Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Bajaj — Q4 FY2011 Earnings Presentation
23 slides from Bajaj Consumer Care's earnings presentation, May 2011
Slide 1: Investor Presentation
Investor Presentation May 2011
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.116,100 cr (USD 24.8 bn) Hair Care 8% salience Rs. 9,200 cr (USD 2.0 bn) Shampoo Perfumed Oil Coconut Oil Hair Conditioners Hair Dyes Rs. 2,840 cr Rs. 2,900 cr Rs.2,100 cr Rs. 100 cr Rs. 1,200 cr (USD 600 mn) (USD 623 mn) (USD 448 mn) (USD 17 bn) (USD 253 mn) (31.
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 Y-o-Y 16.8% 150,000 132560 Y-o-Y 6.7% Y-o-Y 30% Y-o-Y 14% Y-o-Y 10.5% 2,827.3 Y-o-Y 17.9% Y
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 15,603 600 (Rs. Cr.) 15,000 472 500 (In KLtr) 11764 Y-o-Y 6.1% Y-o-Y15.1% Y-o-Y 18% 400 Y-o-Y 33% 335.6 Y-o-Y 19.7% Y-o-Y 40% Y-o-Y 29% Y-o-Y 14% 10,000 300 5,000
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 55% 55% 53.0% 50.3% 50% 49.1% 50% 47.7% 46.5% 45% 44.1% 45% 40.3% 40% 38.4% 40% 35% 35% 30% 30% 07-08 08-09 09-10 10-11 07-08 08-09 09-10 10-11 *Market Share in the Light Hair Oil Category Source: The AC Nielsen Retail Audit Repo
Slide 7: Statewise Market Share
Statewise Market Share LHO Volume Proportion ADHO Market Share (Vol) Apr10-Mar11 Saliency Urban Rural Total Urban Rural All India (U+R) 67.4% 32.6% 49.1% 47.0% 53.2% Punjab 6.0% 69.6% 30.4% 41.7% 40.1% 45.5% Haryana 5.2% 83.2% 16.8% 46.7% 43.4% 62.8% Delhi 7.3% 100.0% 42.4% Rajasthan 9.5% 66.2% 33.8
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 – FY10 Modern Trade (11%) Others (11%) 2.0% 6.0% Cosmetics Traditional (0%) channels dominate 5.0% Rural distribution, but 33.0% Urban dominated Chemists alternate channels se
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
Slide 13: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) consumers through 1.95 mn 44 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand-1 5653 direct distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 56 9,900 wholesalers 180
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 DG
Slide 15: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars 2010-11 2009-10 2010-11 2009-10 (In Rupees Crores) (In Rupees Crores) Sales (Net) 358.67 294.58 Shareholders Equity 376.31 25.67 EBITDA 108.93 97.74 Total Debt - - EBITDA Margin 30.37% 33.18% Net Fixed Asset
Slide 16: EBITDA & PAT Performance
EBITDA & PAT Performance (Rs. in crores) Particulars Q4FY11 Q4FY10 YoY% 2010-11 2009-10 YoY% EBITDA 31.04 33.45 -7.20% 108.93 97.74 11.45% Profit Before Tax & 40.08 33.41 19.96% 124.05 101.56 22.14% Extra Ordinary Items Profit Before Tax (PBT) 33.75 33.41 1.02% 105.08 101.56 3.47% Profit After Tax (
Slide 17: Profit & Loss Q4 & FY2011
Profit & Loss Q4 & FY2011 In Rs. Crores Q4FY11 Q4FY10 YoY% 2010-11 2009-10 YOY% Net Sales 109.84 86.09 27.59% 358.67 294.58 21.76% Other Operating Income 0.27 0.10 0.77 0.34 Material Cost 51.30 34.57 156.58 116.79 % of Sales 46.70% 40.16% 43.66% 39.65% Employees Cost 4.04 3.45 16.26 13.84 % of Sales
Slide 18: Sales Performance
Sales Performance Sales : Q4FY10 v/s Q4FY11 Sales : FY10 v/s FY11 120 400 100 350 In Rs. Crores 300 In Rs. Crore 80 250 60 109.84 200 358.67 40 86.09 150 294.58 100 20 50 0 0 Q4FY10 Q4FY11 FY 10 FY 11 Sales for Q4 FY2010-11 increased by 27.60% Sales for the year ended Mar’11 has increased by 21.
Slide 19: Statement of Quarter wise Sales (Volume & Value)
Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) % Increase over ADHO BAHO ASHO Others Total corresponding period of 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 Previous Year Quarter 1 654,856 582,250 14,888 24,620 6,232 14,110 5,494 6,318 68
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 15.83% 36.39% Glass Bottles 11.15% 25.61% Perfumes & other additives 3.83% 8.80% Refined Veg. Oil 3.70% 8.51% Corrugated Boxes 2.76% 6.34% Caps 2.31% 5.30% Others 3.94% 9.05% TOTAL 43.52% 100.00% * Consumptio
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 80 60 64.34 70 75.21 50 58.32 56.70 60 65.37 66.34 66.51 51.34 49.92 Amount (Rs.) 50 56.92 40 51.14 50.04 53.63 53.99 52.18 40 46.87 44.49 30 30 43.17 43.04 44.70 20 20 10 10 0 0 Qtr 1 Qtr 2 Qtr 3 Qtr 4 FY Qtr 1 Qtr
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