Leading oral care player Colgate-Palmolive India Ltd (CPIL) has said it is well prepared to meet the challenges by virtue of its strong financial position and its "continued focus" on key priorities.
The company further said that it is facing an "intense competition" in the oral care segment, but its outlook for the industry remained positive given the size of the opportunity in this space.
The company expects "the challenging market conditions and unfavourable macroeconomic conditions to continue", as per its latest annual results.
However, CPIL has a belief that "it is well prepared to meet the challenges ahead due to its strong financial condition, the experience of operating in challenging environments and continued focus on its key priorities".
CPIL, which operates mainly in oral care segment, said it continues to sustain its leadership position both in toothpaste and toothbrush categories for the financial year ended March 31, 2021 despite a "challenging business and competitive environment".
CPIL's oral care business accounts for over 90 percent of its sales turnover.
"While the predominant business of the company has been confined to oral care where it continues to face intense competition, the outlook for the industry is positive given the size of the opportunity," said CPIL.
It further said: "Your company believes that the business will continue to grow strongly in the next several years on the back of its experience in operating in a challenging environment and its continued focus on capturing significant growth opportunities."
On the pandemic, CPIL said it has a "major impact on shopper and consumer behaviour" and the subsequent lockdowns and re-openings affected trade and retail operations.
Moreover, there has been an evident change in the relevance of channels in the Indian FMCG retail landscape and CPIL has responded in an agile and seamless manner, it added.
The e-commerce channel continued its exponential growth trajectory.
"The Indian FMCG retail landscape is going through exciting times with the emergence and co-existence of eB2C, eB2B and OTO channels along with traditional trade. At the same time, traditional channels are also upgrading themselves according to shopper expectations," the company said.
Neighbourhood kirana and pharmacy stores, it said, emerged as preferred destinations due to restricted travel and social distancing guidelines.
It had launched a DigiOrder App for these retailers to send their orders to CPIL’s partner distributors.
"The application has been downloaded by 1.25 lakh+ customers and we expect the orders to significantly increase over this medium," the company said adding CPIL is engaged with B2B customers.
For FY2019-20, CPIL, which operates with two brands Colgate and Palmolive, saw net sales at Rs 4,810.48 crore, up 7.2 percent, against Rs 4,487.57 crore in the previous year.