Slide 1: Investor Presentation
Investor Presentation October 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 4,498 200,000 (Rs. Cr.) 172,528 (In KLtr) 4,000 3,707 3,412 Y-o-Y 16.8% 132560 Y-o-Y 6.7% 150,000 H-o-H 3.7% Y-o-Y 30% H-o-H 23.5% Y-o-Y 14% Y-o-
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 25,000 900 833 22,464 800 19,516 696 20,000 18,390 700 610 15,603 600 (Rs. Cr.) 15,000 472 487 12,463 500 (In KLtr) 11764 Y-o-Y 6.1% Y-o-Y15.1% H-o-H 18% Y-o-Y 33% Y-o-Y 18% 400 Y-o-Y 19.7% 335.6 H-o-H 26.3% Y-o-Y 40% Y-o-
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 60% 60% 53.0% 53.9% 49.1% 50.2% 50.3% 50% 47.7% 50% 46.5% 44.1% 40.3% 38.4% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 07-08 08-09 09-10 10-11 11-12 (6M) 07-08 08-09 09-10 10-11 11-12 (6M) *Market Share in the Light Hair Oil Category
Slide 7: 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 66.1 33.9 50.2 48.5 53.6 Punjab 6.0 66.0 34.0 46.3 41.2 58.2 Haryana 5.3 80.4 19.6 47.2 44.8 57.8 Delhi 7.3 100.0 0.0 47.6 47.6 NA Rajasthan 9.1 66.8 33.
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 47 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand-1 5913 direct distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 11,057 wholesalers 50 18
Slide 14: Organization Structure
Organization Structure Chairman Mr. Kushagra Bajaj Vice Chairman Mr. R.F. Hinger Managing Director Director – Business Development Mr. Sumit Malhotra Mr. Jimmy Anklesaria President Operations Mr. Apoorv Bajaj CFO GM – Sales GM – Marketing GM- HR Mr. Dilip Maloo Mr. Sudhir Taneja Mr. Gurpreet S. Amri
Slide 15: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q2 2012 Q2 2011 HY1FY12 HY1FY11 HY 2012 HY 2011 2010-11 2009-10 (In Rupees Crores) (In Rupees Crores) Sales (Net) 106.77 81.24 213.35 162.95 Shareholders Equity 433.88 350.02 376.31 25.67 EBITDA 27.42 23.18
Slide 16: EBITDA & PAT Performance
EBITDA & PAT Performance (Rs. in crores) Particulars Q2 FY12 Q2 FY11 YoY% HY1FY12 HY1FY11 YoY% EBITDA 27.42 23.18 18.31% 54.03 51.87 4.15% Profit Before Tax & 36.75 25.16 46.06% 72.40 53.52 35.26% Exceptional Items Exceptional Items - 6.32 - 6.32 (IPO Expenses) Profit Before Tax (PBT) 36.75 18.84 95
Slide 17: Profit & Loss Q2 & HY1 FY2012
Profit & Loss Q2 & HY1 FY2012 In Rs. Crores Q2FY12 Q2FY11 YoY% HY1 FY12 HY1 FY11 YoY% Net Sales 106.77 81.24 31.43% 213.35 162.95 30.93% Other Operating Income 0.33 0.13 0.43 0.22 Material Cost 49.87 34.81 100.53 67.36 % of Sales 46.70% 42.86% 47.12% 41.34% Employees Cost 5.70 4.03 11.10 8.22 % of S
Slide 18: Sales Performance
Sales Performance Sales (Value) : Q2FY11 v/s Q2FY12 Sales (Value) : HYFY11 v/s HYFY12 120 250 100 200 In Rs. Crores In Rs. Crores 80 150 60 106.77 100 213.35 40 81.24 162.95 20 50 0 0 Q2FY11 Q2FY12 HY1FY11 HY1FY12 Sales for Q2 FY2011-12 increased by 31.43% in value terms and 21.98% in volume terms
Slide 19: 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 over Pr. 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 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 20: Breakup of RM/PM Costs (for HY1 FY12)
Breakup of RM/PM Costs (for HY1 FY12) Key Raw & Packing Material % to Sales % to Total Cost LLP 19.2% 41.4% Glass Bottles 11.4% 24.6% Refined Veg. Oil 3.8% 8.3% Perfumes & other additives 3.6% 7.7% Corrugated Boxes 2.3% 5.0% Caps 2.2% 4.7% Others 3.8% 8.3% TOTAL 46.4% 100.0% * Consumption is 46.4% o
Slide 21: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of Oil 100 70 67.50 64.66 86.26 85.68 85.97 61.91 60 80 49.92 51.34 50.58 65.37 61.09 50 56.92 60 40 40 30 20 20 10 0 0 Qtr1 Qtr2 HY1 Qtr1 Qtr2 HY1 FY2010-11 FY2011-12 FY2010-11 FY2011-12 During the current quarter company faces
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