Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q2 FY2019 Earnings Presentation
45 slides from Bajaj Consumer Care's earnings presentation, 2018
Slide 1: Investor Presentation Q2 - 2018
INVESTOR PRESENTATION Q2 - 2018
Slide 2: Flow
FLOW • BCL TRANSFORMATION FOR GROWTH PILLARS & ACTION TAKEN • INDUSTRY OVERVIEW • ORGANISATION STRUCTURE • FINANCIAL INFORMATION • WAY FORWARD 1
Slide 3: Transforming for Growth – BCL Pathfinder
TRANFORMING FOR GROWTH – BCL PATHFINDER VISION MISSION VALUES PILLARS OF GROWTH WINNING WINNING WINNING WINNING WITH IN WITH WITH BRANDS MARKET PROCESSES PEOPLE 2
Slide 4: Growth Pillars into Action
GROWTH PILLARS INTO ACTION WINNING WITH BRANDS - INNOVATIONS , RENOVATIONS, COLLABORATIONS Haircare • ADHO’s re-launch carried out in Q2 . Relaunch supported with Multi Media approach and on ground Visibility to increase penetration of ADHO in the THO category . • ADHO “Load Mat Lo “campaign to conv
Slide 5: Q2 Key Initiative - Bajaj Almond Drops New Pack Launch
Q2 KEY INITIATIVE - BAJAJ ALMOND DROPS NEW PACK LAUNCH • Objective – To Improve Brand Imagery cues of Lightness, Nourishment & Strength • Packaging developed with Pentagram, London - The world’s leading independent design consultancy • More focus on Sustainability - Launched Rs 10 pack in a PET jar
Slide 6: Bajaj Almond Drops New Pack Launch
BAJAJ ALMOND DROPS NEW PACK LAUNCH Premium Pearlized cap Sleeker bottle Premium Label colour Prominent Almond with Touch & Feel effect Golden drops to connote purity 300% Vitamin E at the Front 5
Slide 7: Bajaj Almond Drops Multi Media Support on Restage
BAJAJ ALMOND DROPS MULTI MEDIA SUPPORT ON RESTAGE - New TVC for Pack Launch - 13% SOV For the Restage Period Parineeti Unboxes the Innovative Press Ads New pack on Digital 6
Slide 8: Bajaj Almond Drops On-Ground Trade Visibility
BAJAJ ALMOND DROPS ON-GROUND TRADE VISIBILITY Posters Unpaid Visibility Window Displays across 5,000 outlets Sachet Hangers across 40,000 outlets Table tops across 17,500 outlets 7
Slide 9: Key Initiative – Rs. 10 Pack for Rural
KEY INITIATIVE – Rs. 10 PACK FOR RURAL •Objective of Upgrading the huge base of Rs 1 sachet rural consumers to bottles •Launched the Rs 10 pack in a Secondary Pack of PET Jar format for increasing Distribution in Rural 8
Slide 10: Positive Results across all Parameters on ADHO
Positive Results across all Parameters on ADHO Offtake Val Sales (Cr) MS Val - THO MS Val - LHO 65.0 350 10.00 313 62.9 9.52 63.0 300 9.50 250 9.25 60.8 250 61.0 9.00 200 59.0 8.50 57.0 150 100 8.00 55.0 Q2 FY 18 Q2 FY 19 Q2 FY 18 Q2 FY 19 Q2 FY 18 Q2 FY 19 Huge growths in Val Offtakes Significant g
Slide 11: Q2 Key Initiative – NOMARKS Relaunch Go-to-Market
Q2 KEY INITIATIVE – NOMARKS Relaunch GOTO Market 10
Slide 12: NOMARKS Multi Media Support
NOMARKS Multi Media Support TV PRESS DIGITAL OUTDOOR/CINEMA 10.1M Total CVV* 3.3L Total Clicks 1.5L Total Visits 52.6M Total Impressions • 30 sec Road Block aired on *CVV – Completed Video views 6th July 2018 Reached 6.7M users and received 10M completed video Views Bajaj No Marks Line 3&4 • 7 Weeks
Slide 13: NOMARKS Strong Instore Visibility
NOMARKS strong instore visibility Table Tops, Hangers & Parasites 12
Slide 14: NOMARKS Offtake post Restage
NOMARKS OFFTAKE post restage Strong offtake growth post restage of NOMARKS NOMARKS VAL OFFTAKES 1,00,000 90,000 32% 80,000 0.1% 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Q1 Q2 17-18 18-19 Source: Nielsen Retail Audit Report, Sep 2018 13
Slide 15: NOMARKS Market Share Trend
NOMARKS Market Share trend Highest growth in Market Share Re-launch in Antimarks MS VAL 11.0 10.0 9.6 9.7 9.7 9.6 9.6 9.5 9.6 9.8 9.1 9.2 9.5 9.5 9.0 8.2 8.1 8.1 8.0 8.2 8.3 7.8 7.9 8.1 8.0 8.0 7.5 7.6 7.0 6.0 5.5 5.3 5.3 5.4 5.3 5.3 5.5 4.8 4.8 4.9 5.0 5.2 5.0 4.0 MAT MAT MAT MAT MAT FEB MAT MAR MA
Slide 16: NOMARKS MS Trend in Key Market - UP
NOMARKS MS trend in Key Mkt - UP Highest growth in Market Share Re-launch in Antimarks MS VAL 11.0 11.2 10.6 10.3 10.3 10.2 10.0 9.9 10.0 9.7 9.0 9.1 8.6 8.0 8.2 7.8 7.1 6.8 6.6 6.9 7.0 6.5 6.6 6.6 6.0 6.3 6.0 5.3 5.5 5.7 5.0 4.5 4.6 4.6 4.2 4.4 4.2 4.4 4.0 3.8 4.0 3.6 3.6 3.7 3.0 OCT 17 NOV 17 DEC
Slide 17: NOMARKS – Market Share post Restage
NOMARKS – Market Share post restage MARKET SHARE % Q1 Q2 CHEMIST 7.4 8.4 COSMETIC 13.2 18 GROCERS 8.2 11.5 TOTAL 7.5 9.2 Market Share increases across channels Source: Nielsen Retail Audit Report, Sep 2018 16
Slide 18: Q2 – Market Context
Q2 – MARKET CONTEXT Strong Volume Growth Across Categories HAIROILS • Volume MS% of Bajaj Almond Drops improved to 7.6% in MAT Sep 18 vs 7.2% in MAT Sep 17, backed by sequential Qtr on Qtr share increase ( 7.2%, 7.7% ,7.7% , 7.8%) • Share within the LHO segment continued to surge forward with MAT Se
Slide 19: Growth Pillars into Action
GROWTH PILLARS INTO ACTION WINNING IN MARKET – QUALITY & QUANTITY Enhancing Quantity and Quality of Distribution : • Continued push on overall distribution • Systemic thrust towards all time high distribution each Qtr • Increase direct reach by 2.5 times in last 2.5 years • Lowering of WS contributi
Slide 20: Q2 – Market Context
Q2 – MARKET CONTEXT Trade • Rural markets still leading the overall growths in the overall market. But uneven monsoon may result in a lower growth in the coming qtrs. • Wholesale softness exists in pockets in both urban and rural markets • CSD business continues to be a concern but hopes of getting
Slide 21: Growth Pillars into Action
GROWTH PILLARS INTO ACTION WINNING WITH PEOPLE – ENGAGE and DEVELOP Robust Engagement Initiatives: • Culture Assessment Study of senior leadership team in partnership with Egon Zehnder • Launched Ideation – a platform for employees to submit innovative Ideas. • Introduced Term Insurance Policy enhan
Slide 22: Industry Overview
INDUSTRY OVERVIEW A WORK CERTIFIED
Slide 23: Industry Size and Structure
Industry Size and Structure FMCG Rs. 3,53,277 cr Hair Care 6% CONTRIBUTION Rs. 22,575 cr Shampoo Coconut Oil Hair Oil Hair Dyes Hair Conditioners Rs. 6,788 cr Rs. 3,806 cr Rs. 7,394 cr. Rs. 4,010 cr Rs. 577 cr. (30%)* (17%)* (33%)* (18%)* (3%)* 25% 25% 17% 12% 14% Amla Based Oils Light Hair Oils VAC
Slide 24: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 12,000 11,294 300 285 269 265 9,928 10,168 247 255 254 10,000 9,390 250 236 238 8,676 7,867 8,000 6,981 (In ‘000 KLtr) 200 6,495 (Rs. Cr.) 154 5,728 Growth -5.3% Growth -0.2% Growth 7.4 % Growth 11.1 % 6,000 Growth
Slide 25: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 40.0 35.2 2,000 35.0 31.9 32.2 33.3 1,756 31.3 30.0 1,800 1,576 1,639 30.0 26.8 1,600 1,474 1,502 (In ‘000 KLtr) 1,400 1,311 25.0 22.4 Growth -1.9% Growth 11.9 % Growth 13.6% Growth 2.7 % (Rs. Cr.) Growth 13.7% 19.7 1,080
Slide 26: Market Share Trends Quarterly - THO
Market Share Trends Quarterly - THO AI(U+R) MS Val MS Vol Q3'17 Q4’17 Q1’18 Q2’18 Q3'17 Q4’17 Q1’18 Q2’18 ADHO 9.4 9.8 9.5 9.52 7.2 7.7 7.7 7.8 All Bajaj 9.9 10.3 10.0 10.0 7.7 8.3 8.3 8.4 Brands* Stable on value and overall positive trends in for ADHO in THO category on MS vol Source: Nielsen Retai
Slide 27: Market Share Trends in Light Hair Oil Category
Market Shares Trends in Light Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 70.0% 70.0% 62.2% 58.7% 58.2% 59.8% 60.3% 61.0% 60.6% 61.2% 60.9% 60.0% 56.6% 57.8% 58.3% 57.9% 60.0% 56.9% 58.4% 54.4% 55.0% 51.9% 50.0% 50.0% 40.0% 40.0% 30.0% 30.0% 20.0% 20.0% 10.0% 10.0% 0.0% 0.0%
Slide 28: Market Share Trends in Total Hair Oil Category
Market Shares Trends in Total Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 8.0% 7.6% 12.0% 7.4% 7.3% 7.3% 7.1% 7.2% 7.0% 6.6% 6.7% 9.9% 9.7% 9.7% 9.8% 10.0% 9.5% 9.5% 9.7% 9.6% 6.0% 5.8% 8.5% 8.0% 5.0% 4.0% 6.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 11-12 12-13 13-14 14-15 15-16
Slide 29: Anti Marks Category Growth
Anti Marks Category Growth Q-o-Q Gr Val (All India) Q-o-Q Gr Val (UP) 50.0 100.0 45.2 42.9 84.3 84.9 45.0 80.0 40.0 35.9 35.0 32.5 58.0 29.7 60.0 30.0 23.4 36.5 25.0 40.0 24.8 20.0 15.1 20.0 15.0 8.3 10.4 3.4 10.0 7.9 -1.6 0.0 0.3 5.0 Q2'17-18 Q3'17-18 Q4'17-18 Q1'18-19 Q2'18-19 0.1 -5.6 0.0 -20.0 Q
Slide 30: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure 53 Factory (9) The company reaches consumers through 3.98 Million retail outlets serviced by 9110 distributors OWN – Himachal Pradesh -2, Uttarakhand- 1, Guwahati 1 80 THIRD PARTY - Himachal Pradesh-2, Bangladesh-1, 294 Uttarakh
Slide 31: Organisation Structure
ORGANISATION STRUCTURE
Slide 32: Management Board
Management Board Kushagra Nayan Bajaj Chairman Mr. Bajaj serves as Chairman of the Board of Bajaj Corp Ltd. He is also the promoter of the company. He holds a Bachelor of Science degree in Economics, Political Philosophy and Finance from Carnegie Mellon, Pittsburgh, USA and has a Masters Degree of S
Slide 33: Management Committee
Management Committee Sandeep Verma President – Sales and Marketing Joined BCL in Jan 2016. Sandeep is a Mechanical Engineer from NIT- Allahabad and a PGDBM from IIM – Lucknow. Prior to joining BCL, he has worked for 15 years in HUL/Unilever across various roles in Sales, Strategy and Marketing and h
Slide 34: Management Committee
Management Committee Dipankar Ghosh Abhishek Prasad Assistant Vice President - Human Resources Head - Marketing Joined BCL on Aug 2018. He is Fullbright Fellow and holds a Joined BCL on May 2018. He holds a MBA from FMS, Delhi and MBA from Jadavpur University and has 20+ years of experience has 20 y
Slide 35: Management Committee
Management Committee Makarand Karnataki Dharmesh Sanghavi Head - Legal General Manager - IT Joined BCL in Sep 2017. Makarand is Commerce and Law Joined BCL on Sep 2012. He is a computer Engineer, PMP Graduate from Mumbai University and also a member of certified, Strategic management of IT from IIM-
Slide 36: Financials
Financials WOR CERTIFIED ote
Slide 37: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Particulars As at As at Q2 FY19 Q2 FY18 H1FY19 H1FY18 30.09.2018 31.03.2018 Total Operating income 212.73 204.13 434.14 401.56 Shareholders Equity 611.31 505.36 EBITDA 61.94 59.60 132.42 12
Slide 38: Profit & Loss Quarter ended Sep 30, 2018 (Q2FY19)
Profit & Loss Quarter ended Sep 30, 2018 (Q2FY19) Rs. in Crore Particulars Q2 FY19 Q2 FY18 YoY% Net Sales 205.74 203.68 1.01% Other Operating Income 6.99 0.45 Total Operating income 212.73 204.13 4.21% Material Cost 69.49 67.34 % of Sales 33.78% 33.06% Employees Cost 24.05 19.39 % of Sales 11.69% 9.
Slide 39: Profit & Loss Half Year ended Sep 30, 2018 (H1FY19)
Profit & Loss Half Year ended Sep 30, 2018 (H1FY19) Rs. in Crore Particulars H1FY19 H1FY18 YoY% Net Sales 420.70 400.08 5.15% Other Operating Income 13.43 1.48 Total Operating income 434.14 401.56 8.11% Material Cost 143.43 136.14 % of Sales 34.09% 34.03% Employees Cost 46.13 36.26 % of Sales 10.97%
Slide 40: Sales Value Growth Q2 FY19
Sales Value Growth Q2 FY19 Q2FY19 Sales Vertical Growth Q2FY19 Salience % General Trade 85.10% 2.1% Modern Trade 6.93% 23% Total Domestic ( Excluding CSD) 92.03% 3.7% Canteen Stores Department 4.73% -44.96% Total Domestic 96.77% 1.3% International Business 3.23% -6.8% Total for the Company 100.00% 1
Slide 41: Sales Value Growth H1 FY19
Sales Value Growth H1 FY19 H1FY19 Growth Sales Vertical Salience % H1FY19 General Trade 86.11% 9.7% Modern Trade 5.55% 28.7% Total Domestic ( Excluding CSD) 91.67% 10.93% Canteen Stores Department 3.99% -37.0% Total Domestic 95.65% 9.1% International Business 4.35% -52.9% Total for the Company 100.0
Slide 42: Breakup of RM/PM Costs (for Q2FY19)
Breakup of RM/PM Costs (for Q2FY 19) Key Raw & Packing Material % to Sales % to Total Cost LLP 10.46% 31.14% Bottles (Glass & Pet) 9.04% 26.90% Refined Veg. Oil 4.61% 13.73% Perfumes & other additives 2.42% 7.21% Corrugated Boxes 1.54% 4.60% Caps 1.87% 5.56% Others 4.30% 12.79% TOTAL 33.60% 100.00%
Slide 43: 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 88.59 87.13 40 75.30 75.34 71.75 70.83 59.69 58.97 20 20 0 0 Qtr2 FY18 vs FY19 HY1 FY18 vs FY19 Qtr2 FY18 vs FY19 HY1 FY18 vs FY19 ✓ The adjusted landed cost (Net of input cre
Slide 44: Going Forward..
GOING FORWARD.. Plan • Focus on driving volumes harder in ADHO post relaunch and continue to grow ahead of the market • Sustain the momentum for NOMARKS across all key channels • Keep the drive on new innovations and land them much faster in the market • Capitalize on strong growths in Modern trade
Slide 45: For More Information
For More Information For more information & updates Contact: Kushal Maheshwari kushal@bajajcorp.com • Please Visit www.bajajcorp.com 44
Bajaj Consumer Care — Q2 FY2019 Earnings Presentation on 6ix