This makes Jayaraman the first Indian executive of the company to be promoted to such a level. He will be replaced in India by Derrick Samuel, an expat, currently vice president and managing director of Colgate's South Pacific Operations, who will head the Indian operations through the newly-created post of vice-president and managing director of Colgate South Asia.

Says Jayaraman about his new assignment: ``I have a strategic role there (in New York), to build the global business, which includes India. Thus I will still be bonded with the development of the Indian operations. Since I will be in charge of the oral care category globally, I will continue to be committed to the oral care business in India, and I expect thisto continue to develop and grow against competition.''

The board of directors of Colgate-Palmolive (India) on Friday passed a resolution appointing Samuel as managing director of the company with effect from September 1, 1999. However, it has indicated a three-month changeover period, with Jayaraman also continuing as managing director till December 31, 1999.

The move assumes significance in the wake of Colgate's ongoing battle for supremacy with Hindustan Lever Ltd (HLL) in toothpaste and oral care products. HLL's inroads have forced Colgate to aggressively push up its own advertising and promotional expenditure.

Jayaraman has been with Colgate India for 20 years, serving in a number of key marketing and sales positions. As the managing director, Jayaraman has made significant contributions to the success of the Indian operations, and has directed numerous investment programmes for the future growth of the region. These include a new research and development centre, a new manufacturing facility inNepal and the completion of a di-calcium phosphate facility in Aurangabad.

``Jay's past marketing experience and his management skills will contribute significantly to the company's business development activities around the world. He will be based in the company's headquarters in New York,'' a news release issued from New York stated.

Samuel, the new MD, has had a varied experience in the developed and developing markets. Samuel has worked as general manager at Colgate New Zealand, where he doubled profits and took the company's key brands in oral care, dish care and detergents to market leadership positions. He will have his work cut out to repeat the performance in India.

In the skirmish for acquiring a larger piece of the Rs 1,000 crore plus Indian oral care market, Colgate's toothpaste share has dwindled in the urban market to around 48 per cent with HLL's share at around 42 per cent. This further reduces the gap in leadership between the two multinational rivals.

The market share of its flagshipbrand, Colgate Dental Cream (CDC), which eroded in July 1998 to 42.53 per cent in volume (rural plus urban) from 44.84 per cent in the month of June that year, stands at around 42 per cent.

Colgate India's recent initiatives to save its dental care business from dwindling marketshares have led the company to invest heavily in advertising and marketing. This has affected the company's financial performance. However, Jayaraman is bullish about the future performance of Colgate India which has seen a 43 per cent decline in net profit to Rs 45.6 crore in 1998-99. ``The business is expected to do well now considering the active revival in the rural economy. The company will announce its first quarter performance next week, which is expected to be in line with the fourth quarter, which has been good,'' he said.

The company posted a 9.5 per cent growth in revenue to Rs 258 crore in the January-March quarter, and the performance is expected to be repeated in the first quarter of 1999-2000, according to Jayaraman.The company had posted a marginal increase in the net profit at Rs 18.2 crore in the fourth quarter which reflects an improvement over the previous quarters, analysts point out.

Commenting on the growth of the Indian operations, Jayaraman said: ``The growth of the Indian operations is on track. At this point of time, it is necessary to continue to invest in product launches, new product development, equity building and infrastructure. Our new product initiatives over the last one year (Colgate Double Protection, Colgate Total, Colgate Sensation Whitening) have paid off well. However, it will take time before these get established.''

With Jayaraman still holding the reigns till December-end, he promises ``a lot of action''. Says he: ``We expect a lot of positive response to the same. The company will continue to actively promote and advertise its products.'' Even as the company continues to focus on oral care, a clear signal that has been sent across with the recent relaunch of Palmolive soap is thatstrategic progress will continue to take place in the other categories also, Jayaraman said.

His message to his successor: ``Take Colgate India to greater heights through developing expertise and competencies.''