Slide 1: Investor Presentation
Investor Presentation April 2017
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
INDUSTRY SIZE AND STRUCTURE FMCG Rs. 275,183 cr Hair Care 7% CONTRIBUTION Rs. 19,671 cr Hair Shampoo Coconut Oil Hair Oil Hair Dyes Conditioners Rs. 5,952 cr Rs. 3282 cr (-7%) Rs. 6,646cr (5%) Rs. 3,285 cr Rs. 506 cr (30%)* (17%)* (34%)* (17%)* (3%)* 24% 25% 17% 11% 14% Amla Based Oils Ayurvedic/ Li
Slide 4: Hair Oil Market in India
Hair Oil Market in India Overall Hair Oil Market – Volume Overall Oil Market – Value 12,000 300 269 9,886 247 251 253 10,000 9,278 9,184 236 238 240 8,676 250 214 7,867 YTD Growth 3.3 % 197 8,000 6,981 200 (In ‘000 KLtr) YTD Growth 1.2 % 5,728 (Rs. Cr.) 6,000 5,044 150 4,498 100 4,000 50 2,000 0 0 0
Slide 5: Light Hair Oil Market in India
Light Hair Oil Market in India Light Hair Oil – Volume Light Hair Oil – Value 1,800 35.0 31.9 32.3 1,602 30.0 31.0 30.1 1,600 1,474 1,503 1,489 30.0 26.8 1,400 1,311 25.0 22.4 1,200 1,080 (In ‘000 KLtr) YTD Growth 3.8 % 19.9 YTD Growth 2.6 % 20.0 18.4 1,000 831 (Rs. Cr.) 800 710 15.0 610 600 10.0 40
Slide 6: Market Share Trends in Light Hair Oil Category
Market Shares Trends in Light Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 70.0% 70.0% 60.3% 61.0% 60.7% 60.0% 56.6% 57.8% 58.3% 58.0% 60.0% 56.9% 58.4% 54.4% 55.0% 51.9% 53.0% 50.7% 50.0% 48.0% 49.1% 50.0% 46.5% 44.1% 40.0% 40.0% 30.0% 30.0% 20.0% 20.0% 10.0% 10.0% 0.0% 0.0%
Slide 7: Market Share Trends in Total Hair Oil Category
Market Shares Trends in Total Hair Oil Category (All India - Urban Plus Rural) Volume MS Value MS 8.0% 12.0% 7.4% 7.3% 7.1% 7.0% 6.6% 6.7% 9.9% 9.8% 10.0% 9.5% 9.7% 9.7% 6.0% 5.8% 8.5% 8.0% 7.7% 5.0% 4.7% 7.1% 4.5% 4.1% 6.3% 4.0% 6.0% 3.0% 4.0% 2.0% 2.0% 1.0% 0.0% 0.0% 08-09 09-10 10-11 11-12 12-13
Slide 8: ADHO – Relative Market Share – Value Trend
ADHO – Relative Market Share – Value Trend Relative Market share is the ratio of Bajaj Almond Drops market share to the next largest competitor in LHO segment 5.0 Relative MS Value 4.6 4.5 4.3 4.2 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 08-09 09-10 10-11 11-12 12-13 13-14 14-15 1
Slide 9: ADHO – Relative Market Shares – Value
ADHO – Relative Market Shares – Value Relative Market Relative States Rank States Rank Share Market Share Delhi 4.4 1 North East 2.6 1 Rajasthan 1.6 1 Orissa 6.6 1 Punjab 3.1 1 WB 2.8 1 HP-JK 3.4 1 Maharashtra 4.5 1 Haryana 4.5 1 Mumbai 3.4 1 Madhya Pradesh 3.8 1 Gujarat 2.1 1 Chhattisgarh 7.4 1 AP
Slide 10: Statewise Market Share
Statewise Market Share LHO Volume ADHO Proportion % (Vol) ADHO LHO Market Share % (Vol) 16-17 YTD Feb Saliency Urban Rural Total Urban Rural All India 100.0% 58.0% 42.0% 58.0% 55.7% 61.5% Delhi 6.6% 100.0% 58.2% 58.2% Raj 7.9% 53.0% 47.0% 46.2% 49.7% 42.8% Punjab 4.3% 70.9% 29.1% 53.6% 52.1% 57.6% H
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 3% 7% 5% 39% Urban dominated segment due to its 6% Grocers dominate relatively higher distribution 61% pricing 78% AI Urban AI Rural Modern Trade Pan Plus Chemists Cosmetics G
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 Normal Skin, Oily Skin & Dry Skin Types, available in sizes 12g(Normal skin) & 25g Bajaj Nomarks Facewash for Clear Glowing Fairness (50g) & Neem Facewash (15g, 50g & 100g) Bajaj Nomarks Soaps Herbal Scrub Soap and Neem Soap, available in sizes 125g Bajaj
Slide 15: Bajaj Almond Drops - A Premium Brand
Bajaj Almond Drops - A Premium Brand Strong Market Share (Val) Growth in Recent Years . . . But not at the cost of pricing power 70.0% 60.3% 61.0% 60.7% 70 55.0% 56.9% 58.4% 58 60 60 60.0% 50.7% 53.0% 60 55 46.5% 50 50.0% 50 46 40 42 40.0% 35 38 40 32 30.0% 20.0% 30 10.0% 20 0.0% 10 08-09 09-10 10-1
Slide 16: Consumer Profile- Bajaj Almond Hair Drops Oil Users
Consumer Profile- Bajaj Almond Hair Drops Oil Users For Light Hair Oils, the consumer is skewed towards SEC A,B and younger age group. — Gender Male- 43% Female- 57% — Age Group 25 to 35 yrs ( 58% of users) — Socio Economic Class (SEC)- Urban A – 21% B – 36% C – 30% Source : UA 2012 15
Slide 17: Strong Distribution Network
Strong Distribution Network Strong Distribution Network Distribution Network Distribution Structure The company reaches consumers Factory (9) through 3.6mn retail outlets OWN – Himachal Pradesh -2, Uttarakhand- 1, serviced by 7707 distributors and Guwahati 1 11500 wholesalers THIRD PARTY - Himachal
Slide 18: Sales Force Automation
Sales Force Automation • SFA program has been launched under the name of Project Saathi this year. • It was started with the objective of better coverage & control of distribution, better efficiency • Current all 950 ISR are in under SFA • Future ISR addition will be with SFA • Seam less Backend int
Slide 19: Organization Structure
Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra GM- Operations President Operations Head – Supply VP – HR Head Legal President- Sales & Mr. Kabir Sahni Mr. Apoorv Bajaj Chain & Mr. Subhamay Mr. Ashish Kr. Marketing - Procurement Chatterjee Panigrahi Mr.S
Slide 20: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Q4FY17 Q4FY16 FY 17 FY 16 Particulars As on As on Sales (Net) 204.21 208.26 790.49 793.67 31.03.2017 31.03.2016 EBITDA 67.32 76.58 270.00 278.55 EBITDA Margin 32.96% 36.77% 34.16% 35.10% Sh
Slide 21: EBITDA & PAT Performance
EBITDA & PAT Performance Rs. in Crore Particulars Q4 FY17 Q4 FY16 YoY% FY 17 FY 16 YoY% EBITDA 67.32 76.58 -12.10% 270.00 278.55 -3.07% Profit Before Tax & 66.87 80.72 -17.16% 299.26 298.68 0.19% Exceptional Item Exceptional Item (Trademark - 11.74 18.38 46.98 & Intellectual Properties) Profit Befor
Slide 22: Profit & Loss Q4 and FY2017
Profit & Loss Q4 and FY2017 Rs. in Crore Particulars Q4 FY17 Q4 FY16 YoY% FY 17 FY 16 YoY% Net Sales 204.21 208.26 -1.94% 790.49 793.67 -0.40% Other Operating Income 0.33 0.53 2.05 2.19 Material Cost 66.96 74.35 267.90 297.19 % of Sales 32.79% 35.70% 33.89% 37.45% Employees Cost 15.22 12.04 59.39 45
Slide 23: Sales Performance
Sales Performance Sales (Value) : FY 16 v/s FY17 900 800 In ` Crores 700 600 500 400 793.67 790.49 300 200 100 0 FY16 FY17 Sales for the quarter ended March’17 has decreased by 1.94%. Sales for the year ended March’17 has decreased by 0.40%. 22
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 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 FY 16 8,081 Q1 1,269,703 1,241,928 7,483 7,435 11,801 14,073 45,072 49,630 29,195
Slide 25: Consistent Performance over the last 16 successive quarters
Consistent Performance over the last 16 successive quarters 40.00% 35.37% 34.82% 35.00% 33.62% 33.44% 32.96% 31.88% 32.35% 31.67% 30.86% 30.00% 28.37% 28.65% 28.58% 28.27% 29.24% 27.09% 27.04% 25.00% 20.00% Gr (Value) 15.00% Gr (Vol) EBIDTA 10.00% 5.00% 23.18% 20.16% 16.48% 14.96% 12.36% 18.55% 29.8
Slide 26: Breakup of RM/PM Costs (for Q4 FY 17)
Breakup of RM/PM Costs (for Q4 FY 17) Key Raw & Packing Material % to Sales % to Total Cost LLP 8.26% 24.37% Glass Bottles 9.27% 27.34% Refined Veg. Oil 4.54% 13.39% Perfumes & other additives 3.63% 10.71% Corrugated Boxes 1.81% 5.32% Caps 2.05% 6.04% Others 4.35% 12.82% TOTAL 33.90% 100.00% * Consu
Slide 27: Change in Prices of Key Ingredients
Change in Prices of Key Ingredients Per kg Rates of Oil Per kg Rates of LLP 70.00 100.00 93.76 59.51 58.82 86.21 60.00 90.00 83.72 54.70 55.02 82.02 83.97 81.68 79.89 75.97 78.41 80.00 46.41 73.15 50.00 46.37 46.22 45.80 43.91 44.55 70.00 2016-17 40.00 60.00 2016-17 2015-16 50.00 30.00 2015-16 40.00
Slide 28: Fund Position
Fund Position Fund Position: The total Fund available with the company as on 31st March’ 2017 is Rs. 342.40 Crores This has been invested in Bank Fixed Deposits, AAA rated Bonds and Liquid MFs. There is no investment in ANY Inter Corporate Deposit Particulars Amount (Rs. in Crores) Bank FDs
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.) 2016-17 1,475 1 16962.50 1150% 11.50 2015-16 1,475 1 16962.50 1150% 11.50 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 9,587.5
Slide 30: Managerial Bandwidth
Managerial Bandwidth As a constant endeavour to add to the Managerial capabilities within the company we constantly engage in in-house and out bound training programs Further to make all the functions better equipped in terms of bench strength the company is also in the process of recruiting exp
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 Sugar Ltd Bajaj Corp Ltd has not and will not transfer funds from and to any other company within the Bajaj Group The Company acquired in September 2011 (Upto
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