Slide 1: Investor Presentation
Investor Presentation January 2015
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.220,594 cr (USD 36.77 bn) Hair Care 7% salience Rs. 15,994 cr (USD 2.67 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 4958cr Rs. 4,714 cr Rs. 3386 cr Rs. 480 cr Rs. 2,559 cr (USD 826 mn) (USD 786mn) (USD 564mn) (USD 80 mn) (USD 427 mn)
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 300,000 9,000 8,408 7,867 247,478255,178 8,000 250,000 235,539238,283 6,981 214,002 6,719 197,057 7,000 200,000 182,239 5,728 172,528 6,000 (Rs. Cr.) 5,044 9M-o-9M - 6.1% (In KLtr) 4,498 8M-o-8M 5.7% 150,000 132560
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 35,000 31,928 29,958 1,600 1,471 30,000 26,768 1,400 1311 25,000 22,406 23,340 1,123 1,200 1,080 (Rs. Cr.) 19,908 20,000 18,390 1,000 9M-o-9M -3.2% 15,603 831 9M-o-9M 1.8% 710 Y-o-Y 19.5% Y-o-Y 11.9% Y-o-Y 12.2% 15,000 800
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 70% 70% 57.9% 58.7% 59.5% 60.4% 60% 60% 56.9% 54.4% 55.0% 51.9% 53.0% 49.1% 50.7% 50% 48.0% 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 07-08 08-09 09-10 10-11
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 4.34 4.39 4.5 4.04 4 3.43 3.5 3.17 3 2.65 2.5 2.08 2 1.5 1 0.5 0 2008 2009 2010 2011 2012 2013 2014 (12M) Source – AC Nielsen R
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 4.4 1st Madhya Pradesh 3.9 1st Rajasthan 1.6 1st Chhattisgarh 7.4 1st Uttar Pradesh 4.1 1st Punjab 3.4 1st Central Zone 4.8 1st HP-JK 5.1 1st Gujarat 2.3 1st Haryana 5.0 1st Mumbai 3.8 1st Uttaranchal 3.9 1st M
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Jan 14- Dec 14 Saliency Urban Rural Total Urban Rural All India (U+R) 100.0% 63.5% 36.5% 58.8% 56.4% 63.1% Punjab 5.9% 74.2% 25.8% 53.7% 51.0% 61.6% Haryana 5.6% 73.0% 27.0% 60.6% 56.7% 71.3% Delhi 5.8% 100.0% NA 58.6% 58.6% NA
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, Cosmetic Trade, 3% 6% s, 7% Large All India Grocer/ Traditional Chemists, - Rural Urban dominated GS, 29% channels dominate 6% 36% segment due to its distributi
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 1,000 934 912 25,000 897 900 760 20,128 19,486 800 20,000 18,520 18,607 667 16,610 700 594 Y-o Y–( -4.5)% Y-o-Y –(- 2.4)% 14,655 Y-o-Y – (-3.3%) 600 15,000 485 Rs. Cr. 12,416 Y-o-Y - 12% Y-o-Y - 18% Y-o-Y - 13% 500 K
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 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,
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 70.0% 70 59.5% 60.4% 58 60.0% 55.0% 56.9% 60 55 50.7% 53.0% 50 50.0% 46.5% 50 46 40 42 40.3% 38 40.0% 36.7% 40 35 30 32 31.4% 28 29 30 30.0% 20 20.0% 10 10.0% 0 0.0% 05-06 06-06
Slide 16: 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 61% are Urban consumers — Socio Economic Class (SEC)- Urban A1- 10.4% A2- 14.4% B1- 14.4% B2- 11.5% Source – IRS, Q42012 15
Slide 17: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) consumers through 2.76mn OWN – Himachal Pradesh -2, Uttarakhand- 1 47 retail outlets serviced by THIRD PARTY - Himachal Pradesh-2, Rajasthan-1, Guwahati- 7192 distributors and 1, Uttarakhand- 1 50
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 101 vans (for Sales) and 6 Video Vans (for Promotions) Vans cover 7588 uncovered Towns and Villages on a monthly basis In Apr- Nov 2014 — Bajaj Almond Drops Hair Oil g
Slide 19: 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 Mr. M K Audit Arnab Banerjee Amrit Chatterjee Sachdeva Mr. Ma
Slide 20: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q3FY15 Q3FY14 9M FY 15 9M FY 14 9M FY 15 9M FY 14 2013-14 (Rs. In Crore) (Rs. In Crore) Sales (Net) 205.40 158.21 584.07 486.50 EBITDA 60.06 42.77 167.69 133.89 Shareholders Equity 437.39 595.94 522.08 EBITD
Slide 21: EBITDA & PAT Performance
EBITDA & PAT Performance ` in Crore Particulars Q3FY15 Q3FY14 YoY% 9M FY 15 9M FY 14 YoY% EBITDA 60.06 42.77 40.40% 167.69 133.89 25.25% Profit Before Tax & 64.71 48.56 33.27% 185.73 158.79 16.97% Exceptional Item Exceptional Item (Trademark & 11.75 11.75 35.24 16.85 Intellectual Properties) Profit
Slide 22: Profit & Loss Q3 FY2015 and for 9M FY2015
Profit & Loss Q3 FY2015 and for 9M FY2015 ` in Crore Particulars Q3FY15 Q3FY14 YoY% 9M FY 15 9M FY 14 YoY% Net Sales 205.40 158.21 29.83% 584.07 486.50 20.06% Other Operating Income 0.39 0.37 1.04 0.71 Material Cost 76.96 61.08 227.32 191.63 % of Sales 37.47% 38.61% 38.92% 39.39% Employees Cost 9.08
Slide 23: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q3FY14 v/s Q3FY15 9M FY14 v/s 9M FY15 250 700 600 200 In ` Crores In ` Crores 500 150 400 100 205.40 300 584.07 158.21 486.50 200 50 100 0 0 Q3 FY14 Q3 FY15 9M FY 14 9M FY 15 Sales for the quarter ended December’14 has increased by 29.83% value wis
Slide 24: 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 Nomarks Others Total % Inc over PY FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 FY 15 FY 14 Q1 1,123,144 1,134,735 15,805 21,653 9,671 9,853 2,184 1,732
Slide 25: Consistent Performance over the last 15 successive quarters
Consistent Performance over the last 15 successive quarters 40.00% 35.00% 30.00% 28.19% 28.76% 29.03% 28.25% 28.37% 28.65% 28.58% 28.27% 29.24% 27.09% 27.04% 25.68% 25.51% 24.96% 25.00% 23.17% 20.00% Gr (Value) 15.00% Gr (Vol) EBIDTA 10.00% 5.00% 18.70% 30.44% 19.96% 31.43% 21.98% 30.75% 20.45% 33.4
Slide 26: Breakup of RM/PM Costs (for Q3 15)
Breakup of RM/PM Costs (for Q3 15) Key Raw & Packing Material % to Sales % to Total Cost LLP 13.09% 34.39% Glass Bottles 9.35% 24.56% Refined Veg. Oil 3.61% 9.47% Perfumes & other additives 3.20% 8.40% Corrugated Boxes 1.61% 4.24% Caps 2.22% 5.82% Others 4.99% 13.12% TOTAL 38.06% 100.00% * Consumpti
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 75.85 75.01 74.89 81.81 40 76.16 70.92 72.74 70.37 20 20 0 0 Qtr3 FY14 vs FY15 9MFY14 vs FY 15 Qtr3 FY14 vs FY15 9MFY14 vs FY 15 During the quarter average price of LLP decr
Slide 28: Fund Position
Fund Position Fund Position: The total Fund available with the company as on 31st December’ 2014 is Rs.237.67Crores 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
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.) 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%
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 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
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