PROJECT 1 Introduction

Colgate-Palmolive is one of the most prominent names in the Fast-Moving

Consumer Goods (FMCG) industry, particularly in the oral care segment. Colgate-
Palmolive (India) Limited is a subsidiary of the global parent company Colgate-
Palmolive Company, headquartered in the United States. With decades of
presence in the Indian market, the company has created a strong footprint,
recognized for its superior products and trusted brand image.
To understand the financial and structural health of a company, it is crucial to
analyze three primary aspects—Ownership, Capital, and Profitability. These
components not only reflect the company's internal organization but also its
relationship with investors, shareholders, and the broader market.

1. OWNERSHIP
Ownership refers to who holds the equity of the company and how the control is
distributed among various shareholders. In the case of Colgate-Palmolive (India)
Limited, the ownership is majorly split between the parent company and Indian
investors.
(i) Majority Share Capital Owned by the Parent Company
The majority of Colgate-Palmolive (India)'s share capital is held by its parent
company, Colgate-Palmolive USA. This means that the American multinational
company owns more than 50% of the shares, which gives it significant control
over the company’s decisions, policies, and strategic direction.
Benefits of Majority Ownership by the Parent Company:
 Strategic Control: The parent company has the ability to appoint key
management personnel, control board decisions, and influence major
financial and operational strategies.
 Brand Consistency: Ownership by the parent ensures that global branding,
quality standards, and operational procedures are maintained across
geographies.
  Technology and Innovation Transfer: The Indian subsidiary benefits from
the R&D and product innovations of the global parent, giving it a
competitive edge in the local market.
Challenges:
 At times, decisions taken at the global level may not completely align with
the local market needs.
 There can be a risk of over-centralization of decision-making authority.
However, in the case of Colgate-Palmolive, the balance between local autonomy
and global support appears to be managed well, contributing to its success in
India.
(ii) Minority Share Capital Owned by Financial Institutions, Mutual Funds, and
Individual Investors in India
The minority shareholding is held by a mix of domestic institutional investors
(such as LIC, mutual funds, banks), foreign institutional investors (FIIs), and retail
or individual investors. Though these investors do not have controlling power,
they play a vital role in the company’s public image and stock market
performance.
Role and Importance of Minority Shareholders:
 Market Reputation: A company with a broad and diverse investor base is
seen as more stable and trustworthy.
 Transparency: The presence of institutional investors pushes the company
to maintain transparency, follow regulations, and adopt best practices in
governance.
 Market Liquidity: Retail investors ensure active trading of shares, which
keeps the company’s stock liquid and attractive to potential investors.
This balanced ownership structure, with strong control by the parent and active
participation from Indian investors, has helped Colgate-Palmolive (India) sustain
its growth and retain investor confidence over the years.

2. CAPITAL
Capital is the financial resource that a company uses to fund its business
operations and growth. It can be classified into authorized capital and
issued/subscribed capital.
(i) Authorized Capital: Shares of Face Value of ₹1 Each
Authorized capital is the maximum amount of share capital that a company is
allowed to issue to its shareholders as per its Memorandum of Association.
Colgate-Palmolive (India) has kept its authorized capital in shares with a face
value of ₹1 each.
Significance of Authorized Capital:
 Flexibility: It allows the company room to raise funds in the future without
amending its constitution.
 Company Expansion: A higher authorized capital gives scope for issuing
bonus shares, rights issues, or stock options to employees.
 Regulatory Requirement: Companies must declare their authorized capital
with the Registrar of Companies (ROC) in India.
Using ₹1 as the face value is common in India and helps companies maintain
affordability and accessibility for a wider investor base.
(ii) Issued and Subscribed Capital: Shares of Face Value of ₹1 Each
Issued capital refers to the portion of authorized capital that has been offered to
investors, while subscribed capital is the portion that investors have agreed to
purchase. For Colgate-Palmolive (India), both issued and subscribed capital also
consist of shares of ₹1 face value.
Implications:
 A well-subscribed capital base indicates investor trust and confidence in
the company.
 Since the face value is low, most of the value is derived from the market
premium, which reflects the company’s growth prospects and profitability.
 The simple structure of equity capital, without complex instruments like
preference shares or debentures, allows for transparency and efficient
financial management.
The company’s efficient capital structure minimizes debt and maximizes returns
to shareholders, contributing to its strong financial standing.

3. PROFITABILITY
Profitability is the company's ability to generate earnings compared to its
expenses and other costs. Colgate-Palmolive (India) has consistently
demonstrated strong profitability over the years.
(i) Consistently High Profitability
Colgate-Palmolive is known for its steady profits year after year, which is rare
even among top FMCG companies.
Reasons Behind High Profitability:
 Market Leadership: Colgate has been a dominant player in the oral care
segment in India, especially in the toothpaste category, where it enjoys a
large market share.
 Brand Trust: Products like Colgate toothpaste are trusted by millions,
resulting in strong repeat sales.
 Operational Efficiency: The company maintains lean operations and
invests heavily in automation, reducing overheads.
 Premium Product Mix: While it offers mass-market products, it also
focuses on premium offerings that contribute higher margins.
Consistent profits give the company the capacity to invest in new markets,
expand product lines, and respond to competitors aggressively.
(ii) High Dividends Year After Year
The company has a reputation for paying high and regular dividends to its
shareholders. Dividend payouts reflect both profitability and the company’s
shareholder-friendly policy.
Benefits of High Dividends:
 Investor Satisfaction: High and regular dividends attract long-term
investors and create goodwill in the market.
  Strong Cash Flows: Only companies with steady cash flows can afford to
pay dividends consistently.
 Stable Stock Price: Companies with good dividend records tend to have
less volatile stock prices.
Colgate-Palmolive (India)’s dividend history demonstrates its focus on sharing
profits while retaining sufficient reserves for future investments.

Conclusion
Colgate-Palmolive (India) Limited exemplifies a well-managed company that
maintains strong ownership control, efficient capital structure, and impressive
profitability. Its majority-owned structure by the parent company ensures
strategic alignment, while the inclusion of minority investors promotes
transparency and accountability.
The simple yet effective capital structure allows financial stability and flexibility.
Most importantly, its consistent profitability and generous dividend policy have
made it one of the most trusted and preferred stocks in the Indian market.
By combining global practices with local expertise, Colgate-Palmolive continues
to retain its leadership position in India’s competitive FMCG landscape.

PROJECT 2
Project: Five Consumer Cases – Detailed Explanation
Consumer protection plays a vital role in ensuring that buyers are treated fairly
and receive proper redressal when their rights are violated. The Consumer
Protection Act of India provides several rights to consumers and lays down the
framework for redressal forums at the district, state, and national levels. The five
cases mentioned in the project illustrate how consumers stood up against
powerful companies and institutions when their rights were violated.
Let’s explore each case in detail.

Case 1: Chandrashekhar Paradkar vs. Coca Cola

Right Violated: Right to Safety
Redressal Mechanism Used: Maharashtra State Consumer Commission
Outcome: Coca Cola was asked to pay ₹1,00,000 as damages for impurities
found in a bottle of soft drink.
Explanation:
In this case, the consumer, Chandrashekhar Paradkar, discovered impurities in a
Coca Cola bottle. The presence of foreign or harmful substances in food or
beverages is a direct violation of the Right to Safety, which ensures that the
products we consume must not pose any risk to health or life. The Maharashtra
State Consumer Commission handled the case and ruled in favor of the
consumer. Coca Cola was penalized heavily, showing that even global
corporations are accountable under Indian consumer law. This case is a classic
example of how consumers can challenge poor safety standards and seek
compensation.

Case 2: Hemant Goel vs. Zaika Restaurant

Right Violated: Right to be Informed
Redressal Mechanism Used: District Forum, East Delhi
Outcome: The restaurant was fined ₹5,000 for charging ₹34 for a water bottle
whose MRP was only ₹12.
Explanation:
Hemant Goel’s case deals with the common malpractice of overcharging
customers, especially in restaurants and multiplexes. In this instance, Zaika
Restaurant charged nearly three times the maximum retail price (MRP) for a
bottled water product. This action violated the consumer’s Right to be
Informed, which states that every consumer has the right to be informed about
the price, quality, quantity, and other important aspects of a product before
making a purchase.
By approaching the District Forum in East Delhi, the consumer sought justice.
The forum ruled that overcharging beyond MRP is illegal and fined the
restaurant ₹5,000. This case helped set a precedent for other consumers who
often face similar experiences in public places.

Case 3: Sashi Kant Kushnati Dole vs. Shikshan Prasarak Mandal

Right Violated: Right to Safety (Deficiency in Service)
Redressal Mechanism Used: State Commission, Maharashtra and National
Commission
Outcome: The school and coach were held liable for the drowning and death of
a student in the school’s swimming pool.
Explanation:
This tragic case involves the loss of a child’s life due to negligence. Sashi Kant
Dole filed a case against Shikshan Prasarak Mandal after his child drowned in a
school swimming pool due to the absence of proper supervision and safety
measures. This situation clearly falls under Right to Safety, as educational
institutions have a duty to ensure the safety of children under their care.
Both the State Commission and the National Consumer Disputes Redressal
Commission (NCDRC) were involved in handling the case. The decision held the
school and the coach responsible for the incident, underlining that institutions
must uphold safety standards, especially when children are involved. This case is
a strong example of how consumer law applies not only to products but also to
services.

Case 4: Philip Mamphillil vs. Premier Automobiles Ltd. & Another

Right Violated: Right to Safety
Redressal Mechanism Used: District Forum and State Commission
Outcome: The manufacturer and dealer were ordered to replace and repair the
car engine free of cost.
Explanation:
Philip Mamphillil purchased a diesel car from Premier Automobiles Ltd., but
soon discovered defects in the vehicle. Despite repeated complaints, neither the
manufacturer nor the dealer fixed the problems. As a result, the consumer
approached the District Forum and later the State Commission.
This case emphasizes the Right to Safety, particularly when it comes to
automobiles. A faulty vehicle can pose serious threats to the driver, passengers,
and even others on the road. The Commission ordered the company to replace
or repair the engine free of charge, reinforcing the accountability of vehicle
manufacturers and sellers toward their consumers.

Case 5: Manmohan Singh and His Wife vs. Indian Railways and CERS
Right Violated: Deficiency in Service
Redressal Mechanism Used: Consumer Disputes Redressal Forum
Outcome: Indian Railways was ordered to pay ₹2,000 for mental agony and ₹300
as legal cost.
Explanation:
In this case, Manmohan Singh and his wife suffered mental distress due to poor
service provided by Indian Railways. Though the exact nature of the deficiency
isn't mentioned, such issues may include delays, poor maintenance, or improper
treatment of elderly passengers. The couple approached the Consumer Disputes
Redressal Forum and were awarded compensation for the mental agony they
endured.
This case highlights the Deficiency in Service, one of the most common types of
consumer grievances. It proves that even large public institutions like Indian
Railways are answerable to consumers and can be penalized for causing
inconvenience or distress.

Key Learnings from These Cases

1. Consumer Rights Are Powerful Tools
These cases illustrate that the six core consumer rights (Right to Safety, Right to
be Informed, Right to Choose, Right to be Heard, Right to Redressal, and Right to
Consumer Education) empower individuals to challenge unfair practices.
2. Legal Mechanisms Are Accessible
Whether it is a District Forum, State Commission, or National Commission, the
legal framework allows even ordinary citizens to seek justice without requiring
high legal costs or influence.
3. Both Products and Services Are Covered
Consumer law applies not only to physical goods but also to services provided by
institutions like schools, restaurants, public transportation, and automobile
companies.
4. Accountability for All – Big or Small
Whether it's a multinational brand like Coca Cola or a local restaurant, no entity
is above the law when it comes to consumer rights. The system ensures fairness
and equality.
5. Compensation Can Be Financial or Moral
While some cases resulted in financial penalties for the violators, others
provided moral satisfaction and legal precedence that benefits society at large.

Conclusion

These five consumer cases provide important lessons

about standing up for one’s rights in the face of
injustice or negligence. They reinforce that being an
informed and vigilant consumer is not just a personal
responsibility but also contributes to a safer, fairer
marketplace for all. From everyday products like
bottled water to critical services like education and
transport, consumer protection laws offer robust
remedies when things go wrong. The consumer
redressal system in India, though not without its
flaws, is a valuable tool that ensures companies,
institutions, and service providers are held
accountable for their actions.