MUMBAI: Colgate-Palmolive India on Monday signalled that the company may take more price hikes in the coming quarters to protect margins as firms across sectors continue to tackle commodity inflation triggered by the West Asia war. Inflation will be an issue, the FMCG company said, adding that it has, however, shielded the most vulnerable consumer cohorts against price hikes by increasing grammage in small packs last year to pass on GST cut benefits.CEO & MD Prabha Narasimhan said that the company has kept the grammage additions intact and the Rs 10 and 20 packs offer “fantastic value” to consumers. “We have ring-fenced the most vulnerable consumers,” Narasimhan said at Colgate-Palmolive’s annual investor day call. The firm has taken low single-digit pricing in the recent past.The company, which competes with players such as Hindustan Unilever’s Pepsodent and Closeup, Haleon’s Sensodyne and homegrown brand Patanjali is doubling down on premiumisation to boost sales and will not shy away from driving growth ahead of profitability. The premium business is growing six times that of the market, Narasimhan said. “There is an opportunity to drive premiumisation in both toothpaste and toothbrush,” said Narasimhan.The core brands, key to shoring up volumes will also be stepped up in terms of packaging and product experience. Increasing availability of products, rising affluence and exposure to oral health awareness is helping the firm gain volumes in rural markets, Narasimhan said. The company, however, did not comment on the rural outlook amid deficit in monsoon rains.Narasimhan said that the company is disappointed with the growth of personal care brand Palmolive and has partnered with Bombay Shaving Company to manage the business for D2C and e-commerce channels.
