Key Points

 Research suggests Colgate Palmolive (USA) Ltd. has a strong value chain, focusing on
sustainable sourcing and efficient operations.

 It seems likely that their manufacturing is centered in key U.S. locations like South
Carolina, Tennessee, and Ohio, with a focus on cost efficiency.

 The evidence leans toward innovative marketing strategies and significant R&D
investment, enhancing brand strength and product development.

 Their commitment to diversity, equity, and inclusion likely supports a robust workforce,
contributing to overall value creation.

Inbound Logistics

Colgate Palmolive (USA) Ltd. prioritizes sustainable and responsible sourcing, engaging suppliers
to ensure deforestation-free supply chains and reduce greenhouse gas emissions. They assess
suppliers on social and environmental criteria, with a target to engage 100% of material
suppliers in water-stressed regions by 2025, and have already assessed 75% of suppliers in high-
risk geographies since 2012, with over 900 suppliers participating and 40% undergoing social
compliance audits by December 31, 2023.

Operations

The company operates major manufacturing facilities in Hodges, South Carolina; Morristown,
Tennessee; and Cambridge, Ohio for oral, personal, and home care, with additional pet nutrition
facilities in Kentucky, Kansas, and Indiana. They focus on cost efficiencies through initiatives like
raw material substitution and packaging reduction, achieving a gross profit margin of 60.6% in
2024, up from 58.2% in 2023, partly due to these efforts. Sustainability goals include net zero
water at manufacturing sites by 2025 and 100% renewable electricity by 2030.

Outbound Logistics, Marketing, and Sales

Distribution is managed through U.S. warehousing facilities, with efforts to optimize logistics for
efficiency and reduce emissions. Marketing strategies emphasize brand building and product
differentiation, with significant advertising investments, as seen in increased selling, general,
and administrative expenses in 2024. They also promote sustainability, with 90% of toothpaste
tubes in the U.S. and Canada compatible with HDPE recycling by 2023, expected to reach 95%
by the end of 2024.

Service and Support Activities

Customer service is accessible via phone, email, and chat, supporting consumer engagement.
The company’s commitment to diversity, equity, and inclusion is evident through programs like
the North America Diversity Leadership Council and the Colgate Abilities Network, fostering an
inclusive workforce. R&D is driven by a center in Piscataway, New Jersey, focusing on innovation,
such as recyclable packaging, while procurement aligns with sustainability, engaging suppliers to
reduce emissions and improve water management.

Comprehensive Analysis of Colgate Palmolive (USA) Ltd.'s Value Chain

This analysis delves into the detailed operations of Colgate Palmolive (USA) Ltd., a key subsidiary
of the global Colgate-Palmolive Company, headquartered in New York City, and a leader in the
consumer goods sector, particularly in oral care, personal care, home care, and pet nutrition.
The value chain, as outlined by Porter's framework, is examined through primary and support
activities, drawing from the company's 2024 Form 10-K, 2023 Sustainability & Social Impact
Report, and other official sources as of March 28, 2025.

Primary Activities

Inbound Logistics:

Colgate Palmolive (USA) Ltd. demonstrates a commitment to sustainable and responsible

sourcing, which is integral to its inbound logistics. The company engages with suppliers to
promote deforestation-free supply chains, certified materials, and GHG emissions reduction,
aligning with its 2025 Sustainability & Social Impact Strategy. Specific initiatives include:

 Engaging all key suppliers to support sustainable sourcing, prioritizing materials like palm
oil and soy, with a target to reduce supplier GHG emissions by 20% by 2025 against a
2020 baseline.

 Assessing suppliers on environmental and social criteria, with 75% of suppliers in high-
risk geographies assessed since 2012, involving over 900 suppliers, and 40% conducting
social compliance audits by December 31, 2023.

 Water stewardship efforts, engaging 100% of material suppliers in water-stressed

regions by 2025, promoting conservation awareness, and aiming for net zero water at
manufacturing sites in these areas by 2025 and across all sites by 2030.

These practices ensure a resilient supply chain, mitigating risks from geopolitical events,
pandemics, and natural disasters, while supporting environmental goals.
 Metrics (As of Dec 31,
Aspect Details Targets
2023)

Engage suppliers for 75% suppliers in high-risk

Reduce supplier GHG
Sustainable deforestation-free supply geographies assessed,
by 20% by 2025 vs.
Sourcing chains, certified materials, 900+ suppliers, 40% social
2020
GHG reduction. audits

Net Zero Water by

Water-Stressed Engage material suppliers in 100% engagement target 2025 in water-
Regions water conservation. by 2025 stressed sites, all sites
by 2030

Evaluate suppliers on
Supplier Over 900 suppliers Continue ensuring
environmental and social
Assessments participated compliance
criteria.

Operations:

The company's manufacturing operations are centered around key U.S. facilities, including
Hodges, South Carolina; Morristown, Tennessee; and Cambridge, Ohio for oral, personal, and
home care, with pet nutrition facilities in Bowling Green, Kentucky; Emporia, Kansas; Topeka,
Kansas; and Richmond, Indiana. These sites are part of a global network, with a focus on
efficiency and sustainability:

 Implementing "funding-the-growth" initiatives to reduce costs, including raw material

substitution, packaging material reduction, consolidating suppliers, and increasing
manufacturing efficiency through SKU reductions and formulation simplification.

 In 2024, gross profit margin increased to 60.6% (non-GAAP, excluding 2022 Global
Productivity Initiative charges of $20) from 58.2% in 2023, driven by cost savings (280
basis points), higher pricing (170 basis points), and favorable mix (20 basis points), offset
by higher raw and packaging material costs (230 basis points, including foreign exchange
transaction costs).

 Sustainability efforts include achieving net zero water at manufacturing sites in water-
stressed areas by 2025 and across all sites by 2030, with a target for 100% renewable
electricity by 2030, supported by renewable energy agreements in the U.S. in 2023 and
2024.

Category Details Metrics (FY 2024) Targets

Manufacturing Major facilities in SC, TN, OH for - -

Category Details Metrics (FY 2024) Targets

oral/personal/home care; KY, KS, IN

Locations
for pet nutrition.

60.6% (non-GAAP,
Gross Profit Increased due to cost savings and
up from 58.2% in -
Margin pricing strategies.
2023)

11% reduction in 25% reduction by

Sustainability Net Zero Water, renewable
water intensity vs. 2025, 100%
Goals electricity targets.
2010 baseline renewable by 2030

Outbound Logistics:

Outbound logistics are optimized through U.S. warehousing facilities, ensuring efficient
distribution to retailers and consumers. The company relies on third parties for distribution,
with potential disruptions managed through business continuity plans. Key efforts include:

 Optimizing logistics to reduce emissions, with multimodal transport and high-capacity

trucks, though specific U.S. data is limited.

 Cost efficiencies in distribution are part of funding-the-growth initiatives, with increased

logistics costs noted in 2024, impacting overall expenses.

Marketing and Sales:

Marketing and sales strategies are innovative and data-driven, contributing to Colgate Palmolive
(USA) Ltd.'s market leadership. The company focuses on brand building, product differentiation,
and consumer engagement, with:

 Significant advertising investments, with selling, general, and administrative expenses

increasing to $7,723 in 2024 (non-GAAP, excluding 2022 Global Productivity Initiative
charges of -$6) from $7,149 in 2023, including an additional $349 in advertising and
$225 in overhead expenses.

 Sustainability messaging, with 90% of toothpaste tubes in the U.S. and Canada
compatible with HDPE recycling by December 31, 2023, expected to reach 95% by the
end of 2024, and educational campaigns like Bright Smiles, Bright Futures reaching over
1 billion children globally since 1991.

 Market performance in the U.S. shows strong brand penetration, with over 72 million
Americans using Colgate toothpaste twice a day, and products like Hill’s Pet Foods,
Softsoap, and Tom’s of Maine manufactured domestically.
Category Details Metrics (FY 2024)

Advertising Increased spending on marketing +$349 vs. 2023, total SG&A $7,723 (non-
Investment and promotions. GAAP)

Sustainability Promoting recyclable packaging 90% U.S./Canada toothpaste tubes HDPE

Marketing and consumer education. compatible, target 95% by 2024

Strong brand presence in U.S. Over 72 million Americans use Colgate

Consumer Reach
households. toothpaste daily

Service:

Service activities include robust customer support mechanisms, accessible via phone at 1-800-
468-6502 (Mon-Fri, 9:00 AM to 6:00 PM ET), email, and online chat through their contact page.
The company also engages in consumer education initiatives, such as the Bright Smiles, Bright
Futures program, which supports oral health awareness and community engagement.

Support Activities

Firm Infrastructure:

The firm's infrastructure is supported by a strong governance framework, with a focus on

sustainability and social impact. The 2025 Sustainability & Social Impact Strategy includes
ambitions to preserve the environment, help millions of homes, and drive social impact, with:

 Recognition as a U.S. EPA ENERGY STAR® Partner of the Year for the 13th consecutive
year in 2023, and named one of the World’s Most Ethical Companies by Ethisphere for
the 14th consecutive year in 2024.

 Policies and reporting aligned with Task Force on Climate-related Financial Disclosures
(TCFD) and Sustainability Accounting Standards Board (SASB), available at their
sustainability page.

Human Resource Management:

HR management emphasizes diversity, equity, and inclusion, with a workforce of nearly 34,000
globally, including significant U.S. operations. Key initiatives include:

 Forming the North America Diversity Leadership Council and the Colgate Abilities
Network (CAN) to connect business goals with the global disability market.

 Programs like Advancing Critical Capabilities Empowers Leaders (ACCEL) to strengthen

the pipeline of Black and African American talent, and partnerships with organizations
like the National Gay, Lesbian, Bisexual, Transgender Chamber of Commerce.
  In 2023, the company scored 83/100 on diversity metrics, placing in the top 5% of
similar-sized companies, with a focus on creating an inclusive environment where
employees can be their authentic selves.

Category Details Metrics (As of 2023)

Workforce 83/100 diversity score, top

Focus on DEI through councils and programs.
Diversity 5% of companies

Inclusion North America Diversity Leadership Council,

-
Initiatives Colgate Abilities Network.

Collaborations for mentoring and inclusion, e.g.,

Partnerships -
American Corporate Partners.

Technology Development:

Technology development is driven by significant R&D investment, with the primary research
center for oral, personal, and home care products located in Piscataway, New Jersey, and for pet
nutrition in Topeka, Kansas. The company focuses on innovation, with:

 Developing sustainable products, such as transitioning to recyclable packaging, with 90%

of U.S./Canada toothpaste tubes compatible with HDPE recycling by 2023, expected 95%
by 2024.

 Over 80 technology-sharing sessions for recyclable tubes, and tools like Dashlab for
sustainability decisions, enhancing product design and consumer benefits.

Procurement:

Procurement is aligned with sustainability goals, with policies for sustainable sourcing of key
materials like palm oil, soy, pulp/paper, and tallow. The company engages suppliers to reduce
GHG emissions and improve water management, with:

 A target to reduce supplier GHG emissions by 20% by 2025 against a 2020 baseline, and
assessed 75% of suppliers in high-risk geographies since 2012.

 Collaborations with organizations like WWF and The Recycling Partnership to enhance
sustainable procurement practices, supporting UN SDGs and reducing environmental
impact.

This detailed analysis underscores Colgate Palmolive (USA) Ltd.'s strategic approach to value
creation, leveraging sustainability, innovation, and efficiency to maintain market leadership in
the U.S. consumer goods market.
Key Points

 Colgate-Palmolive (India) Ltd. has a strong value chain, focusing on local sourcing and
sustainable practices.

 It seems likely that their operations are efficient, with four certified manufacturing
plants and significant R&D investment.

 Research suggests their marketing and distribution strategies are innovative, using AI
tools to enhance sales.

 The evidence leans toward robust customer service and HR practices, supporting
employee and consumer engagement.

Inbound Logistics

Colgate-Palmolive (India) Ltd. prioritizes local suppliers, with 75% of direct suppliers based
locally, reducing environmental impact and supporting the economy. They aim for 80% of
material spend to align with responsible sourcing by 2025, currently at 73%, and collaborate
with over 2,200 suppliers.

Operations

The company operates four manufacturing plants in India, all certified for zero waste and energy
efficiency, with 18% of energy from renewables. This focus ensures high-quality, sustainable
production.

Outbound Logistics, Marketing, and Sales

Their distribution is optimized with AI-driven tools like Smile Stores, reaching 1.7 million stores,
and modern trade pilots. Marketing includes innovative campaigns, maintaining high brand
penetration in India.

Service and Support Activities

Customer service is accessible via phone, WhatsApp, and email, while HR practices emphasize
diversity, with 26% women in management. R&D investment of ₹18.55 Crores in FY 2023-24
drives product innovation, and procurement focuses on sustainability.

Comprehensive Analysis of Colgate-Palmolive (India) Ltd.'s Value Chain

This analysis delves into the detailed operations of Colgate-Palmolive (India) Ltd., a leading
player in the fast-moving consumer goods (FMCG) sector, particularly in oral and personal care
products. The value chain, as outlined by Porter's framework, is examined through primary and
support activities, drawing from the company's annual reports, investor relations, and official
website data as of March 2025.

Primary Activities

Inbound Logistics: Colgate-Palmolive (India) Ltd. demonstrates a commitment to sustainable

and local sourcing, which is integral to its inbound logistics. The company collaborates with over
2,200 suppliers, with 75% being local, which reduces carbon footprint, currency exposure, and
lead times, while also promoting job creation and strengthening the local economy. As of March
31, 2024, 73% of direct material spend aligns with responsible sourcing guidelines, with a target
to reach 80% by 2025. They maintain 100% compliance for contract manufacturing spends
under responsible sourcing and ensure social compliance for 100% of third-party logistics (3PL)
warehouse operations. Logistics efficiency is enhanced through multimodal transport (road-rail,
road-ocean), reducing emissions by 85%-90% compared to road transport alone, and container
space utilization improved to 94% in FY 2023-24 from 93% in FY 2022-23.

Status (As of 31
Aspect Details Targets
March 2024)

75% of direct suppliers are local,

Local Suppliers reducing carbon footprint and lead 75% local suppliers N/A
times.

73% of direct By 2025: 80%

Responsible Allocate 80% of material spend in
material spend aligns material spend
Sourcing Spend line with guidelines.
with guidelines under guidelines

Maintain social compliance at

3PL Warehouse Continue ensuring
100% of 3PL warehouse operations 100% compliant
Compliance compliance
via third-party assessments.

Multimodal transport (road-rail,

Emission Achieved 85%-90%
road-ocean) reduces emissions by N/A
Reduction reduction
85%-90% vs. road transport.

Finished goods packed efficiently,

Container 94% in FY 2023-24,
improved to 94% in FY 2023-24 N/A
Utilization 93% in FY 2022-23
from 93% in FY 2022-23.

Operations: The company's manufacturing operations are centered around four national plants
located in Sanand (Gujarat), Goa, Baddi (Himachal Pradesh), and Sri City (Andhra Pradesh), with
a total area of 3,64,600 sqm. All four sites are TRUE Zero Waste Platinum Certified, and Sanand
and Sri City hold LEED Gold Certification by the Indian Green Building Council (IGBC), reflecting a
commitment to environmental sustainability. Total energy consumption in FY 2023-24 was
222,646.64 GJ, with 18% from renewables (up 236% from FY 2022-23), and non-renewable
energy reduced by 14%. Specific measures include a 1 MW solar installation at Sanand, hybrid
power purchase agreements (PPAs) contributing 36.83% renewable energy, and energy-saving
initiatives like efficient pumps and LED lighting across plants. Energy intensity improved to 0.39
GJ/H Lakhs in FY 2023-24 from 0.43 in FY 2022-23, with targets for 42% GHG reduction by 2030
and Net Zero Carbon by 2040 from a 2020 baseline.

Category Details Exact Numbers (FY 2023-24)

Four national plants, all TRUE Zero Waste

Manufacturing
Platinum Certified, Sanand and Sri City LEED Total area: 3,64,600 sqm
Plants
Gold.

Energy Total: 222,646.64 GJ, 18% from renewables, Renewable: 39,894.06 GJ, Non-
Consumption non-renewable reduced by 14%. renewable: 1,82,752.05 GJ

Improved efficiency, measured as GJ/H 0.39 GJ/H Lakhs (FY 2023-24),

Energy Intensity
Lakhs. 0.43 (FY 2022-23)

GHG Reduction Aimed at 42% reduction by 2030, Net Zero

-
Targets Carbon by 2040 from 2020 baseline.

Outbound Logistics: Outbound logistics are optimized through advanced technological

interventions and sustainable practices. The company uses AI-ML led solutions like Smile Stores,
which provide customized recommendations to 1.7 million stores, achieving a 14% assortment
growth over a two-year CAGR, with converted stores growing 1.2x higher than others. The
AmaZing app, live in over 5,000 stores, analyzed 3.1 million images with 95%+ accuracy and
shelf availability. Logistics efficiency is enhanced by integrating multimodal transport (road-rail,
road-ocean), reducing emissions by 85%-90% compared to road transport, and using high-
capacity trucks, with 624 trips in FY 2023-24 versus 201 in FY 2022-23, lowering costs and
emissions. Container space utilization for finished goods reached 94% in FY 2023-24, up from
93% in FY 2022-23, further reducing environmental impact.

Initiative Details Metrics (FY 2023-24)

AI-driven recommendations for 1.7 Mn stores, +14% assortment

Smile Stores
assortment and execution. CAGR, 1.2x growth rate

Analyzes store images for shelf 5,000+ stores, 3.1 Mn+ images, 95%
AmaZing App
availability and assortment. + accuracy
Initiative Details Metrics (FY 2023-24)

Road-rail and road-ocean transport for

Modal Shift 85%-90% fewer emissions vs. road
emission reduction.

High-Capacity
Maximized truck capacity for efficiency. 624 trips vs. 201 in FY 2022-23
Trucks

Container 94% utilization, up from 93% in FY

Efficient packing of finished goods.
Utilization 2022-23

Marketing and Sales: Marketing and sales strategies are innovative and data-driven,
contributing to Colgate-Palmolive (India) Ltd.'s market leadership. The company launched
campaigns like 'The Sweet Truth' for night-time brushing awareness, reaching over 5.2 million
children via the Bright Smiles, Bright Futures (BSBF) program, and won awards such as Silver at
Clio 2024 and Bronze at Spikes Asia 2024. Product relaunches included Colgate Strong Teeth,
MaxFresh with UltraFreeze, and Visible White O2, with 50% of the toothpaste portfolio
transitioned to recyclable tubes by FY 2023-24. Market performance showed domestic growth
of 9.5%, with net sales of ₹5,644 Crores, EBITDA of ₹1,901 Crores, and gross margins at 69.5%.
Brand metrics include 67% awareness (+600 bps), 68% consideration (+500 bps), and 78% as
Oral Care Expert (+500 bps), with the Colgate brand in 9/10 Indian households and 87% top-of-
mind recall.

Category Details Metrics (FY 2023-24)

Brand 'The Sweet Truth' and others for awareness, Reached 5.2 Mn children via
Campaigns awards won at Clio, Spikes Asia, EMVIES, etc. BSBF

Relaunched Strong Teeth, MaxFresh, Visible

Product 50% toothpaste portfolio in
White O2, Zig Zag toothbrush, Palmolive body
Launches recyclable tubes
washes.

Market Net Sales: ₹5,644 Cr, EBITDA:

Domestic growth, financials, and brand metrics.
Performance ₹1,901 Cr, 69.5% margin

+20% reach uplift for

Expanded via Total Distribution Points (TDPs),
Customer Reach opportunity and premium
modern trade pilots.
brands

Service: Service activities, while less prominent for FMCG, include robust customer support
mechanisms. Customers can access service via phone at 1-800-225599 (Mon-Fri, 9:00 AM to
6:00 PM), WhatsApp through a provided link, or email, ensuring feedback integration for
product enhancement. The company also engages in consumer awareness initiatives, using
surveys and partnerships to gauge satisfaction, indirectly supporting service quality.

Contact Method Details Availability

Phone 1-800-225599 Mon-Fri, 9:00 AM to 6:00 PM

WhatsApp Click here or scan QR code Mon-Fri, 9:00 AM to 6:00 PM

Email Available for queries Anytime

Support Activities

Firm Infrastructure: The firm's infrastructure is supported by a strong governance framework,

with a diverse Board of Directors comprising 12 members as of March 31, 2024, including 5
women (42%), 3 Executive Directors (25%), 1 Non-Executive Non-Independent Director (8.3%),
and 8 Non-Executive Independent Directors (66.7%). The Board held 5 meetings in FY 2023-24,
with 100% attendance, and operates through committees like Audit, Nomination and
Remuneration, Stakeholders' Relationship, Risk Management, and ESG & Corporate Social
Responsibility, ensuring accountability and strategic oversight. Policies include Code of Conduct,
Anti-Bribery, and Human Rights, with Directors and Officers Liability Insurance (D&O) in place.

Aspect Details Metrics (FY 2023-24)

Board Diverse with 42% women, various roles 12 members, 5 women, 100%
Composition ensuring governance. meeting attendance

Committee Regular meetings for Audit, NRC, SRC, RMC, 5 Board meetings, various
Meetings ECC, ensuring oversight. committee meetings held

Code of Conduct, Anti-Bribery, Human

Policies -
Rights, etc., for ethical operations.

Human Resource Management: HR management is comprehensive, with a total workforce of

2,472 employees and 2,439 workers as of March 31, 2024, up from 2,180 and 2,204 respectively
in FY 2022-23. Women representation stands at 26% across management levels, with targets to
reach 25% by 2025, and 50% in sales leadership. The company uses the 'My Voice' platform for
employee feedback, conducts regular committee meetings (Canteen, Welfare, etc.), and
provides training, with 100% employees trained on Code of Conduct and Anti-Bribery policies.
Differently abled employees include 1 permanent and 15 other than permanent workers, with
union membership at 27% for permanent workers.
Category Details Metrics (FY 2023-24)

Includes employees and workers, with Employees: 2,472, Workers: 2,439,

Total Workforce
gender breakdown. Women: 26% management

Diversity and Focus on women, differently abled, and Women in management: 26%,
Inclusion union membership. Differently abled: 16 total

Training and 100% trained on Code of Conduct, Anti-

100% trained
Development Bribery, with regular engagement.

Technology Development: Technology development is driven by significant R&D investment,

with ₹18.55 Crores spent in FY 2023-24 (Capital: ₹8.53 Crores, Recurring: ₹10.02 Crores),
focusing on oral and personal care innovations. The company has a state-of-the-art R&D center
in Mumbai, one of the largest globally, collaborating with the U.S. parent for new actives and
advanced instrumentation. All imported technologies, such as those for Palmolive Mood
Boosting Range and Colgate MaxFresh relaunches, are fully absorbed, with R&D service income
at ₹3,177.93 Lakhs in FY 2023-24. R&D and Capex for ESG impacts were 14% and 11.6%
respectively, supporting consumer benefits like freshness and protection.

Category Details Metrics (FY 2023-24)

Total: ₹18.55 Cr, Capital: ₹8.53

R&D Expenditure Capital and recurring spend for innovation.
Cr, Recurring: ₹10.02 Cr

Mumbai facility, collaborates globally for

R&D Center -
new actives and instrumentation.

Technology All imported technologies fully absorbed, no

100% absorption
Absorption areas not absorbed.

R&D and Capex focus on sustainability and

ESG Impact R&D: 14%, Capex: 11.6%
consumer benefits.

Procurement: Procurement is aligned with sustainability goals, with 73% of direct material
spend under responsible sourcing guidelines as of March 2024, targeting 80% by 2025. The
company evaluates 66 suppliers (73% of spend) on environmental and social criteria, with 100%
compliance and no instances of child labor, forced labor, or violations reported in FY 2023-24.
Local sourcing is emphasized, with 8.35% from MSMEs and 39% from within the
district/neighboring districts, supporting UN SDGs and reducing environmental impact.

Category Details Metrics (FY 2023-24)

Responsible Aligns with guidelines, targets 80% 73% currently, target: 80% by 2025
Category Details Metrics (FY 2023-24)

Sourcing Spend by 2025.

Supplier Evaluates 66 suppliers on 66 suppliers, 73% of spend, 100%

Assessments environmental and social criteria. compliant

Local and MSME Focus on local suppliers and 8.35% from MSMEs, 39% from
Sourcing MSMEs for sustainability. district/neighboring districts

This detailed analysis underscores Colgate-Palmolive (India) Ltd.'s strategic approach to value
creation, leveraging sustainability, innovation, and efficiency to maintain market leadership.