Slide 1: Investor Presentation
Investor Presentation January 2013
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.167,064 cr (USD 33.4 bn) Hair Care 8% salience Rs. 12,815 cr (USD 2.6 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 3973cr Rs. 3460 cr Rs. 3204 cr Rs. 256 cr Rs. 1,922 cr (USD 795 mn) (USD 692 mn) (USD 640 mn) (USD 51 mn) (USD 384 mn)
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 300,000 8,000 6,990 235,539 238,459 7,000 250,000 6069 214,002 5,728 197,057 194237 6,000 5,044 200,000 172,528 5,000 4,498 (Rs. Cr.) (In KLtr) 3,707 9M-o-9M 17.0% 150,000 132560 4,000 9M-o-9M 8.1% Y-o-Y 10.1% Y-o-Y
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 30,000 1,200 26,241 1,056 25,000 22,406 1,000 945 21864 19,908 831 20,000 18,390 800 710 (Rs. Cr.) 15,603 610 9M-o-9M 14.1% 8M-o-8M 24.0% 15,000 600 (In KLtr) Y-o-Y 17.1% 12.5% 11764 472 Y-o-Y 16.4% Y-o-Y 27.1% Y-o-Y 17.1%
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 60% 60% 54.0% 54.6% 50.9% 52.0% 53.0% 49.1% 50.7% 50% 48.0% 50% 46.5% 44.1% 38.4% 40.3% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 07-08 08-09 09-10 10-11 11-12 12-13 07-08 08-09 09-10 10-11 11-12 12-13 (9M) (9M) *Market Share in the
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 Trend 4.00 3.66 3.50 3.34 3.17 3.00 2.65 2.50 2.08 2.00 1.50 1.00 0.50 0.00 2008 2009 2010 2011 2012 Source – AC Nielsen Retail A
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 2.96 1st Madhya Pradesh 3.72 1st Rajasthan 1.64 1st Chhattisgarh 3.68 1st Uttar Pradesh 2.79 1st Central Zone 3.85 1st Punjab 3.36 1st Gujarat 2.10 1st Haryana 3.55 1st Mumbai 2.52 1st Uttaranchal 3.99 1st Maha
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Dec11-Nov12 Saliency Urban Rural Total Urban Rural All India (U+R) 100.0% 64% 36% 52.0 50.2 55.2 Punjab 5.8% 71% 29% 49.0 47.1 53.7 Haryana 5.8% 82% 18% 52.5 49.2 68.5 Delhi 6.4% 100% 0% 49.1 49.1 Rajasthan 8.5% 61% 39% 46.1 45
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, 7% Trade, 2% Cosmetics, 4% Rural Chemists, Traditional 34% 7% channels dominate Urban dominated Local segment due to its distribution, but Grocer relatively hig
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 25,000 1,000 875 900 19,508 766 20,000 18,624 800 16,610 700 667 14,655 594 Y-o-Y – 5.0% Rs. Cr. 15,000 600 12,416 Y-o-Y – 14% KLtr 485 Y-o-Y - 18% Y-o-Y - 13% 500 Y-o-Y - 12% Y-o-Y - 23% Y-o-Y - 12% Y-o-Y - 15% 10,0
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 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 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 60.0% 54.0% 60 53.0% 50 50.7% 50.0% 46.5% 50 46 40 42 40.3% 38 36.7% 40 35 40.0% 30 32 31.4% 28 29 30 30.0% 20 20.0% 10 10.0% 0 0.0% 05-06 06-07 07-08 08-09 09-10 10-11 11-12 Co
Slide 15: Consumer Profile- Almond Drops
Consumer Profile- Almond Drops For Almond Drops the consumer is: — Gender Male- 53% Female- 47% — Age Group 15 to 39 yrs ( 62% of users) — Urban Vs Rural 61% are Urban consumers — Socio Economic Class (SEC)- Urban A1- 7% A2- 10% B1- 9% B2- 7% Source – IRS, Q42011 14
Slide 16: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) consumers through 2.54mn 47 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand-1 6567 direct distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 50 14,048 wholesalers 205
Slide 17: Organization Structure
Organization Structure Chairman Mr. Kushagra Bajaj Vice Chairman Mr. R.F. Hinger Managing Director Director – Business Mr. Sumit Malhotra Development President Operations Mr. Jimmy Anklesaria Mr. Apoorv Bajaj Chief Financial Officer Mr. V. C. Nagori GM – Sales GM – Marketing Mr. Gurpreet S. GM- HR M
Slide 18: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet ` in Crores (` in Crores) Particulars As on As on As on Particulars 31st Dec 12 31st Dec 11 31st Mar 12 Q3 FY13 Q3 FY12 9M FY13 9M FY12 Shareholders Equity 546.08 462.37 428.81 Sales (Net) 148.06 112.30 421.97 325.65 Total Debt - N
Slide 19: EBITDA & PAT Performance
EBITDA & PAT Performance ` in Crores Particulars Q3 FY13 Q3 FY12 YoY% 9M FY13 9M FY12 YoY% EBITDA 42.98 28.65 50.02% 120.97 82.67 46.33% Profit Before 52.64 35.75 47.24% 147.85 108.15 36.71% Tax (PBT) After Tax Profit 42.20 28.87 46.17% 118.23 86.04 37.41% (PAT) 18
Slide 20: Profit & Loss Q3FY2013
Profit & Loss Q3FY2013 ` in Crores Particulars Q3FY13 Q3FY12 YoY% 9MFY13 9MFY12 YoY% Net Sales 148.06 112.30 31.84% 421.97 325.65 29.58% Other Operating Income 0.22 0.20 0.57 0.63 Material Cost 62.62 51.79 182.63 152.33 % of Sales 42.29% 46.12% 43.28% 46.78% Employees Cost 6.86 5.96 20.52 17.06 % of
Slide 21: Sales Performance
Sales Performance Sales for the quarter ended December ’12 has increased by 31.84% value wise and 22.33% volume wise over corresponding quarter of previous year. Sales for the 9 months ended December,12 has increased by 29.58% value wise and 21.15% volume wise over corresponding 9 months of prev
Slide 22: 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 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 PY Q1 952,959 765,858 28,665 28,777 11,481 14,125 2,455 4,451 4,639 4,249 1,000,199
Slide 23: Breakup of RM/PM Costs (for Q3 FY13)
Breakup of RM/PM Costs (for Q3 FY13) Key Raw & Packing Material % to Sales % to Total Cost LLP 15.57% 36.83% Glass Bottles 10.75% 25.43% Refined Veg. Oil 4.51% 10.68% Perfumes & other additives 3.43% 8.12% Corrugated Boxes 1.76% 4.17% Caps 2.23% 5.28% Others 4.01% 9.49% TOTAL 42.28% 100.00% * Consum
Slide 24: 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 82.86 80.18 84.93 80.18 79.98 Amount (Rs.) Amount (Rs.) 79.10 60 60 70.29 70.87 40 40 20 20 0 0 Qtr3 (FY12 vs FY13) FY12 vs FY13 Qtr3 (FY12 vs FY13) FY12 vs FY13 During the quarter average price of LLP decrea
Slide 25: 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 26: Thank You
Thank You