Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Bajaj — Q1 FY2013 Earnings Presentation
27 slides from Bajaj Consumer Care's earnings presentation, August 2012
Slide 1: Investor Presentation
Investor Presentation August 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 3M-o-3M 17.9% 132560 4,000 3M-o-3M 4.7% 150,000 Y-o-Y 10.1% Y-o-Y 8.6% Y-o-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 3M-o-3M 15.6% 3M-o-3M 26% 15,000 600 (In KLtr) Y-o-Y 17.1% 12.5% 11764 472 Y-o-Y 16.4% Y-o-Y 27.1% Y-o-Y 17.1% 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 60% 60% 54.0% 54.3% 50.9% 51.9% 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 (3M) (3M) *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 3.62 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 (6M) 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 3.0 1st Madhya Pradesh 3.6 1st Rajasthan 1.6 1st Chhattisgarh 4.3 1st Uttar Pradesh 2.7 1st Central Zone 3.8 1st Punjab 3.7 1st Gujarat 2.1 1st Haryana 3.2 1st Mumbai 2.4 1st Uttaranchal 4.5 1st Maharashtra 3.2
Slide 9: Statewise Market Share
Statewise Market Share LHO Volume Proportion % ADHO Market Share % (Vol) Jul11-Jun12 Saliency Urban Rural Total Urban Rural All India (U+R) 100 64.4 35.6 51.9 49.8 55.7 Punjab 5.3 71.6 28.4 50.3 47.9 56.4 Haryana 5.9 83.1 16.9 50.3 47.1 66.1 Delhi 6.7 100.0 0.0 48.8 48.8 NA Rajasthan 8.4 62.7 37.3 4
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, 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 11: 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 14,655 700 667 14,000 594 12,416 600 6M-o-6M - 11% Rs. Cr. 12,000 485 9794 500 KLtr 6M-o-6M - 19% 427 Y-o-Y - 18% 10,000 Y-o-Y - 13% Y-o-Y - 12% Y-o-Y - 23% Y-o-Y - 12%
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 2.38 mn 47 retail outlets serviced by OWN – Himachal Pradesh -2, Uttarakhand-1 6178 direct distributors and THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 50 13,548 wholesalers 19
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 Q1 2013 Q1 2012 FY12 FY11 Q1 2013 Q1 2012 2011-12 2010-11 (In Rupees Crores) (In Rupees Crores) Sales (Net) Shareholders Equity 466.70 404.91 428.81 376.38 138.05 106.58 472.24 358.67 Total Debt - - - - EBIT
Slide 19: EBITDA & PAT Performance
EBITDA & PAT Performance Particulars Q1 FY13 Q1 FY12 YoY% FY12 FY11 YoY% (In Rs. Crores) EBITDA 38.92 26.60 46.32% 116.64 108.93 7.08% Profit Before Tax & 47.13 35.65 32.20% 151.34 124.04 22.01% Exceptional Items Exceptional Items - - - 18.96 (IPO Expenses) Profit Before Tax (PBT) 47.13 35.65 32.20%
Slide 20: Profit & Loss Q1FY2013
Profit & Loss Q1FY2013 Particulars (In Rs. Crores) Q1FY13 Q4FY12 Q1FY12 YoY% FY12 FY11 YoY% Net Sales 138.05 146.59 106.58 29.53% 472.24 358.67 31.66% Other Operating Income 0.19 0.45 0.10 1.08 0.77 Material Cost 61.77 69.37 50.66 221.70 156.58 % of Sales 44.74% 47.32% 47.53% 46.95% 43.66% Employees
Slide 21: Sales Performance
Sales Performance Sales (Value) : Q1FY12 v/s Q1FY13 Sales (Value) : FY11 v/s FY12 160 500 140 400 In Rs. Crores In Rs. Crores 120 100 300 80 472.24 60 138.05 200 106.58 358.67 40 100 20 0 0 Q1 FY12 Q1 FY13 FY11 FY12 Sales for the quarter ended Jun’12 has increased by 29.53% value wise and 22.35% v
Slide 22: Statement of Quarter wise Sales (Volume & Value)
Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERLY SALES (VOLUME - In Cases ) Product Q1 FY13 % to Total Q1 FY12 % to Total ADHO 952959 95.28% 765858 93.69% KPCO 28665 2.87% 28777 3.52% BAHO 11481 1.15% 14125 1.73% ASHO 2455 0.25% 4451 0.54% OTHERS 4639 0.46% 4249 0.52% TOTAL 10
Slide 23: Breakup of RM/PM Costs (for Q1FY13)
Breakup of RM/PM Costs (for Q1FY13) Key Raw & Packing Material % to Sales % to Total Cost LLP 16.8% 38.5% Glass Bottles 10.9% 25.0% Refined Veg. Oil 4.6% 10.4% Perfumes & other additives 3.3% 7.7% Corrugated Boxes 1.9% 4.4% Caps 2.2% 5.0% Others 3.9% 9.0% TOTAL 43.6% 100.0% * Consumption is 43.6% of
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 90 80 80 86.26 70 79.80 76.11 70 80.40 81.55 Amount (Rs.) Amount (Rs.) 60 60 71.45 50 61.91 61.66 50 40 40 30 30 20 20 10 10 0 0 Qtr 1 FY12 vs FY13 FY11 vs FY12 Qtr 1 FY12 vs FY13 FY11 vs FY12 During the quarter ave
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