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Colgate hikes prices of toothpaste by 4%

Colgate hikes prices of toothpaste by 4%

Author | Source: Business Standard | Saturday, Jul 01,2006 8:00 AM

Colgate hikes prices of toothpaste by 4%

Colgate has hiked prices of its toothpastes on the back of continual input cost pressures. The prices have been increased by about 4 per cent across all the brands, except Cibaca that caters to the lower end of the market.

Dealers said the price hike is effective immediately across all the pack sizes.

So far, Hindustan Lever has not announced any price hike apart from a Re 1 increase in the price of its 15 gm toothpaste sachets in the previous quarter.

Colgate is the market leader in the toothpastes category with 47 per cent share. HLL, which commands 31 per cent market share, is the number two player in the category with brands like Pepsodent and Close-Up.

A few years ago, Colgate was hit by a price war in which toothpaste prices had been reduced drastically. But later the company reported better growth as a result of consumer uptrading and value growth.

Colgate had hiked product prices by 5 per cent last year, which, couple with lower input costs at that time, resulted in improved operating margins for the company.

Most FMCG companies have resorted to price hikes this year across product categories like shampoos, soaps and detergents on account of increasing input costs.

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