Colgate is really worried about Patanjali’s rise. Here’s the proof

Colgate’s share in the Indian market fall by 1.8% in 2016. That was reason enough for Colgate Palmolive's global CEO Ian Cook take Baba Ramdev endorsed Patanjali quite seriously.

In a call with the investors, Cook said, “Patanjali in India takes a very nationalist view of its business. These are concepts in the local market. They tend to be premium price oriented and it means that you have to respond with a very specifically constructed offering that attacks the benefit the consumer is looking for.”

Colgate’s sales volume has declined 4% last fiscal with the trend in consumer being shifting to ayurvedic or herbal brands.

According to ET news report, market share of 55.6% in toothpaste and 47.3% in the toothbrush category in 2016, Colgate still remains the country's largest oral care player. But Patanjali has been able to challenge its dominance despite being present in only two lakh traditional retail stores against the US multinational's access to more than five million stores.

Patanjali has become a giant with Rs 10,000 crore turnover in less than a decade. To fight it, Hindustan Unilever has relaunched Ayush brand of ayurvedic personal care products, acquired Indulekha hair care brand and launched Citra skincare brand, while L'Oreal launched a hair care range under Garnier Ultra Blends made with natural ingredients. Dabur launched India's first ayurvedic gel toothpaste under the Dabur Red franchise to establish ayurveda for the younger generation.