Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Investor Presentation (May 2019)
28 slides from Bajaj Consumer Care's investor presentation, May 2019
Slide 1: Investor Meet - May 2019
bajaj Semen Dalal consumer cane Investor Meet - May 2019
Slide 2: Safe Harbor
Safe Harbor Certain statements mentioned in this presentation concerning our future growth prospects may be forward-looking statements regarding our future business expectations intended to qualify for the 'safe harbor' which involve a number of risks and uncertainties that could cause actual result
Slide 3: Bajaj Group
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Slide 4: Bajaj Group key figures
Group Revenues* • Rs.13,500 crores / USD 2 billion Group EBITDA • Rs.3,905 crores / USD 500 million Group Cash flows • Rs.1,400 crores / USD 200 million Employees • 13, 275 *Bajaj Group is defined as Bajaj Consumer Care, Bajaj Energy and Bajaj Hindusthan Sugar Limited 4
Slide 5: Nine decades ago, the Bajaj Group was born out of India's struggle for freedom
v Nine decades ago, the Bajaj Group was born out of India’s struggle for freedom v Founded by Shri Jamnalal Bajaj, freedom fighter, philanthropist and close confidante of Mahatma Gandhiji who was adopted by Mahatma Gandhi as his 5th son. v Today it has become a global business group with products in
Slide 6: Bajaj Group Values
Bajaj Group Values • TRUSTEES FOR SOCIETY – PROGRESS BEFORE PROFITS • Believe in delivering sustainable, inclusive growth • Transparency in running our businesses 6
Slide 7: Bajaj Foundation Trusts
v There are 2 Trusts within Bajaj Foundation, namely: 1. Kamalnayan Jamnalal Bajaj Foundation (KJBF) in Wardha district of Maharashtra 2. Jamnalal Kaniram Bajaj Trust (JKBT) in Sikar district of Rajasthan v Focus area – integrated water resources development & agro based livelihood. § 224 rivers / s
Slide 8: Update on pledging of BCCL shares
Update on pledging of BCCL shares • Why did we borrow against Bajaj Consumer shares? • How much did we borrow and how much is still outstanding? • When will the shares be unpledged? • How will the shares be unpledged? 8
Slide 9: What makes BCCL the crown jewel of Bajaj Group?
What makes BCCL the “crown jewel” of Bajaj Group? • Strong brand: Bajaj Almond Drops • Profitability: Most profitable hair oil brand over a sustained time period • Consumer facing: Only Bajaj Group business with direct consumer access • Deep distribution: Highest distributed hair oil brand in the co
Slide 10: The Growth story
bajaj consumer cane The Growth story
Slide 11: Delivered consistent, profitable growth for more than a decade
Delivered consistent, profitable growth for more than a decade IPO to 2014-15 900 CAGR T/O- 22.6% 852.6 250 Period 2003-04 to IPO CAGR PAT= 27.2% 800 IPO – Aug 2010 220.3 711.8 700 CAGR T/O- 21.7% 200 646.8 CAGR PAT= 88.9% 179 600 167.1 510.7 150 500 Consolidation 376.5 120.1 400 299.7 100 300 246.2
Slide 12: Blip in our performance over last 3 years
Blip in our performance over last 3 years 1000 300 909.4 900 852.6 831.9 831.2 824 244.58 238.49 250 800 711.8 226.13 220.3 216.3 700 646.8 200 600 Period 2015-16 to 2018-19 179 510.7 167.1 500 150 CAGR T/O= 3.3% CAGR PAT= -2.6% 376.5 400 120.1 299.7 100 300 246.2 83.9 84.1 188.2 All figures in INR
Slide 13: We were investing in the future over last 3 years
We were investing in the future over last 3 years • We readied ourselves for the future by getting our processes right – both customer facing and back- end • Made significant investments in sales and supply chain automation • Improved the consumer facing functions i.e. Marketing & R&D by bringing in
Slide 14: Why are we bullish on the Hair Oil category?
Why are we bullish on the Hair Oil category? 14
Slide 15: Hair Oils – large, thriving and here to stay
Hair Oils – large, thriving and here to stay… • Indian in nature : Part of the legacy handed over from one generation to another; • Large in size: 2nd largest personal care category in India at Rs.13,223 crores* • Growing fast: Grew 17.1% by value and 8.7% by Volume in FY 19 • Deeply penetrated: 89%
Slide 16: Hair oil is one of the most deeply penetrated categories in India
Hair oil is one of the most deeply penetrated categories in India Household Penetration % 120% 99% 100% 89% 89% 81% 80% 79% 80% 64% 60% 44% 40% 31% 20% 0% Soaps Hair Oil T Brush Shampoo Tooth Pastes Skin Creams San Nap Hair Dyes Fragrances Bajaj has grown its Household penetration from 17.4% to 20%
Slide 17: Hair oil category is dominated by 4 Indian players
Hair oil category is dominated by 4 Indian players Company Market Share (%) Brand Company Value MS (%) Marico 46.2% Parachute Marico 35.5% Bajaj 10.1% Bajaj Almond Drops Bajaj 9.6% Dabur 7.5% Dabur Amla Dabur 7.5% Emami 6.9% Nihar Shanti Badam Marico 5.5% Shalimar 2.8% Navratna Emami 4.9% Total 73.7
Slide 18: Is the Hair Oil category big enough to fuel our growth ambition?
Is the Hair Oil category big enough to fuel our growth ambition? 18
Slide 19: Market size of categories - Indian FMCG categories
Market size of categories - Indian FMCG categories 18000 Mkt Size in Rs crores 15750 16000 14000 13000 12000 11250 10000 9000 8000 6000 6000 3750 3750 4000 3000 3000 2000 0 Soaps Hair Oil Skin Creams Tooth Pastes Shampoo San Nap Hair Dyes Fragrances T Brush HP=99% HP=89% HP=80% HP=81% 19 Source- Nie
Slide 20: Our ambition is to deliver 2X market share and 3-4X profits over next 5-6 years
Our ambition is to deliver 2X market share and 3-4X profits over next 5-6 years 2019 2024/25 ~2x Total Hair Oil Category (INR Cr.) 13,000 24,000 ~2x Bajaj Share of THO (%) 10% 20% ~3-4x Bajaj Turnover (INR Cr.) 900 3400 ~3-4x Bajaj Profit After Tax (INR Cr.) 225 850 20
Slide 21: We don't believe that single category companies are at a disadvantage
We don’t believe that single category companies are at a disadvantage 21
Slide 22: Many single category companies have valuations in line with multi-category competitors
Many single category companies have valuations in line with their multi-category competitors Category ~10% ~30% >50% Diversified Diversified market share (Hair Oils) (Biscuits) (Toothpaste) Revenue ~₹ 856 Cr. (2018) ~₹ 9,540 Cr. (2018) ~₹ 4,370 Cr. (2018) ~₹ 7748 Cr. (2018) ~₹ 6417 Cr. (2018) PAT ~₹
Slide 23: Many single category companies have valuations in line with multi-category competitors
Many single category companies have valuations in line with their multi-category competitors 1 Focus category Apparel and Personal care Beverages Whisky Chocolate Beverages Chocolate Apparel and accessories Personal Care (~30%); Fabric (salience by (100%) (46%); Snacks; Baiju (100%) (~40%); Beer (>8
Slide 24: The Way forward...
bajaj consumer cane The Way forward...
Slide 25: Our growth strategy going forward
Our growth strategy going forward…. • Focus strongly on the Hair Oil Category – Aim to hit 20% share in 5-6 Years • Micro Segmentation – Look at key states in great depth and design and activate the ideal assortment and marketing mix in each state/cluster • Start small, scale fast – Start with maxim
Slide 26: In summary
In summary … • Bajaj Consumer Care is back on its growth trajectory in FY 19 • We have been investing to be future-ready in the last 3 years • Hair oils is a large, deeply penetrated, thriving category • Bajaj will accelerate growth by focusing its energies on hair oils - become #1 or a strong #2 ac
Slide 27: Focus for next 5 years
Focus for next 5 years.. Penetration Market Share Profitability 27
Slide 28: Thank You
bajaj Semen baja consumer cane THANK YOU
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