Slide 1: Investor Presentation Feb 2014
Investor Presentation Feb 2014
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
Industry Size and Structure FMCG Rs.218,064 cr (USD 363 bn) Hair Care 7% salience Rs. 15,934 cr (USD 26.6 bn) Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 4910cr Rs. 4,701 cr Rs. 3404 cr Rs. 398 cr Rs. 2,521 cr (USD 818 mn) (USD 783mn) (USD 567mn) (USD 66 mn) (USD 420 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 7,861 250,396 8,000 250,000 235,539 238,283 6,981 214,002 7,000 6,185 197,057 190,423 5,728 200,000 172,528 6,000 5,044 (Rs. Cr.) (In KLtr) 5,000 4,498 9M-o-9M 4.1% 132560 9M-o-9M 0.4% 150,000 3,707 Y-
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,400 1299 35,000 29,663 1,200 1,080 1,074 30,000 26,768 23,368 1,000 25,000 22,406 831 (Rs. Cr.) 19,908 800 710 20,000 18,390 9M-o-9M 5.8% 9M-o-9M 12.3% 610 (In KLtr) 15,603 Y-o-Y 19.5% Y-o-Y 10.8% Y-o-Y 12.5% Y-o-Y 8.3%
Slide 6: Market Shares Trends (All India - Urban Plus Rural)
Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 70% 70% 58.8% 60% 56.9% 55.0% 57.4% 53.0% 60% 54.5% 50.7% 51.9% 50% 46.5% 48.0% 49.1% 50% 44.1% 40.3% 38.4% 40% 40% 30% 30% 20% 20% 10% 10% 0% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 0% (9m) 07-08 08-09 09-10 10-11 11-12 12-13
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 4.5 4.34 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 Source – AC Nielsen Retail Audit Repo
Slide 8: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value State Relative MS Rank State Relative MS Rank Delhi 3.9 1st Madhya Pradesh 3.7 1st Rajasthan 1.6 1st Chhattisgarh 6.3 1st Uttar Pradesh 3.5 1st Gujarat 2.3 1st Punjab 4.0 1st HP-JK 3.5 1st Central Zone 3.6 1st Haryana 4.4 1st Mumbai 3.9 1st Uttaranchal 4.3 1st M
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Jan 13 - Dec 13 Saliency Urban Rural Total Urban Rural All India (U+R) 100.00% 65% 35% 56.80% 55.10% 59.93% Punjab 6.38% 70% 30% 54.30% 53.01% 57.37% Haryana 6.59% 79% 21% 58.87% 55.84% 70.43% Delhi 5.80% 100% NA 55.34% 55.34%
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% segment due to its distribution,
Slide 11: Cooling Hair Oil Market in India
Cooling Hair Oil Market in India Cooling Hair Oil – Volume Cooling Hair Oil – Value 25,000 1,000 869 875 900 19,498 760 20,000 18,520 18,243 800 16,610 700 667 Y-o-Y – (-6.4%) 14,655 594 Rs. Cr. 15,000 600 12,416 KLtr 485 Y-o-Y – 5.0% Y-o-Y – 0.7% Y-o-Y - 18% Y-o-Y - 13% Y-o-Y - 12% 500 Y-o-Y – 14%
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: Anti-Marks Skincare Segment Overview
Anti-Marks Skincare Segment Overview Anti-Marks Category is 342cr & growing by 27% It is distributed through 8.5lac outlets which are growing by 32% Anti Marks (Rs 342cr) Currently Nomarks is present in 2.7lac outlets pan India Brand relaunched as Bajaj Nomarks in Oct’13 across India Face Wa
Slide 16: 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% 60 55 58.8% 50 60.0% 53.0% 55.0% 56.9% 50 46 50.7% 40 42 50.0% 46.5% 38 40 35 40.3% 30 32 40.0% 36.7% 28 29 31.4% 30 30.0% 20 20.0% 10 10.0% 0 0.0% 05-06 06-06 07-08 08-09
Slide 17: 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 16
Slide 18: Strong Distribution Network
Strong Distribution Network Distribution Network Distribution Structure The company reaches Factory (5) 47 consumers through 2.62mn retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhanh- 1 6889 distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1, Guwahati-1 50 15,122 wholesale
Slide 19: Van Operations
Van Operations Started in FY 13 with a objective of increasing Rural Sales Piloted 39 Vans in Q4 FY 13 Currently operating 91 vans (for Sales) and 6 Video Vans (for Promotions) Vans cover 6481 uncovered Towns and Villages on a monthly basis In Q3 FY 14 — Bajaj Almond Drops Hair Oil got 39.
Slide 20: Organization Structure
Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra President Operations Director – Business GM – Marketing GM – HR Head- Sales Mr. Apoorv Bajaj Development Mr. Gurpreet S. Mr. Subhamay Mr. Sudhir Mr. Jimmy Anklesaria Amrit Chatterjee Taneja Head Internation
Slide 21: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q3FY14 Q3FY13 9M FY14 9M FY13 31-12-2013 31-12-2012 2012-13 (Rs. In Crore) (Rs. In Crore) Sales (Net) 158.21 148.06 486.50 421.97 EBITDA 42.77 42.98 133.89 120.97 Shareholders Equity 595.94 546.08 483.80 EBI
Slide 22: EBITDA & PAT Performance
EBITDA & PAT Performance ` in Crore Particulars Q3FY14 Q3FY13 YoY% 9M FY14 9M FY13 YoY% EBITDA 42.77 42.98 -0.49% 133.89 120.97 10.68% Profit Before Tax & Exceptional 48.56 52.64 -7.76% 158.79 147.85 7.40% Item Exceptional Item 11.75 - 16.85 - (Brand Amortisation) Profit Before Tax 36.81 52.64 -30.0
Slide 23: Profit & Loss Q3FY2014
Profit & Loss Q3FY2014 ` in Crore Particulars Q3FY14 Q3FY13 YoY% 9M FY14 9M FY13 YoY% Net Sales 158.21 148.06 6.85% 486.50 421.97 15.29% Other Operating Income 0.36 0.23 0.71 0.57 Material Cost 63.33 62.62 195.24 182.63 % of Sales 40.03% 42.29% 40.13% 43.28% Employees Cost 8.38 6.86 25.35 20.52 % of
Slide 24: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q3FY13 v/s Q3FY14 9MFY13 v/s 9MFY14 200 600 500 In ` Crores In ` Crores 150 400 100 300 148.06 158.21 421.97 486.50 200 50 100 0 0 Q3 FY13 Q3 FY14 9M FY13 9M FY14 Sales for the quarter ended December’13 has increased by 6.85% value wise and 0.90% v
Slide 25: 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 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 Q1 1,163,796 952,959 21,653 28,665 9,853 11,481 1,732 2,455
Slide 26: Consistent Performance over the last 15 successive quarters
Consistent Performance over the last 15 successive quarters 40.00% Gr (Value) Gr (Vol) 35.00% 35.12% EBIDTA 30.00% 30.29% 29.03% 28.53% 28.26% 28.19% 28.76% 28.25% 28.37% 25.00% 27.09% 27.04% 25.68% 25.51% 24.96% 23.17% 20.00% 15.00% 10.00% 5.00% 14.91% 19.19% 11.19% 24.07% 17.39% 27.60% 21.09% 30.4
Slide 27: Breakup of RM/PM Costs (for Q3 FY14)
Breakup of RM/PM Costs (for Q3 FY14) Key Raw & Packing Material % to Sales % to Total Cost LLP 13.57% 33.89% Glass Bottles 10.53% 26.30% Refined Veg. Oil 4.01% 10.02% Perfumes & other additives 3.23% 8.06% Corrugated Boxes 1.78% 4.44% Caps 2.63% 6.56% Others 4.29% 10.73% TOTAL 40.03% 100.00% * Consu
Slide 28: 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 78.63 75.85 80.07 74.89 40 79.71 76.16 81.55 72.74 20 20 0 0 Qtr3 FY13 vs FY14 9M FY13 vs FY 14 Qtr3 FY13 vs FY14 9M FY13 vs FY 14 During the quarter average price of LLP de
Slide 29: Cash Balances
Cash Balances Cash Balances: The total cash balance with the company as on 31st December 2013 is Rs. 408.64 Crores This has been invested in Bank Fixed Deposits, Certificate of Deposits of Banks , PSU Bonds and Liquid MFs. There is no investment in ANY Corporate Deposit Loan: The existin
Slide 30: 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.) 2013-14 1,475 1 9587.50 650% 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% 9.50
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 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 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
Slide 33: Thank You
Thank You