Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q3 FY2020 Earnings Presentation
35 slides from Bajaj Consumer Care's earnings presentation, January 2020
Slide 1: Making People Feel and Look Good
Q3 FY 2020 MAKING PEOPLE FEEL AND LOOK GOOD 1
Slide 2: Key Indicators – Q3 FY 2020
Key Indicators – Q3 FY 2020 SALES Growth: -7.44% Gross Margin: 66.74% (Y-o-Y) Market Share (Val) = 10.4% ASP to Sales: 21.70% Household Penetration % = 21.2% EBITDA %:27.10% NET PROFIT: 24.37% Source: HH Penetration Kantar, Dec 2019, Nielsen Retail Audit Report, Dec 2019, All India 2
Slide 3: Strategic Choices
STRATEGIC CHOICES ➢Focus on Hair Oils ➢Double our share in Hair Oils ➢Micromarketing ➢Focus on Alternate Channels ➢Leveraging Digital platforms ➢IT & Automation tools ➢Developing Manpower 3
Slide 4: Strategic Choice 1: Focus on Hair Oils
Strategic Choice 1: Focus on Hair Oils 4
Slide 5: Strategic Choice #1 - Focus on Hair Oils
STRATEGIC CHOICE # 1 - FOCUS ON HAIR OILS Do More Of What We Are Known For DRIVE GROWTH WITH ADHO LEVERAGE STRONG EQUITY OF AND BUILD A STRONGER HAIR BAJAJ IN HAIR OILS OILS PORTFOLIO 5
Slide 6: Why Hair Oils?
WHY HAIR OILS? INDIAN IN NATURE PENETRATION ACROSS SEC DEEPLY PENETRATED PART OF THE LEGACY HANDED 93% INDIAN HOUSEHOLDS SEC A/B/C HOUSEHOLDS IN OVER FROM ONE GENERATION USING HAIR OILS URBAN & RURAL TO ANOTHER LARGE & GROWING FAST FRAGMENTED CATEGORY TOP 10 Hair Oil BRANDs 13,633 CR CATEGORY CONTRI
Slide 7: Strategic Choice 2: Double Share in Hair Oil
Strategic Choice 2: Double Share in Hair Oil 7
Slide 8: Strategic Choice #2 – Double market share within Hair Oils
STRATEGIC CHOICE # 2 – Double market share within Hair Oils PORTFOLIO PLAY – MAXIMIZE REACH EXPAND DIRECT MORE SKUS, MORE THROUGH 360 MEDIA DISTRIBUTION CATEGORIES WITHIN SUPPORT & Digital HAIR OILS Platform 8
Slide 9: Strategic Choice 3: Micromarketing
Strategic Choice 3: Micromarketing 9
Slide 10: Strategic Choice #3 - Micromarketing
STRATEGIC CHOICE #3 - MICROMARKETING Strategy Not For States But By Clusters CLUSTER BASED APPROACH PILOT IN 2 STATES SHOWS SIGNS CATERING TO UNIQUE NEEDS OF OF SUCCESS CONSUMERS 10
Slide 11: Why Micromarketing?
WHY MICROMARKETING? • India is not a homogenous market • India is a continent consisting of different markets across states • Different cultural nuances across the country makes it difficult to make a single marketing plan for the product • Hence different marketing plan across different states and
Slide 12: Strategy in Action – State 1
STRATEGY IN ACTION – STATE 1 MS VAL% - State 1 11.0 10.7 10.0 10.0 9.8 9.5 9.0 9.0 8.7 8.7 USE OF LOCAL HIGH SOV = 20% CELEBRITY 8.2 HIGHEST SOV IN THE CATEGORY 8.0 7.6 7.6 7.6 7.7 7.4 7.4 7.0 6.7 6.2 6.0 6.0 5.9 6 Pilot 5.7 5.7 5.0 JUN19 JUL19 AUG19 SEP19 OCT19 NOV19 DEC19 State 1 S1 Urban S1 Rural
Slide 13: Strategy in Action – State 2
STRATEGY IN ACTION – STATE 2 MS VAL % - State 2 20.0 19.7 19.3 19.0 18.5 18.5 18.3 18.0 18.1 18.0 HIGH SOV = 21% COVERAGE EXPANSION 17.7 17.6 17.5 17.0 16.9 16.1 16.7 16.4 16.5 16.2 16.0 16.1 16.1 16.0 16.1 15.4 15.0 Pilot 14.0 JUN19 JUL19 AUG19 SEP19 OCT19 NOV19 DEC19 State 2 S2 Urban S2 Rural RURA
Slide 14: Strategic Choice 4: Driving growth with Alternate Channels
Strategic Choice 4: Driving growth with Alternate Channels 14
Slide 15: Growth Fuelling Channels– MT & E-Commerce
GROWTH FUELLING CHANNELS– MT & E-COMMERCE 1. HIGH GROWTH NASCENT CHANNEL ( CAGR~ 20%) CATEGORY 2.HAIR OIL STILL UNDERDEVELOPED EXPANDING FAST 15
Slide 16: Growth in Alternate Channels
GROWTH IN ALTERNATE CHANNELS MS VAL - (DEC'19) 26.2% 22.5% 20.0% 20.8% 13.2% VMM Reliance Big Bazar Easy Day Grofers Retail Market Share Val - Dec'19 Target Independent MT Chains Higher Share Use of Focus on mushrooming in in Key Chains Visibility & Ecom: Doubled Tier 2 and Tier 3 Market Share of AD
Slide 17: Strategic Choice 5: Leveraging Digital Platforms
Strategic Choice 5: Leveraging Digital Platforms 17
Slide 18: Winning Consumer Mindspace Digitally
WINNING CONSUMER MINDSPACE DIGITALLY 10% OF TOTAL CURATED CONTENT PRESENCE ACROSS IMPACTFUL USER INVESTMENTS ON TAILORED FOR PLATFORMS FOR GENERATED DIGITAL SEGMENTS BUILDING REACH CONTENT FOR ENGAGEMENT – TIKTOK 18
Slide 19: Consistent Success Stories from Digital
CONSISTENT SUCCESS STORIES FROM DIGITAL TIK TOK YOUTUBE User generated content with #TheCombDrop in December 3 Curated Videos on YouTube in Jan >50% VTR 40% higher than ~ 1 million 3 million 3.2 billion unique creators videos uploaded total views no of users who industry benchmark view the ad when e
Slide 20: Strategic Choice 6: IT Initiatives & Automation
Strategic Choice 6: IT Initiatives & Automation 20
Slide 21: Strategic Choice 6: IT Initiatives & Automation
Strategic Choice 6: IT INITIATIVES & AUTOMATION REAL TIME DATA REPORTING TO ALLOW EASE OF DECISION ARTIFICIAL INTELLIGENCE TOOL FOR SALES MAKING SALES DATA ANALYSIS AND PREDICTIVE SALES TRENDS 21
Slide 22: HR Automation tool – Success Factor
HR Automation tool – Success Factor One of the most reputed HCM solution used by over 100 Mn users globally, across 100 countries Performance Succession & Employee Central Management Development • Employee Life-Cycle • Goal Setting Succession Planning Processes • Mid-Year Review Career Paths • Emplo
Slide 23: Strategic Choice 7: Developing Manpower
Strategic Choice 7: Developing Manpower 23
Slide 24: Winning with People
Winning with People • Mr. Jaideep Nandi joined BCCL as Chief Executive Officer effective Critical Hiring January 2, 2020 • Mid-Year reviews completion • Talent Assessment for front line sales team Talent Management • 360-degree feedback survey for employees at AGM & above levels • Focused learning i
Slide 25: Management Team
Kushagra Nayan Bajaj Apoorv Nayan Bajaj Chairman Executive President Rohit Saraogi Dilip Kumar Maloo Assistant Vice President - Finance Chief Financial Officer Joined BCCL on Mar 2019. He is a commerce graduate from St. Sumit Malhotra Joined BCCL on April 1991. He is a qualified CA & CS Xavier’s, Ko
Slide 26: Key Indicators
Key Indicators 26
Slide 27: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure 53 Factory (8) The company reaches consumers through 4.03 Million retail outlets serviced by 8869 distributors OWN – Himachal Pradesh -1, Uttarakhand- 1, Guwahati 1 80 THIRD PARTY - Himachal Pradesh-2, Baroda -1 294 Uttarakhand-
Slide 28: Sales & Distribution
32 33 34 35 36 37 38 39 40 41 35 Mar-15 Apr-15 May-15 Jun-15 35.8 Jul-15 Aug-15 Sep-15 36.5 Oct-15 Nov-15 Dec-15 36.6 Jan-16 Feb-16 Mar-16 37.6 Apr-16 May-16 Jun-16 37.5 Jul-16 Aug-16 Sep-16 37.4 Oct-16 Nov-16 37 Dec-16 Jan-17 Feb-17 Mar-17 37.6 Apr-17 May-17 38 Jun-17 Jul-17 Aug-17 Sep-17 37.6 Oct-
Slide 29: Sales Value Breakup by Channel (Q3 FY 20)
Sales Value Breakup by Channel (Q3 FY 20) Channel Q3 FY20 Growth Q3 Salience% FY20 General Trade 84.61% -7.67% Modern Trade 9.62% 8.50% Total Domestic excluding CSD 94.23% -6.24% Canteen Stores Department 3.06% -30.77% Total Domestic 97.29% -7.27% International Business 2.71% -13.01% Total For the C
Slide 30: Standalone Financials
Standalone Financials Rs. Crs Particulars Q3FY20 Q3FY19 Growth% 9M FY20 9M FY19 Growth% Sales 205.47 221.98 -7.44% 649.12 642.68 1.00% Revenue from Operations 211.48 229.57 -7.88% 668.81 663.70 EBITDA 55.69 72.39 -23.07% 191.20 204.80 -6.64% EBITDA % 27.10% 32.61% 29.45% 31.87% Other Income 9.02 7.3
Slide 31: Breakup of Material Costs (for Q3 FY 20)
Breakup of Material Costs (for Q3 FY 20) % to Total Cost 22% 30% LLP 9% Bottles Refined Veg. Oil 14% Perfumes & other additives 25% Others 31
Slide 32: Change in prices of Key Ingredients
Change in prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of Refined Veg. Oil 100 100 80 80 Amount (Rs.) Amount (Rs.) 60 60 40 86.46 87.40 84.15 85.34 40 63.65 59.39 61.93 60.36 20 20 0 0 Qtr3 FY19 vs FY20 9MFY19 v FY20 Qtr3 FY19 vs FY20 9MFY19 v FY20 32
Slide 33: Performance over the last 15 quarters
Performance over the last 15 quarters 40.00% 35.37% 34.82% 35% 33.44% 34.08% 33.17% 35.00% 32.96% 32.79% 32.61% 31.51% 30.93% 29.26% 30.10% 30.12% 30.00% 27.10% 25.00% 20.00% 12.50% 11.10% 15.00% 9.45% 8.68% 8.14% 7.00% Gr (Value) 5.86% 5.86% 5.50% 5.17% 10.00% 5.09% 5.01% 4.66% 3.84% 3.47% 2.65% 1.
Slide 34: Dividend Payout History
Dividend Payout History No. of Shares Dividend Payout Dividend per Year Face Value % to Capital (in Lacs) (Rs in Lacs) share(Rs.) 2018-19 1,475 1 20,650.00 1400% 14.00 2017-18 1,475 1 17,700.00 1200% 12.00 2016-17 1,475 1 16,962.50 1150% 11.50 2015-16 1,475 1 16,962.50 1150% 11.50 2014-15 1,475 1 16
Slide 35: Thank you
Thank you For more information & updates Contact: Mr. Kushal Maheshwari kushal@bajajconsumer.com 35
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