Slide 1: Investor Presentation
Investor Presentation August 2014
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.220,594 cr (USD 36.77 bn) Hair Care 7% salience Rs. 15,994 cr (USD 2.67 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 4958cr Rs. 4,714 cr Rs. 3386 cr Rs. 480 cr Rs. 2,559 cr (USD 826 mn) (USD 786mn) (USD 564mn) (USD 80 mn) (USD 427 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 8,408 7,867 247,478255,178 8,000 250,000 235,539238,283 6,981 214,002 7,000 197,057 5,728 200,000 172,528 6,000 (Rs. Cr.) 3M-o-3M (4.9)% 5,044 (In KLtr) 3M-o-3M 2.1% 5,000 4,498 150,000 132560 Y-o-Y 10
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,600 1,471 35,000 31,928 29,958 1,400 1311 30,000 26,768 1,200 1,080 25,000 22,406 (Rs. Cr.) 19,908 1,000 (In KLtr) 831 3M-o-3M (5.3)% 18,390 3M-o-3M (1.2)% 20,000 15,603 800 710 Y-o-Y 19.5% Y-o-Y 11.9% Y-o-Y 12.2% Y-o-Y
Slide 6: Market Share Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 70% 70% 59.5% 60.0% 60% 57.9% 58.5% 60% 56.9% 54.4% 55.0% 51.9% 53.0% 50.7% 50% 48.0% 49.1% 50% 46.5% 44.1% 40.3% 40% 38.4% 40% 30% 30% 20% 20% 10% 10% 0% 0% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 07-08 08-09 09-10 10-11
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 5 4.34 4.44 4.5 4.04 4 3.5 3.43 3.17 3 2.65 2.5 2.08 2 1.5 1 0.5 0 2008 2009 2010 2011 2012 2013 2014 (6M) Source – AC Nielsen Re
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 4.4 1st Madhya Pradesh 4.1 1st Rajasthan 1.7 1st Chhattisgarh 7.3 1st Uttar Pradesh 4.2 1st Punjab 3.6 1st Central Zone 4.9 1st HP-JK 4.8 1st Gujarat 2.5 1st Haryana 4.9 1st Mumbai 4.0 1st Uttaranchal 3.8 1st M
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Jul 14- Jun 14 Saliency Urban Rural Total Urban Rural All India (U+R) 100.0% 64.5% 35.5% 58.3% 55.9% 62.5% Punjab 6.2% 74.7% 25.3% 53.2% 50.7% 60.5% Haryana 5.9% 73.6% 26.4% 60.6% 57.0% 70.6% Delhi 5.6% 100.0% 0.0% 58.9% 58.9%
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, Cosmetic Trade, 3% 6% s, 7% Large All India Grocer/ Traditional Chemists, - Rural Urban dominated GS, 29% channels dominate 6% segment due to its distribution,
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 25,000 1,000 869 875 900 19,498 20,000 18,520 18,243 800 760 16,610 6M-o-6M–( 4.8)% 667 14,655 700 6M-o-6M –(1.8)% 15,000 594 Y-o-Y – (-6.4%) 12,416 600 Rs. Cr. 485 Y-o-Y - 12% Y-o-Y - 18% Y-o-Y - 13% 449 KLtr Y-o-Y
Slide 12: Company Overview
Company Overview
Slide 13: Bajaj Corp Ltd. (BCL) – An Overview and Haircare Portfolio
Bajaj Corp Ltd. (BCL) – An Overview Haircare Portfolio 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
Slide 14: Skincare Portfolio
Skincare Portfolio Bajaj NOMARKS Creams for All Skin, Oily Skin & Dry Skin Types, available in sizes 12g & 25g Bajaj NOMARKS Facewash for All Skin, Oily Skin & Dry Skin Types & Neem Facewash, available in sizes 15g, 50g, 100g Bajaj NOMARKS Soaps for All Skin, Oily Skin & Dry Skin Types & Neem Soap,
Slide 15: 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 70.0% 70 59.5% 60.0% 58 60.0% 53.0% 55.0% 56.9% 60 55 50.7% 50 50.0% 46.5% 50 46 40.3% 40 42 36.7% 38 40.0% 40 35 31.4% 30 32 28 29 30.0% 30 20.0% 20 10.0% 10 0.0% 0 05-06 06-06
Slide 16: 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 15
Slide 17: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) 47 consumers through 2.71mn OWN – Himachal Pradesh -2, Uttarakhand- 1 retail outlets serviced by THIRD PARTY - Himachal Pradesh-2, Rajasthan-1, Guwahati- 6964 distributors and 1, Uttarakhand- 1 50
Slide 18: Van Operations
Van Operations Started in FY 13 with a objective of increasing Rural Sales Piloted 39 Vans in Q4 FY 13 Currently operating 91 vans (for Sales) and 6 Video Vans (for Promotions) Vans cover 6481 uncovered Towns and Villages on a monthly basis In Q1 FY 15 — Bajaj Almond Drops Hair Oil got 39.
Slide 19: Organization Structure
Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra President Operations Director – Business VP – Marketing VP – HR GM- Sales Mr. Apoorv Bajaj Development Mr. Gurpreet S. Mr. Subhamay Mr. M K Mr. Jimmy Anklesaria Amrit Chatterjee Sachdeva Head International
Slide 20: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q1FY15 Q1FY14 FY14 FY13 Q1 FY 15 Q1 FY 14 2013-14 2012-13 (Rs. In Crore) (Rs. In Crore) Sales (Net) 191.07 170.05 670.68 605.66 Shareholders Equity EBITDA 54.60 48.24 186.65 172.81 561.70 530.82 522.08 483.8
Slide 21: EBITDA & PAT Performance
EBITDA & PAT Performance ` in Crore Particulars Q1FY15 Q1FY14 YoY% FY14 FY13 YoY% EBITDA 54.60 48.24 13.18% 186.65 172.81 8.01% Profit Before Tax & Exceptional Item 61.89 59.51 4.00% 217.23 209.50 3.68% Exceptional Item (Trademark & 11.75 - 28.60 - Intellectual Properties) Profit Before Tax 50.14 59
Slide 22: Profit & Loss Q1FY2015 and for the year 2014
Profit & Loss Q1FY2015 and for the year 2014 ` in Crore Particulars Q1FY15 Q4FY14 Q1FY14 YoY% FY14 FY13 YoY% Net Sales 191.07 184.18 170.05 12.36% 670.68 605.66 10.74% Other Operating Income 0.25 0.33 0.19 1.05 1.06 Material Cost 77.98 75.76 68.00 268.75 257.71 % of Sales 40.81% 41.13% 39.99% 40.07%
Slide 23: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q1FY14 v/s Q1FY15 FY13 v/s FY14 250 800 700 200 In ` Crores In ` Crores 600 150 500 400 100 191.07 300 605.66 670.68 170.05 200 50 100 0 0 Q1 FY14 Q1 FY15 FY13 FY14 Sales for the quarter ended June’14 has increased by 12.36% value wise and 3.51% vo
Slide 24: Statement of Quarter wise Sales (Volume & Value)
Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) PRODUCT Q1 FY 15 % to Total Q1 FY 14 % to Total ADHO 1,123,144 92.53% 1,134,735 96.76% KPCO 15,805 1.30% 21,653 1.85% BAHO 9,671 0.80% 9,853 0.84% ASHO 2,184 0.18% 1,732 0.15% NOMARKS 58,222 4.80% -
Slide 25: Consistent Performance over the last 13 successive quarters
Consistent Performance over the last 13 successive quarters 40.00% 35.00% 29.03% 28.25% 28.37% 30.00% 28.19% 28.76% 28.65% 28.58% Gr (Value) 27.09% 27.04% 24.96% 25.68% 25.51% 25.00% 23.17% Gr (Vol) 20.00% EBIDTA 15.00% 10.00% 30.44% 19.96% 31.43% 21.98% 30.75% 20.45% 33.46% 22.27% 29.53% 22.35% 27.
Slide 26: Breakup of RM/PM Costs (for Q1 15)
Breakup of RM/PM Costs (for Q1 15) Key Raw & Packing Material % to Sales % to Total Cost LLP 16.03% 38.99% Glass Bottles 9.67% 23.51% Refined Veg. Oil 3.86% 9.38% Perfumes & other additives 3.37% 8.19% Corrugated Boxes 1.62% 3.95% Caps 2.34% 5.70% Others 4.22% 10.27% TOTAL 41.12% 100.00% * Consumpti
Slide 27: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of Oil 100 100 80 80 Amount (Rs.) Amount (Rs.) 60 60 40 86.00 40 81.15 73.54 78.43 75.75 71.89 70.17 70.87 20 20 0 0 Qtr1 FY14 vs FY15 FY13 vs FY 14 Qtr1 FY14 vs FY15 FY13 vs FY 14 During the quarter average price of LLP increase
Slide 28: Fund Position
Fund Position Fund Position: The total Fund available with the company as on 30 June’ 2014 is Rs.332.57Crores This has been invested in Bank Fixed Deposits, Certificate of Deposits of Banks , PSU Bonds, Government Securities and Liquid MFs. There is no investment in ANY Inter Corporate Depos
Slide 29: 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 30: 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 31: Thank You
Thank You