Colgate-Palmolive (India) Limited: An equity research report; The ICFAI-SRC, Hyderabad

Abstract

The Company was incorporated on 23rd September, 1937 as a private limited company with it’s Registered Office at Bombay. The company commenced its trading activity immediately after incorporation. It established manufacturing operations in Bombay and developed a distribution set-up on an all India basis with warehouse facilities in Bombay, Madras, Calcutta and Delhi. On 5th October, 1978 the Company became a public company. Initially it was a wholly-owned subsidiary of Colgate-Palmolive Company, U.S.A. and remained so till 1978 when it's shareholding was diluted to 40% in compliance with FERA regulations. The parent Company made an offer for Sale to the Indian Public in October 1978. The issue was of 11,79,000 equity shares at a price of Rs. 25 per share and constituted 60% of the share holding of the Parent company. In 1988, the Company took steps to establish a Fatty Acid and Toilet Soap manufacturing facility in a backward industrial area at Waluj in Aurangabad. The facility was commissioned in 1990-91. The toothpowder manufacturing, facility was shifted from Sewri, Bombay to Waluj at Aurangabad in 1988.