Colgate CEO bullish on Indian market, says 'Middle class is everything'

Colgate Chief Executive Officer (CEO) Noel Wallace has exuded confidence in the Indian market for the company's growth, driven by the middle class. Wallace, during the dbAccess Global Consumer Conference, said he is bullish on India due to the contribution of the middle class to the company's financial growth.

According to a report by ET, Wallace said, "Middle class is everything to our businesses as it drives premiumization. That drives penetration in the categories. That drives per capita consumption. So long term we are very bold on India". Amid the slowdown in the recent quarters, Wallace has envisaged a 'huge middle-class opportunity' in the long term. Without disclosing in detail, Wallace mentioned that Colgate has clear strategies in place on the ground to deliver on them.

"We have an outstanding team on the ground that is very digitally forward thinking about where the future is going in that market in terms of both our distribution mechanisms as well as our marketing mechanisms," he added.

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Colgate-Palmolive India reported an 8.6% rise in profit in fiscal year 2025. The oral hygiene company registered a profit of Rs 1,436.8 crore in FY25 compared to Rs 1,323.6 crore in the previous year.

Over the last four years, the EBITDA margins of Colgate-Palmolive hover around the 32% to 34% range while the revenue from operation surged to Rs 5,999 crore in FY24 alone.

During the Quarter 4 earning call, Colgate-Palmolive Managing Director Prabha Narasimhan highlighted the strong presence of the company in rural India. "Rural continues to be resilient and we are seeing that our rural growth continues now for the 3rd Quarter in a row to outpace urban growth," Narasimhan mentioned.

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And, within urban India, while premiumization continued, the rest of the category saw a significant slowdown, the MD added. This is due to Indian consumers facing financial stress, leading to a slowdown in overall consumer demand.

Further, Narasimhan outlined Colgate's four-pronged strategies, which included, 'to lead toothpaste category growth, premiumization through science-based superior innovation, succeed in toothbrushes and devices and boost personal care business".

Colgate-Palmolive (India) shares were down 0.58% on the BSE, trading at Rs 2,439 on Friday at 11 am.