Slide 1: Investor Presentation
Investor Presentation October 2016
Slide 2: Industry Overview
Industry Overview
Slide 3: Industry Size and Structure
INDUSTRY SIZE AND STRUCTURE FMCG Rs. 2,58,122 cr Hair Care 7% CONTRIBUTION Rs. 19,064 cr Shampoo Perfumed Oil Coconut Based Oil Hair Conditioners Hair Dyes Rs. 5,678 cr Rs. 6,411 cr Rs. 3475 cr Rs. 461 cr Rs. 3,038 cr (30%)* (34%)* (18%)* (2%)* (16%)* Hair Oil Market Amla Coconut based Oils Light Ha
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 9,278 250 236 238 8,676 214 7,867 197 8,000 6,981 200 H1-O-H1 - 0.9% (In ‘000 KLtr) 5,728 (Rs. Cr.) H1-O-H1 – 2.3% 6,000 5,044 4,923 150 127 4,498 100 4,000 50 2,000 0 0 08-09
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 1,600 1,474 1,503 30.0 26.8 1,400 1,311 25.0 22.4 1,200 1,080 (In ‘000 KLtr) 19.9 20.0 18.4 1,000 831 16.2 802 H1-O-H1 1.2% (Rs. Cr.) 710 H1-O-H1 0.2% 800 15.0 610 600 10.0 400 5.0 200
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% 60% 60% 59.9% 58% 60.0% 56.6% 57.7% 58.0% 57.0% 60% 55% 57% 54.4% 53% 51.9% 51% 50.0% 48.0% 49.1% 50% 47% 44.1% 40.0% 40% 30.0% 30% 20.0% 20% 10.0% 10% 0.0% 0% 08-09 09-10 10-11 11-12 12-13 13
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% 10.0% 9.5% 9.7% 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 4.5 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 3.7 1 North East 2.2 1 Rajasthan 1.6 1 Orissa 6.5 1 Punjab 3.2 1 WB 2.6 1 HP-JK 3.6 1 EZ 5.5 1 Haryana 4.4 1 Maharashtra 4.5 1 NZ 2.9 1 Mumbai 3.2 1 Madhya Pradesh 3.7 1 Gujarat 2.0 1 Chha
Slide 10: Statewise Market Share
Statewise Market Share LHO Volume ADHO Proportion % (Vol) ADHO Market Share % (Vol) 16-17 YTD Sep Saliency Urban Rural Total Urban Rural All India 100.0% 57 43 57.0 54.5 60.7 Delhi 6.1% 100 0 54.3 54.3 Raj 6.0% 53 47 46.5 51.1 42.3 Punjab 4.0% 69 31 54.5 52.7 59.2 Har 6.4% 76 24 58.4 55.2 71.2 HP-JK
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% 8% 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% 58% 60% 60% 59.9% 60% 55% 57% 51% 53% 50% 47% 40% 30% 20% 10% 0% 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 YTD Sep Comparative Price of Different Brands fo
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 – Last U&A (
Slide 17: Strong Distribution Network
Strong Distribution Network Strong Distribution Network Distribution Network Distribution Structure The company reaches consumers through 3.6mn retail outlets serviced by 7751 distributors (including Factory (8) MT stockists) and 13818 wholesalers OWN – Himachal Pradesh -2, Uttarakhand- 1 THIRD PART
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 109 vans (for Sales) Vans cover 7328 uncovered Towns and Villages on a monthly basis For YTD Sept 16, — Bajaj Almond Drops Hair Oil got 43.1 % of its sales from Rural
Slide 19: Organization Structure
Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra GM- Operations President Operations Head IB Head – Supply VP – HR Head Legal President- Sales & Mr. Kabir Sahni Mr. Apoorv Bajaj Mr. Pankaj Chain & Mr. Subhamay Mr. Ashish Kr. Marketing - Banerjee Procureme
Slide 20: Financial Information
Financial Information Summary Income Statement Summary Balance Sheet (Rs. In Crore) (Rs. In Crore) Particulars Q2FY17 Q2FY16 HY 1 FY 17 HY 1 FY 16 Particulars As on As on Sales (Net) 196.15 189.57 399.88 389.71 (Rs. In Crore) 30.09.2016 31.03.2016 EBITDA 68.30 65.75 140.36 133.13 EBITDA Margin 34.82
Slide 21: EBITDA & PAT Performance
EBITDA & PAT Performance Rs. in Crore HY 1 FY HY 1 FY Particulars Q2FY17 Q2FY16 YoY% YoY% 17 16 EBITDA 68.30 65.75 3.87% 140.36 133.13 5.43% Profit Before Tax & 80.81 71.54 12.96% 158.91 143.52 10.72% Exceptional Item Exceptional Item (Trademark 6.64 11.75 18.38 23.49 & Intellectual Properties) Prof
Slide 22: Profit & Loss Q2 and I Half FY2017
Profit & Loss Q2 and I Half FY2017 Rs. in Crore Particulars Q2FY17 Q2FY16 YoY% HY 1 FY 17 HY 1 FY 16 YoY% Net Sales 196.15 189.57 3.47% 399.88 389.71 2.61% Other Operating Income 0.63 0.55 1.21 1.28 Material Cost 66.17 72.98 136.56 150.24 % of Sales 33.74% 38.50% 34.15% 38.55% Employees Cost 14.64 1
Slide 23: Sales Performance
Sales Performance Sales (Value) : Sales (Value) : Q2FY16 v/s Q2FY17 HY1 FY 16 v/s FY1 FY17 250 450 400 200 In ` Crores In ` Crores 350 300 150 250 100 200 389.71 399.88 189.57 196.15 150 50 100 50 0 0 Q2 FY16 Q2 FY17 HY1 FY16 HY1 FY17 Sales for the quarter ended September’16 has increased by 3.47%
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 Q1 1,269,7031,241,928 7,483 7,435 11,801 14,073 45,072 49,630 29,195 40,210
Slide 25: Consistent Performance over the last 14 successive quarters
Consistent Performance over the last 14 successive quarters 40.00% 35.37% 34.82% 35.00% 33.62% 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% 29.83% 21.06% 27.8
Slide 26: Breakup of RM/PM Costs (for Q2 FY 17)
Breakup of RM/PM Costs (for Q2 FY 17) Key Raw & Packing Material % to Sales % to Total Cost LLP 8.17% 24.02% Glass Bottles 9.17% 26.94% Refined Veg. Oil 4.37% 12.86% Perfumes & other additives 3.59% 10.55% Corrugated Boxes 1.79% 5.25% Caps 2.03% 5.95% Others 4.91% 14.43% TOTAL 34.02% 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 40 82.02 78.41 77.64 77.13 58.82 59.30 20 44.55 44.22 20 0 0 Qtr2 FY16 vs FY17 HY1 FY16 vs FY17 Qtr2 FY16 vs FY17 HY1 FY16 vs FY17 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’ 2016 is Rs. 414.45 Crores This has been invested in Bank Fixed Deposits, AAA rated PSU Bonds, Commercial Papers, Government Securities and Liquid MFs. There is no investment in ANY Inter Corporate De
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.) 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 9,587.50 650% 6.50 2011-12 1,475 1 5,900.00
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