Slide 1: Investor Presentation
Investor Presentation April 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 7,000 250,000 214,002 5,728 197,057 6,000 5,044 200,000 (Rs. Cr.) 172,528 5,000 4,498 (In KLtr) 3,707 Y-o-Y 10.1% 132560 4,000 Y-o-Y 8.6% 150,000 Y-o-Y 30% Y-o-Y 1.2% Y-o-Y 14% Y-
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 (In KLtr) 15,000 600 12.5% Y-o-Y 27.1% Y-o-Y 17.1% 11764 472 Y-o-Y 8.3% Y-o-Y 33% Y-o-Y 18% Y-o-Y 16.4% Y-o-Y 17.1% Y-o-Y
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 60% 60% 53.0% 54.0% 49.1% 50.9% 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 07-08 08-09 09-10 10-11 11-12 *Market Share in the Light Hair Oil Category Source: AC
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 3.34 3.44 3.50 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 (3M) Source – AC Nielsen Ret
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 2.4 1st Madhya Pradesh 3.4 1st Rajasthan 1.7 1st Chhattisgarh 3.1 1st Uttar Pradesh 2.8 1st Central Zone 1st 3.7 Punjab 3.5 1st Gujarat 1st 2.5 Haryana 2.3 1st Mumbai 2.6 1st Uttaranchal 3.6 1st Maharashtra 3.1
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Apr11-Mar12 Saliency Urban Rural Total Urban Rural All India (U+R) 100.00 65.8 34.2 50.9 49.3 53.9 Punjab 5.8 70.6 29.4 48.8 45.2 57.6 Haryana 5.2 81.6 18.4 47.3 44.8 58.3 Delhi 6.9 100.0 0.0 49.2 49.2 NA Rajasthan 8.6 63.1 36.
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 – FY11 Modern Others, 7% Trade, 2% Cosmetics, 4% Rural Chemists, Traditional 34% 7% channels dominate Urban dominated Local segment due to its distribution, but Grocer relativ
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 900 20000 18624 800 766 16610 667 700 14655 594 15000 600 12416 485 Rs. Cr. 500 Y-o-Y - 12% Y-o-Y - 15% KLtr Y-o-Y - 23% Y-o-Y - 13% Y-o-Y - 12% 10000 Y-o-Y - 18% 400 300 5000 200 100 0 0 2008 2009 2010 2011 2008 200
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 2.30 mn 47 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand-1 6093 direct distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 50 11,548 wholesalers 18
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 Q4 2012 Q4 2011 FY12 FY11 2011-12 2010-11 (In Rupees Crores) (In Rupees Crores) Sales (Net) Shareholders Equity 428.81 376.38 146.59 109.84 472.24 358.67 Total Debt - - EBITDA 33.97 31.04 116.64 108.93 Net F
Slide 19: EBITDA & PAT Performance
EBITDA & PAT Performance Particulars Q4 FY12 Q4 FY11 YoY% FY12 FY11 YoY% (In Rs. Crores) EBITDA 33.97 31.04 9.44% 116.64 108.93 7.08% Profit Before Tax & 43.19 40.08 7.76% 151.34 124.04 22.01% Exceptional Items Exceptional Items - 6.33 - 18.96 (IPO Expenses) Profit Before Tax (PBT) 43.19 33.75 27.97
Slide 20: Profit & Loss Q4 & FY2012
Profit & Loss Q4 & FY2012 Particulars (In Rs. Crores) Q4FY12 Q3FY12 Q4FY11 YoY% FY12 FY11 YoY% Net Sales 146.59 112.30 109.84 33.46% 472.24 358.67 31.66% Other Operating Income 0.45 0.20 0.27 1.08 0.77 Material Cost 69.37 51.79 51.30 221.70 156.58 % of Sales 47.32% 46.12% 46.70% 46.95% 43.66% Employ
Slide 21: Sales Performance
Sales Performance Sales (Value) : Q4FY11 v/s Q4FY12 Sales (Value) : FY11 v/s FY12 160 500 140 400 In Rs. Crores In Rs. Crores 120 100 300 80 146.59 472.24 60 200 358.67 109.84 40 100 20 0 0 Q4 FY11 Q4 FY12 FY11 FY12 Sales for Q4 FY12 increased by 33.46% in value terms and 22.27% in volume terms.
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. 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 Year Qtr1 765,858 654,856 28,777 0 14,125 14,888 4,451 6,232 4,249 5,494 817,460 681,4
Slide 23: Breakup of RM/PM Costs (for FY12)
Breakup of RM/PM Costs (for FY12) Key Raw & Packing Material % to Sales % to Total Cost LLP 18.6% 40.4% Glass Bottles 11.6% 25.2% Refined Veg. Oil 4.2% 9.0% Perfumes & other additives 3.5% 7.7% Corrugated Boxes 2.2% 4.8% Caps 2.3% 4.9% Others 3.7% 8.0% TOTAL 46.0% 100.0% * Consumption is 46.0% of Sa
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 80 79.70 86.26 85.66 80.65 83.54 70.29 70.87 82.86 70 67.50 61.91 64.34 80 75.21 66.51 58.32 56.70 65.37 66.34 60 56.92 49.92 51.34 60 50 40 40 30 20 20 10 0 0 Qtr1 Qtr2 Qtr3 Qtr4 FY Qtr1 Qtr2 Qtr3 Qtr4 FY FY2010-11 FY20
Slide 25: 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 26: Thank You
Thank You