Colgate acquires three firms

Colgate-Palmolive India, the market leader in toothpaste in India, announced the acquisition of three domestic companies in south India recently.

The company acquired 75 per cent equity in Advanced Oral Care Products (Goa), Professional Oral Care Products (Goa) and SS Oral Hygiene Products (Hyderabad) for an undisclosed sum, as per a release sent by the company to the Bombay Stock Exchange.

The acquired companies have been manufacturing and supplying toothpaste to Colgate-Palmolive for several years. The company was unavailable for comment.

The company also increased the capacity at its manufacturing facility in Baddi, Himachal Pradesh, earlier this year to 40,000 metric tonnes from 24,000 metric tonnes.

It also recently undertook an exercise to reduce its share capital so as to improve its return on equity. Colgate-Palmolive USA currently holds 51 per cent in the company and the public shareholding is 49 per cent.

Although the company has been struggling with the stagnant toothpowder market, it has been consistently introducing new variants in the toothpaste category.

Colgate-Palmolive has a market share of 48.1 per cent in the toothpaste category. It is also a market leader in categories such as tooth-powder, with a share of 43.8 per cent and toothbrush with 34.7 per cent.

It is also present in categories such as shower gels, shaving creams, liquid hand soaps and cold creams.

The newest products added by the company to its portfolio are Colgate Advanced Whitening, Active Salt and Max Fresh.

The company's turnover for the year ended March 2007 stands at Rs 1,362 crore.

The shares of the company last traded on the BSE at Rs 388.55, up by 1.59 per cent from the previous close of Rs 382.45.