Bajaj Consumer Care Limited · NSE:BAJAJCON

Bajaj Consumer Care — Bajaj — Q1 FY2016 Earnings Presentation

31 slides from Bajaj Consumer Care's earnings presentation, July 2015

  1. Slide 1: Investor Presentation

    Investor Presentation July 2015 version 2

  2. Slide 2: Industry Overview

    Industry Overview

  3. Slide 3: Industry Size and Structure

    Industry Size and Structure FMCG Rs.238,016 cr (USD 38.38 bn) Hair Care 7% salience Rs. 17,102 cr (USD 2.75 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 5217cr Rs. 4996 cr Rs. 3768 cr Rs. 413 cr Rs. 2,630 cr (USD 841 mn) (USD 805mn) (USD 581mn) (USD 66 mn) (USD 437 mn)

  4. Slide 4: Hair Oil Market in India

    (In KLtr) (In KLtr) Y-o-Y 33% Y-o-Y 30% Y-o-Y 14% Y-o-Y 18% Y-o-Y 8.3% Y-o-Y 8.6% Y-o-Y 10.1% Y-o-Y 12.5% Y-o-Y 1.2% Y-o-Y 19.5% Source: AC Nielsen Retail Audit Report, Jun 2015. Y-o-Y 3.9% Y-o-Y 11.9% Light Hair Oil – Volume Y-o-Y 3.1% Y-o-Y 6.6% Hair Oil Market in India Overall Hair Oil Market – V

  5. Slide 5: Light Hair Oil Market in India

    (In KLtr) (In KLtr) Y-o-Y 51% Y-o-Y 33% Y-o-Y 35% Y-o-Y 18% Y-o-Y 17.9% Y-o-Y 8.3% Y-o-Y 15.1% Y-o-Y 12.5% Y-o-Y 26.2% Y-o-Y 19.5% Source: AC Nielsen Retail Audit Report, Jun 2015. Y-o-Y 17.3% Y-o-Y 11.9% Light Hair Oil – Volume Y-o-Y 13.4% Y-o-Y 6.6% Y-o-Y 0.1% Almond Drops Hair Oil Market - Volume

  6. Slide 6: Market Share Trends (All India - Urban Plus Rural)

    Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 70% 70% 57.9% 58.9% 58.9% 59.5% 60.7% 60.9% 60% 60% 56.9% 54.4% 55.0% 51.9% 53.0% 50.7% 50% 48.0% 49.1% 50% 46.5% 44.1% 40.3% 40% 38.4% 40% 30% 30% 20% 20% 10% 10% 0% 0% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 07-08

  7. 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 5.0 4.5 4.3 4.4 4.3 4.0 4.0 3.4 3.5 3.2 3.0 2.7 2.5 2.1 2.0 1.5 1.0 0.5 0.0 2008 2009 2010 2011 2012 2013 2014 2015(6M) Source –

  8. Slide 8: ADHO – Relative Market Shares – Value

    ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 4.5 1st Madhya Pradesh 1st 3.7 Rajasthan 1.5 1st Chhattisgarh 7.8 1st Uttar Pradesh 3.8 1st Punjab Central Zone 4.5 1st 3.3 1st HP-JK 5.0 1st Gujarat 2.1 1st Haryana 4.6 1st Mumbai 3.5 1st Uttaranchal 4.7 1st M

  9. Slide 9: Statewise Market Share

    Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Jul 14 - Jun 15 Saliency Urban Rural Total Urban Rural All India (U+R) 100.0% 62.8% 37.2% 59.0% 56.5% 63.1% Punjab 5.8% 75.2% 24.8% 53.9% 51.4% 61.4% Haryana 5.6% 75.2% 24.8% 60.3% 56.7% 71.0% Delhi 6.0% 100.0% NA 59.2% 59.2% N

  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 Chemists, Cosmetics, Pan Plus , 6% 5% 4% All India Urban dominated Modern Large Grocers dominate - Rural segment due to its Stores, 3% Grocers, distribution, but 36% All India

  11. Slide 11: Cooling Hair Oil Market in India

    Cooling Hair Oil Market in India Cooling Hair Oil – Value Cooling Hair Oil – Volume 6M-o 6M - 1.8% 6M-o-6M –0.6% Y-o-Y – 8.7% Y-o-Y – (-3.3%) Y-o-Y –(- 2.4)% Y-o Y–( -4.5)% KLtr Rs. Cr. Y-o-Y - 12% Y-o-Y - 18% Y-o-Y - 13% Y-o-Y - 23% Y-o-Y – 4.1% Y-o-Y - 14% Y-o-Y – 18% Y-o-Y - 12% Kailash Parbat –

  12. Slide 12: Company Overview

    Company Overview

  13. Slide 13: Bajaj Corp Ltd. (BCL) – An Overview and Haircare Portfolio

    Bajaj Corp Ltd. (BCL) – An Overview Haircare Portfolio  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

  14. Slide 14: Skincare Portfolio

    Skincare Portfolio Bajaj NOMARKS Creams for All Skin, Oily Skin & Dry Skin Types, available in sizes 12g & 25g Bajaj NOMARKS Facewash for All Skin, Oily Skin & Dry Skin Types & Neem Facewash, available in sizes 15g, 50g, 100g Bajaj NOMARKS Soaps for All Skin, Oily Skin & Dry Skin Types & Neem Soap,

  15. Slide 15: 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 Comparative Price of Different Brands for 100 ml in the Hair Oil Segment Competitor Brands (MRP of 100ml (Rs.) Source: AC Nielsen Retail Audit Almond Drops has created a unique

  16. Slide 16: Strong Distribution Network

    Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (9) 45 consumers through 2.89mn OWN – Himachal Pradesh -2, Uttarakhand- 1 retail outlets serviced by THIRD PARTY - Himachal Pradesh-2, Rajasthan-1, Guwahati-1, 7324 distributors and Uttarakhand- 2 45

  17. Slide 17: Van Operations

    Van Operations  Started in FY 13 with a objective of increasing Rural Sales  Piloted 39 Vans in Q4 FY 13  Currently operating 112 vans (for Sales)  Vans cover 8177 uncovered Towns and Villages on a monthly basis  In Apr-Jun 2015 — Bajaj Almond Drops Hair Oil got 40.1 % of its sales from Rural I

  18. Slide 18: Organization Structure

    Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra Head- President Operations Head International VP – Marketing VP – HR GM- Sales Internal Mr. Apoorv Bajaj Business Mr. Gurpreet S Mr. Subhamay Audit Amrit Chatterjee Mr. Manoj Gupta Chief Financial officer C

  19. Slide 19: Financial Information

    Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q1FY16 Q1FY15 FY 15 FY 14 Q1FY16 Q1FY15 2014-15 2013-14 (Rs. In Crore) (Rs. In Crore) Sales (Net) 218.37 191.07 819.50 670.68 Shareholders Equity 539.33 561.70 491.81 522.08 EBITDA 67.38 54.60 242.74 186.65

  20. Slide 20: EBITDA & PAT Performance

    EBITDA & PAT Performance ` in Crore Particulars Q1FY16 Q1FY15 YoY% FY 15 FY 14 YoY% EBITDA 67.38 54.60 23.41% 242.74 186.65 30.05% Profit Before Tax & Exceptional Item 72.15 61.89 16.57% 266.29 217.23 22.59% Exceptional Item (Trademark & Intellectual 11.75 11.75 46.98 28.60 Properties) Profit Before

  21. Slide 21: Profit & Loss Q1 FY2016 and for the year 2015

    Profit & Loss Q1 FY2016 and for the year 2015 ` in Crore Particulars Q1FY16 Q1FY15 YoY% FY 15 FY 14 YoY% Net Sales 218.37 191.07 14.29% 819.50 670.68 22.19% Other Operating Income 0.73 0.25 1.80 1.05 Material Cost 77.26 77.98 315.36 268.75 % of Sales 35.38% 40.81% 38.48% 40.07% Employees Cost 11.13

  22. Slide 22: Sales Performance

    Sales Performance Sales (Value) : Sales (Value) : Q1FY15 v/s Q1FY16 FY14 v/s FY15 250 900 800 200 In ` Crores In ` Crores 700 600 150 500 218.37 400 819.50 100 191.07 670.68 300 50 200 100 0 0 Q1 FY15 Q1 FY16 FY 14 FY 15  Sales for the quarter ended June’15 has increased by 14.29% value wise and 12

  23. Slide 23: Statement of Quarter wise Sales (Volume & Value)

    Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) PRODUCT Q1 FY 16 % to Total Q1 FY 15 % to Total ADHO 1,241,928 91.26% 1,123,144 92.53% KPCO 7,435 0.55% 15,805 1.30% BAHO 14,073 1.03% 9,671 0.80% ASHO 66 0.00% 2,184 0.18% AHO 49,630 3.65% - 0.00% N

  24. Slide 24: Consistent Performance over the last 13 successive quarters

    Consistent Performance over the last 13 successive quarters 35.00% 31.88% 30.86% 29.03% 29.24% 30.00% 28.19% 28.76% 28.25% 28.37% 28.65% 28.58% 28.27% 27.09% 27.04% 25.00% 20.00% 15.00% Gr (Value) Gr (Vol) 10.00% EBIDTA 5.00% 29.53% 22.35% 27.25% 18.70% 31.84% 22.33% 25.31% 19.12% 23.18% 20.16% 16.4

  25. Slide 25: Breakup of RM/PM Costs (for Q1 FY 16)

    Breakup of RM/PM Costs (for Q1 FY 16) Key Raw & Packing Material % to Sales % to Total Cost LLP 11.49% 32.80% Glass Bottles 8.45% 24.12% Refined Veg. Oil 3.76% 10.72% Perfumes & other additives 2.89% 8.24% Corrugated Boxes 1.55% 4.41% Caps 2.02% 5.75% Others 4.89% 13.96% TOTAL 35.04% 100.00% * Consu

  26. 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 86.00 40 75.75 75.62 70.17 73.15 73.58 71.59 59.51 20 20 0 0 Qtr1 FY15 vs FY16 FY14 vs FY 15 Qtr1 FY15 vs FY16 FY14 vs FY 15  During the quarter average price of LLP decrease

  27. Slide 27: Fund Position

    Fund Position  Fund Position:  The total Fund available with the company as on 30th June’ 2015 is Rs.344.59 Crores  This has been invested in Bank Fixed Deposits, Certificate of Deposits of Banks , PSU Bonds, Government Securities and Liquid MFs.  There is no investment in ANY Inter Corporate De

  28. Slide 28: Dividend Payout History

    Dividend Payout History Dividend per No. of Shares Face Dividend Payout Year % to Capital share (in Lacs) Value (Rs in Lacs) (Rs.) 2014-15 1,475 1 16962.50 1150% 11.50 2013-14 1,475 1 9,587.50 650% 6.50 2012-13 1,475 1 9,587.50 650% 6.50 2011-12 1,475 1 5,900.00 400% 4.00 2010-11 295 5 2,802.50 190%

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: Thank You

    Thank You

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