Slide 1: Investor Presentation-Version II
Investor Presentation-Version II January 2017
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
INDUSTRY SIZE AND STRUCTURE FMCG Rs. 2,58,122 cr Hair Care 7% CONTRIBUTION Rs. 19,064 cr Coconut Based Hair Shampoo Perfumed Oil Hair Dyes Oil Conditioners Rs. 5,678 cr Rs. 6,411 cr Rs. 3,038 cr Rs. 3475 cr Rs. 461 cr (30%)* (34%)* (16%)* (18%)* (2%)* Hair Oil Market Coconut based Amla Light Hair Oi
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 12,000 300 269 9,886 247 251 253 10,000 9,278 250 236 238 8,676 214 7,867 YTD Growth 1.5 % 197 194 8,000 7,472 6,981 YTD Growth – 0.3 % 200 (In ‘000 KLtr) 5,728 (Rs. Cr.) 6,000 5,044 150 4,498 100 4,000 50 2,000 0 0
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,800 35.0 31.9 32.3 1,602 30.0 31.0 1,600 1,474 1,503 30.0 26.8 1,400 1,311 24.7 1,223 25.0 22.4 1,200 1,080 (In ‘000 KLtr) 19.9 YTD Growth 2.1 % YTD Growth 3 % 20.0 18.4 1,000 831 (Rs. Cr.) 800 710 15.0 610 600 10.0 400
Slide 6: 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% 60% 60% 59.9% 58% 60.0% 56.6% 57.7% 58.0% 57.1% 60% 55% 57% 54.4% 53% 51.9% 51% 50.0% 48.0% 49.1% 50% 47% 44.1% 40.0% 40% 30.0% 30% 20.0% 20% 10.0% 10% 0.0% 0% 08-09 09-10 10-11 11-12 12-13 13
Slide 7: 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% 12.0% 7.4% 7.3% 7.1% 7.0% 6.6% 6.7% 9.9% 9.8% 10.0% 9.5% 9.7% 9.7% 6.0% 5.8% 8.5% 8.0% 7.7% 5.0% 4.7% 7.1% 4.5% 4.1% 6.3% 4.0% 6.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 08-09 09-10 10-11 11-12 12-13
Slide 8: ADHO – Relative Market Share – Value Trend
ADHO – Relative Market Share – Value Trend Relative Market share is the ratio of Bajaj Almond Drops market share to the next largest competitor in LHO segment 5.0 Relative MS Value 4.5 4.5 4.3 4.2 4.3 4.0 4.0 3.4 3.5 3.2 3.0 2.7 2.5 2.1 2.0 1.5 1.0 0.5 0.0 08-09 09-10 10-11 11-12 12-13 13-14 14-15 1
Slide 9: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value Relative Market Relative States Rank States Rank Share Market Share Delhi 3.9 1 North East 2.2 1 Rajasthan 1.6 1 Orissa 6.2 1 Punjab 3.2 1 WB 2.7 1 HP-JK 3.4 1 Maharashtra 4.5 1 Haryana 4.5 1 Mumbai 3.4 1 Madhya Pradesh 3.6 1 Gujarat 2.0 1 Chhattisgarh 6.8 1 AP
Slide 10: Statewise Market Share
Statewise Market Share LHO Volume ADHO Proportion % (Vol) ADHO Market Share % (Vol) 16-17 YTD Dec Saliency Urban Rural Total Urban Rural All India 100.0% 57.1% 42.9% 57.1% 54.9% 60.3% Delhi 6.3% 100.0% 0.0% 55.1% 55.1% Raj 7.4% 53.4% 46.6% 46.4% 52.0% 41.4% Punjab 4.2% 68.9% 31.1% 53.9% 56.8% 52.7%
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 3% 8% 5% Urban dominated 40% segment due to its 6% Grocers dominate relatively higher distribution 60% pricing 78% AI Urban AI Rural Modern Trade Pan Plus Chemists Cosmetics G
Slide 12: ADHO's New 360o Media Campaign – Load Mat Lo
ADHO’s New 360o Media Campaign – “Load Mat Lo” New Campaign Idea on the insight of “Light is Strong” New TVC to communicate to the audience that you don’t need to bear heavy, sticky oils for nourishment. Switch to the Light & Non-Sticky Bajaj Almond Drops hair oil. Bollywood Star Parineeti Cho
Slide 13: Company Overview
Company Overview
Slide 14: Bajaj Corp Ltd. (BCL) – An Overview; Haircare Portfolio
Bajaj Corp Ltd. (BCL) – Haircare Portfolio 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
Slide 15: Skincare Portfolio
Skincare Portfolio Bajaj Nomarks Creams for Normal Skin, Oily Skin & Dry Skin Types, available in sizes 12g(Normal skin) & 25g Bajaj Nomarks Facewash for Clear Glowing Fairness (50g) & Neem Facewash (15g, 50g & 100g) Bajaj Nomarks Soaps Herbal Scrub Soap and Neem Soap, available in sizes 125g Bajaj
Slide 16: Bajaj Almond Drops - A Premium Brand
Bajaj Almond Drops - A Premium Brand Strong Market Share (Val) Growth in Recent Years . . . But not at the cost of pricing power 70% 70 58% 60% 60% 59.9% 60 60 55% 57% 55 58 60% 53% 60 51% 50 50% 47% 46 50 42 38 40 40% 40 32 35 30% 30 20% 20 10% 10 0% 0 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-1
Slide 17: Strong Distribution Network
Strong Distribution Network Strong Distribution Network Distribution Network Distribution Structure The company reaches consumers Factory (9) through 3.6mn retail outlets OWN – Himachal Pradesh -2, Uttarakhand- 1, serviced by 7707 distributors and Guwahati 1 11500 wholesalers THIRD PARTY - Himachal
Slide 18: Sales Force Automation
Sales Force Automation • SFA program has been launched under the name of Project Saathi this year. • It was started with the objective of better coverage & control of distribution. • Currently after the introduction of SFA model for the sales team, out of 1072, 670 ISRs are on SFA.
Slide 19: Organization Structure
Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra GM- Operations President Operations Head – Supply VP – HR Head Legal President- Sales & Mr. Kabir Sahni Mr. Apoorv Bajaj Chain & Mr. Subhamay Mr. Ashish Kr. Marketing - Procurement Chatterjee Panigrahi Mr.S
Slide 20: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Q3FY17 Q3FY16 9M FY 17 9M FY 16 Particulars As on As on Sales (Net) 186.40 195.70 586.28 585.41 (Rs. In Crore) 31.12.2016 31.03.2016 EBITDA 62.33 68.83 202.68 201.96 EBITDA Margin 33.44% 35
Slide 21: EBITDA & PAT Performance
EBITDA & PAT Performance Rs. in Crore Particulars Q3 FY17 Q3 FY16 YoY% 9M FY 17 9M FY 16 YoY% EBITDA 62.33 68.83 -9.44% 202.68 201.96 0.36% Profit Before Tax & 73.48 74.44 -1.29% 232.39 217.96 6.62% Exceptional Item Exceptional Item (Trademark - 11.75 18.39 35.24 & Intellectual Properties) Profit Be
Slide 22: Profit & Loss Q3 and 9M FY2017
Profit & Loss Q3 and 9 M FY2017 Rs. in Crore Particulars Q3 FY17 Q3 FY16 YoY% 9 M FY 17 9 M FY 16 YoY% Net Sales 186.40 195.70 -4.75% 586.28 585.41 0.15% Other Operating Income 0.51 0.39 1.72 1.67 Material Cost 64.38 72.61 200.94 222.85 % of Sales 34.54% 37.10% 34.27% 38.07% Employees Cost 15.71 11.
Slide 23: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q3FY16 v/s Q3FY17 9M FY 16 v/s 250 700 9M FY17 600 200 In ` Crores In ` Crores 500 150 400 100 300 585.41 586.28 195.70 186.40 200 50 100 0 0 Q3 FY16 Q3 FY17 9M FY16 9M FY17 Sales for the quarter ended December’16 has decreased by 4.75%. Sales fo
Slide 24: Statement of Quarter wise Sales (Volume & Value)
Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) ADHO KPCO BAHO AHO Nomarks Others Total FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 Q1 1,269,703 1,241,928 7,483 7,435 11,801 14,073 45,072 49,630 29,195 40,21
Slide 25: Consistent Performance over the last 15 successive quarters
Consistent Performance over the last 15 successive quarters 40.00% 35.37% 34.82% 35.00% 33.62% 33.44% 31.88% 32.35% 31.67% 30.86% 30.00% 28.37% 28.65% 28.58% 28.27% 29.24% 27.09% 27.04% 25.00% 20.00% Gr (Value) 15.00% Gr (Vol) EBIDTA 10.00% 5.00% 16.48% 21.06% 14.29% 23.18% 20.16% 14.96% 12.36% 18.5
Slide 26: Breakup of RM/PM Costs (for Q3 FY 17)
Breakup of RM/PM Costs (for Q3 FY 17) Key Raw & Packing Material % to Sales % to Total Cost LLP 8.34% 24.31% Glass Bottles 9.17% 26.73% Refined Veg. Oil 4.58% 13.35% Perfumes & other additives 3.59% 10.47% Corrugated Boxes 1.79% 5.22% Caps 2.03% 5.92% Others 4.80% 13.99% TOTAL 34.30% 100.00% * Consu
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 93.76 40 40 83.97 82.88 79.21 54.70 57.87 20 46.37 44.86 20 0 0 Qtr3 FY16 vs FY17 9M FY16 vs FY17 Qtr3 FY16 vs FY17 9M FY16 vs FY17 During the quarter average price of LLP decr
Slide 28: Fund Position
Fund Position Fund Position: The total Fund available with the company as on 31st Dec 2016 is Rs. 487.06 Crores This has been invested in Bank Fixed Deposits, AAA rated PSU Bonds, Commercial Papers, Government Securities and Liquid MFs. There is no investment in ANY Inter Corporate Deposit P
Slide 29: Dividend Payout History
Dividend Payout History Dividend per No. of Shares Face Dividend Payout Year % to Capital share (in Lacs) Value (Rs in Lacs) (Rs.) 2016-17 1,475 1 16962.50 1150% 11.50 2015-16 1,475 1 16962.50 1150% 11.50 2014-15 1,475 1 16962.50 1150% 11.50 2013-14 1,475 1 9,587.50 650% 6.50 2012-13 1,475 1 9,587.5
Slide 30: 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 Sugar Ltd Bajaj Corp Ltd has not and will not transfer funds from and to any other company within the Bajaj Group The Company acquired in September 2011 (Upto
Slide 31: 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 32: Thank You
Thank You