Colgate derives 70-80 per cent of its revenue in India from toothpaste and is the leading player in the category.
Colgate's second indigenous product Cibaca Vedshakti after Active Salt Neem toothpaste last year comes as rival Patanjali Ayurved has identified three key categories to help it double turnover to Rs 10,000 crore (Rs 100 billion) this financial year.
These include oral care, food and beverages, and personal care.
Sources said Patanjali's Dant Kanti toothpaste had already crossed sales of Rs 500 crore (Rs 5 billion).
Plans for Danti Kanti this year include Rs 800-900 crore (Rs 8-9 billion) in sales, which Patanjali hopes to achieve through aggressive advertising, marketing and distribution.
In an interaction with analysts in May, Issam Bachaalani, Colgate's India managing director, said the Active Salt Neem toothpaste was shaping up well, with a 1.1 per cent market share.
The performance of Active Salt Neem among other products had helped Colgate report 4 per cent overall sales volume growth in January-March 2016, the highest in four quarters.
Colgate's June quarter numbers will be declared on August 8.
Colgate’s toothpaste volume growth for the March quarter was 3 per cent and higher than figures reported for the previous three quarters of 2015-16.
Bachaalani, who took over as Colgate's India managing director in October 2014, said his company would continue to build its naturals portfolio with launches in 2016-17.
Cibaca Vedshakti was a step in that direction, analysts tracking the company said.
In 2015-16, Colgate had launched two herbal products besides Active Salt Neem, toothpastes containing clove oil and charcoal.
Bachaalani said the charcoal-based toothpaste was doing well in modern trade.
Colgate derives 70-80 per cent of its revenue in India from toothpaste and is the leading player in the category.
Its market share slipped to 55.7 per cent in the March quarter from 57.3 per cent in the December quarter but analysts said the June quarter could see the firm recover lost ground.
Image: Baba Ramdev. Photograph: Rediff Archives
