Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Bajaj — Q1 FY2018 Earnings Presentation
32 slides from Bajaj Consumer Care's earnings presentation, July 2017
Slide 1: Investor Presentation July 2017
Investor Presentation July 2017
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
INDUSTRY SIZE AND STRUCTURE FMCG Rs. 275,183 cr Hair Care 7% CONTRIBUTION Rs. 19,671 cr Shampoo Coconut Oil Hair Oil Hair Dyes Hair Conditioners Rs. 5,952 cr Rs. 3282 cr (‐7%) Rs. 6,646cr (5%) Rs. 3,285 cr Rs. 506 cr (30%)* ( (17%)* )* (34%)* ( (17%)*)* ( )* (3%)* 24% 25% 17% 11% 14% Amla Based Oils
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 12,000 300 269 9,928 10,103 255 254 264 9,390 , 238 247 10 000 10,000 250 236 8,676 214 7,867 8,000 6,981 200 00 KLtr) 5,728 Growth 15.6 % (Rss. Cr.) Growth 3.9 % 10.1% Growth 3.9% 6,000 5,044 Growth -5.3% Growth -0
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,800 1,639 35.0 31.9 32.2 33.1 1,576 31.3 1,600 1,474 1,502 30.0 30 0 30.0 26 8 26.8 1 400 1,400 1 311 1,311 25.0 22.4 1,200 1,080 000 KLtr) 19.9 20.0 1,000 831 Growth 19.5 % Growth 12.5 % Growth 17.1 % Growth 13.1 % Grow
Slide 6: Market Share Trends in Light Hair Oil Category
Market Shares Trends in Light Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 70.0% 70.0% 60.3% 61.0% 60.7% 61.0% 60.0% 6% 57.8% 56.6% 56 58.3% 57.9% 58.3% 60.0% 56.9% 58.4% 54.4% 55.0% 51.9% 53.0% 50.7% 50.0% 48.0% 49.1% 50.0% 40.0% 40.0% 30.0% 30.0% 20.0% 20.0% 10.0% 10.0% 0.0%
Slide 7: Market Share Trends in Total Hair Oil Category
Market Shares Trends in Total Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 8.0% 12.0% 7.4% 7.3% 7.1% 7.2% 7.0% 6.6% 6.7% 9.9% 9.8% 10.0% 9.5% % 9.7% 9.7% 9.6% 6.0% 5.8% 8.5% 8.0% 7.7% 5.0% 4.7% 7.1% 4.5% 4.0% 6.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 09‐10 10‐11 11‐12 12‐13 13‐1
Slide 8: ADHO – Relative Market Share – Value Trend
ADHO – Relative Market Share – Value Trend Relative Market share is the ratio of Bajaj Almond Drops market share to the next largest competitor in LHO segment 5.0 Relative MS Value 4.6 4.5 4.5 4.3 4.3 4.3 40 4.0 4.0 3.4 3.5 3.2 3.0 27 2.7 2.5 2.0 15 1.5 1.0 0.5 0.0 09‐10 10‐11 11‐12 12‐13 13‐14 14‐1
Slide 9: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value Relative Market Relative States Rank States Rank Share Market Share Delhi 4.7 1 North East 2.3 1 Rajasthan 1.5 1 Orissa 6.8 1 Punjab 2.9 1 WB 3.3 1 HP-JK 3.5 1 Maharashtra 4.5 1 Haryana 5.1 1 Mumbai 3.3 1 Madhya y Pradesh 4.0 1 Gujarat 2.1 1 Chhattisgarh 6.3 1 A
Slide 10: Statewise Market Share
Statewise Market Share LHO Volume ADHO Proportion % (Vol) ADHO Market Share % (Vol) YTD June 17 Saliency Urban Rural Total Urban Rural All India 100.0% 58.1% 41.9% 58.3% 56.3% 61.3% Delhi 6.6% 100.0% 0.0% 59.4% 59.4% Raj 7.0% 54.2% 45.8% 46.6% 47.7% 45.4% Punjab 4.5% 29.4% 70.6% 49.3% 50.0% 49.0% Ha
Slide 11: 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 3% 7% 5% 39% Urban dominated segment due to its 7% Grocers dominate relatively higher distribution 61% pricing 78% AI Urban AI Rural Modern Trade Pan Plus Chemists Cosmetics G
Slide 12: Company Overview
Company Overview
Slide 13: Bajaj Corp Ltd. (BCL) – An Overview 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
Slide 14: Skincare Portfolio
Skincare Portfolio Bajaj Nomarks Creams for Normal Skin, Oily Skin & Dry Skin Types, available in sizes 12g(Normal skin) & 25g Bajaj Nomarks Facewash for Clear Glowing Fairness (50g) & Neem Facewash (15g, 50g & 100g) Bajaj B j j Nomarks N k Soaps S Herbal Scrub Soap and Neem Soap, available in sizes
Slide 15: Bajaj Almond Drops - A Premium Brand
Bajaj Almond Drops - A Premium Brand Strong Market Share (Val) Growth in Recent Years . . . But not at the cost of pricing power 70.0% 70 58.4% 60.3% 61.0% 60.7% 61.0% 60 60 60.0% 53.0% 55.0% 56.9% 60 55 58 50.7% 50 50.0% 50 46 40 42 40.0% 38 40 35 32 30.0% 30 20.0% 20 10.0% 10 0.0% 09‐10 10‐11 11‐1
Slide 16: Consumer Profile- Bajaj Almond Hair Drops Oil Users
Consumer Profile- Bajaj Almond Hair Drops Oil Users For Light Hair Oils, the consumer is skewed towards SEC A,B and younger age group. — Gender Male- 43% Female- 57% — Age Group 25 to 35 yrs ( 58% of users) — Socio Economic Class (SEC)- Urban A – 21% B – 36% C – 30% Source – Last U&A (
Slide 17: Strong Distribution Network
Strong Distribution Network Strong Distribution Network Distribution Network Distribution Structure Factory (9) The company reaches consumers OWN – Himachal Pradesh -2, Uttarakhand- 1, through 3.8mn retail outlets Guwahati 1 serviced by 7915 distributors and THIRD PARTY - Himachal Pradesh-2, Banglad
Slide 18: Sales Force Automation
Sales Force Automation • SFA program has been launched under the name of Project S thi last Saathi l t year. • It was started with the objective of better coverage & control of distribution, better efficiency • Current all 950 ISR are in under SFA • Future ISR addition will be with SFA • Seam less B
Slide 19: Organization Structure
Organization Structure Organization i i Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra GM ‐ Operations President Operations Head – Supply Chain VP – HR Head ‐ Legal President‐ Sales & President Mr. Kabir Sahni Mr. Apoorv Bajaj & Procurement Mr. Subhamay Mr. Ashish K
Slide 20: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Q1 FY18 Q1 FY17 FY 17 Particulars As on As on Sales (Net) 196.40 203.73 790.49 30.06.2017 31.03.2017 EBITDA 61.89 72.06 270.00 EBITDA Margin 31.51% 35.37% 34.16% Shareholders Equity 556.75
Slide 21: EBITDA & PAT Performance
EBITDA & PAT Performance R in Crore Rs. C Particulars Q1 FY18 Q1 FY17 YoY% FY 17 EBITDA 61.89 72.06 ‐14.11% 270.00 Profit Before Tax & Exceptional Item 69.90 78.10 ‐10.50% 299.26 Exceptional Item (Trademark & ‐ 11.75 18.38 I t ll t l P Intellectual Properties) ti ) Profit Before Tax 69.90 66.35 5.35
Slide 22: Profit & Loss Q1 FY2018
Profit & Loss Q1 FY2018 Rs. in Crore Particulars Q1 FY18 Q1 FY17 YoY% FY 17 Net Sales 196.40 203.73 ‐3.60% 790.49 Other Operating Income 1.03 0.58 2.05 M Material i lCCost 68 80 68.80 70 39 70.39 267 90 267.90 % of Sales 35.03% 34.55% 33.89% Employees Cost 16.88 13.82 59.39 % of Sales 8.59% 6.78% 7.
Slide 23: Sales Performance
Sales Performance Sales (Value) : Q1FY17 v/s Q1FY18 250 200 ores In ` Cro 150 100 203.73 196.40 50 0 Q1 FY17 Q1 FY18 Sales for the quarter ended June’17 has decreased by 3.60%. 22
Slide 24: Statement of Quarter wise Sales (Volume & Value)
Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) PRODUCT Q1 FY 18 % to Total Q1 FY 17 % to Total ADHO 1,185,731 1 185 731 93.75% 93 75% 1,269,703 1 269 703 92.59% 92 59% KPCO 7,407 0.59% 7,483 0.55% BAHO 9,408 0.74% 11,801 0.86% AHO 32 058 32,058 2
Slide 25: Consistent Performance over the last 13 successive quarters
Consistent Performance over the last 13 successive quarters 40.00% 35.37% 34 82% 34.82% 35.00% 33.62% 33.44% 32.96% 31.88% 31.67% 32.35% 30.86% 31.51% 28.58% 29.24% 30.00% 28.27% 25.00% 20.00% Gr (Value) 15.00% Gr (Vol) EBIDTA 10.00% 5.00% 12.36% 18.55% 29.83% 21.06% 27.82% 23.03% 14.29% 12.11% 10.6
Slide 26: Breakup of RM/PM Costs (for Q1 FY 18)
Breakup of RM/PM Costs (for Q1 FY 18) Key Raw & Packing Material % to Sales % to Total Cost LLP 9.72% 27.64% Glass Bottles 9.20% 26.16% R fi d Veg. Refined V Oil 4 51% 4.51% 12 81% 12.81% Perfumes & other additives 3.60% 10.25% Corrugated Boxes 1.79% 5.09% Caps 2.03% 5.78% Others 4.31% 12.27% TOTAL
Slide 27: 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 ount (Rs.) ount (Rs.) 60 60 83 72 79.89 83.72 Amo Amo 40 40 75 97 75.39 75.97 75 39 79 89 58.28 55.02 20 43.91 45.80 20 0 0 Qtr1 FY17 vs FY18 FY16 vs FY17 Qtr1 FY17 vs FY18 FY16 vs FY17 During the quarter ave
Slide 28: Fund Position
Fund Position Fund Position: The total Fund available with the company as on 30th June June’ 2017 is Rs. 384.98 Crores This has been invested in Bank Fixed Deposits and AAA rated Bonds. There is no investment in ANY Inter Corporate p Deposit p Particulars Amount (Rs. in Crores) Bank FDs 9.49
Slide 29: 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.) 2016-17 1,475 1 16962.50 1150% 11.50 2015-16 1,475 1 16962.50 1150% 11.50 2014 15 2014-15 1 475 1,475 1 16962 50 16962.50 1150% 11 50 11.50 2013-14 1,475 1 9,587.50 650%
Slide 30: 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 Sugar Ltd Bajaj Corp Ltd has not and will not transfer funds from and to any other company within the Bajaj Group The Company acquired in September 2011 (Upto
Slide 31: 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 32: Thank You
Thank You