Slide 1: Investor Presentation
Investor Presentation December 2011
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.167,064 cr (USD 33.4 bn) Hair Care 8% salience Rs. 12,815 cr (USD 2.6 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 3973cr Rs. 3460 cr Rs. 3204 cr Rs. 256 cr Rs. 1,922 cr (USD 795 mn) (USD 692 mn) (USD 640 mn) (USD 51 mn) (USD 384 mn)
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 9M-o-9M 1.1% 9M-o-9M 21.9% Y-o-Y 16.8% Y-o-Y 6.7% Y-o-Y 30% Y-o-Y 10.5% Y-o-Y 14% Y-o-Y 17.9% Y-o-Y 31% Y-o-Y 21% Light Hair Oil – Volume Light Hair Oil – Value 9M-o-9M 16.5% Y-o-Y 6.1% Y-o-Y15.1% Y-o-Y 33% Y-o-Y 18
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 9M-o-9M 25.9% 9M-o-9M 16.5% 15.1% Y-o-Y 6.1% Y-o-Y 33% Y-o-Y 18% Y-o-Y 19.7% Y-o-Y 40% Y-o-Y 29% Y-o-Y 14% Y-o-Y Almond Drops Hair Oil Market - Volume Almond Drops Hair Oil Market - Value 9M-o-9M 27.2% 9M-o-9M 19% 26% 54.5
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS *Market Share in the Light Hair Oil Category Source: The AC Nielsen Retail Audit Report. 6
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 Source – The AC Nielsen Retail Audit Report Growth in Relative market share demonstrates the strength of the brand 7
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 2.6 1st Madhya Pradesh 3.8 1st Rajasthan 1.8 1st Chhattisgarh 2.3 1st Uttar Pradesh 2.5 1st Central Zone 3.8 1st Punjab 3.2 1st Gujarat 2.1 1st Haryana 2.8 1st Mumbai 2.6 1st Uttaranchal 4.2 1st Maharashtra 3.1
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Oct10-Sep11 Saliency Urban Rural Total Urban Rural All India (U+R) 100.00 66.0 34.0 49.9 48.2 53.1 Punjab 6.0 70.3 29.7 47.2 42.8 57.5 Haryana 5.1 80.5 19.5 45.8 43.6 54.6 Delhi 7.0 100.0 0.0 48.6 48.6 NA Rajasthan 8.8 64.4 35.
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 – FY11 Traditional channels Urban dominated dominate segment due to its distribution, but relatively higher alternate channels pricing like modern retail demonstrating higher
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value CAGR 14.5% C AG R 16.5% Rs. Cr. Y-o-Y - 12% Y-o-Y - 15% KLtr Y-o-Y - 23% Y-o-Y - 13% Y-o-Y - 12% Y-o-Y - 18% Kailash Parbat – Distribution Trend Kailash Parbat – Volume Market Share Trend Lakh outlets % Source – The
Slide 12: Company Overview
Company Overview
Slide 13: Bajaj Corp Ltd. (BCL) – An Overview
Bajaj Corp Ltd. (BCL) – An Overview Part of Bajaj Group which has business interests in Bajaj Almond Drops Hair Oil - A premium perfumed varied industries including sugar, consumer goods, hair oil containing almond oil and Vitamin E power generation & infrastructure development Competitors – Keo K
Slide 14: 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 Comparative Price of Different Brands for 100 ml in the Hair Oil Segment Competitor Brands Source: The AC Nielsen Retail Audit Almond Drops has created a unique positioning for
Slide 15: 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- 11% A2- 16% B1- 15% B2- 12% Source - IRS 15
Slide 16: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) consumers through 2.16 mn 43 47 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand-1 6036 direct distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 50 11,258 wholesale
Slide 17: Organization Structure
Organization Structure Chairman Mr. Kushagra Baj Managing Director Mr. Jimmy Anklesaria Mr. Apoorv Bajaj Chief Financial Officer MBN les KE GM - Sales GM - Marketing Mr. Sudhir Taneja Mr. Gurpreet S. Amrit Vice President (Finance) Mr. D. K. Maloo Mr. S. Chatterjee | GM- HR 17
Slide 18: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q3 2012 Q3 2011 9M FY12 9M FY11 9M 2012 9M 2011 2010-11 2009-10 (In Rupees Crores) (In Rupees Crores) Sales (Net) Shareholders Equity 462.83 375.66 376.31 25.67 112.30 85.88 325.65 248.83 Total Debt - - - -
Slide 19: EBITDA & PAT Performance
EBITDA & PAT Performance Particulars Q3 FY12 Q3 FY11 YoY% 9M FY12 9M FY11 YoY% (In Rs. Crores) EBITDA 28.65 26.01 10.11% 82.67 77.89 6.14% Profit Before Tax & 35.75 30.44 17.44% 108.15 83.96 28.80% Exceptional Items Exceptional Items - 6.32 - 12.63 (IPO Expenses) Profit Before Tax (PBT) 35.75 24.12
Slide 20: Profit & Loss Q3 & 9M FY2012
Profit & Loss Q3 & 9M FY2012 Particulars (In Rs. Crores) Q2FY12 Q3FY12 Q3FY11 YoY% 9M FY12 9M FY11 YoY% Net Sales 106.77 112.30 85.88 30.75% 325.65 248.83 30.87% Other Operating Income 0.33 0.20 0.27 0.63 0.50 Material Cost 49.87 51.79 37.92 152.33 105.28 % of Sales 46.70% 46.12% 44.15% 46.78% 42.31
Slide 21: Sales Performance
Sales Performance Sales for Q3 FY12 increased by 30.75% in value terms and 20.46% in volume terms. Sales for the 9months FY12 has increased by 30.87% in value terms and 20.79% in volume terms. 21
Slide 22: Statement of Quarter wise Sales (Volume & Value)
Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) ADHO KPCO BAHO ASHO Others Total % Increase 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 over Pr. Year Qtr1 765,858 654,856 28,777 0 14,125 14,888 4,451 6,232 4,249 5,494 817,460 681,4
Slide 23: Breakup of RM/PM Costs (for 9M FY12)
Breakup of RM/PM Costs (for 9M FY12) Key Raw & Packing Material % to Sales % to Total Cost LLP 19.0% 41.1% Glass Bottles 11.4% 24.8% Refined Veg. Oil 4.0% 8.6% Perfumes & other additives 3.6% 7.7% Corrugated Boxes 2.3% 4.9% Caps 2.2% 4.8% Others 3.7% 8.1% TOTAL 46.2% 100.0% * Consumption is 46.2% of
Slide 24: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients During the current quarter company faces major increase in the prices of its raw material’s key ingredient namely LLP (Light Liquid Paraffin) and Refined Oil . Price of LLP increased to Rs 82.86/Kg from Rs 66.34/Kg in corresponding quarter of previous year i.e
Slide 25: 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 26: Thank You
Thank You