Patanjali eats into Colgate’s toothpaste market share

MUMBAI (TIP): Patanjali Ayurved, the home-grown foods-to-FMCG player that recently took on Swiss multinational giant Nestle by launching its own noodle brand, is eating into the market share of another MNC giant, Colgate Palmolive, in the toothpaste segment.

Haridwar-based Patanjali Ayurved, run by yoga guru Baba Ramdev, has garnered a 4.5% market share in the toothpaste segment, a report by Kotak Institutional Equities said. In comparison, in the last one year, Colgate Palmolive, the sector leader, has lost its market share by 60 basis points (100 basis points = 1 percentage point) to 57.3%. In an attempt to boost market share, Patanjali Ayurved is beefing up its main toothpaste brand, Danta Kanti, with variants like medicated, advance and junior.

After Colgate’s October-December quarter results on Wednesday, several brokerages have flagged competition from Patanjali Ayurved as a threat to MNC giants in the toothpaste segment. Prabhudas Lilladher, a domestic brokerage house, cut Colgate’s earnings estimates for the next three years by 4-10%because of the threat from Patanjali Ayurved.

Toothpastes and noodles are not the only segments which excite Patanjali Ayurved as it is also taking on MNCs  like Glaxo SmithKline Consumer, Mondelez and Johnson & Johnson by launching its own health food drinks and baby care products. In a recent report on the Indian consumer segment, Deutsche Bank analysts Manoj Menon and Gaurav Bhatia said that emergence of Patanjali Ayurved as a serious player in the segment as it gains scale and market share, “its competitors, such as Colgate (toothpaste), Britannia, ITC (biscuits, dairy), Dabur (Honey, chywanprash), Nestle (Maggi, packaged foods) etc., will be starting to take notice of the strong growth delivered by Patanjali and its expansion into new categories.”

In a report, Edelweiss had said Patanjali’s PowerVita will provide competition to all health food drink companies like Mondelez and GSK Consumer. It is also planning to launch products like baby oil, talcum powder, baby soap, shampoo etc.

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