a free dental consultation through 50,000 dentists at pin codes that cover 80%+ of the urban population.
The company is also facilitating AI dental screenings at over 500 on-ground locations. Colgate hopes this would help increase awareness about oral health and drive category consumption eventually. There is potential for growth.
For perspective, about 55% of rural households do not brush daily and only 20% of urban households brush twice a day, leaving headroom for growth in the toothpaste category. As such, leading toothpaste category growth is a key strategic pillar for Colgate. Also Read: On a mission to change consumer behaviour, grow premium offerings: Colgate-Palmolive’s Prabha Narasimhan Other pillars of growth include: premiumization backed by science-based innovative portfolio of products; lead category growth in toothbrushes and devices; and building a strong portfolio in personal care.
The management pointed out that the share of premium products in the oral care mix is currently lower than personal care categories. The company noted that Colgate Total is growing at 3X versus the toothpaste category. To improve
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