Slide 1: Investor Presentation
Investor Presentation August 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 7,861 250,396 8,000 250,000 235,539 238,283 6,981 214,002 7,000 197,057 5,728 200,000 172,528 6,000 5,044 (Rs. Cr.) (In KLtr) 5,000 4,498 132560 3M-o-3M 2.2% 150,000 3,707 3M-o-3M 6.8% Y-o-Y 10.1% Y-o-
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,400 1299 35,000 29,663 1,200 1,080 30,000 26,768 1,000 25,000 22,406 831 (Rs. Cr.) 19,908 800 710 20,000 18,390 3M-o-3M 8.6% 3M-o-3M 17.7% 610 (In KLtr) 15,603 Y-o-Y 19.5% Y-o-Y 10.8% Y-o-Y 12.5% Y-o-Y 8.3% Y-o-Y 33% Y-o
Slide 6: Nielsen Panel Expansion
Nielsen Panel Expansion Nielsen has expanded its retail audit panel in 2013 – up by 60% from the existing panel with significant increases in Rest of Urban and Rural. This enhancement improves country level precision for all states and pickup more regional / local brands, thereby significantly i
Slide 7: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 70% 60% 57.0% 58.4% 54.5% 60% 56.9% 51.9% 53.0% 55.0% 48.0% 49.1% 50.7% 50% 44.1% 50% 46.5% 38.4% 40.3% 40% 40% 30% 30% 20% 20% 10% 10% 0% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 0% (3m) 07-08 08-09 09-10 10-11 11-12 12-13 13-1
Slide 8: 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 4.27 4.04 4 3.43 3.5 3.17 3 2.65 2.5 2.08 2 1.5 1 0.5 0 2008 2009 2010 2011 2012 2013 (6M) Source – AC Nielsen Retail Audit R
Slide 9: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 3.7 1st Madhya Pradesh 3.8 1st Rajasthan 1.6 1st Chhattisgarh 6.2 1st Uttar Pradesh 3.4 1st Central Zone 4.4 1st Punjab 4.0 1st HP-JK 1st Gujarat 2.2 1st 2.8 Haryana 4.3 1st Mumbai 3.9 1st Uttaranchal 4.9 1st M
Slide 10: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) July12-June13 Saliency Urban Rural Total Urban Rural All India (U+R) 100.0% 65.1% 34.9% 55.4% 53.7% 58.5% Punjab 5.8% 68.8% 31.2% 52.8% 51.5% 55.8% Haryana 6.7% 80.4% 19.6% 57.4% 54.8% 68.2% Delhi 5.9% 100.0% 0.0% 52.2% 52.2% R
Slide 11: 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 12: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 25,000 1,000 900 869 19,498 760 20,000 18,520 800 16,610 667 6M-o-6M – -6.3% 700 14,655 594 Rs. Cr. 15,000 600 6M-o-6M – 2.9% 12,416 KLtr 485 Y-o-Y – 5.0% Y-o-Y - 18% Y-o-Y - 13% Y-o-Y - 12% 500 441 Y-o-Y – 14% Y-o-Y
Slide 13: Company Overview
Company Overview
Slide 14: 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 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% 60 55 58.4% 50 60.0% 53.0% 55.0% 56.9% 50 46 50.7% 40 42 50.0% 46.5% 38 40 35 40.3% 30 32 40.0% 36.7% 28 29 31.4% 30 30.0% 20 20.0% 10 10.0% 0 0.0% 05-06 06-06 07-08 08-09
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) consumers through 2.36mn 47 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand-1 6721 direct distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 50 14,848 wholesalers 212
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 120 vans (for Sales) and 26 Video Vans (for Promotions) Vans cover 7611 uncovered Towns and Villages on a monthly basis In Q1 FY 14 — Bajaj Almond Drops Hair Oil got 3
Slide 19: 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 20: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (` in Crores) ` in Crores Particulars Particulars Q1 FY14 Q1 FY13 FY13 FY12 Q1 FY 14 Q1 FY 13 2012-13 2011-12 Sales (Net) 170.05 138.05 605.66 472.24 Shareholders 532.08 466.70 485.06 428.81 Equity EBITDA 48.24 38.92 172.87 116.64
Slide 21: EBITDA & PAT Performance
EBITDA & PAT Performance ` in Crores Particulars Q1 FY14 Q1 FY13 YoY% FY13 FY12 YoY% EBITDA 48.24 38.92 23.95% 172.87 116.64 48.21% Profit Before Tax 59.51 47.13 26.27% 209.55 151.34 38.46% (PBT) Profit After Tax 47.01 37.62 24.97% 167.38 120.09 39.38% (PAT) 20
Slide 22: Profit & Loss Q1 & FY2013
Profit & Loss Q1 & FY2013 ` in Crores Particulars Q1FY14 Q4FY13 Q1FY13 YoY% FY13 FY12 YoY% Net Sales 170.05 183.69 138.05 23.18% 605.66 472.24 28.25% Other Operating Income 0.19 0.49 0.19 1.06 1.08 Material Cost 68.63 77.45 61.77 260.08 221.70 % of Sales 40.36% 42.16% 44.75% 42.94% 46.95% Employees
Slide 23: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q1FY13 v/s Q1FY14 FY 12 v/s FY 13 700.00 180 160 600.00 In ` Crores 140 500.00 120 400.00 100 80 170.05 300.00 605.66 60 138.05 200.00 472.24 40 20 100.00 0 - Q1 FY13 Q1 FY14 FY12 FY13 Sales for Q1 FY 14 increased by 23.18% in value terms and 20.16%
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 FY14 % to Total Q1 FY13 % to Total ADHO 1,163,796 96.84% 952,959 95.28% KPCO 21,653 1.80% 28,665 2.87% BAHO 9,853 0.82% 11,481 1.15% ASHO 1,732 0.14% 2,455 0.25% OTHERS 4,779 0.40% 4,639 0.4
Slide 25: Consistent Performance over the last 13 successive quarters
Consistent Performance over the last 13 successive quarters 40.00% Gr (Vol) Gr (Value) EBIDTA 35.00% 35.12% 30.29% 29.03% 30.00% 28.19% 25.51% 28.37% 24.96% 28.76% 28.53% 28.26% 28.25% 25.00% 25.68% 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% 21.9
Slide 26: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of Oil 85.00 85 80 80.00 Amount (Rs.) 75 75.00 83.54 80.40 79.80 81.15 78.43 70 73.54 70.00 71.89 70.87 65 65.00 Qtr1 (FY13 vs FY14) FY12 vs FY13 Qtr1 (FY13 vs FY14) FY12 vs FY13 During the quarter average price of LLP decreased
Slide 27: Breakup of RM/PM Costs (for Q1 14)
Breakup of RM/PM Costs (for Q1 14) Key Raw & Packing Material % to Sales % to Total Cost LLP 14.62% 36.76% Glass Bottles 9.69% 24.36% Refined Veg. Oil 4.24% 10.65% Perfumes & other additives 3.49% 8.77% Corrugated Boxes 1.64% 4.12% Caps 2.14% 5.39% Laminates 1.64% 4.13% Others 2.32% 5.82% TOTAL 39.7
Slide 28: 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 29: 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 30: Thank You
Thank You 29