Annual & ESG Report 2024-25
 

Optimize

We are constantly finding better ways to make our supply chain more connected, efficient and sustainable. By strengthening supplier partnerships, using smart tools like SRSA and turning data into clearer decisions, we are planning smarter and moving faster. From automated warehouses to optimised transport routes, every step is designed to deliver more value while reducing our impact on the planet. Our on going efforts to improve our supply chain efficiency include:

Driving Smarter Supply Solutions

Enhanced Supplier Management (ESM) / Safety in Logistics

CPIL is building stronger partnerships with suppliers to make sure we move together, with shared goals and standards. This not only makes our supply chain more reliable and responsive, but also helps us raise the bar on performance. Since 2018, we have assessed and audited over 66 supplier sites to stay aligned and improve together.

  • Compliance with Colgate's quality standards and regulatory requirements ensuring the quality and safety of our products.
  • Quality of service to ensure an effective supply of Colgate-Palmolive products to our customers and consumers.
  • Compliance with good environmental management practices and respect for worker safety and labor rights.
Strengthening the SRSA Program

We continue to strengthen our Supplier Responsible Sourcing Assessment (SRSA) program to ensure that every partner in our network upholds our values. Through risk-based audits, we promote transparency, reduce potential risks, and support a more efficient and trusted supply chain. By the end of FY 2024-25, we evaluated 83 suppliers who contributed to 77% of our total spend based on environmental and social criteria.

No Deforestation Commitments

We believe in protecting forests for future generations. That's why we are committed to sourcing palm oil, soy, and pulp and paper packaging from responsibly managed forests. Our No Deforestation Policy helps ensure that what we use doesn't come at the cost of nature.

Human Rights and Anti-Forced Labor Program

We stand firmly for human dignity and fair working conditions. Guided by global principles like the UN's Universal Declaration of Human Rights and ILO's Core Labor Standards, we ensure that everyone in our supply chain is treated with respect. As part of the Consumer Goods Forum, we support key principles against forced labor—believing every worker should be free to move, never pay for a job, and never be forced to work through debt or coercion.

End-to-End (E2E) Supply Chain

We are focused on optimizing every part of our supply chain – from how we ensure safety and quality, to how we make, move, and deliver our products. By working smarter and more efficiently, we are creating a system that is reliable, responsive, and ready for the future. Here's how we are bringing this to life across five strategic areas.


Ambition Zero: Employee Health & Safety

We are committed to zero injuries across our operations, with no incidents, no lost workdays, and no serious harm. We continue to strengthen safety from the shop floor to logistics because every person's well-being matters.

  • Targeting Zero Total Recordable Rate (TRR), Days away from work (DAFW), and Serious Injury and Fatality (SIF) incidents.
  • Continuing to enhance safety measures in warehousing and transportation.

 

Driving Efficiencies for Financial Delivery

Our team is focused on unlocking 5% in savings on the overall spend through our Funding the Growth program by making every process smarter and more efficient.

 

Delivering Quality Excellence

With digital tools and No Touch Quality systems, we are making every product consistent, reliable, and ready to delight, right from the first go.

  • Implementation of In-batch and e-log sheets for flavor blending.
  • 100% Right First-Time observations completed on new product launches.
  • Rollout of No Touch Quality at Baddi, Goa, and Sri City.
  • Targeting overall superiority in Quality through quality excellence and consumer perceived superiority.

 

Enhancing Core Manufacturing Performance

In our factories, we are finding smarter ways to do more with less. By reducing downtime and cutting waste, we are making everyday operations smoother, more efficient, and better for the planet.

  • Asset Utilisation (AU): +2 percentage points vs. 2024
  • Unplanned Downtime (UPDT): 2 percentage point reduction vs. 2024
  • Absolute Material Loss (AML): 5% reduction from 2024

 

Strengthening Services through AI-based Planning

We make sure our products reach the right place at the right time. With smarter planning and zero-based inventory, we are building a supply chain our customers can count on.

We are targeting increased customer service levels through year-on-year improvements in case fill rates.


Raw Material & Packaging

We’re committed to protecting the planet, supporting fair labor, and maintaining strong ethics. By working with like-minded suppliers, we ensure our raw materials are sustainable and community-friendly. We also prioritize eco-friendly packaging.

By 2025, we aim for all packaging to be recyclable—and we're well on track. Most of our packaging already avoids hard-to-recycle plastics, and we’re partnering with organizations to boost plastic recycling and support a circular economy.

Sustainable &
Responsive
Supply Chains
With rising sustainability demands, we aimed to cut logistics emissions while staying cost-effective and efficient. Longdistance sourcing, air freight, and fragmented distribution were driving up both emissions and lead times.

We restructured our supply network by sourcing closer to manufacturing sites, setting up local distribution hubs, and shifting critical shipments from air to sea freight. Production was also aligned with raw material locations. These strategic shifts have resulted in significantly lower carbon emissions, improved cost-efficiency, and enhanced responsiveness across the supply chain.


 

We believe that every step toward a more responsive and responsible supply chain brings us closer to our ultimate goal: enabling people to smile wider. By organizing and optimizing our supply chain with clear approaches and policies, we continuously exceed the expectations of our customers and consumers.

FY 2024-25 was a year of positive impact and progress for CPIL. We demonstrated resilience and innovation, pushing boundaries across safety, sustainability, operations, and consumer engagement. From factory floors to store shelves, every part of the organization contributed to delivering superior value with purpose.

Our success was anchored in a strong commitment to safety and quality. We recorded Zero DAFW (Days Away From Work) and Zero TRR (Total Recordable Rate), reflecting our deeply ingrained culture of care and safety. Our manufacturing facilities in Sanand and Sri City completed corporate quality audits with zero “A” findings (no major quality issues), while we further enhanced logistics safety across our warehousing and transportation networks. To reinforce quality at scale, Right-First-Time workshops were conducted across all Colgate-Palmolive and external manufacturing locations.

Our Approach

Driving Sustainability with Impact

Sustainability remained a guiding principle of our operations. We introduced over 2 billion recyclable tubes, a milestone in our commitment to eliminating plastic waste. We also reduced non-product water consumption by 8.5%, demonstrating our responsibility toward water stewardship. Through strategic manufacturing network optimization, we generated $1.2 million in savings while improving efficiency. Additionally, the upgrade of our infrastructure to include four Grade “A” warehouses significantly enhanced our supply chain capability.

Delivering Superior Experiences

Our relentless focus on innovation and consumer satisfaction helped us elevate the brand experience across markets. We achieved near 100% overall Superiority Quality, a powerful validation of product performance from consumers themselves. The Sanand facility recorded 86% No Touch Quality, reflecting progress in hygiene, automation, and quality assurance. In a year of dynamic market demands, we successfully delivered 169 innovations, promotions, new product launches, and relaunches—all on time and in full.

Audits Driving Sustainability Across the Supply Chain

We have stepped up our efforts to conduct thorough audits across our supply chain. These audits are an essential part of how sustainability is integrated into our supply chain.

By carefully assessing the processes of our suppliers, we can identify areas where we can help them improve, make sure they meet environmental standards, and stay true to our promise of doing business responsibly