Slide 1: Investor Presentation Oct 2013
Investor Presentation Oct 2013 Updated on 21st October 2013
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.199,401 cr (USD 36.3 bn) Hair Care 8% salience Rs. 15,141 cr (USD 2.75 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 4694cr Rs. 4283 cr Rs. 3587 cr Rs. 302 cr Rs. 2,271 cr (USD 853 mn) (USD 779 mn) (USD 652 mn) (USD 55 mn) (USD 413 mn)
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 300,000 9,000 7,861 250,396 8,000 250,000 235,539 238,283 6,981 214,002 7,000 197,057 5,728 200,000 172,528 6,000 5,044 (Rs. Cr.) (In KLtr) 5,000 4,498 132560 4,137.2 6M-o-6M 0.7% 150,000 127,081 3,707 6M-o-6M 4.6%
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,400 1299 35,000 29,663 1,200 1,080 30,000 26,768 1,000 25,000 22,406 831 (Rs. Cr.) 19,908 800 710 713 20,000 18,390 6M-o-6M 6.4% 6M-o-6M 14.1% 610 (In KLtr) 15,603 15,586 Y-o-Y 19.5% Y-o-Y 10.8% Y-o-Y 12.5% Y-o-Y 8.3% Y-
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 70% 60% 56.8% 58.3% 54.5% 60% 56.9% 51.9% 53.0% 55.0% 48.0% 49.1% 50.7% 50% 44.1% 50% 46.5% 38.4% 40.3% 40% 40% 30% 30% 20% 20% 10% 10% 0% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 0% (6m) 07-08 08-09 09-10 10-11 11-12 12-13 13-1
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 Relative MS - Val 4.5 4.26 4.04 4 3.43 3.5 3.17 3 2.65 2.5 2.08 2 1.5 1 0.5 0 2008 2009 2010 2011 2012 2013 (9M) Source – AC Nielsen Retail Audit R
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 3.8 1st Madhya Pradesh 3.8 1st Rajasthan 1.6 1st Chhattisgarh 6.3 1st Uttar Pradesh 3.4 1st Gujarat 2.2 1st Punjab 3.9 1st HP-JK 3.2 1st Central Zone 3.5 1st Haryana 4.4 1st Mumbai 3.8 1st Uttaranchal 4.5 1st M
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Oct 12 - Sep 13 Saliency Urban Rural Total Urban Rural All India (U+R) 100.00% 65% 35% 56.20% 54.40% 59.40% Punjab 6.19% 69% 31% 53.30% 52.10% 56.10% Haryana 6.54% 80% 20% 58.50% 55.60% 70.20% Delhi 5.82% 100% 0% 54.10% 54.10%
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 Modern Others Trade 7% 3% Cosmetics All India - Traditional 4% Rural Urban dominated channels dominate 36% segment due to its Chemists distribution, but Local relatively highe
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 25,000 1,000 900 869 19,498 760 20,000 18,520 800 16,610 667 682 9M-o-9M – -7.4% 700 14,655 14,226 594 Rs. Cr. 15,000 600 9M-o-9M – 0.7% 12,416 KLtr 485 Y-o-Y – 5.0% Y-o-Y - 18% Y-o-Y - 13% Y-o-Y - 12% 500 Y-o-Y – 14
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 70.0% 60 55 58.3% 50 60.0% 53.0% 55.0% 56.9% 50 46 50.7% 40 42 50.0% 46.5% 38 40 35 40.3% 30 32 40.0% 36.7% 28 29 31.4% 30 30.0% 20 20.0% 10 10.0% 0 0.0% 05-06 06-06 07-08 08-09
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- 10.4% A2- 14.4% B1- 14.4% B2- 11.5% Source – IRS, Q42012 14
Slide 16: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) consumers through 2.41mn 47 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand-1 6840 direct distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 50 14,848 wholesalers 217
Slide 17: Nielsen Panel Expansion
Nielsen Panel Expansion Nielsen has expanded its retail audit panel in 2013 – up by 60% from the existing panel with significant increases in Rest of Urban and Rural. This enhancement improves country level precision for all states and pickup more regional / local brands, thereby significantly i
Slide 18: Organization Structure
Organization Structure Chairman Mr. Kushagra Bajaj Managing Director Mr. Sumit Malhotra Director – Business Development President Operations Mr. Jimmy Anklesaria Mr. Apoorv Bajaj Chief Financial officer GM – Marketing GM – HR Head International VP – Sales Mr. V.C.Nagori Mr. Gurpreet S. Mr. S. Busine
Slide 19: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars HY1 HY1 HY2014 HY 2013 2012-13 2012 13 Q2 FY14 Q2 FY13 (Rs. In Crore) (Rs. In Crore) FY14 FY13 Shareholders Equity 566.84 503.88 483.80 Sales (Net) 158.25 135.86 328.29 273.91 Long Term Debts 60.00 - - EBITD
Slide 20: EBITDA & PAT Performance
EBITDA & PAT Performance ` in Crore Particulars Q2 FY14 Q2 FY13 YoY% HY1 FY14 HY1 FY13 YoY% EBITDA 42 87 42.87 39 07 39.07 9 73% 9.73% 91 11 91.11 77 99 77.99 16 83% 16.83% Profit Before Tax 45.61 48.08 -5.14% 105.12 95.21 10.41% (PBT) Profit After Tax 36.02 38.40 -6.20% 83.03 76.02 9.21% (PAT) 19
Slide 21: Profit & Loss Q2FY2014
Profit & Loss Q2FY2014 ` in Crore Particulars Q2FY14 Q2FY13 YoY% HY1 FY14 HY1 FY13 YoY% Net Sales 158.25 135.86 16.48% 328.29 273.91 19.86% Other Operating Income 0.15 0.16 0 34 0.34 0 35 0.35 Material Cost 63.28 58.24 131.91 120.01 % of Sales 39.99% 42.87% 40.18% 43.81% Employees Cost 8.67 6.73 16.
Slide 22: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q2FY13 v/s Q2FY14 H1FY13 v/s H1FY14 200 350 300 In ` Crores In ` Crores 150 250 200 100 328.29 158.25 150 273.91 135.86 100 50 50 0 0 Q2 FY13 Q2 FY14 H1 FY 13 H1 FY 14 Sales for the quarter ended September ’13 has increased by 16.48% value wise and
Slide 23: 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 % Inc over PY FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 Q1 1,163,796 952,959 21,653 28,665 9,853 11,481 1,732 2,455 4,779 4,639 1,201,81
Slide 24: Consistent Performance over the last 14 successive quarters
Consistent Performance over the last 14 successive quarters 40.00% Gr (Vol) Gr (Value) 35.00% 35.12% EBIDTA 30.29% 29.03% 30.00% 28.19% 28.37% 25.51% 24.96% 27.09% 28.76% 28.25% 28.53% 28.26% 25.00% 25.68% 23.17% 20.00% 15.00% 10.00% 5.00% 14.91% 11.19% 19.19% 17.39% 24.07% 21.09% 27.60% 19.96% 30.4
Slide 25: Breakup of RM/PM Costs (for Q2 FY14)
Breakup of RM/PM Costs (for Q2 FY14) Key Raw & Packing Material % to Sales % to Total Cost LLP 14.58% 36.46% Glass Bottles 9.09% 22.73% Refined Veg. Oil 3.82% 9.56% Perfumes & other additives 2.95% 7.39% Corrugated Boxes 1.63% 4.06% Caps 2.14% 5.34% Others 5.78% 14.46% TOTAL 39.99% 100.00% * Consump
Slide 26: 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 40 81.43 75.33 80.88 74.39 40 84.93 80.32 70.85 71.38 20 20 0 0 Qtr2 FY13 vs FY14 HY1 FY13 vs FY 14 Qtr2 FY13 vs FY14 HY1 FY13 vs FY 14 During the quarter average price of LLP
Slide 27: Debt and Cash Balances
Debt and Cash Balances Debt: As a part of structuring to fund the acquisition of Nomarks the company has taken a bank loan Rs. 100 Crore – out of which Rs 40 Cr is payable with in one year and balance Rs 60 Cr is payable within next two and half years. The company intends to repay the Loan in
Slide 28: 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 Ltd Bajaj Corp Ltd has not and will not transfer funds from and to from any other company within the Bajaj Group The Company acquired in September 2011 (Uptow
Slide 29: 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 30: Thank You
Thank You