Slide 1: Investor Presentation
Investor Presentation October 2015 Version 2
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.238,016 cr (USD 38.38 bn) Hair Care 7% salience Rs. 17,102 cr (USD 2.75 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 5217cr Rs. 4996 cr Rs. 3768 cr Rs. 413 cr Rs. 2,630 cr (USD 841 mn) (USD 805mn) (USD 581mn) (USD 66 mn) (USD 437 mn)
Slide 4: Hair Oil Market in India
(In KLtr) (In KLtr) Y-o-Y 33% Y-o-Y 30% Y-o-Y 18% Y-o-Y 14% Y-o-Y 8.3% Y-o-Y 8.6% Y-o-Y 12.5% Y-o-Y 10.1% Y-o-Y 19.5% Y-o-Y 1.2% Source: AC Nielsen Retail Audit Report, Sep 2015. Y-o-Y 11.9% Y-o-Y 3.9% Light Hair Oil – Volume Y-o-Y 6.6% Y-o-Y 3.1% Hair Oil Market in India Overall Hair Oil Market – V
Slide 5: Light Hair Oil Market in India
(In KLtr) (In KLtr) Y-o-Y 51% Y-o-Y 33% Y-o-Y 35% Y-o-Y 18% Y-o-Y 17.9% Y-o-Y 8.3% Y-o-Y 15.1% Y-o-Y 12.5% Y-o-Y 26.2% Y-o-Y 19.5% Source: AC Nielsen Retail Audit Report, Sep 2015. Y-o-Y 17.3% Y-o-Y 11.9% Light Hair Oil – Volume Y-o-Y 13.4% Y-o-Y 6.6% Y-o-Y 0.1% Almond Drops Hair Oil Market - Volume
Slide 6: Market Share Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 70% 70% 57.9% 58.9% 58.8% 59.5% 60.7% 60.7% 60% 54.4% 60% 55.0% 56.9% 51.9% 53.0% 50.7% 50% 48.0% 49.1% 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 13-14 14-15 15-16 07-08
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 4.4 4.3 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(9M) Source –
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 4.5 1st Madhya Pradesh 1st 3.7 Rajasthan 1.5 1st Chhattisgarh 7.7 1st Uttar Pradesh 3.7 1st Punjab Central Zone 4.4 1st 3.2 1st HP-JK 4.2 1st Gujarat 2.2 1st Haryana 4.5 1st Mumbai 3.6 1st Uttaranchal 4.6 1st M
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Oct 14 - Sep15 Saliency Urban Rural Total Urban Rural All India (U+R) 100.0% 62.7% 37.3% 59.0% 56.4% 63.4% Punjab 5.7% 75.0% 25.0% 53.3% 51.1% 60.0% Haryana 5.6% 76.1% 23.9% 59.8% 56.7% 69.7% Delhi 6.0% 100.0% 0.0% 59.2% 59.2%
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, Cosmetics, Pan Plus , 6% 5% 4% All India Urban dominated Modern Large Grocers dominate - Rural segment due to its Stores, 3% Grocers, distribution, but 36% All India
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Value Cooling Hair Oil – Volume 9M-o 9M - 2.6% 9M-o-9M –1.4% Y-o-Y – 8.7% Y-o-Y – (-3.3%) Y-o-Y –(- 2.4)% Y-o Y–( -4.5)% KLtr Rs. Cr. Y-o-Y - 12% Y-o-Y - 18% Y-o-Y - 13% Y-o-Y - 23% Y-o-Y – 4.1% Y-o-Y - 14% Y-o-Y – 18% Y-o-Y - 12% Kailash Parbat –
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 Comparative Price of Different Brands for 100 ml in the Hair Oil Segment Competitor Brands (MRP of 100ml (Rs.) Source: AC Nielsen Retail Audit Almond Drops has created a unique
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 (9) 45 consumers through 2.92mn OWN – Himachal Pradesh -2, Uttarakhand- 1 retail outlets serviced by THIRD PARTY - Himachal Pradesh-2, Rajasthan-1, Guwahati-1, 7413 distributors and Uttarakhand- 2 45
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 115 vans (for Sales) Vans cover 8136 uncovered Towns and Villages on a monthly basis In MAT Sep 2015 — Bajaj Almond Drops Hair Oil got 40.1 % of its sales from Rural I
Slide 19: Organization Structure
Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra Head- President Operations Head International Head -Purchase VP – VP – HR Sales Internal Mr. Apoorv Bajaj Business Marketing Mr. Head Mr. Subroto Audit Mr. Pankaj Banerjee Ghosh Mr. Gurpreet Subhamay Mr. Ma
Slide 20: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q2FY16 Q2FY15 HY1 FY 16 HY1 FY 15 HY 2016 2014-15 2013-14 (Rs. In Crore) (Rs. In Crore) Sales (Net) 207.64 187.61 426.01 378.67 Shareholders Equity EBITDA 65.75 53.04 133.13 107.64 586.10 491.81 522.08 EBITD
Slide 21: EBITDA & PAT Performance
EBITDA & PAT Performance Rs. in Crore Particulars Q2FY16 Q2FY15 YoY% HY1 FY 16 HY1 FY 15 YoY% EBITDA 65.75 53.04 23.98% 133.13 107.64 23.69% Profit Before Tax & Exceptional Item 71.21 59.13 20.43% 143.36 121.02 18.46% Exceptional Item (Trademark & 11.75 11.75 23.49 23.49 Intellectual Properties) Pro
Slide 22: Profit & Loss Q2 FY2016 and for HY1 FY2016
Profit & Loss Q2 FY2016 and for HY1 FY2016 Rs. in Crore Particulars Q2FY16 Q2FY15 YoY% HY1 FY 16 HY1 FY 15 YoY% Net Sales 207.64 187.61 10.68% 426.01 378.67 12.50% Other Operating Income 0.55 0.40 1.28 0.65 Material Cost 72.98 72.38 150.24 150.36 % of Sales 35.15% 38.58% 35.27% 39.71% Employees Cost
Slide 23: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q2FY15 v/s Q2FY16 HY1FY15 v/s HY1FY16 250 500 200 400 Rs.in Crores Rs. in Crores 150 300 100 187.61 207.64 200 378.67 426.01 50 100 0 0 Q2 FY15 Q2 FY16 HY1 FY 15 HY1 FY 16 Sales for the quarter ended September’15 has increased by 10.68% value wise
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 AHO Nomarks Others Total % Inc over PY 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 Q1 1,241,928 1,123,144 7,435 15,805 14,073 9,671 49,630 - 40,
Slide 25: Consistent Performance over the last 14 successive quarters
Consistent Performance over the last 14 successive quarters 35.00% 31.88% 31.67% 30.86% 30.00% 28.19% 28.76% 29.03% 28.25% 28.37% 28.65% 28.58% 28.27% 29.24% 27.09% 27.04% 25.00% 20.00% 15.00% Gr (Value) Gr (Vol) 10.00% EBIDTA 5.00% 29.53% 22.35% 27.25% 18.70% 31.84% 22.33% 25.31% 19.12% 23.18% 16.4
Slide 26: Breakup of RM/PM Costs (for Q2 FY 16)
Breakup of RM/PM Costs (for Q2 FY 16) Key Raw & Packing Material % to Sales % to Total Cost LLP 10.95% 31.17% Glass Bottles 8.51% 24.22% Refined Veg. Oil 4.23% 12.04% Perfumes & other additives 2.76% 7.85% Corrugated Boxes 1.57% 4.46% Caps 2.15% 6.12% Others 4.97% 14.13% TOTAL 35.13% 100.00% * Consu
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 84.27 85.26 40 82.02 77.64 69.99 70.07 58.82 59.30 20 20 0 0 Qtr2 FY15 vs FY16 HY1 FY15 vs FY16 Qtr2 FY15 vs FY16 HY1 FY15 vs FY16 During the quarter average price of LLP de
Slide 28: Fund Position
Fund Position Fund Position: The total Fund available with the company as on 30th September’ 2015 is Rs. 380.13 Crores This has been invested in Bank Fixed Deposits, PSU Bonds and Liquid MFs. There is no investment in ANY Inter Corporate Deposit Particulars Amount (Rs. in Crores) Bank FDs 10
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