Bajaj Consumer Care Limited · NSE:BAJAJCON

Bajaj Consumer Care — Bajaj — Q4 FY2016 Earnings Presentation

32 slides from Bajaj Consumer Care's earnings presentation, April 2016

  1. Slide 1: Investor Presentation

    Investor Presentation April 2016- Version 2

  2. Slide 2: Industry Overview

    Industry Overview

  3. Slide 3: Industry Size and Structure

    INDUSTRY SIZE AND STRUCTURE FMCG Rs. 2,58,122 cr Hair Care 7% CONTRIBUTION Rs. 19,064 cr Coconut Based Hair Shampoo Perfumed Oil Hair Dyes Oil Conditioners Rs. 5,678 cr Rs. 6,411 cr Rs. 3,038 cr Rs. 3475 cr Rs. 461 cr (30%)* (28%)* (16%)* (24%)* (2%)* Hair Oil Market Coconut based Amla Light Hair Oi

  4. Slide 4: Hair Oil Market in India

    Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 3,00,000 2,69,016 2,47,478 2,51,407 12,000 CAGR 4.89% 2,38,283 2,52,761 CAGR 13.04% 2,50,000 2,35,539 9,886 2,14,002 10,000 9,277.7 1,97,057 8,675.6 2,00,000 1,72,528 7,867 Y-o-Y (- 6.5%) 8,000 Y-O-Y 0.5% 6,981 (In

  5. Slide 5: Light Hair Oil Market in India

    Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 35,000 31,949 30,969 32,317 1,800 29,958 1,602 1,600 CAGR 16.5% 1,474 1,503 30,000 CAGR 9.53% 26,768 1,400 1311 25,000 22,406 1,200 1,080 (Rs. Cr.) 19,908 Y-o-Y 6.6% 18,390 Y-o-Y 12.2% Y-o-Y (-3.1%) Y-o-Y 3.1% (In KLtr) 20

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

    Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 70% 70% 59.7% 60.2% 58.4% 60% 56.6% 57.7% 57.9% 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 4.3 4.2 4.0 3.9 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 2016 Sour

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

    ADHO – Relative Market Shares – Value Relative Relative States Market Rank States Market Rank Share Share Delhi 3.5 1 North East 2.9 1 Rajasthan 1.3 1 Orissa 4.8 1 Punjab 2.8 1 WB 2.2 1 HP-JK 3.0 1 EZ 4.5 1 Haryana 3.4 1 Maharashtra 3.9 1 NZ 2.4 1 Mumbai 3.0 1 Madhya Pradesh 3.3 1 Gujarat 2.1 1 Chha

  9. Slide 9: Statewise Market Share

    Statewise Market Share LHO Volume ADHO Proportion % ADHO Market Share % (Vol) MAT MARCH 16 Saliency Urban Rural Total Urban Rural All India 58% 42% 57.9 54.6 63.2 Delhi 6 100.00% 55.8 Raj 8 51% 49% 46.8 48.7 44.9 Punjab 4 70% 30% 52.7 51.2 56.6 Har 6 80% 20% 57.2 55.0 67.7 HP-JK 1 41% 59% 50.7 45.6

  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 All India -Urb- 6% Cosmetics 6% Paan plus All India - 12% Urban dominated Rural Modern Trade - segment due to its Grocers dominate 38% Urban relatively higher 0% dist

  11. Slide 11: Company Overview

    Company Overview

  12. Slide 12: 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

  13. Slide 13: 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 All Skin, Types & Neem Facewash, available in sizes 15g,(Neem) 50g, 100g(Neem) Bajaj NOMARKS Soaps for All Skin, Oily Skin & Dry Skin Types & Neem

  14. 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% 70 58 60 60 56.9% 58.4% 59.7% 60.2% 60 55 60.0% 50.7% 53.0% 55.0% 50 50.0% 46.5% 50 46 40 42 40.3% 38 40.0% 36.7% 40 35 31.4% 30 32 29 30.0% 30 20.0% 20 10.0% 10 0.0% 0 05

  15. 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  58% are Urban consumers — Socio Economic Class (SEC)- Urban  A1- 10.4%  A2- 14.4%  B1- 14.4%  B2- 11.5% Source – IRS, Q42012 14

  16. Slide 16: Strong Distribution Network

    Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (9) 45 consumers through 3.7mn OWN – Himachal Pradesh -2, Uttarakhand- 1 retail outlets serviced by THIRD PARTY - Himachal Pradesh-2, Rajasthan-1, Guwahati-1, 7392 distributors and Uttarakhand- 2 45 1

  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 102 vans (for Sales)  Vans cover 7765 uncovered Towns and Villages on a monthly basis  In MAT March 2016 — Bajaj Almond Drops Hair Oil got 42 % of its sales from Rural I

  18. Slide 18: Organization Structure

    Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra VP – HR President- Sales & GM- Operations President Head Intl. Head – Supply Mr. Subhamay Marketing - Mr. Kabir Sahni Operations Business – Chain & Chatterjee Mr.Sandeep Verma Mr. Apoorv Bajaj Pankaj Banerj

  19. Slide 19: Financial Information

    Financial Information Summary Income Statement Summary Balance Sheet Particulars Q4FY16 Q4FY15 FY 16 FY 15 Particulars As on As on (Rs. In Crore) (Rs. In Crore) 31.03.2016 31.03.2015 Sales (Net) 227.79 235.42 866.57 819.50 EBITDA 76.58 75.05 278.54 242.74 Shareholders Equity 485.56 491.81 EBITDA Mar

  20. Slide 20: EBITDA & PAT Performance

    EBITDA & PAT Performance Rs. in Crore Particulars Q4FY16 Q4FY15 YoY% FY 16 FY 15 YoY% EBITDA 76.58 75.05 2.04% 278.54 242.74 14.75% Profit Before Tax & Exceptional Item 80.42 80.55 -0.16% 298.58 266.29 12.13% Exceptional Item (Trademark & Intellectual 11.74 11.74 46.98 46.98 Properties) Profit Befor

  21. Slide 21: Profit & Loss Q4 FY2016 and for the year 2015-16

    Profit & Loss Q4 FY2016 and for the year 2015-16 Rs. in Crore Particulars Q4FY16 Q4FY15 YoY% FY 16 FY 15 YoY% Net Sales 227.79 235.42 -3.24% 866.57 819.50 5.74% Other Operating Income 0.53 0.75 2.19 1.80 Material Cost 74.35 88.05 297.19 315.36 % of Sales 32.64% 37.40% 34.30% 38.48% Employees Cost 12

  22. Slide 22: Sales Performance

    Sales Performance Sales (Value) : Sales (Value) : FY15 v/s FY16 Q4FY15 v/s Q4FY16 250 1,000 200 800 In ` Crores In ` Crores 150 600 235.42 227.79 866.57 100 400 819.50 50 200 0 0 Q4 FY15 Q4 FY16 FY 15 FY 16  Sales for the year ended March’16 has increased by 5.74%.  Sales for the quarter ended Mar

  23. 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 AHO Nomarks Others Total % Inc over FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 PY 1,241,928 Q1 1,123,144 7,435 15,805 14,073 9,671 49,630 - 40,

  24. Slide 24: Consistent Performance over the last 16 successive quarters

    Consistent Performance over the last 16 successive quarters 40.00% 35.00% 33.62% 31.88% 31.67% 32.35% 30.86% 28.76% 29.03% 28.65% 28.58% 28.27% 29.24% 30.00% 28.19% 28.25% 28.37% 27.09% 27.04% 25.00% 20.00% Gr (Value) 15.00% Gr (Vol) EBIDTA 10.00% 5.00% 29.53% 22.35% 27.25% 18.70% 31.84% 22.33% 25.3

  25. Slide 25: Breakup of RM/PM Costs (for Q4 FY 16)

    Breakup of RM/PM Costs (for Q4 FY 16) Key Raw & Packing Material % to Sales % to Total Cost LLP 8.91% 27.13% Glass Bottles 8.03% 24.43% Refined Veg. Oil 4.53% 13.78% Perfumes & other additives 2.69% 8.20% Corrugated Boxes 1.55% 4.72% Caps 2.02% 6.16% Others 5.12% 15.58% TOTAL 32.85% 100.00% * Consum

  26. Slide 26: Change in Prices of Key Ingredients

    Change in Prices of Key Ingredients Per kg Rates of Oil Per kg Rates of LLP 100.00 100.00 93.76 90.00 86.06 84.27 86.21 90.00 83.72 82.02 80.00 75.01 75.62 80.00 73.15 74.03 69.99 70.92 71.59 70.00 70.17 62.38 70.00 59.51 58.82 2015-16 60.00 54.70 55.02 60.00 2015-16 50.00 46.41 2014-15 50.00 2014-1

  27. Slide 27: Fund Position

    Fund Position  Fund Position:  The total Fund available with the company as on 31st March’ 2016 is Rs. 320.61 Crores  This has been invested in Bank Fixed Deposits, AAA rated PSU Bonds, Commercial Papers, Government Securities and Liquid MFs.  There is no investment in ANY Inter Corporate Deposi

  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.) 2015-16 1,475 1 16962.50 1150% 11.50 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

  29. Slide 29: Managerial Bandwidth

    Managerial Bandwidth  As a constant endeavour to add to the Managerial capabilities within the company we constantly engage in in-house and out bound training programs  Further to make all the functions better equipped in terms of bench strength the company is also in the process of recruiting exp

  30. 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

  31. 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

  32. Slide 32: Thank You

    Thank You

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