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Industry Overview
Coconut based
Oils
(43%)**
Others
(13%)**
Hair Dyes
Rs. 2,630 cr
(USD 437 mn)
(16.0%)*
Cooling Oils
(10%) **
Hair Conditioners
Rs. 413 cr
(USD 66 mn)
(2.0%)*
7% salience
Perfumed Oil
Rs. 4996 cr
(USD 805mn)
(29%)*
Shampoo
Rs. 5217cr
(USD 841 mn)
(31%)*
Hair Care
Rs. 17,102 cr (USD 2.75 bn)
FMCG
Rs.238,016 cr (USD 38.38 bn)
(In KLtr))
Y-o-Y - 6.0%
5M-o-5M 0.5.%
Y-o-Y 21%
Y-o-Y 12.1%
Y-o-Y 13.6%
Y-o-Y 22%
Y-o-Y 12.7%
Y-o-Y 6.7%
Y-o-Y 3.1%
Y-o-Y 6.9%
Y-o-Y 12.2%
Hair Oil category continues to see volume declines, however Light Hair Oils have seen a strong recovery.
Y-o-Y 30%
Y-o-Y 14%
Y-o-Y 8.6%
Y-o-Y 10.1%
Y-o-Y 1.2%
Y-o-Y 3.9%
(In KLtr)
Y-o-Y 33%
Y-o-Y 18%
Y-o-Y 8.3%
Y-o-Y 12.5%
Y-o-Y 19.5%
Y-o-Y 11.9%
Y-o-Y 3.1%
Y-o-Y 6.6%
Y-o-Y -1.6%
5M-o-5M 6.6%
(Rs. Cr.)
(Rs. Cr.)
Y-o-Y 31%
Y-o-Y 40%
Y-o-Y 29%
Y-o-Y 16.4%
Y-o-Y 17.1%
Y-o-Y 30%
Y-o-Y 21.4%
5M-o-5M 10.9%
5M-o-5M 9.7%
(In KLtr)
(In KLtr)
Y-o-Y 40%
Y-o-Y 29%
Y-o-Y 16.4%
Y-o-Y 17.1%
Y-o-Y 30%
Y-o-Y 21.4%
Almond Drops is the brand which is driving light hair oils and in turn the overall market
Y-o-Y 33%
Y-o-Y 18%
Y-o-Y 8.3%
Y-o-Y 12.5%
Y-o-Y 19.5%
Y-o-Y 11.9%
Y-o-Y 6.6%
Y-o-Y -1.6%
Y-o-Y 51%
Y-o-Y 35%
Y-o-Y 17.9%
Y-o-Y 15.1%
Y-o-Y 26.2%
Y-o-Y 17.3%
Y-o-Y 13.4%
Y-o-Y 0.1%
5M-o-5M 6.6%
5M-o-5M 7.1%
(Rs. Cr.)
(Rs. Cr.)
Y-o-Y 54.5%
Y-o-Y 48.9%
Y-o-Y 26.7%
Y-o-Y 22.6%
Y-o-Y 34.8%
Y-o-Y 25
2 .6%
.6%
Y-o-Y 17.3%
Y-o-Y 4.4%
5M-o-5M 11.1%
Y-o-Y 12.2%
Y-o-Y 3.1%
5M-o-5M 9.7%
10%
0%
10%
0%
20%
40%
50%
20%
54.4%
60%
30%
38.4%
44.1%
48.0% 49.1%
51.9%
70%
30%
40%
50%
60%
70%
Volume MS
53.0%
55.0%
40.3%
46.5%
50.7%
56.9%
Value MS
2008
2.1
2009
2.7
2010
3.2
2011
3.4
2012
4.0
2013
4.3
2014
4.4
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Relative MS - Val
2015(8M)
4.3
1st
4.4
1.5
3.7
3.3
4.1
4.4
4.6
4.0
5.5
3.1
10.5
5.5
3.5
8.4
6.0
4.3
2.2
3.8
4.5
Gujarat
Mumbai
Maharashtra
West Zone
Andhra Pradesh
1st
1st
1st
2.1
0.6
1.6
4.3
Kerala
Tamil Nadu
South Zone
All India
1st
1st
1st
1st
1st
1st
6.1
1.0
Karnataka
1st
1st
1st
3.1
4.4
1st
1st
Central Zone
3.6
Relative MS
8.1
Madhya Pradesh
State
Chhattisgarh
1st
Rank
Relative MS
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
State
Delhi
Rajasthan
Uttar Pradesh
Punjab
HP-JK
Haryana
Uttaranchal
North Zone
Assam
North East
Bihar
Orissa
West Bengal
Jharkhand
East Zone
All India
1st
1st
2nd
1st
1st
2nd
1st
1st
1st
1st
1st
1st
1st
Rank
100.0%
5.7%
5.6%
6.0%
8.4%
21.7%
1.0%
5.0%
5.2%
1.2%
1.3%
7.3%
5.8%
12.3%
3.6%
6.5%
1.2%
1.4%
0.5%
0.1%
Punjab
Haryana
Delhi
Rajasthan
Uttar Pradesh
Uttaranchal
Assam
Bihar
Jharkhand
Orissa
West Bengal
Gujarat
Madhya Pradesh
Chattisgarh
Maharashtra
Karnataka
Andhra Pradesh
Tamil Nadu
Kerala
Saliency
Sep 14 - Aug 15
LHO Volume
90.7%
82.9%
79.4%
83.3%
73.9%
38.7%
48.0%
68.7%
54.9%
66.4%
67.0%
49.9%
51.6%
54.7%
57.9%
63.8%
100.0%
76.1%
75.0%
62.7%
Urban
9.3%
17.1%
20.6%
16.7%
26.1%
61.3%
52.0%
31.3%
45.1%
33.6%
33.0%
50.1%
48.4%
45.3%
42.1%
36.2%
0.0%
23.9%
25.0%
37.3%
Rural
Proportion %
23.7%
22.8%
36.0%
60.9%
59.7%
75.4%
61.3%
53.9%
49.3%
63.9%
75.2%
77.0%
54.9%
61.2%
62.5%
48.1%
59.2%
59.8%
53.3%
59.0%
Total
23.7%
23.5%
38.7%
58.9%
61.9%
67.8%
61.9%
49.2%
46.5%
62.6%
73.6%
74.0%
50.2%
53.7%
58.7%
47.9%
59.2%
56.7%
51.1%
56.4%
Urban
24.3%
19.3%
25.6%
70.7%
53.4%
80.3%
60.7%
64.4%
52.7%
66.6%
78.4%
80.0%
60.0%
70.1%
67.9%
48.3%
NA
69.7%
60.0%
63.4%
Rural
75ml
3%
50-60 ml
19%
400-500ml
10-45ml
5%
4%
2-5ml
9%
100-150ml
35%
200-250ml
18%
300-350ml
7%
All India
- Urban
64%
Urban dominated
segment due to its
relatively higher
pricing but Rural is
leading the
growth.
Given the
dominance of the
urban market,
larger units
account for bulk
of the sales.
However, smaller
units growing fast
in Rural Markets
All India
- Rural
36%
Small
Grocers,
23%
Large
Grocers,
31%
Cosmetics,
5%
Grocers dominate
distribution, but
alternate channels
like modern retail
demonstrating
higher growth rate
East, 21%
West, 28%
South, 4%
North,
48%
Sales tend to be
concentrated in
the Northern parts
of the country, but
East is the fastest
growing region
Medium
Grocers,
28%
Chemists,
6%
% - Market share
Modern
Stores, 3%
Pan Plus ,
4%
8M-o 8M - 2.2%
Y-o Y( -4.5)%
Y-o-Y (-3.3%)
Y-o-Y 8.7%
Y-o-Y - 12%
Y-o-Y - 13%
Y-o-Y - 18%
Y-o-Y - 14%
Y-o-Y - 12%
Y-o-Y - 23%
Y-o-Y 18%
Y-o-Y 4.1%
Y-o-Y (- 2.4)%
Rs. Cr.
Lakh outlets
KLtr
%
8M-o-8M 0.9%
10
Company Overview
Haircare Portfolio
12
Skincare Portfolio
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.)
Competitor
itor Brands
Comparative Price of Different Brands for 100 ml in the Hair Oil Segment
14
45
30
245
514
154
22
132
70
279
671
45
178
1826
232
206
627
514
MT - 79
350
Retail Outlets
(1,114,966)1
Redistribution Stockist
(1,644)
Urban Distribution
Retail Outlets
(1,798,973)1
Sub-Stockist (5738)
Rural Distribution
Factory (8)
Distribution Structure
Over the years, BCL has created a large distribution network (that continues to grow) which can be leveraged to
introduce new products
414
536
213
45
Distribution Network
16
n Piloted 39 Vans in Q4 FY 13
Van Operations
17
Company
Secretary
HeadTreasury
DGM IT
Head International
Business
Mr. Pankaj Banerjee
Regional
Commercial
Manager- 5 in
No's
Senior
Manager
Finance
AGMFinance
President Operations
Mr. Apoorv Bajaj
HeadInternal
Audit
Mr. Manoj
Gupta
Senior ManagerPurchase
Head -Purchase
Mr. Subroto
Ghosh
DGM-Key
Accounts
VP
Marketing
Mr. Gurpreet
S Amrit
Manager
Planning &
Logistics
Works Manager
3 in Nos(3 MUs)
GM- Operations
Mr. Kabir Sahni
Managing Director
Mr. Sumit Malhotra
Chairman
Mr. Kushagra Nayan Bajaj
Organization Structure
AGM- East
AGM - Central
AGM - North
West
VP HR
Mr.
Subhamay
Chatterjee
Sales
Head
18
BAHO
1.6%
11.75
11.75
47.39
37.44
19.95%
59.13
71.21
59.47
46.78
22.53%
187.61
53.04
28.27%
119.87
94.29
22.13%
23.49
143.36
426.01
133.13
31.25%
KPCO
0.4%
ASHO
0.0%
ADHO
90.4%
JHO 0.5%
BTP
NOMARKS AHO
0.2%
4.7% 2.1%
97.53
77.05
20.35%
23.49
121.02
378.67
107.64
28.42%
207.64
65.75
31.67%
Q2FY16
(Rs. In Crore)
Sales (Net)
EBITDA
EBITDA Margin
Profit Before Tax & Exceptional
Item
Exceptional Item (Trademark &
Intellectual Properties)
Particulars
Financial Information
Key Highlights
62.79
434.59
88.72
586.10
HY 2016
10.36
371.07
110.38
491.81
2014-15
22.36
338.83
160.89
522.08
2013-14
Investments
(including Bank FDs, Bank CDs and
Government Securities & Bonds)
Shareholders Equity
Particulars
(Rs. In Crore)
19
11.75
59.47
46.78
71.21
65.75
Q2FY16
EBITDA
Particulars
37.44
47.39
11.75
59.13
53.04
Q2FY15
24.96%
25.50%
20.43%
23.98%
YoY%
94.29
119.87
23.49
143.36
133.13
HY1 FY 16
77.05
97.53
23.49
121.02
107.64
HY1 FY 15
22.38%
22.90%
18.46%
23.69%
YoY%
Rs. in Crore
20
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
Net Sales
Other Operating Income
Particulars
11.75
59.47
12.69
46.78
22.53%
72.98
35.15%
11.20
5.39%
35.26
16.98%
22.99
11.07%
65.75
31.67%
7.47
3.60%
0.01
0.97
1.03
71.21
Q2FY16
207.64
0.55
11.75
47.39
9.95
37.44
19.95%
72.38
38.58%
9.46
5.04%
33.44
17.83%
19.69
10.49%
53.04
28.27%
8.28
4.41%
0.01
1.25
0.92
59.13
Q2FY15
187.61
0.40
24.96%
25.50%
20.43%
23.98%
YoY%
10.68%
23.49
119.87
25.58
94.29
22.13%
150.24
35.27%
22.32
5.24%
75.87
17.81%
45.73
10.73%
133.13
31.25%
14.27
3.35%
0.02
1.97
2.06
143.36
HY1 FY 16
426.01
1.28
23.49
97.53
20.48
77.05
20.35%
150.36
39.71%
19.09
5.04%
63.97
16.89%
38.26
10.10%
107.64
28.42%
17.35
4.58%
0.03
2.10
1.83
121.02
HY1 FY 15
378.67
0.65
22.38%
22.90%
18.46%
23.69%
YoY%
12.50%
Rs. in Crore
21
50
100
150
200
250
Q2 FY15
187.61
Q2 FY16
207.64
Sales (Value) :
Q2FY15 v/s Q2FY16
100
200
300
400
500
HY1 FY 15
378.67
HY1 FY 16
426.01
Sales (Value) :
HY1FY15 v/s HY1FY16
Sales for the half year ended September15 has increased by 12.50% value wise and
volume wise.
Sales for the quarter ended September15 has increased by 10.68% value wise and 8.34%
Rs.in Crores
Sales Performance
Rs. in Crores
22
1,191,034 1,120,081
2,432,962 2,243,225
Q2
Total
FY 15
FY 16
FY 15
FY 15
8,445
7,538
FY 16
BAHO
AHO
Nomarks
Q2
Total
FY 15
% Inc
over
PY
10.23%
8.34%
12.11%
% Inc
over PY
FY 16
Total
Others
FY 15
FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15
KPCO
FY 16
Total
FY 15
Others
- 41,136 54,811
- 40,210 58,222
FY 16
Nomarks
1,856
FY 16
AHO
9,671 49,630
FY 15
BAHO
FY 16
KPCO
Q1
FY 16
ADHO
1,241,928 1,123,144
FY 15
Q1
FY 16
ADHO
23
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
29.03%
28.25% 28.37%
28.19% 28.76%
27.09% 27.04%
27.82%
23.03%
18.55%
8.80%
12.36%
3.51%
-6.40%
0.26%
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%
30.86%
31.67%
Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16
29.83%
21.06%
30.00%
31.88%
14.29%
12.11%
35.00%
EBIDTA
Gr (Vol)
Gr (Value)
10.68%
8.34%
24
2.76%
1.57%
2.15%
4.97%
35.13%
% to Sales
10.95%
8.51%
4.23%
7.85%
4.46%
6.12%
14.13%
100.00%
% to Total Cost
31.17%
24.22%
12.04%
25
59.30
40
58.82
85.26
20
84.27
60
80
100
20
40
60
80
100
82.02
69.99
77.64
70.07
During the quarter average price of LLP decreased to Rs. 58.82/kg from Rs. 84.27/kg in
corresponding quarter of previous year.
During the quarter average price of Refined Oil increased to Rs. 82.02/kg from Rs. 69.99/kg in
corresponding quarter of previous year.
Amount (Rs.)
Amount (Rs.)
26
145.64
380.13
134.05
Total
100.44
Bank FDs
Particulars
The total Fund available with the company as on 30th September 2015 is Rs. 380.13 Crores
This has been invested in Bank Fixed Deposits, PSU Bonds and Liquid MFs.
There is no investment in ANY Inter Corporate Deposit
n Fund Position:
Fund Position
27
No. of Shares
(in Lacs)
1,475
1,475
1,475
1,475
295
Year
2014-15
2013-14
2012-13
2011-12
2010-11
Face
Value
2,802.50
5,900.00
9,587.50
9,587.50
16962.50
190%
400%
650%
650%
1150%
Dividend Payout
% to Capital
(Rs in Lacs)
9.50
4.00
6.50
6.50
11.50
Dividend per
share
(Rs.)
28
n 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.
n The corporate Headquarters of Bajaj Corp Ltd will be constructed on this land.
The Construction is expected to be completed by 2016.
n Bajaj Corp Ltd has not and will not transfer funds from and to from any other
company within the Bajaj Group
n Bajaj Corp Ltd is a part of the Bajaj Group of companies. The other listed entity
in the group is Bajaj Hindusthan Ltd
Corporate Governance
29
Pursue inorganic
Opportunities
Leverage existing
strengths to introduce
new products
Focus on rural
penetration
Strategy
The inorganic growth opportunities will focus on targeting niche brands which can benefit from BCLs
strong distribution network so that they can be made pan India brands
Will seek inorganic growth opportunities in the FMCG and hair oil market as part of growth strategy
BCL has over the years created a strong distribution network across 2.91 mn. retail outlets which can
be optimally utilized by introducing new products
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 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
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
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
Action Steps
n
Growth Strategy
30