Colgate Palmolive-Omron Tie Up


Recently, Colgate Palmolive Co (CL) – a distributor and manufacturer of global consumer goods – announced an alliance with Omron Healthcare – one of the leading providers of home healthcare and wellness products.  Colgate Palmolive entered this deal with a view to boost its top line through better recognition of its products.

This deal will help in formulating innovative ways for oral care solutions, marking an improvement in oral care solutions for the consumers around the world. The agreement will be beneficial for both the companies since they are willing to utilize the best resources available, to the fullest. Colgate Palmolive’s research and development, universal reach in the market and consumer’s willingness to buy its products will act as strength for this partnership.

With this partnership, varied range of electronic toothbrush will come underway, which will be manufactured based on Omron technologies and advertised by Colgate Palmolive. The introduction of the electronic toothbrush will add to Colgate Palmolive’s product offerings.

Management remains confident on this partnership with the opinion that Omron’s modern techniques and strong development skills will help to boost Colgate Palmolive’s top line. Further, management said that it will remain focused on providing improved oral care solutions throughout the globe.

We believe the alliance with Omron will help Colgate Palmolive to provide better services to its customers and will develop a healthy customer-vendor relationship.

Currently, the company, which faces stiff competition from Procter & Gamble Co (PG), carries a Zacks #2 Rank implying a short-term Buy rating. Also, we maintain a long term ‘Neutral’ recommendation on the stock.

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