Bajaj Consumer Care Limited · NSE:BAJAJCON

Bajaj Consumer Care — Q1 FY2017 Earnings Presentation

33 slides from Bajaj Consumer Care's earnings presentation, July 2016

  1. Slide 1: Investor Presentation

    Investor Presentation July 2016

  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%)* (34%)* (16%)* (18%)* (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 12,000 300 269 9,895.2 247 251 253 9,277.7 236 238 10,000 250 8,675.6 214 7,867 197 8,000 200 6,981 (In ‘000 KLtr) In Rs cr 5,728 6,000 5,044 150 Q-O-Q -1.2% 4,498 Q-O-Q -0.9% 4,000 100 2480.56 64 2,000 50 0 0 08-09

  5. Slide 5: Light Hair Oil Market in India

    Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 35.0 31.9 32.4 1,800.0 30.0 31.0 1,588 30.0 1,600.0 1,474 1,503 26.8 1,400.0 1311 25.0 22.4 (In ‘000 KLtr) 19.9 1,200.0 1,080 20.0 18.4 1,000.0 (Rs. Cr.) 831 Q-O-Q 0.6% Q-O-Q -0.7% 15.0 800.0 710 610 8.2 600.0 472 10.0 403

  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% 60% 56.6% 57.7% 58.0% 57.4% 59.7% 60.7% 60.2% 54.4% 56.9% 58.4% 60% 55.0% 51.9% 53.0% 50% 48.0% 49.1% 50.7% 44.1% 50% 46.5% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 Q1 16- 08-0

  7. Slide 7: Market Shares Trends (All India - Urban Plus Rural)

    Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 8.0% 7.4% 7.4% 12.0% 7.1% 7.0% 6.6% 6.7% 9.9% 9.7% 9.7% 9.8% 10.0% 9.5% 5.8% 8.5% 6.0% 8.0% 7.7% 7.1% 5.0% 4.5% 4.7% 4.1% 6.3% 4.0% 3.5% 6.0% 5.1% 3.0% 4.4% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% *Market Share in the Total Hair Oil C

  8. 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 Relative MS - Val 5.0 4.5 4.5 4.3 4.3 4.2 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 201

  9. Slide 9: ADHO – Relative Market Shares – Value

    ADHO – Relative Market Shares – Value Relative Relative Market Market States Rank States Rank Share Share Delhi 3.7 1 North East 3.7 1 Rajasthan 1.6 1 Orissa 6.4 1 Punjab 3.6 1 WB 2.4 1 HP-JK 3.9 1 EZ 5.5 1 Haryana 4.3 1 Maharashtra 4.5 1 NZ 2.9 1 Mumbai 3.0 1 Madhya Pradesh 3.8 1 Gujarat 2.0 1 Chha

  10. Slide 10: Statewise Market Share

    Statewise Market Share LHO Volume ADHO Proportion % ADHO Market Share % (Vol) MAT June 16 Saliency Urban Rural Total Urban Rural All India 57 43 57.7% 54.8% 62.0% Delhi 6 100 0 55.5% 55.5% - Raj 6 53 47 46.0% 50.0% 42.3% Punjab 4 68 32 54.9% 53.4% 58.9% Har 6 77 23 57.3% 55.1% 67.1% HP-JK 1 43 57 50

  11. 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% 8% 6% Urban dominated segment due to its 6% Grocers dominate relatively higher distribution pricing 77% Modern Trade - Urban Pan plus Chemists All India -Urb-Cosmetics Groc

  12. Slide 12: Company Overview

    Company Overview

  13. 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

  14. 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 Normal Skin & Neem Facewash, available in sizes 15g,(Neem) 50g, 100g(Neem) Bajaj Nomarks Soaps Herbal scrub soap and Neem Soap, available in sizes

  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 70% 58.4% 59.7% 60.7% 60.2% 60% 55.0% 56.9% 50.7% 53.0% 50% 46.5% 40% 30% 20% 10% 0% 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 Q1 16- 17 Comparative Price of Different Bra

  16. 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 (

  17. Slide 17: Strong Distribution Network

    Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (8) consumers through 3.7mn 45 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand- 1 7632 distributors and THIRD PARTY - Himachal Pradesh-2, Rajasthan-1, Uttarakhand- 2 4 13807 wholesal

  18. Slide 18: Van Operations

    Van Operations  Started in FY 13 with a objective of increasing Rural Sales  Piloted 39 Vans in Q4 FY 13  Currently operating 117 vans (for Sales)  Vans cover 7560 uncovered Towns and Villages on a monthly basis  For MAT June 16, — Bajaj Almond Drops Hair Oil got 43 % of its sales from Rural In

  19. Slide 19: Organization Structure

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

  20. Slide 20: Financial Information

    Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q1FY17 Q1FY16 FY 16 As on As on (Rs. In Crore) 30.06.2016 31.03.2016 (Rs. In Crore) Sales (Net) 203.73 200.13 793.67 EBITDA 72.06 67.38 278.54 Shareholders Equity 538.08 485.82 EBITDA Margin 35.37% 33.67% 35

  21. Slide 21: EBITDA & PAT Performance

    EBITDA & PAT Performance Rs. in Crore Particulars Q1FY17 Q1FY16 YoY% FY 16 EBITDA 72.06 67.38 6.94% 278.54 Profit Before Tax & Exceptional Item 78.10 71.98 8.50% 298.68 Exceptional Item (Trademark & 11.75 11.75 46.98 Intellectual Properties) Profit Before Tax 66.36 60.24 10.16% 251.70 (PBT) Profit A

  22. Slide 22: Profit & Loss Q1 FY2017

    Profit & Loss Q1 FY2017 Rs. in Crore Particulars Q1FY17 Q1FY16 YoY% FY 16 Net Sales 203.73 200.13 1.80% 793.67 Other Operating Income 0.58 0.73 2.19 Material Cost 70.39 77.26 297.19 % of Sales 34.55% 38.60% 37.45% Employees Cost 13.82 11.13 45.83 % of Sales 6.78% 5.56% 5.77% Advertisement & Sales Pr

  23. Slide 23: Sales Performance

    Sales Performance Sales (Value) : Q1FY16 v/s Q1FY17 250 200 In ` Crores 150 100 200.13 203.73 50 0 Q1 FY16 Q1 FY17  Sales for the quarter ended June’16 has increased by 1.80% value wise and 0.77% volume wise. 22

  24. 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 17 % to Total Q1 FY 16 % to Total ADHO 1,269,703 92.59% 1,241,928 91.26% KPCO 7,483 0.55% 7,435 0.55% BAHO 11,801 0.86% 14,073 1.03% AHO 45,072 3.29% 49,696 3.65% Nomarks 29,195 2.13% 4

  25. Slide 25: Consistent Performance over the last 13 successive quarters

    Consistent Performance over the last 13 successive quarters 40.00% 35.37% 35.00% 33.62% 31.88% 31.67% 32.35% 30.86% 30.00% 28.37% 28.65% 28.58% 28.27% 29.24% 27.09% 27.04% 25.00% 20.00% Gr (Value) 15.00% Gr (Vol) EBIDTA 10.00% 5.00% 23.18% 20.16% 16.48% 14.96% 12.36% 18.55% 29.83% 21.06% 27.82% 23.0

  26. Slide 26: Breakup of RM/PM Costs (for Q1 FY 17)

    Breakup of RM/PM Costs (for Q1 FY 17) Key Raw & Packing Material % to Sales % to Total Cost LLP 8.28% 24.31% Glass Bottles 8.97% 26.33% Refined Veg. Oil 4.42% 12.99% Perfumes & other additives 3.60% 10.58% Corrugated Boxes 1.76% 5.16% Caps 1.96% 5.74% Others 5.07% 14.89% TOTAL 34.06% 100.00% * Consu

  27. 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 Amount (Rs.) Amount (Rs.) 60 60 40 40 83.72 75.62 73.15 75.97 71.59 59.51 55.02 20 43.91 20 0 0 Qtr1 FY16 vs FY17 FY15 vs FY16 Qtr1 FY16 vs FY17 FY15 vs FY16  During the quarter average price of LLP decreased

  28. Slide 28: Fund Position

    Fund Position  Fund Position:  The total Fund available with the company as on 30th June’ 2016 is Rs. 371.02 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 Deposit

  29. 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.) 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

  30. Slide 30: 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

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: Thank You

    Thank You

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