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GSK Consumer Healthcare launches Sensodyne
GSK Consumer has launched the Sensodyne toothpaste in India from its global portfolio.
The toothpaste is positioned in the premium segment being priced at `42 and `75 for the
40gm and 80gm tubes, respectively. Management has ambitious plans of capturing 5%
market share of the `1,850cr toothpaste market (growing at the rate of 8% per annum)
over the next five years.
Sensodyne, is GSK Consumer’s biggest brand globally (estimated at ~US $750mn). In
India, the product will be a part of the company’s OTC portfolio, which includes Eno,
Crocin and Iodex (collectively contribute ~1% to its total revenues). While we have not
factored the launch in our estimates, we believe it would be very difficult for GSK
Consumer to break the stronghold of Colgate (market leader with over 50% market share),
HUL and Dabur in India. Moreover, high investment towards establishing the brand (`25cr
has been earmarked for the marketing spend for the next one year) is likely to exert
pressure on the company’s margins in the near term. We maintain our Neutral
recommendation on the stock
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