Colgate Palmolive (India) Ltd Management Discussions.
(within the limits set by the Companys competitive position)
The Company is engaged in the Personal Care business which includes Oral Care. The Oral Care business continues to account for over 90 per cent of the Companys sales turnover.
In India, almost one-third of the population does not have access to modern oral care. To address this situation, the Company, in partnership with Indian Dental Association, conducts annually, an intensive two-month-long awareness campaign under the banner "Oral Health Month". The aim of this campaign is to create oral health awareness and motivate people to adopt preventive self-care habits to improve their oral health.
This was one more step in the Companys longstanding effort to spread the message of good oral health and encourage the use of modern and efficacious dentifrice products.
To help its objective of expanding the dentifrice market, the Company has designed its product portfolio in such a manner that its products are available at different price points to cater to the requirements of consumers across all segments.
The Company follows a closely defined business strategy to develop and increase market leadership positions in key products categories. On an ongoing basis, management focuses on a variety of key indicators to monitor business health and performance. These indicators include market share, net sales, gross profit margin, operating profit, net income and earnings per share. The monitoring of these indicators and the of Conduct and Corporate Governance practices help to maintain business health and strong internal controls. The investments needed to support the growth are developed through its funding the growth initiatives such as reduction in costs associated with direct materials, distribution and logistics, advertisement and promotional materials and reduction of packaging materials.
While the predominant business of the Company has been confined to Oral Care where it continues to face intense competition, the outlook for industry is positive given the size of the opportunity. The Company believes that with its experience in operating in the challenging environment and continued focus on the Companys strategic initiatives: engaging to build our brands; innovation for growth; effectiveness and efficiency; and leading to win, the Companys business will continue to grow strongly in the next several years.
The Company reports that adequate internal control systems are in place. The discussion on financial performance of the Company is covered in the Directors Report. There has been no material development on human resources and industrial relations continue to be positive. The number of people employed as on March 31, 2017 was 2,414.