Light Hair Oil Market

Investor Presentation
January 2015
Industry Overview
Industry Size and Structure
FMCG
Rs.220,594 cr (USD 36.77 bn)
Hair Care
Rs. 15,994 cr (USD 2.67 bn)
Shampoo
Rs. 4958cr
(USD 826 mn)
(31.0%)*
Perfumed Oil
Rs. 4,714 cr
(USD 786mn)
(29.5%)*
Coconut Based Oil
Rs. 3386 cr
(USD 564mn)
(21.2%)*
7% salience
Hair Conditioners
Rs. 480 cr
(USD 80 mn)
(3.0%)*
Hair Dyes
Rs. 2,559 cr
(USD 427 mn)
(16.0%)*
Hair Oil Market
Coconut based
Oils
(42%)**
Light Hair Oils
(18%)**
Amla Based Hair
Oils
(17%)**
Cooling Oils
(10%) **
Others
(13%)**
Perfumed Hair Oil Segment
Source: AC Nielsen Retail Audit Report.
Only branded products data for FY 2013-14
* Value based share of Hair Care Market
** Value based share of Hair Oil Market
Light Hair Oil is now the largest non-coconut hair oil segment
2
Hair Oil Market in India
Overall Hair Oil Market – Volume
9,000
7,867
8,000
06-07
07-08 08-09 09-10
Light Hair Oil – Volume
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15
(9M)
Source: AC Nielsen Retail Audit Report, Dec 2014.
8M-o-8M 5.7%
14-15
(9M)
1,471
1311
1,000
Y-o-Y 12.2%
200
Y-o-Y 30%
335.6
472
Y-o-Y 16.4%
610
600
710
Y-o-Y 17.1%
831
800
400
1,123
1,080
9M-o-9M 1.8%
1,200
Y-o-Y 29%
0
(Rs. Cr.)
Y-o-Y 6.6%
Y-o-Y 11.9%
Y-o-Y 19.5%
Y-o-Y 12.5%
Y-o-Y 8.3%
11764
9M-o-9M -3.2%
18,390
Y-o-Y 18%
5,000
23,340
19,908
15,603
Y-o-Y 33%
(In KLtr)
10,000
1,600
1,400
22,406
20,000
15,000
31,928
26,768
25,000
12-13 13-14
Light Hair Oil – Value
Y-o-Y 40%
30,000
10-11 11-12
Y-o-Y 21.4%
29,958
Y-o-Y 6.9%
0
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15
(9M)
35,000
Y-o-Y 12.7%
1,000
0
Y-o-Y 22%
2,000
Y-o-Y 13.6%
2,827.3
5,044
Y-o-Y 12.1%
3,707
Y-o-Y 21%
4,498
5,000
3,000
6,719
5,728
6,000
4,000
8,408
6,981
7,000
Y-o-Y 31%
9M-o-9M - 6.1%
Y-o-Y 3.1%
50,000
Y-o-Y 3.9%
100,000
Y-o-Y 1.2%
132560
Y-o-Y 14%
150,000
Y-o-Y 30%
(In KLtr)
200,000
Y-o-Y 10.1%
250,000
Y-o-Y 8.6%
247,478255,178
235,539238,283
214,002
197,057
182,239
172,528
(Rs. Cr.)
300,000
Overall Oil Market – Value
0
06-07
07-08 08-09 09-10
10-11 11-12
12-13 13-14
14-15
(9M)
Light hair oils is one of the fastest growing segments in the hair oil market in India
3
Light Hair Oil Market in India
Light Hair Oil – Volume
Light Hair Oil – Value
1,600
1,000
06-07
Almond Drops Hair Oil Market - Volume
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14
Source: AC Nielsen Retail Audit Report, Dec 2014.
14-15
(9M)
10-11 11-12
12-13 13-14
14-15
(9M)
875
746
678
06-07
07-08 08-09 09-10
10-11 11-12
12-13 13-14
Almond Drops is the brand which is driving light hair oils and in turn the overall market
9M-o-9M 3.8%
123
284
441
Y-o-Y 17.3%
191
360
Y-o-Y 34.8%
594
Y-o-Y 22.6%
(Rs. Cr.)
9M-o-9M -1.2%
Y-o-Y 13.4%
Y-o-Y 17.3%
Y-o-Y 26.2%
11,006
Y-o-Y 15.1%
Y-o-Y 17.9%
Y-o-Y 35%
Y-o-Y 51%
(In KLtr)
5,988
3978
8,108
13,699
1,000
900
800
700
600
500
400
300
200
100
0
Y-o-Y 26.7%
16,298
9,559
07-08 08-09 09-10
Almond Drops Hair Oil Market - Value
18,474
13,895
Y-o-Y 12.2%
0
06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15
(9M)
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Y-o-Y 30%
200
0
472
Y-o-Y 16.4%
335.6
Y-o-Y 29%
610
600
710
Y-o-Y 17.1%
831
800
400
1,123
1,080
9M-o-9M 1.8%
1,200
Y-o-Y 48.9%
Y-o-Y 6.6%
Y-o-Y 11.9%
Y-o-Y 19.5%
5,000
Y-o-Y 12.5%
10,000
Y-o-Y 8.3%
Y-o-Y 33%
11764
Y-o-Y 18%
15,603
9M-o-9M -3.2%
18,390
20,000
19,908
Y-o-Y 40%
23,340
22,406
(Rs. Cr.)
25,000
1311
1,400
Y-o-Y 21.4%
26,768
1,471
Y-o-Y 54.5%
30,000
15,000
31,928
29,958
Y-o-Y 25 .6%
35,000
14-15
(9M)
4
Market Shares Trends (All India - Urban Plus Rural)
Volume MS
Value MS
70%
70%
60%
50%
40%
44.1%
48.0%
49.1%
51.9%
57.9%
54.4%
58.7%
60%
38.4%
40%
30%
30%
20%
20%
10%
10%
0%
0%
07-08
08-09
09-10
10-11
50.7%
50%
11-12
12-13
13-14
14-15
(9M)
53.0%
55.0%
56.9%
59.5% 60.4%
46.5%
40.3%
07-08 08-09 09-10 10-11 11-12 12-13 13-14
14-15
(9M)
*Market Share in the Light Hair Oil Category
Source: AC Nielsen Retail Audit Report, Dec 2014
5
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
3.5
3
2.5
2
1.5
1
0.5
0
4.04
3.17
4.34
4.39
2013
2014 (12M)
3.43
2.65
2.08
2008
2009
2010
2011
2012
Source – AC Nielsen Retail Audit Report, Dec 2014
Growth in Relative market share demonstrates the strength of the brand
6
ADHO – Relative Market Shares – Value
State
Delhi
Rajasthan
Uttar Pradesh
Punjab
HP-JK
Haryana
Uttaranchal
North Zone
Assam
North East
Bihar
Orissa
West Bengal
Jharkhand
East Zone
All India
Relative MS
4.4
1.6
4.1
3.4
5.1
5.0
3.9
4.2
5.5
2.6
9.3
5.0
3.1
7.3
5.9
4.4
Rank
1st
1st
1st
1st
1st
1st
1st
1st
1st
1st
1st
1st
1st
1st
1st
1st
State
Relative MS
Rank
Madhya Pradesh
3.9
1st
Chhattisgarh
7.4
1st
Central Zone
4.8
1st
Gujarat
2.3
1st
Mumbai
3.8
1st
Maharashtra
3.9
1st
West Zone
Andhra Pradesh
2.9
1st
1.0
1st
Karnataka
7.0
1st
Kerala
1.7
1st
Tamil Nadu
0.7
2nd
South Zone
1.6
1st
All India
4.4
1st
Relative Market share is the ratio of Almond Drops market share to the next largest competitor in LHO segment
Rank is the position of ADHO in respective state
Source – AC Nielsen Retail Audit Report, Dec 2014
7
Statewise Market Share
Jan 14- Dec 14
All India (U+R)
Punjab
Haryana
Delhi
Rajasthan
Uttar Pradesh
Uttaranchal
Assam
Bihar
Jharkhand
Orissa
West Bengal
Gujarat
Madhya Pradesh
Chattisgarh
Maharashtra
Karnataka
Andhra Pradesh
Tamil Nadu
Kerala
LHO Volume
Saliency
100.0%
5.9%
5.6%
5.8%
8.9%
21.5%
1.1%
5.4%
4.8%
1.3%
1.4%
7.3%
6.0%
11.8%
3.8%
6.2%
1.1%
1.5%
0.5%
0.1%
Proportion %
Urban
Rural
63.5%
36.5%
74.2%
25.8%
73.0%
27.0%
100.0%
NA
66.3%
33.7%
58.9%
41.1%
58.0%
42.0%
51.8%
48.2%
52.9%
47.1%
73.9%
26.1%
65.7%
34.3%
57.2%
42.8%
71.5%
28.5%
46.1%
53.9%
41.3%
58.7%
75.0%
25.0%
85.6%
14.4%
81.0%
19.0%
84.4%
15.6%
86.3%
13.7%
ADHO Market Share % (Vol)
Total
Urban
Rural
58.8%
56.4%
63.1%
53.7%
51.0%
61.6%
60.6%
56.7%
71.3%
58.6%
58.6%
NA
48.6%
48.4%
48.9%
64.3%
61.4%
68.4%
58.0%
51.7%
66.7%
55.0%
49.9%
60.4%
77.4%
74.9%
80.2%
70.7%
69.1%
75.1%
60.3%
59.7%
61.4%
43.1%
41.1%
45.8%
54.1%
48.9%
67.2%
61.9%
63.1%
60.9%
75.4%
70.5%
78.9%
59.5%
61.3%
54.1%
60.9%
59.8%
67.2%
38.7%
42.0%
24.2%
24.2%
21.9%
37.1%
20.8%
20.8%
21.3%
Source: AC Nielsen Retail Audit Report, MAT Dec 2014
8
Light Hair Oil Market – Key Characteristics
Rural –Urban break up of LHO market
Share of Distribution Channels in LHO market
Cosmetic
s, 7%
All India
- Rural
36%
All India
- Urban
64%
Urban dominated
segment due to its
relatively higher
pricing
Modern
Trade, 3%
Others,
6%
Large
Grocer/
GS, 29%
Chemists,
6%
Small
Grocer /
GS, 22%
Medium
Grocer/
GS, 28%
Traditional
channels dominate
distribution, but
alternate channels
like modern retail
demonstrating
higher growth rate
% - Market share
SKU wise break up of LHO market
300ml,
7.8%
500ml, 2-5ml,
5.3% 9.2% 10-45ml,
2.8%
50ml,
17.3%
200ml,
18.3%
100ml,
34.2%
75ml,
3.3%
Given the
dominance of the
urban market,
larger units
account for bulk
of the sales.
However, smaller
units growing fast
in Rural Markets
Region wise break up of LHO market
South,
3%
West,
28%
East,
19%
North,
50%
Sales tend to be
concentrated in
the Northern parts
of the country, but
West is the fastest
growing region
Source: AC Nielsen Retail Audit Report, Dec 2013
9
Cooling Hair Oil Market in India
Cooling Hair Oil – Volume
14,655
5,000
Y-o-Y – 18%
10,000
Y-o-Y – 4.1%
12,416
Y-o-Y - 14%
Rs. Cr.
15,000
Y-o-Y - 12%
100
19,486
18,607
16,610
Y-o Y–( -4.5)%
Y-o-Y – (-3.3%)
Y-o-Y – 8.7%
Y-o-Y - 12%
200
Y-o-Y - 13%
300
Y-o-Y - 18%
KLtr
594
400
18,520
20,000
667
485
25,000
20,128
760
700
500
912
Y-o-Y - 23%
900
800
600
934
897
Y-o-Y –(- 2.4)%
1,000
Cooling Hair Oil – Value
0
CY08
CY09
CY10
CY11
CY12
CY13
0
CY14
CY08
Kailash Parbat – Distribution Trend
3.5
2.5
2.0
1.3
1.2
0.9
1.0
0.4
0.5
2.0
1.8
1.6
1.6
1.5
1.5
CY12
CY13
CY14
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
2.9%
2.9%2.8%
2.6%
2.5% 2.5%
2.4%
2.4%
2.4%2.4%
2.3% 2.3%
2.2%
2.5%
2.5%
2.1%
2.0%
1.9%
1.9%
1.8%
1.8%
1.8%
1.7%
1.7%
1.7%
1.6%
1.4%
1.4%
1.3%
1.2% 1.2%
1.0% 1.0% 1.0%
0.8%
0.4%
0.0%
MAY11
JUL11
SEP11
NOV11
JAN12
MAR12
MAY12
JUL12
SEP12
NOV12
JAN13
MAR13
MAY13
JUL13
SEP13
NOV13
JAN14
MAR14
MAY14
JUL14
SEP14
NOV14
0.0
CY11
Source – AC Nielsen Retail Audit Report, Dec 2014
MAY11
JUL11
SEP11
NOV11
JAN12
MAR12
MAY12
JUL12
SEP12
NOV12
JAN13
MAR13
MAY13
JUL13
SEP13
NOV13
JAN14
MAR14
MAY14
JUL14
SEP14
NOV14
Lakh outlets
3.0
3.6
3.3
3.3
3.3
3.2
3.2
3.2
3.1 3.0
3.1
2.9
2.9
2.8
2.7
2.7
CY10
Kailash Parbat – Volume Market Share Trend
%
3.6
3.6
3.5
3.2
3.2 3.1
3.0
3.0
2.8
2.8
2.5
4.0
CY09
10
Company Overview
Bajaj Corp Ltd. (BCL) – An
Overview


Part of Bajaj Group which has business interests
in varied industries including sugar, consumer
goods, power generation & infrastructure
development
Bajaj Almond Drops Hair Oil - A premium perfumed
hair oil containing almond oil and Vitamin E
Subsidiary of Bajaj Resources Ltd. (BRL)
Bajaj Kailash Parbat Cooling Oil – An ayurvedic
formulation containing Sandal & Almond extracts



Haircare Portfolio
BCL is the exclusive licensee of brands
owned by BRL
Brands licensed to BCL for 99 years from
2008
Key brand – Bajaj Almond Drops Hair Oil

2nd largest brand in the overall hair oils
segment

Market leader with over 60% market share*
of LHO market

Premium positioning commands one of the
highest per unit prices in the industry

New Product Launch: Bajaj Kailash Parbat
Cooling Oil

Other brands - Brahmi Amla, Amla Shikakai and
Jasmine (all hair oil brands) and Black tooth
powder *Source: AC Nielsen Retail Audit Report, Dec 2014.
Competitors – Keo Karpin (Dey’s Medical), Hair &
Care (Marico), Clinic All Clear (HUL)
Competitors: Himani Navratna
Bajaj Brahmi Amla Hair Oil - Traditional heavy hair
oil. Brand has been in existence since 1953
Competitors - Dabur Amla, Dabur Sarson Amla
Bajaj Amla Shikakai – Variant in the heavy hair oil
segment catering to price conscious consumers
Competitors - Shanti Badam Hair Oil (Marico)
Bajaj Jasmine Hair Oil - A Jasmine flower perfumed
hair oil. In demand due to cultural significance.
Bajaj Kala Dant Manjan – An oral care product for
the rural market.
12
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, available in sizes
125g & 75g
Bajaj NOMARKS Exfoliating Walnut Scrub, 50g & 100g
and Bajaj NOMARKS Dry Face Pack 25g
Bajaj Almond Drops - A Premium Brand
Strong Market Share Growth in Recent Years
70.0%
60.0%
46.5%
50.0%
40.0%
36.7%
55.0% 56.9%
50.7% 53.0%
. . . But not at the cost of pricing power
70
59.5% 60.4%
60
50
40.3%
40
31.4%
30
30.0%
28
29
32
30
35
38
40
46
42
50
55
58
20
20.0%
10
10.0%
0
0.0%
05-06 06-06 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15
(9M)
Comparative Price of Different Brands for 100 ml in the Hair Oil Segment
Competitor Brands
70
58
(MRP of 100ml (Rs.)
60
50
45
42
40
30
62
60
42
46
50
34
23
20
10
0
Amla Shikakai Brahmi Amla Almond Drops Kailash Parbat
Source: AC Nielsen Retail Audit
Report Dec 2014, Kotak
Institutional Research
Parachute
Keo Karpin
Dabur Vatika
Dabur Amla
Hair & Care
Navratna
Almond Drops has created a unique positioning for itself through initiatives like product differentiation
(Almond based), focused marketing, unique packaging (glass vs. plastic used by competition etc.)
14
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
Strong Distribution Network
Distribution Network
Distribution Structure
The company reaches
consumers through 2.76mn
retail outlets serviced by
7192 distributors and
15,586 wholesalers
47
50
Factory (5)
OWN – Himachal Pradesh -2, Uttarakhand- 1
THIRD PARTY - Himachal Pradesh-2, Rajasthan-1, Guwahati1, Uttarakhand- 1
71
206
Central Warehouse (1)
154
1695
528
411
343
612
195
627
Regional Distribution Centre (29)
517
177
Urban Distribution
225
Rural Distribution
515
46
272
255
MT - 69
Redistribution Stockist
(1,725)
Super Stockist (180)
Sub-Stockist (5367)
129
27
Retail Outlets
(1,078,732)1
1 - as on Nov 30, 2014. Nielsen New Sample
Retail Outlets
(1,680,097)1
Over the years, BCL has created a large distribution network (that continues to grow) which can be leveraged to
introduce new products
Van Operations
 Started in FY 13 with a objective of increasing Rural Sales
 Piloted 39 Vans in Q4 FY 13
 Currently operating 101 vans (for Sales) and 6 Video Vans (for Promotions)
 Vans cover 7588 uncovered Towns and Villages on a monthly basis
 In Apr- Nov 2014
— Bajaj Almond Drops Hair Oil got 40.0 % of its sales from Rural India
— Volume Growth in Rural India – 5.9% (Urban + Rural = -1.0%)
— Market share in Rural India – 63.1% (Urban + Rural = 58.7%)
17
Organization Structure
Chairman
Mr. Kushagra Nayan Bajaj
Managing Director
Mr. Sumit Malhotra
HeadInternal
Audit
Mr. Manoj
Gupta
President Operations
Mr. Apoorv Bajaj
Chief Financial officer
Mr. V.C. Nagori
Vice President (Finance)
Mr. D.K. Maloo
VP – Marketing
Mr. Gurpreet S.
Amrit
Head International
Business –
Arnab Banerjee
Country ManagerBangladesh, Nepal,
GCC and SEAN
DGM –IT
Mr. Dharmesh J. Sanghavi
Purchase
Manager
DGM-Key
Accounts
VP – HR
Mr. Subhamay
Chatterjee
GM- Sales
Mr. M K
Sachdeva
DGM –South &
West
AGM - North 1
GM- Operations
Mr. Kabir Sahni
AGM - Central
AGM- North 2
Company
Secretary
Sr. Manager
Treasury
Regional
Commercial
Manager- 4 in
No's
Sr.
ManagerFinance
Works Manager
Head- QC & R&D
AGM- East
Manager
Planning &
Logistics
18
Financial Information
Summary Income Statement
Particulars
(Rs. In Crore)
Summary Balance Sheet
Q3FY15 Q3FY14 9M FY 15 9M FY 14
Sales (Net)
EBITDA
EBITDA Margin
Profit Before Tax &
Exceptional Item
Exceptional Item
(Trademark &
Intellectual Properties)
205.40
60.06
29.24%
158.21
42.77
27.04%
584.07
167.69
28.71%
486.50
133.89
27.52%
64.71
48.56
185.73
158.79
11.75
11.75
35.24
16.85
Profit Before Tax(PBT)
Net Profit after Tax
Net Profit Margin
52.96
41.84
20.37%
36.81
29.10
18.39%
150.50
118.89
20.36%
141.94
112.13
23.05%
Brandwise Sales Break-Up for 9MFY 2015
BAHO
1.3%
ASHO
0.3%
KPCO
0.6%
NOMARKS
7.1%
JHO
0.5%
Particulars
9M FY 15
(Rs. In Crore)
Shareholders Equity
437.39
Long Term Debts
9M FY 14
595.94
-
Net Fixed Assets
2013-14
522.08
60.00
-
123.05
172.28
160.89
292.67
463.31
338.83
21.68
20.35
22.36
Investments
(including Bank FDs, Bank CDs
and Government Securities &
Bonds)
Net Current Assets
Key Highlights

Strong demonstrated growth track record

Among the highest EBITDA margins in the
industry

Company is a Debt free company.
BTP 0.2%
ADHO
90.0%
19
EBITDA & PAT Performance
` in Crore
Particulars
Q3FY15
Q3FY14
YoY%
9M FY 15 9M FY 14
EBITDA
60.06
42.77
40.40%
167.69
133.89
25.25%
Profit Before Tax &
Exceptional Item
64.71
48.56
33.27%
185.73
158.79
16.97%
Exceptional Item
(Trademark &
Intellectual Properties)
11.75
11.75
Profit Before Tax
(PBT)
52.96
36.81
43.88%
150.50
141.94
6.03%
Profit After Tax (PAT)
41.84
29.10
43.79%
118.89
112.13
6.03%
35.24
YoY%
16.85
20
Profit & Loss Q3 FY2015 and for 9M FY2015
` in Crore
Particulars
Net Sales
Other Operating Income
Material Cost
% of Sales
Employees Cost
% of Sales
Advertisement & Sales Prom.
% of Sales
Other Expenses
% of Sales
EBITDA
% of Sales
Other Income
% of Sales
Finance Cost
Depreciation
Corporate Social Responsibility
Profit Before Tax & Exceptional
Item
Exceptional Item (Trademark &
Intellectual Properties)
Profit Before Tax(PBT)
Tax Expenses
Profit After Tax(PAT)
% of Sales
Diluted EPS (Rs.)
Q3FY15
205.40
0.39
Q3FY14
158.21
0.37
76.96
37.47%
9.08
4.42%
40.24
19.59%
19.46
9.47%
60.06
29.24%
6.66
3.24%
0.01
1.08
0.92
61.08
38.61%
8.38
5.29%
28.31
17.89%
18.04
11.40%
42.77
27.04%
9.67
6.11%
2.92
0.96
-
64.71
48.56
11.75
52.96
11.12
41.84
20.37%
2.84
11.75
36.81
7.71
29.10
18.39%
1.97
YoY%
29.83%
40.40%
33.27%
43.88%
43.79%
9M FY 15
584.07
1.04
9M FY 14
486.50
0.71
227.32
38.92%
28.18
4.82%
104.21
17.84%
57.72
9.88%
167.69
28.71%
24.01
4.11%
0.04
3.18
2.75
191.63
39.39%
25.35
5.21%
84.76
17.42%
51.59
10.60%
133.89
27.52%
31.85
6.55%
4.24
2.71
-
185.73
158.79
35.24
150.50
31.61
118.89
20.36%
8.06
16.85
141.94
29.81
112.13
23.05%
7.60
YoY%
20.06%
25.25%
16.97%
6.03%
6.03%
21
Sales Performance
Sales (Value) :
Q3FY14 v/s Q3FY15
Sales (Value) :
9M FY14 v/s 9M FY15
700
200
150
100
158.21
205.40
In ` Crores
In ` Crores
250
600
500
400
300
200
50
486.50
584.07
100
0
0
Q3 FY14
Q3 FY15
9M FY 14
9M FY 15
 Sales for the quarter ended December’14 has increased by 29.83% value wise and
21.06% volume wise.
 Sales for 9M ended December’14 has increased by 20.06% value wise and 10.89%
volume wise.
22
Statement of Quarter wise Sales (Volume & Value)
STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases )
ADHO
FY 15
KPCO
FY 14
FY 15
BAHO
FY 14
Q1
1,123,144
1,134,735
Q2
1,120,081
1,077,517
2,380 11,823 10,218
Q3
1,226,347
1,028,943
2,017
Total
15,805 21,653
FY 15
9,671
ASHO
FY 14
FY 15
Nomarks
FY 14
FY 15
FY 14
Others
FY 15
FY 14
Total
FY 15
FY 14
% Inc
over PY
2,184
1,732
58,222
4,848
4,779
1,213,874
1,172,752 3.51%
9,770 10,019
1,986
54,811
6,552
5,563
1,204,061
1,106,659 8.80%
2,592
48,913
9,442
6,039
1,305,332
1,078,210 21.06%
6,310 161,946 28,565 20,842
16,381
9,853
1,702 15,152 10,369
3,461
3,469,572 3,241,195 20,202 35,178 35,041 29,992 15,664
28,565
3,723,267 3,357,621 10.89%
STATEMENT OF QUARTERWISE SALES (VALUE - In Rs. Crores)
ADHO
KPCO
BAHO
ASHO
Nomarks
FY 15
FY 14
FY 15 FY 14 FY 15 FY 14 FY 15
FY 14
FY 15
Q1
170.91
162.71
2.92
4.33
2.00
1.94
0.23
0.18
14.13
Q2
168.89
153.00
0.37
2.11
2.15
1.89
1.04
0.21
Q3
186.07
148.68
0.42
0.35
3.23
2.03
0.36
Total
525.86
464.39
3.70
6.79
7.38
5.86
1.63
Others
Total
% Inc
over
PY
FY 14 FY 15
FY 14
FY 15
FY 14
-
0.89
0.89
191.07
170.05 12.36%
13.92
-
1.22
1.03
187.61
158.24 18.55%
0.27
13.57
5.76
1.76
1.12
205.40
158.21 29.83%
0.66
41.62
5.76
3.88
3.04
584.07
486.50 20.06%
23
Consistent Performance over the last 15 successive quarters
40.00%
35.00%
29.03%
28.25% 28.37%
28.19% 28.76%
30.00%
25.68% 25.51%
24.96%
25.00%
27.09% 27.04%
28.65% 28.58% 28.27% 29.24%
23.17%
20.00%
Gr (Value)
15.00%
Gr (Vol)
EBIDTA
29.83%
21.06%
18.55%
8.80%
12.36%
3.51%
0.26%
-6.40%
6.85%
0.90%
16.48%
14.96%
23.18%
20.16%
25.31%
19.12%
31.84%
22.33%
27.25%
18.70%
29.53%
22.35%
33.46%
22.27%
30.75%
20.45%
0.00%
31.43%
21.98%
5.00%
30.44%
19.96%
10.00%
Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15
-5.00%
-10.00%
24
Breakup of RM/PM Costs (for Q3 15)
Key Raw & Packing Material
LLP
Glass Bottles
Refined Veg. Oil
Perfumes & other additives
Corrugated Boxes
Caps
Others
TOTAL
% to Sales
13.09%
9.35%
3.61%
% to Total Cost
34.39%
24.56%
9.47%
3.20%
1.61%
2.22%
4.99%
38.06%
8.40%
4.24%
5.82%
13.12%
100.00%
* Consumption is 38.06% of Sales
*For Bajaj Almond Drops
25
Change in Prices of Key Ingredients
Per Kg Rates of Oil
100
100
80
80
60
40
75.85 75.01
74.89 81.81
Amount (Rs.)
Amount (Rs.)
Per Kg Rates of LLP
60
40
20
20
0
0
Qtr3 FY14 vs FY15
9MFY14 vs FY 15
76.16 70.92
72.74 70.37
Qtr3 FY14 vs FY15
9MFY14 vs FY 15
 During the quarter average price of LLP decreased to Rs 75.01/Kg from Rs 75.85/Kg in
corresponding quarter of previous year.
 Prices of Refined Oil decreased to Rs 70.92/Kg from Rs 76.16/Kg in corresponding quarter of
previous year.
26
Fund Position
 Fund Position:



The total Fund available with the company as on 31st December’ 2014 is Rs.237.67Crores
This has been invested in Bank Fixed Deposits, Certificate of Deposits of Banks , PSU Bonds,
Government Securities and Liquid MFs.
There is no investment in ANY Inter Corporate Deposit
Particulars
Amount (in Rs. Crores)
Bank FDs
142.00
Liquid Plans of Mutual
Funds
15.70
PSU Corporate Bonds
79.97
Total
237.67
27
Dividend Payout History
Dividend Payout
% to Capital
(Rs in Lacs)
Dividend per
share
(Rs.)
Year
No. of Shares
(in Lacs)
Face
Value
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%
9.50
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 (Uptown Properties) owns a piece of
land and building in Worli, Mumbai. Uptown Properties was previously owned by
the C.K. Raheja Group (i.e. Mr. Chandu Raheja)
 The corporate Headquarters of Bajaj Corp Ltd will be constructed on this land.
The Construction is expected to be completed by mid 2015.
 The Bajaj Group is well aware of issues regarding Corporate Governance and
would like to state that they will be no financial interaction between any of the
listed entities within the group.
29
Growth Strategy
Strategy
Action Steps

Convert coconut hair oil users to light hair oil users through sampling, targeted advertising
campaigns, product innovation and creating awareness about product differentiation including
communicating the advantages of switching to lighter hair oils. Aim for a market share of 65% by the
year 2015-16

Tap the increase in disposable income of rural India and convert rural consumer from unbranded to
branded products by providing them with an appropriate value proposition

Among its key competitors, our Almond Drops is the only brand which is available in sachets – a
marketing initiative to penetrate the rural market

BCL has over the years created a strong distribution network across 2.76 mn. retail outlets which can
be optimally utilized by introducing new products

BCL intends to extend ‘Almond Drops’ platform developed by its Almond Drops Hair Oil brand to
other personal care products to leverage on the strong connotation of Almonds with nutrition

Will seek inorganic growth opportunities in the FMCG and hair oil market as part of growth strategy

The inorganic growth opportunities will focus on targeting niche brands which can benefit from BCL’s
strong distribution network so that they can be made pan India brands
Market share gains from
other hair oil segments
Focus on rural
penetration
Leverage existing
strengths to introduce
new products
Pursue inorganic
Opportunities
30