Slide 1: Investor Presentation
Investor Presentation May 2013
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.199,401 cr (USD 36.3 bn) Hair Care 8% salience Rs. 15,141 cr (USD 2.75 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 4694cr Rs. 4283 cr Rs. 3587 cr Rs. 302 cr Rs. 2,271 cr (USD 853 mn) (USD 779 mn) (USD 652 mn) (USD 55 mn) (USD 413 mn)
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 300,000 9,000 7967 254532 8,000 250,000 235,539 238,459 6,990 214,002 7,000 197,057 5,728 200,000 6,000 (Rs. Cr.) 172,528 5,044 (In KLtr) 5,000 4,498 Y-o-Y 10.1% Y-o-Y 14.0% 132560 Y-o-Y 8.6% 150,000 Y-o-Y 6.7% Y-o-
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 35,000 1,400 1276 29175 30,000 1,200 26,241 1,056 25,000 22,406 1,000 831 (Rs. Cr.) 19,908 20,000 18,390 800 710 Y-o-Y 11.2% Y-o-Y 20.8% (In KLtr) Y-o-Y 17.1% 12.5% 15,603 610 Y-o-Y 16.4% Y-o-Y 27.1% Y-o-Y 17.1% Y-o-Y 8.3%
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 60% 60% 55.0% 52.6% 53.0% 54.0% 49.1% 50.9% 50.7% 50% 48.0% 50% 46.5% 44.1% 38.4% 40.3% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 07-08 08-09 09-10 10-11 11-12 12-13 07-08 08-09 09-10 10-11 11-12 12-13 *Market Share in the Light Hair
Slide 7: ADHO – Relative Market Share – Value Trend
ADHO – Relative Market Share – Value Trend Relative Market share is the ratio of Almond Drops market share to the next largest competitor in LHO segment Relative MS - Val 4.5 3.91 4 3.66 3.5 3.34 3.17 3 2.65 2.5 2.08 2 1.5 1 0.5 0 2008 2009 2010 2011 2012 2013 (3M) Source – AC Nielsen Retail Audit R
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 3.17 1st Madhya Pradesh 3.71 1st Rajasthan 1.65 1st Chhattisgarh 5.28 1st Uttar Pradesh 3.04 1st Central Zone 4.16 1st Punjab 3.57 1st Gujarat 2.22 1st Haryana 4.12 1st Mumbai 3.71 1st Uttaranchal 4.13 1st Maha
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Apr 12- Mar 13 Saliency Urban Rural Total Urban Rural All India (U+R) 100.0% 64% 36% 52.6% 50.7% 55.9% Punjab 5.9% 70% 30% 48.9% 46.3% 55.0% Haryana 6.1% 83% 17% 54.2% 50.5% 71.4% Delhi 6.3% 100% 0% 49.7% 49.7% Rajasthan 9.2% 6
Slide 10: Light Hair Oil Market – Key Characteristics
Light Hair Oil Market – Key Characteristics Rural –Urban break up of LHO market Share of Distribution Channels in LHO market Modern Others Trade 7% 3% Cosmetics All India - Traditional 4% Rural Urban dominated channels dominate 36% segment due to its Chemists distribution, but Local relatively highe
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 25,000 1,000 875 900 19,508 766 20,000 18,624 800 16,610 667 700 3M-o-3M – -9.0% 14,655 594 15,000 600 12,416 Rs. Cr. 485 3M-o-3M – 0% 500 KLtr Y-o-Y – 5.0% Y-o-Y - 18% Y-o-Y - 13% Y-o-Y - 12% Y-o-Y – 14% 10,000 Y-o-
Slide 12: Company Overview
Company Overview
Slide 13: Bajaj Corp Ltd. (BCL) – An Overview
Bajaj Corp Ltd. (BCL) – An Overview Part of Bajaj Group which has business interests Bajaj Almond Drops Hair Oil - A premium perfumed in varied industries including sugar, consumer hair oil containing almond oil and Vitamin E goods, power generation & infrastructure Competitors – Keo Karpin (Dey’s
Slide 14: Bajaj Almond Drops - A Premium Brand
Bajaj Almond Drops - A Premium Brand Strong Market Share Growth in Recent Years . . . But not at the cost of pricing power 60.0% 55.0% 60 55 53.0% 54.0% 50.7% 50 46.5% 50 46 50.0% 42 38 40 40.3% 40 35 40.0% 36.7% 32 28 29 30 31.4% 30 30.0% 20 20.0% 10 10.0% 0 0.0% 05-06 06-07 07-08 08-09 09-10 10-11
Slide 15: Consumer Profile- Almond Drops
Consumer Profile- Almond Drops For Almond Drops the consumer is: — Gender Male- 54% Female- 46% — Age Group 15 to 39 yrs ( 59% of users) — Urban Vs Rural 61% are Urban consumers — Socio Economic Class (SEC)- Urban A1- 10.4% A2- 14.4% B1- 14.4% B2- 11.5% Source – IRS, Q42012 14
Slide 16: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) consumers through 2.679 47 mn retail outlets serviced OWN – Himachal Pradesh -2, Uttarakhand-1 by 6693 direct distributors THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 50 and 16,048 wholesalers 2
Slide 17: Organization Structure
Organization Structure Chairman Mr. Kushagra Bajaj Managing Director Mr. Sumit Malhotra Director – Business Development President Operations Mr. Jimmy Anklesaria Mr. Apoorv Bajaj Chief Financial officer GM – Marketing GM – HR Head International VP – Sales Mr. V.C.Nagori Mr. Gurpreet S. Mr. S. Busine
Slide 18: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet ` in Crores (` in Crores) Particulars 2012-13 2011-12 Particulars Q4 FY13 Q4 FY12 FY13 FY12 Shareholders Equity 485.06 428.81 Sales (Net) 183.69 146.59 605.66 472.24 Total Debt Net Fixed Assets 45.85 38.90 EBITDA 51.89 33.97 172.87
Slide 19: EBITDA & PAT Performance
EBITDA & PAT Performance ` in Crores Particulars Q4 FY13 Q4 FY12 YoY% FY13 FY12 YoY% EBITDA 51.89 33.97 52.75% 172.87 116.64 48.21% Profit Before Tax 61.70 43.19 42.86% 209.55 151.34 38.46% (PBT) Profit After Tax 49.15 34.05 44.35% 167.38 120.09 39.38% (PAT) During the FY 2012-13 Company paid an int
Slide 20: Profit & Loss Q4 & FY2013
Profit & Loss Q4 & FY2013 ` in Crores Particulars Q4FY13 Q4FY12 YoY% FY13 FY12 YoY% Net Sales 183.69 146.59 25.31% 605.66 472.24 28.25% Other Operating Income 0.49 0.45 1.06 1.08 Material Cost 77.45 69.37 260.08 221.70 % of Sales 42.16% 47.32% 42.94% 46.95% Employees Cost 8.65 5.83 29.16 22.90 % of
Slide 21: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q4FY12 v/s Q4FY13 FY 12 v/s FY 13 700.00 200 600.00 In Rs. Crores In Rs. Crores 150 500.00 400.00 100 183.69 146.59 300.00 605.66 50 200.00 472.24 100.00 0 - Q4 FY12 Q4 FY13 FY12 FY13 Sales for Q4 FY 13 increased by 25.31% in value terms and 19.12% i
Slide 22: Statement of Quarter wise Sales (Volume & Value)
Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME- IN CASES) ADHO KPCO BAHO ASHO Others Total % Inc FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 over PY Q1 952,959 765,858 28,665 28,777 11,481 14,125 2,455 4,451 4,639 4,249 1,000,199 8
Slide 23: Consistent Performance over the last successive quarters
Consistent Performance over the last 10 successive quarters 40.00% Gr (Vol) Gr ( Value) EBIDTA 35.12% 35.00% 30.29% 30.00% 28.19% 28.76% 29.08% 28.53% 28.26% 28.28% 25.68% 24.96% 25.51% 25.00% 23.17% 20.00% 15.00% 10.00% 5.00% 14.91% 11.19% 19.19% 17.39% 24.07% 21.09% 27.60% 19.96% 30.44% 21.98% 31.
Slide 24: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per Kg Rates of LLP 88.00 Per Kg Rates of Oil 86.26 85.66 86.00 90.00 84.93 83.54 79.80 79.71 79.70 81.15 84.00 82.86 80.00 80.32 70.29 70.87 82.00 81.43 67.50 80.40 80.65 70.00 61.91 80.00 78.63 60.00 78.43 2011-12 2011-12 78.00 50.00 2012-13 2012-13 76.00 40.00
Slide 25: Breakup of RM/PM Costs (for FY 13)
Breakup of RM/PM Costs (for FY 13) Key Raw & Packing Material % to Sales % to Total Cost LLP 16.03% 38.00% Glass Bottles 10.66% 25.27% Refined Veg. Oil 4.68% 11.09% Perfumes & other additives 3.42% 8.12% Corrugated Boxes 1.79% 4.24% Caps 2.23% 5.30% Others 3.37% 7.99% TOTAL 42.19% 100.00% *Consumpti
Slide 26: Corporate Governance
Corporate Governance Bajaj Corp Ltd is a part of the Bajaj Group of companies. The other listed entity in the group is Bajaj Hindusthan Ltd Bajaj Corp Ltd has not and will not transfer funds from and to from any other company within the Bajaj Group The Company acquired in September 2011 (Uptow
Slide 27: Growth Strategy
Growth Strategy Strategy Action Steps Convert coconut hair oil users to light hair oil users through sampling, targeted advertising Market share gains from campaigns, product innovation and creating awareness about product differentiation including other hair oil segments communicating the advanta
Slide 28: Thank You
Thank You 27