Slide 1: Investor Presentation
Investor Presentation August 2011
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.133,876 cr (USD 29.8 bn) Hair Care 8% salience Rs. 10,243 cr (USD 2.3 bn) Shampoo Perfumed Oil Coconut Oil Hair Conditioners Hair Dyes Rs. 3277cr Rs. 3175 cr Rs. 2151 cr Rs. 204 cr Rs. 1,434 cr (USD 728 mn) (USD 705 mn) (USD 478 mn) (USD 45 mn) (USD 319 mn) (32.0%
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 300,000 7,000 245,655 5,862 250,000 6,000 210,374 4,971 197,057 5,000 4,498 (Rs. Cr.) 200,000 172,528 (In KLtr) 4,000 3,707 Y-o-Y 16.8% Y-o-Y 6.7% Q-o--Q 20.9% 132560 Y-o-Y 30% Q-o Q 4.8% Y-o-Y 14% 150,000 Y-o-Y 10.
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 900 833 25,000 22,464 800 19,516 696 20,000 18,390 700 610 (Rs. Cr.) 15,603 600 15,000 472 (In KLtr) 500 11764 Q-o-Q 16.5% Y-o-Y 6.1% Y-o-Y15.1% Y-o-Y 33% Y-o-Y 18% Y-o-Y 19.7% Q-o-Q 23.8% 400 336 Y-o-Y 40% Y-o-Y 29% Y-o-Y
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 55% 60% 50.4% 54.2% 50% 49.1% 55% 53.0% 47.7% 50.3% 50% 45% 44.1% 46.5% 45% 40% 38.4% 40.3% 40% 35% 35% 30% 30% 07-08 08-09 09-10 10-11 11-12 (3M) 07-08 08-09 09-10 10-11 11-12 (3M) *Market Share in the Light Hair Oil Category So
Slide 7: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) July10-Jun11 Saliency Urban Rural Total Urban Rural All India (U+R) 67.3 32.7 49.4 47.5 53.4 Punjab 5.9 70.8 29.2 43.2 40.1 50.5 Haryana 5.2 83.3 16.7 46.1 43.1 60.9 Delhi 7.0 100.0 43.2 Rajasthan 9.4 65.9 34.1 48.7 47.6 50.7 U
Slide 8: 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 Modern Others, 6%, Trade, 3%, (8%) (34%) Cosmetic, 5%, (-3%) Chemists, 7% Traditional Rural Urban dominated (2.1%) channels dominate 33.0% segment due to its distributi
Slide 9: Company Overview
Company Overview
Slide 10: 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 11: 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 60% 50 46 53.0% 50.3% 45 42 46.5% 40 50% 40 38 40.3% 35 36.7% 35 32 40% 29 30 31.4% 30 28 30% 25 20 20% 15 10% 10 5 0% 0 05-06 06-07 07-08 08-09 09-10 10-11 Mar-03 Mar-05 Dec-05
Slide 12: 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 11
Slide 13: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) consumers through 2.02 mn 45 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand-1 5690 direct distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 10,085 wholesalers 50 17
Slide 14: Organization Structure
Organization Structure Chairman Mr. Kushagra Bajaj Vice Chairman Mr. R.F. Hinger President Operations Director – Sales & Marketing Mr. Apoorv Bajaj Mr. Sumit Malhotra CFO GM – Sales GM – Marketing GM- HR Mr. Dilip Maloo Mr. Sudhir Taneja Mr. Gurpreet S. Amrit Mr. S. Chatterjee Company Sr. Manager Se
Slide 15: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q1 2012 Q1 2011 2010-11 2009-10 Q1 2012 Q1 2011 2010-11 2009-10 (In Rupees Crores) (In Rupees Crores) Sales (Net) 106.58 81.71 358.67 294.58 Shareholders Equity 404.85 47.59 376.31 25.67 EBITDA 26.60 28.69 1
Slide 16: EBITDA & PAT Performance
EBITDA & PAT Performance (Rs. in crores) Particulars Q1 FY12 Q1 FY11 YoY% 2010-11 2009-10 YoY% EBITDA 26.60 28.69 -7.29% 108.93 97.74 11.45% Profit Before Tax (PBT) 35.65 28.36 25.68% 105.08 101.56 3.47% Profit After Tax (PAT) 28.42 22.71 25.16% 84.10 83.91 0.23% 15
Slide 17: Profit & Loss Q1 FY2012
Profit & Loss Q1 FY2012 In Rs. Crores Q1FY12 Q1FY11 YoY% Net Sales 106.58 81.71 30.44% Other Operating Income 0.10 0.10 Material Cost 50.66 32.55 % of Sales 47.54% 39.83% Employees Cost 5.41 4.19 % of Sales 5.07% 5.13% Advertisement & Sales Promotion Exp. 12.60 8.16 % of Sales 11.82% 9.98% Other Exp
Slide 18: Sales Performance
Sales Performance Sales (Value) : Q1FY11 v/s Q1FY12 Sales (Volume): Q1FY11 v/s Q1FY12 120 8.00 100 Cases (In Lacs) In Rs. Crores 80 6.00 60 4.00 8.17 106.58 40 81.71 6.81 2.00 20 0 0.00 Q1FY11 Q1FY12 Q1FY11 Q1FY12 Sales for the quarter ended Jun’11 has increased by 30.44% value wise and 19.96% vol
Slide 19: Statement of Brandwise Sales (Volume & Value)
Statement of Brandwise Sales (Volume & Value) STATEMENT OF BRANDWISE SALES (VOLUME - In Cases ) Product Q1 FY12 % to Total Q1 FY11 % to Total ADHO 765858 93.7% 654856 96.1% KPCO 28777 3.5% 0 0.0% BAHO 14125 1.7% 14888 2.2% ASHO 4451 0.5% 6232 0.9% OTHERS 4249 0.5% 5494 0.8% TOTAL 817460 100.0% 68147
Slide 20: Breakup of RM/PM Costs (for FY11)
Breakup of RM/PM Costs (for FY11) Key Raw & Packing Material % to Sales % to Total Cost LLP 19.2% 41.1% Glass Bottles 11.8% 25.3% Perfumes & other additives 3.5% 7.6% Refined Veg. Oil 3.7% 8.0% Corrugated Boxes 2.4% 5.1% Caps 2.3% 4.9% Others 3.8% 8.1% TOTAL 46.6% 100.0% * Consumption is 46.6% of Sa
Slide 21: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of Refined Oil 100 60 61.91 80 56.70 86.26 50 Amount (Rs.) 49.92 52.18 60 40 66.51 30 40 44.49 20 56.92 20 10 0 0 Q1 FY 11 v/s FY 12 FY 10 v/s FY 11 Q1 FY 11 v/s FY 12 FY 10 v/s FY 11 During the current quarter company faces majo
Slide 22: 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 23: Thank You
Thank You