Slide 1: Investor Presentation October 2012
Investor Presentation October 2012
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.167,064 cr (USD 33.4 bn) Hair Care 8% salience Rs. 12,815 cr (USD 2.6 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 3973cr Rs. 3460 cr Rs. 3204 cr Rs. 256 cr Rs. 1,922 cr (USD 795 mn) (USD 692 mn) (USD 640 mn) (USD 51 mn) (USD 384 mn)
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 300,000 8,000 6,990 235,539 238,459 7,000 250,000 5,728 214,002 6,000 197,057 5,044 200,000 172,528 5,000 4,498 (Rs. Cr.) (In KLtr) 3,707 3,971 6M-o-6M 16.6% 150,000 132560 127,121 4,000 6M-o-6M 5.9% Y-o-Y 10.1% Y-o
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 30,000 1,200 26,241 1,056 25,000 22,406 1,000 19,908 831 20,000 18,390 800 710 (Rs. Cr.) 15,603 610 6M-o-6M 14.3% 6M-o-6M 24.5% 15,000 600 506 (In KLtr) Y-o-Y 17.1% 12.5% 11764 11,942 472 Y-o-Y 16.4% Y-o-Y 27.1% Y-o-Y 17.1
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 60% 60% 54.0% 54.3% 50.9% 51.7% 53.0% 49.1% 50.7% 50% 48.0% 50% 46.5% 44.1% 38.4% 40.3% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 07-08 08-09 09-10 10-11 11-12 12-13 07-08 08-09 09-10 10-11 11-12 12-13 (6M) (6M) *Market Share in the
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 Trend 4.00 3.64 3.50 3.34 3.17 3.00 2.65 2.50 2.08 2.00 1.50 1.00 0.50 0.00 2008 2009 2010 2011 2012 (YTD) Source – AC Nielsen Re
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 2.90 1st Madhya Pradesh 3.74 1st Rajasthan 1.64 1st Chhattisgarh 3.72 1st Uttar Pradesh 2.80 1st Central Zone 3.84 1st Punjab 3.46 1st Gujarat 2.09 1st Haryana 3.35 1st Mumbai 2.42 1st Uttaranchal 3.95 1st Maha
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Oct11-Sep12 Saliency Urban Rural Total Urban Rural All India (U+R) 100.00 65.0 35.0 51.5 49.7 55.0 Punjab 5.6 71.6 28.4 49.4 46.9 55.7 Haryana 5.7 82.9 17.1 48.9 46.1 62.5 Delhi 6.7 100.0 0.0 48.9 48.9 NA Rajasthan 8.6 61.7 38.
Slide 10: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 20,000 18,624 900 18,000 16,610 800 766 16,000 14,655 15,206 667 675 700 14,000 594 12,416 600 9M-o-9M – 7.5% Rs. Cr. 12,000 9M-o-9M – 16.8% 485 500 KLtr Y-o-Y - 18% 10,000 Y-o-Y - 13% Y-o-Y - 12% Y-o-Y - 23% Y-o-Y -
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 Modern Others, 7% Trade, 2% Cosmetics, 4% Rural Chemists, Traditional 34% 7% channels dominate Urban dominated Local segment due to its distribution, but Grocer relatively hig
Slide 12: Company Overview
Company Overview
Slide 13: Bajaj Corp Ltd. (BCL) – An Overview
Bajaj Corp Ltd. (BCL) – An Overview 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 – Keo Karpin (Dey’s
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 60.0% 54.0% 60 53.0% 50 50.7% 50.0% 46.5% 50 46 40 42 40.3% 38 36.7% 40 35 40.0% 30 32 31.4% 28 29 30 30.0% 20 20.0% 10 10.0% 0 0.0% 05-06 06-07 07-08 08-09 09-10 10-11 11-12 Co
Slide 15: Consumer Profile- Almond Drops
Consumer Profile- Almond Drops For Almond Drops the consumer is: — Gender Male- 53% Female- 47% — Age Group 15 to 39 yrs ( 62% of users) — Urban Vs Rural 61% are Urban consumers — Socio Economic Class (SEC)- Urban A1- 7% A2- 10% B1- 9% B2- 7% Source – IRS, Q42011 14
Slide 16: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) consumers through 2.43 47 mn retail outlets serviced OWN – Himachal Pradesh -2, Uttarakhand-1 by 6456 direct distributors THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 50 and 14,118 wholesalers 20
Slide 17: Organization Structure
Organization Structure Chairman Mr. Kushagra Bajaj Vice Chairman Mr. R.F. Hinger Managing Director Mr. Sumit Malhotra Director – Business Development Mr. Jimmy Anklesaria President Operations Mr. Apoorv Bajaj Chief Financial Officer Mr. V. C. Nagori GM – Sales GM – Marketing GM- HR Mr. Sudhir Taneja
Slide 18: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars (In Rupees Q2 2013 Q2 2012 HY1FY13 HY1FY12 HY 2013 HY 2012 2011-12 (In Rupees Crores) Crores) Sales (Net) 135.86 106.77 273.90 213.35 Shareholders Equity 503.88 433.50 428.81 EBITDA 39.07 27.42 77.98 54.03 T
Slide 19: EBITDA & PAT Performance
EBITDA & PAT Performance Particulars Q2 FY13 Q2 FY12 YoY% HY1FY13 HY1FY12 YoY% (In Rs. Crores) EBITDA 39.07 27.42 42.45% 77.99 54.03 44.34% Profit Before Tax 48.07 36.75 30.82% 95.20 72.40 31.51% (PBT) Profit After Tax (PAT) 38.40 28.75 33.59% 76.02 57.16 33.00% 18
Slide 20: Profit & Loss Q2FY2013
Profit & Loss Q2FY2013 Particulars (In Rs. Crores) Q2FY13 Q2FY12 YoY% HY1FY13 HY1FY12 YoY% Net Sales 135.86 106.77 27.24% 273.90 213.35 28.38% Other Operating Income 0.15 0.33 0.34 0.44 Material Cost 58.24 49.88 120.01 100.53 % of Sales 42.87% 46.70% 43.81% 47.12% Employees Cost 6.73 5.69 13.66 11.1
Slide 21: Sales Performance
Sales Performance Sales Sales Rs. In Cr Rs.In Cr 160 300 273.9 135.86 140 250 120 213.35 106.77 200 100 80 150 Rs. In Cr Rs.In Cr 60 100 40 50 20 0 0 Q2 FY12 Q2 FY13 H2 FY 12 H2 FY 13 Sales for the quarter ended September ’12 has increased by 27.24% value wise and 18.70% volume wise over correspon
Slide 22: 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 Others Total Increase over Pr. Year FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 FY 13 FY 12 Qtr1 952,959 765,858 28,665 28,777 11,481 14,125 2,455 4,451 4,639 4,
Slide 23: Breakup of RM/PM Costs (for Q2 FY13)
Breakup of RM/PM Costs (for Q2 FY13) Key Raw & Packing Material % to Sales % to Total Cost LLP 16.29% 38.25% Glass Bottles 10.79% 25.34% Refined Veg. Oil 4.59% 10.79% Perfumes & other additives 3.29% 7.74% Corrugated Boxes 1.77% 4.15% Caps 2.15% 5.04% Others 3.69% 8.69% TOTAL 42.57% 100.00% * Consum
Slide 24: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of Oil 100 90 80 84.93 80 82.56 85.66 70 81.43 85.96 80.88 Amount (Rs.) Amount (Rs.) 60 67.50 60 64.66 50 40 40 30 20 20 10 0 0 Qtr2 FY12 vs FY13 HY1 FY12 vs FY13 Qtr2 FY12 vs FY13 HY1 FY1 vs FY13 During the quarter average price
Slide 25: 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 26: 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 27: Thank You
Thank You