Colgate increases ad spend to capitalise on rapid growth of premium toothpaste in India

Colgate-Palmolive India is set to boost its advertising investments as it accelerates focus on premium toothpaste, a segment expanding six times faster than the overall market, with plans for deeper distribution and digital expansion.

Colgate-Palmolive India is preparing to lift advertising spending further as it leans harder into premium toothpaste, a segment management says is growing about six times faster than the broader market. At an analyst meet, Prabha Narasimhan, the managing director and chief executive, said the company believes a 20% growth assumption for premium products is too cautious and that there is considerably more room to expand.

The push is already visible in the numbers. The company spent ₹252 crore on brand investment in the June quarter of fiscal 2027, up 34% from a year earlier, taking advertising and promotion to 15.8% of sales. Sales rose 12% to ₹1,591 crore, while adjusted net profit increased 10.6% to ₹343 crore, according to the company’s latest results and market reports.

Colgate’s argument is that it has the balance sheet and margin room to keep backing the category. Gross margin was 69.7% in the quarter, helped by internal savings from its “Funding the Growth” programme, which management said created scope to reinvest behind brands. The company’s finance chief, Jacob Madukkakuzhy, said Colgate would remain willing to spend more if it sees a clear return, even if that weighs on EBITDA in the near term.

The premium segment still has a long runway. Management said premium toothpaste accounts for 18.6% of the Indian category, up from 14.8% in 2023, leaving substantial room for consumers to trade up. Colgate is focused on three premium brands , Colgate Total, Visible White and PerioGard , while also betting on whitening, a segment it says remains underpenetrated in India compared with the US.

Distribution and digital sales are also part of the plan. The company wants to push premium products more aggressively through its direct reach of about 1.7 million outlets, expand selectively in fast-growing urban markets and use e-commerce as a growth driver. At the lower end of the market, it is trying to protect value-conscious shoppers by avoiding frequent price rises and keeping extra grammage on its ₹10 and ₹20 packs.

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