Presented By,

Nikhil Biyani Kaustubh Tare Girish Vyas Shilpa Raju

LEADING PRODUCTS
Oral Care
Tooth Pastes Tooth Brushes Tooth Powders Mouthwash Whitening Product

Professional Care
Gingivitis Treatment Sensitivity Tooth Whitening Fluoride Therapy Mouth Ulcer Treatment Specialty Cleaning

Personal Care
Body Wash Liquid Hand wash Shave Preps Skin Care Hair Care

Household Care
Surface Care

8/20/2013

Colgate Palmolive

HISTORY OF COMPANY
In 1806, William Colgate introduced starch, soap and candle factory on Dutch Street in New York City under the name of "William Colgate & Company".

In 1857, William Colgate died and the company was reorganized as "Colgate & Company" under the management of Samuel Colgate, his son.
In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.
8/20/2013 Colgate Palmolive 3

HISTORY OF COMPANY
His company sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896. In 1928, Palmolive- Peet bought the Colgate Company to create the Colgate-Palmolive- Peet Company. In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company", the current name.
8/20/2013 Colgate Palmolive 4

COMPANY PROFILE
Prabha Parameswaran - Managing Director Godfrey Nthunzi - Executive Vice-President Finance Niket Ghate - Vice President, Legal & Company Secretary Ajith Babu - Marketing Director M Chandrasekar - Vice President, Customer Development Shashank Potnis - Director, Global Technology Centre Manu Mehrotra - Vice President, Toothbrush Category Supply Chain Shashank Potnis - Director, Global Technology Centre Mustapha Yajid - Vice-President Manufacturing and Supply Chain Aditya Singh - Vice-President, Human Resources Sarala Menon - Vice President, Customer Service & Logistics

8/20/2013

Colgate Palmolive

BOARD OF DIRECTORS
Mukul Deoras Chairman R. A. Shah - Vice-Chairman P. K. Ghosh - Deputy Chairman Vikram Singh Mehta Director J. K. Setna Director Indu Shahani - Non-Executive Director

8/20/2013

Colgate Palmolive

SECTOR & POSITION OF COLGATE

Sector contributes 9% to GDP of India HUL is the largest seller succeeded by Colgate
PEER COMPARISON

Company

Market Cap (Rs. in Cr.)

P/E (TTM) (x)

P/BV (TTM) (x) 50.27 37.58 13 10.86 0.99 5.9 1.49

EV/EBIDTA (x) 18.99 23.38 27.62 53.7 0 0 0

ROE (%) 103.1 107.4 27.9 12.4 103.5 0 16.3

ROCE (%) 100.1 133.7 34.3 19.2 130.1 0 23

D/E (x) 0 0 0 0 0 0.9 0

7

Hindustan Unilever Colgate Palmolive P & G Hygiene Gillette India Reckitt Bnck Jyoti Consumers Rayban Sun Optics
8/20/2013

1,34,356.13 39.55 18,397.40 36.05 9,061.05 7,048.24 652.93 490.3 333.78 48.56 80.88 1.54 0 9.85

Colgate Palmolive

SWOT Analysis
Strength
Brand Name of 75 Years Operates in 200 Countries Wide Range of Products Strong Network 1843 direct accounts 5.14mn stores Highest manufacturing Capacity

Weakness
Highly Leveraged Old Technology Product Research

Opportunities
Deploying advance technologies Growing Hispanic population Emerging Market Monthly Per Capita Income increasing
8/20/2013

Threats
Increasing Competition Increasing commodity prices Increasing importance of Swadeshi products
8

Colgate Palmolive

BCG MATRIX
High Share Low Share
High Growth

Low Growth

8/20/2013

Colgate Palmolive

STRATEGIES OF COMPANY
Value Chain Primary & Support Activities Porters Generic Strategy Sustainable Competitive Advantages Responses to Threats to Sustainability Marketing Strategy - Advertising

8/20/2013

Colgate Palmolive

10

Value Chain Primary Activities

Marketing & Sales: Sales Person market products of Colgate through B2B business, Advertising Campaign Returned items customer feedback: Colgate Palmolive looks forward for feedback from dealers and launched many products as per buyers requirements

Inbound Logistics: Raw Materials Purchase order & arrival of goods within 72 hours

Operations: Require 35 days to convert raw materials into finished product

Outbound Logistic: Finished goods delivery to Stockist within 48 hours of their demand

8/20/2013

Colgate Palmolive

11

Value Chain Support Activities

Firm Infrastructure

Promoters Contribution in its shareholding pattern make firm cost effective Leadership in market enable company to reduce Fixed Cost per unit

Human Resource

Employees are treated as associates of company Trained Chartered Accountant & highly qualified MBA grads are part of management team

One of the best Research & Development unit of India in sector Technology Better infrastructure & set up of factory enable maximum utilisation of resources
Development

Delivery of finished product within 48 hours of purchase order Procurement Better infrastructure & set up of factory enable maximum utilisation of resources

8/20/2013

Colgate Palmolive

12

Porters Generic Strategy

STRATEGIC ADVANTAGE

S T R A Industry wide T E G I C T A Particular segment R only G E T

Uniqueness perceived by the customer

Low cost position

Colgate Palmolive limited Delivery of orders should fulfil provide products at within 00 hours from order placed competitive cost with by customer superior quality. Colgate Total White & Colgate Whitening are made of same raw material & under similar process Colgate small pouch turned in to tube

Unique advertising campaign & product development for rural market E.g. Colgate Powder

8/20/2013

Colgate Palmolive

13

SUSTAINABLE COMPETITIVE ADVANTAGES

Marketing Strategy Human Resource Strategy Manufacturing Factor Information Technology Research & Development Environment & Safety
8/20/2013 Colgate Palmolive 14

RESPONSES TO THREATS TO SUSTAINABILITY

Responses to Imitation
Size Economies Retaliation Upgrading

Responses to Substitute
Straddling Defending

Value

Added

Appropriate
Responses to Slack
Offering Performance Incentives Shaping norms
8/20/2013

Value Added
Responses to Hold-up
Integrating Building Mutual Dependence Developing Trust

Colgate Palmolive

15

MARKETING STRATEGY- ADVERTISING

8/20/2013

Colgate Palmolive

16

MARKETING - CLOSER TO CUSTOMER

8/20/2013

Colgate Palmolive

17

FINANCIAL STATS
PARTICULAR Revenues Less: Expenses Profit Before Tax Less: Tax Profit After Tax 2013 (Figures in Lac Rs.) 2,743,91.18 2,155,52.09 588,39.09 141,91.96 446,47.13 2012 (Figures in Lac Rs.) 2,327,35.87 1,807,41.02 519,94.85 117,36.52 402,58.33

Shareholders' Fund Earning Per Share Share Price at BSE

8/20/2013

435,38.89 Rs. 32.83 Rs. 1324.85/Share

Colgate Palmolive

384,05.33 Rs. 29.60 Rs. 1117.35/Share

18

CONTRIBUTION TO INDIAN ECONOMY

Employing more than 1mn Employees One of the highest tax paid company in healthcare sector 2nd largest Company in healthcare brand Sector contributes 9% to GDP of India & Colgate is the 2nd rank seller in this sector

8/20/2013

Colgate Palmolive

19

CSR ACTIVITIES

8/20/2013

Colgate Palmolive

20

CSR ACTIVITIES

8/20/2013

Colgate Palmolive

21

8/20/2013

Colgate Palmolive

22