Colgate-Palmolive India signals more price hikes on inflation

Colgate-Palmolive India said it may raise product prices further in the coming quarters to protect margins from rising commodity costs linked to the West Asia conflict. CEO Prabha Narasimhan said inflation remains an issue. The company has already taken low single-digit price increases in recent months, according to a Times of India report from the annual investor day call.

The company has protected price-sensitive consumers by increasing grammage in small packs last year to pass on GST cut benefits, and has kept those additions. Narasimhan said the Rs 10 and Rs 20 packs offer "fantastic value" and that the firm has "ring-fenced the most vulnerable consumers." Colgate competes with Hindustan Unilever's Pepsodent and Closeup, Haleon's Sensodyne and Patanjali.

Premium products are a key growth driver, growing six times faster than the overall market. The company plans to improve packaging and product experience for core brands. Rural markets are supporting volumes through higher availability and oral health awareness. However, the firm did not comment on the rural outlook amid deficit monsoon rains. Narasimhan said Colgate is disappointed with Palmolive's growth and has partnered with Bombay Shaving Company to manage its D2C and e-commerce channels.