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Company Profile

Colgate-Palmolive India Limited (CPIL), a leading consumer goods company in India, is renowned for its dental care,

personal care, home care, and pet nutrition products. It is a part of the global corporation Colgate-Palmolive, which is headquartered in the United States. Even though Colgate-Palmolive was first introduced to the Indian market in the 1930s, the company didn’t go public until 2007. Since then, it has gained widespread recognition. The company’s Indian operations are headquartered in Mumbai, Maharashtra. It is

listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Colgate-Palmolive India takes part in several CSR initiatives, focusing on oral health education, safe drinking water, and sanitation.

FMCG Industry in India

•   Due to consumer-driven growth and rising product prices, particularly for necessities, the FMCG industry in India grew  significantly over the years. Approximately 3 million people are employed in the FMCG sector, which makes up 5% of all factory jobs in India. The country’s FMCG sales increased by 7-9% in 2022–2023. Favourable government policies and initiatives, a growing youth population, growing disposable income and rural market, new branded products, and the expansion of e-commerce platforms are the main factors propelling the sector’s growth. The manufacturing process, day-to-day operations, retail and logistic channels, consumer insights, and communication must all prioritize resilience if FMCG companies are to endure and eventually add greater value for their customers.
•   According to CRISIL, the FMCG industry will see revenue growth of 7-9% in FY25 due to higher volume and a recovery in rural demand. Given that 50% of FMCG sales in India are for household and personal care products, the sector significantly boosts the country’s GDP. With more middle-class people than the entire US population, India is a nation that no FMCG company can afford to overlook. As more people begin to climb the economic ladder and the public can now enjoy the advantages of economic advancement, the Indian FMCG market keeps growing. More importantly, India’s population is growing more consumerist as a result of growing aspirations, with a median age of only 27. 
• US$ 976 million has been set aside in the Union Budget 2023–24 for PLI programs that seek to lower import prices, raise domestic capacity, boost exports, and make domestically produced goods more cost competitive. Higher aspiration levels and rising incomes have combined to drive an increase in rural consumption. In rural India, there is a growing demand for branded goods.
•  For businesses attempting to enter the hinterlands, online portals are anticipated to be crucial. The Internet has made a significant contribution by providing a more affordable and practical way for businesses to expand their reach. By 2025,there will likely be one billion internet users in India. By 2030, 40% of India’s FMCG consumption is predicted to occur online. By 2030, the percentage of FMCG sales that come from e-commerce is predicted to rise by 11%. India is predicted to benefit $15 billion annually from the implementation of GST.

Company Perspective and Review

The company’s cash and cash equivalents have increased significantly over time, indicating strong cash management and a strong liquidity position. Shareholder’s Funds and

Reserves have grown steadily over time, indicating a solid performance that is evident in its capacity to turn a profit and hold onto earnings. The company’s debt-free status and lack of long-term borrowings demonstrate that it depends on internal resources for operations and growth. The balance sheet as a whole show that the company has enough liquidity to cover its short-term liabilities, despite the fact that short-term obli- gations have increased, particularly in Trade Payables.

Colgate-Palmolive India Ltd. appears to be in a sound financial position, as evidenced by its steady growth, high liquidity, and efficient handling of both short- and long-term commitments. From FY 2020 to FY 2024, Colgate-Palmolive India Ltd. demonstrated solid financial performance overall. The company is effectively managing operational challenges and seizing growth opportunities, as evidenced by the increase in PAT in FY 2024. The company has paid regular dividends.