Investor Presentation

January 2016- Version 2

Please note that Nielsen has changed its sample size and hence this presentation contains recast Retail data numbers

Industry Overview

INDUSTRY SIZE AND STRUCTURE

FMCG
Rs. 2,59, 055 cr

Hair Care
Rs. 18,412 cr

Shampoo
Rs. 5,563 cr
(31%)*

Perfumed Oil
Rs. 6,319 cr
(29%)*

Coconut Based
Oil
Rs. 3119 cr
(22%)*

7% CONTRIBUTION

Hair
Conditioners
Rs. 431 cr
(2%)*

Hair Dyes
Rs. 2,982 cr
(16%)*

Hair Oil Market

Coconut based
Oils
(33%)**

Amla
based Oils
(17%)**

Light Hair Oils

(17%)**

Cooling Oils
(10%) **

Others
(23%)**

Perfumed Hair Oil Segment

Source: AC Nielsen Retail Audit
Report.
Only branded products data for MAT
SEP 15

* Value based share of Hair Care

Market
** Value based share of Hair Oil
Market

Hair Oil Market in India

Overall Hair Oil Market Volume

Overall Oil Market Value

Light Hair Oil Volume

9M-o-9M 7.5%

Y-o-Y 6.9%

Y-o-Y 6.9%

Y-o-Y 12.7%

Y-o-Y 22%

Y-o-Y 13.6%

1311

1,400
1,200
1,000

9M-o-9M 7.3%

Y-o-Y 1.9%

Y-o-Y 12.5%

Y-o-Y 21.4%

335.6

610

Y-o-Y 30%

200

472

710

Y-o-Y 17.1%

600

Y-o-Y 16.4%

831

800
400

1,197

1,080

Y-o-Y 29%

9M-o-9M 5%

Y-o-Y (-3.1%)

Y-o-Y 6.6%

Y-o-Y 11.9%

1,474 1,503

1,600

Y-o-Y 40%

Y-o-Y 19.5%

5,000

Y-o-Y 12.5%

10,000

11764

Y-o-Y 8.3%

20,000

Y-o-Y 33%

(In KLtr)

25,000

Y-o-Y 18%

31,94930,969
29,958
26,768
24,192
22,406
19,908
18,390
15,603

30,000

15,000

Light Hair Oil Value

(Rs. Cr.)

35,000

Y-o-Y 12.1%

Y-o-Y 21%

9,277.7
10,000
8,675.6
9,000
7,867
7,489.1
8,000
6,981
7,000
5,728
6,000
5,044
4,498
5,000
3,707
4,000 2,827.3
3,000
2,000
1,000
0

Y-o-Y 31%

Y-o-Y (- 6.5%)

Y-o-Y 3.1%

Y-o-Y 3.9%

Y-o-Y 1.2%

Y-o-Y 10.1%

9M-o-9M 0.1%

Y-o-Y 8.6%

50,000

Y-o-Y 14%

Y-o-Y 30%

(In KLtr)

2,69,016
2,38,283
2,51,407
2,47,478
2,50,000
2,35,539
2,14,002
1,91,282
1,97,057
2,00,000
1,72,528
1,50,000 132560
1,00,000

(Rs. Cr.)

3,00,000

Source: New AC Nielsen Retail Audit Report, DEC 2015.

Hair Oil category remains flat on volumes, Light Hair Oil is growing steady at 5%.
3

Light Hair Oil Market in India

Light Hair Oil Volume

1311

1,400
1,200
1,000

Y-o-Y 12.5%

Y-o-Y 21.4%

Y-o-Y 1.9%

897

861

9M-o-9M 9.1%

Y-o-Y 4.2%

722

Y-o-Y 17.3%

441

Y-o-Y 25 .6%

284

594

Y-o-Y 34.8%

123

191

360

Y-o-Y 22.6%

746

Y-o-Y 26.7%

1,000
900
800
700
600
500
400
300
200
100
0

Y-o-Y 48.9%

(Rs. Cr.)

10M-o-10M 5.9%

Y-o-Y -(-1.1%)

Y-o-Y 10.9%

Y-o-Y 17.3%

Y-o-Y 26.2%

3978

11,006

Y-o-Y 15.1%

Y-o-Y 17.9%

8,108
5,988

9,559

Y-o-Y 30%

Almond Drops Hair Oil Market - Value

18,07617,883
16,298
14,043
13,895

Y-o-Y 35%

20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0

Y-o-Y 51%

(In KLtr)

Almond Drops Hair Oil Market - Volume

9M-o-9M 7.3%

710

Y-o-Y 17.1%

200

335.6

Y-o-Y 29%

400

610
472

Y-o-Y 16.4%

831

800
600

1,197

1,080

Y-o-Y 40%

9M-o-9M 5%

1,474 1,503

1,600

Y-o-Y 54.5%

Y-o-Y (-3.1%)

5,000

Y-o-Y 6.6%

10,000

Y-o-Y 18%

11764

Y-o-Y 33%

15,000

Y-o-Y 19.5%

20,000

Y-o-Y 12.5%

25,000

Y-o-Y 8.3%

30,000

Y-o-Y 11.9%

31,94930,969
29,958
26,768
24,192
22,406
19,908
18,390
15,603

(Rs. Cr.)

35,000

Light Hair Oil Value

Source: New AC Nielsen Retail Audit Report, DEC 2015.

Almond Drops is the brand which is driving light hair oils and in turn the overall market
4

Market Shares Trends (All India - Urban Plus Rural)

Volume MS

Value MS

70%

70%

60%
48.0%

50%
40%

49.1%

51.9%

54.4%

56.6%

57.7%

58.0%

60%
50.7%
50%

44.1%

53.0%

55.0%

58.4%

59.7%

60.3%

56.9%

12-13

13-14

14-15

15-16
(9M)

46.5%
40.3%

38.4%

40%

30%

30%

20%

20%

10%

10%
0%

0%

07-08

08-09

09-10

10-11

11-12

12-13

13-14

14-15

15-16
(9M)

07-08

08-09

09-10

10-11

11-12

*Market Share in the Light Hair Oil Category

Source: New AC Nielsen Retail Audit Report, DEC2015

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
5.0
4.5
4.0
3.5

3.2

3.0
2.5

4.3

4.2

4.3

2013

2014

2015

4.0
3.4

2.7
2.1

2.0
1.5

1.0
0.5
0.0
2008

2009

2010

2011

2012

Source New AC Nielsen Retail Audit Report, DEC 2015

Strong Relative market share demonstrates the strength of the brand

6

ADHO Relative Market Shares Value

State
Delhi
Rajasthan
Punjab
HP-JK
Haryana
Uttaranchal
North Zone
Assam
North East
Bihar
Orissa
West Bengal
Jharkhand
East Zone
All India

Relative MS

Rank

4.2

1st

1.4

1st

3.3

1st

4.0

1st

4.5

1st

4.3

1st

2.6

1st

5.3

1st

2.9

1st

9.0

1st

5.3

1st

2.9

1st

6.5

1st

5.3

1st

4.2

1st

State
Uttar Pradesh
Uttaranchal
Madhya Pradesh
Chhattisgarh
Central Zone
Gujarat
Mumbai
Maharashtra
West Zone
Andhra Pradesh
Karnataka
Kerala
Tamil Nadu
South Zone
All India

Relative MS

Rank

4.2

1st

4.3

1st

3.6

1st

8.0

1st

4.7

1st

2.2

1st

3.4

1st

4.2

1st

3.7

1st

1.1

2nd

6.6

1st

2.4

1st

0.8

2nd

1.7

1st

4.2

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 New AC Nielsen Retail Audit Report, DEC 2015
7

Statewise Market Share

Feb 15- Jan 16

All India (U+R)
Delhi
Punjab
Haryana
HP-JK
Rajasthan
Uttar Pradesh

LHO Volume
Saliency
6%
4%
6%
1%
8%
22%

Proportion %
Urban
Rural
61%
39%
100.0%
73%
27%
83%
17%
45%
55%
48%
52%
46%
54%

ADHO Market Share % (Vol)

Total
Urban
Rural
58%
55%
63%
57%
53%
52%
57%
58%
56%
69%
53%
48%
58%
47%
49%
45%
64%
61%
68%

Uttaranchal

1%

64%

36%

58%

53%

67%

Assam
NE
Bihar
Jharkhand
Orissa
West Bengal
Gujarat
Madhya Pradesh
Chattisgarh
Maharashtra
Karnataka
Andhra Pradesh
Tamil Nadu
Kerala

3%
2%
5%
2%
9%
1%
5%
9%
4%
8%
1%
2%
1%
0.2%

43%
60%
50%
63%
59%
64%
73%
55%
49%
72%
76%
84%
88%
91%

57%
40%
50%
37%
41%
36%
27%
45%
51%
28%
24%
16%
12%
9%

60%
44%
76%
70%
63%
46%
54%
61%
74%
58%
61%
34%
25%
23%

58%
40%
69%
67%
59%
42%
50%
59%
64%
60%
60%
37%
28%
23%

62%
50%
83%
75%
68%
53%
66%
63%
83%
54%
66%
20%
1%
26%

Source: New AC Nielsen Retail Audit Report, MAT DEC 2015

8

Light Hair Oil Market Key Characteristics

Rural Urban break up of LHO market

Share of Distribution Channels in LHO market

7%

6%

All India
Urban

39%
61%

All India
Rural

Urban dominated
segment due to its
relatively higher
pricing but Rural is
leading the
growth.

7%

Grocers
Modern Trade

3%

Pan Plus

77%

Chemists

Cosmetics

Grocers dominate
distribution, but
alternate channels
like modern retail
demonstrating
higher growth rate

% - Market share

SKU wise break up of LHO market

Region wise break up of LHO market

Upto 15ml

14%
15-50ml

32%
20%

50-100ml

34%

4%

Mid Size SKUs

contribute the
maximum in the
repertoire.

100ml and
Above

26%
48%

South Zone
West Zone
East Zone

22%

North Zone

Sales tend to be
concentrated in
the Northern parts
of the country, but
East is the fastest
growing region

Source: New AC Nielsen Retail Audit Report, DEC 2015

9

Cooling Hair Oil Market in India

Cooling Hair Oil Value

CY08

CY09

CY10

CY11

CY12

CY13

CY14

CY08

CY09

CY10

CY11

CY12

CY13

Y-o-Y 3%
CY14

CY 15

Kailash Parbat Volume Market Share Trend

3.5%

4.7

4.3

3.1%

3.0%

4.6

2.5%
2.0%
2.5

Lakh outlets

Y-o-Y (-8%

CY 15

Kailash Parbat Distribution Trend

5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0

Y-o-Y (-3%)

5,000

Y-o-Y - 9%

10,000

18,000 18,470

14,655
12,416

Y-o-Y - 13%

KLtr

15,000

20,128 19,486

16,610

Y-o-Y - 18%

Y-O-Y- 4.3%

Y-o Y( -4.5)%

Y-o-Y 4%

Y-o-Y 18%

200

Y-o-Y - 14%

400

Y-o-Y - 12%

485

18,520

20,000

667

594

Y-o-Y - 23%

Rs. Cr.

25,000

930

892

760

800
600

934

897

Y-o-Y - 12%

1,000

Cooling Hair Oil Volume

1.5%

2.5%

2.5%
1.8%

1.5%

1.5%

1.4%

1.0%
0.5%
0.0%

Source New AC Nielsen Retail Audit Report, DEC 2015

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
Subsidiary of Bajaj Resources Ltd. (BRL)

Haircare Portfolio
Bajaj Almond Drops Hair Oil - A premium perfumed
hair oil containing almond oil and Vitamin E
Competitors Keo Karpin (Deys Medical), Hair &
Care (Marico), Clinic All Clear (HUL)
Bajaj Kailash Parbat Cooling Oil An ayurvedic
formulation containing Sandal & Almond extracts

BCL is the exclusive licensee of brands

owned by BRL

Competitors: Himani Navratna

Brands licensed to BCL for 99 years from

2008

Bajaj Brahmi Amla Hair Oil - Traditional heavy hair

oil. Brand has been in existence since 1953

Key brand Bajaj Almond Drops Hair Oil

Competitors - Dabur Amla, Dabur Sarson Amla

2nd largest brand in the overall hair oils

segment

Bajaj Amla Variant in the low price amla hair oil

segment catering to price conscious consumers

Market leader with over 60.3% market share*

of LHO market

Competitors - Shanti Badam Amla Hair Oil (Marico)

Premium positioning commands one of the

highest per unit prices in the industry

New Product Launch: Bajaj Amla Hair Oil

Other brands - Brahmi Amla, Bajaj Kailash Parbat

Cooling Oil and Jasmine (all hair oil brands) and
Black tooth powder

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.

*Source: New AC Nielsen Retail Audit Report, DEC 2015.

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

. . . But not at the cost of pricing power

70

70%

60%
50%
40%

44.1%

48.0%

49.1%

51.9%

54.4%

56.6%

57.7%

58.0%

55

60
50

38.4%

40

30%

30

20%

20

10%

10

28

29

32

30

35

38

40

42

46

58

60

50

0%

07-08

08-09

09-10

10-11

11-12

12-13

13-14

14-15

15-16
(9M)

Comparative Price of Different Brands for 100 ml in the Hair Oil Segment

(MRP of 100ml (Rs.)

Competitor Brands
70

60

65

60

60
50

45

42

40
30

50
42

42

33
25

20
10

0
Amla Hair Brahmi Amla
Oil
Source: AC Nielsen Retail Audit
Report NOV 2015, Kotak
Institutional Research

Almond
Drops

Kailash
Parbat

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 3.6 mn
retail outlets serviced by
7321 distributors and
15,122 wholesalers

45

45
213

Factory (8)
OWN Himachal Pradesh -2, Uttarakhand- 1
THIRD PARTY - Himachal Pradesh-2, Rajasthan-1,Uttarakhand- 2

Central Warehouse (1)

70
154
20

1805

539

352

635

Regional Distribution Centre (29)

198

688

516

417
179

Urban Distribution

236

Rural Distribution

523

45

Super Stockist (199)

MT - 79
277

Redistribution Stockist
(1,557)

247

Sub-Stockist (5694)
124

30

Retail Outlets (1494036)1

1 - as on DEC 2015. Nielsen New Sample

Retail Outlets
(21,27,999)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 114 vans (for Sales)

Vans cover 7583 uncovered Towns and Villages on a monthly basis

In MAT DEC 2015

Bajaj Almond Drops Hair Oil got 40 % of its sales from Rural India
Volume Growth in Rural India 8% (Urban + Rural = 6%)
Market share in Rural India 63% (Urban + Rural = 58.1%)

*Source: AC Nielsen Retail Audit Report, MAT DEC 2015.

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

Head
International
Business

Country ManagerBangladesh, Nepal,

GCC and SEAN

DGM IT
Mr. Dharmesh J. Sanghavi

Head Supply
Chain &
Procurement
Mr. Devendra Jain

Head -Purchase
Mr. Subroto
Ghosh

Senior ManagerPurchase

VP HR
Mr.
Subhamay
Chatterjee

President- Sales &

MarketingMr.Sandeep Verma

VP
Marketing
Mr. Gurpreet
S Amrit
DGM-Key
Accounts

Manager
Planning & Logistics

Sales
Head

DGM South &

West

AGM - North

AGM - Central
Company
Secretary

HeadTreasury

Regional
Commercial
Manager- 5 in
No's

Senior
Manager
Finance

AGMFinance

GM- Operations
Mr. Kabir Sahni
AGM- East
Works Manager
3 in Nos(3 MUs)

Head- QC & R&D

18

Financial Information
Summary Income Statement
Particulars
(Rs. In Crore)
Sales (Net)
EBITDA
EBITDA Margin
Profit Before Tax &
Exceptional Item
Exceptional Item (Trademark
& Intellectual Properties)
Profit Before Tax(PBT)
Net Profit after Tax
Net Profit Margin

Q3FY16

Q3FY15

212.77
68.83
32.35%

Summary Balance Sheet

9M FY 16 9M FY 15

205.40 638.78
60.06 201.96
29.24% 31.62%

584.07
167.69
28.71%

Particulars

As on
As on
As on
31.12.2015 31.03.2015 31.03.2014

(Rs. In Crore)
Shareholders Equity
Net Fixed Assets

74.79

64.71

218.15

185.73

11.74

11.74

35.24

35.24

52.97 182.91
41.84 143.88
20.37% 22.52%

150.49
118.89
20.36%

63.05
49.60
23.31%

Investments
(including Bank FDs, Bank CDs and
Government Securities & Bonds)
Net Current Assets

635.70

491.81

522.08

78.09

110.38

160.89

516.54

370.09

337.97

41.07

11.34

23.22

Key Highlights
Brandwise Sales Break-Up for 9M FY 2016

BAHO
1.5%

ASHO
0.0%
KPCO
0.3%

BTP
NOMARKS AHO
0.2%
2.0%
4.8%
JHO 0.5%

Strong demonstrated growth track record

Among the highest EBITDA margins in the

industry

Company is a Debt free company.

ADHO
90.7%

19

EBITDA & PAT Performance

Rs. in Crore
Particulars

Q3FY16

Q3FY15

YoY%

9M FY 16

9M FY 15

YoY%

EBITDA

68.83

60.06

14.60%

201.96

167.69

20.43%

Profit Before Tax & Exceptional

Item

74.79

64.71

15.57%

218.15

185.73

17.45%

Exceptional Item (Trademark &

Intellectual Properties)

11.74

11.74

35.24

35.24

Profit Before Tax

(PBT)

63.05

52.97

19.03%

182.91

150.49

21.54%

Profit After Tax (PAT)

49.60

41.84

18.52%

143.88

118.89

21.02%

20

Profit & Loss Q3 FY2016 and for 9M FY2016

Rs. 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
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
Basic & Diluted EPS (Rs.)

Q3FY16
212.77
0.39

Q3FY15
205.40
0.39

72.61
34.12%
11.46
5.39%
38.06
17.89%
22.20
10.43%
68.83
32.35%
8.13
0.01
1.12
1.04
74.79

76.96
37.47%
9.08
4.42%
40.24
19.59%
19.45
9.47%
60.06
29.24%
6.66
0.01
1.08
0.92
64.71

11.74
63.05
13.45
49.60
23.31%
3.36

11.74
52.97
11.13
41.84
20.37%
2.84

YoY%
3.59%

14.60%

15.57%

19.03%
18.52%

9M FY 16
638.78
1.67

9M FY 15
584.07
1.04

222.85
34.89%
33.78
5.29%
113.93
17.84%
67.93
10.63%
201.96
31.62%
22.40
0.03
3.09
3.09
218.15

227.32
38.92%
28.18
4.82%
104.21
17.84%
57.71
9.88%
167.69
28.71%
24.01
0.04
3.18
2.75
185.73

35.24
182.91
39.03
143.88
22.52%
9.75

35.24
150.49
31.60
118.89
20.36%
8.06

YoY%
9.37%

20.43%

17.45%

21.54%
21.02%

21

Sales Performance

Sales (Value) :
Q3FY15 v/s Q3FY16

Sales (Value) :
9MFY15 v/s 9MFY16

200
150
100

205.40

212.77

Q3 FY15

Q3 FY16

50
0

In ` Crores

In ` Crores

250

700
600
500
400
300
200
100
0

584.07

638.78

9M FY 15

9MFY 16

Sales for the quarter ended December15 has increased by 3.59% value wise and 2.96%
volume wise.

Sales for the 9M ended December15 has increased by 9.37% value wise and 7.68% volume
wise.

22

Statement of Quarter wise Sales (Volume & Value)

STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases )
ADHO
FY 16

KPCO
FY 15

FY 16

FY 15

1,241,928

1,123,144 7,435

15,805

Q2

1,191,034

1,120,081 1,856

2,380

Q3

1,238,671

1,226,347

2,017

Total

FY 16

AHO

FY 15

FY 16

Nomarks

FY 15

FY 16

14,073

Q1

986

BAHO

FY 15

Others
FY 16

FY 15

% Inc over
PY

Total
FY 16

FY 15

9,671

49,630

40,210

58,222 7,538

16,751

10,218

45,290

41,136

54,811 8,445

16,571

1,304,512

1,204,061

8.34%

13,069

15,152

43,207

41,315

48,913 6,764

12,903

1,344,011

1,305,332

2.96%

36,506 4,009,337 3,723,267

7.68%

3,671,633 3,469,572 10,277 20,202 43,892 35,041 138,127

- 122,661 161,946 22,747

7,032 1,360,814

1,213,874 12.11%

STATEMENT OF QUARTERWISE SALES (VALUE - In Rs. Crores)

ADHO

KPCO

BAHO

AHO

Nomarks

Others

Total

% Inc
over PY

FY 16

FY 15

FY 16 FY 15 FY 16

FY 15

FY 16

FY 15

FY 16

FY 15 FY 16

FY 15

FY 16

FY 15

Q1

197.85

170.91

1.48

2.92

3.05

2.00

4.66

9.92

14.13

1.42

1.12

218.37

191.07

14.29%

Q2

187.46

168.89

0.30

0.37

3.65

2.15

4.25

10.31

13.92

1.66

2.27

207.64

187.61

10.68%

Q3

194.18

186.07

0.16

0.42

2.79

3.23

4.02

10.22

13.57

1.40

2.12

212.77

205.40

3.59%

579.49 525.86

1.95

3.70

9.48

7.38

12.94

30.45 41.62 4.48

5.51

638.78 584.07

9.37%

Total

23

Consistent Performance over the last 15 successive quarters

35.00%
31.88%
30.00%

29.03%
28.25% 28.37%
28.19% 28.76%

30.86%

31.67%

32.35%

28.65% 28.58% 28.27% 29.24%

27.09% 27.04%

25.00%

20.00%

15.00%

Gr (Value)
Gr (Vol)
EBIDTA

3.59%
2.96%

10.68%
8.34%

14.29%
12.11%

27.82%
23.03%

29.83%
21.06%

18.55%
8.80%

12.36%
3.51%

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%

5.00%

29.53%
22.35%

10.00%

-6.40%

0.00%
Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16
-5.00%

-10.00%

24

Breakup of RM/PM Costs (for Q3 FY 16)

Key Raw & Packing Material

% to Sales

% to Total Cost

LLP

10.34%

30.24%

Glass Bottles

7.95%

23.26%

Refined Veg. Oil

4.80%

14.04%

Perfumes & other additives

2.48%

7.26%

Corrugated Boxes

1.53%

4.49%

Caps

2.01%

5.87%

Others

5.07%

14.84%

TOTAL

34.18%

100.00%

* Consumption is 34.18 % of Sales

*For Bajaj Almond Drops

25

Change in Prices of Key Ingredients

Per Kg Rates of Oil

100

100

80

80

60
40

81.81

75.01
54.70

57.87

Amount (Rs.)

Amount (Rs.)

Per Kg Rates of LLP

60
40

20

20

0
Qtr3 FY15 vs FY16

9M FY15 vs FY16

93.76

70.92

Qtr3 FY15 vs FY16

70.37

82.88

9M FY15 vs FY16

During the quarter average price of LLP decreased to Rs. 54.70/kg from Rs. 75.01/kg in
corresponding quarter of previous year.
During the quarter average price of Refined Oil increased to Rs. 93.76/kg from Rs. 70.92/kg in
corresponding quarter of previous year.

26

Fund Position
Fund Position:

The total Fund available with the company as on 31st December 2015 is Rs. 462.08 Crores
This has been invested in Bank Fixed Deposits, PSU Bonds and Liquid MFs.
There is no investment in ANY Inter Corporate Deposit

Particulars

Amount (Rs. in Crores)

Bank FDs

101.43

Liquid Plans of Mutual

Funds

26.70

Bonds

330.95

Current Account

Total

3.00

462.08
27

Dividend Payout History

Dividend Payout
% to Capital
(Rs in Lacs)

Dividend per
share
(Rs.)

Year

No. of Shares
(in Lacs)

Face
Value

2015-16

1,475

16962.50

1150%

11.50

2014-15

1,475

16962.50

1150%

11.50

2013-14

1,475

9,587.50

650%

6.50

2012-13

1,475

9,587.50

650%

6.50

2011-12

1,475

5,900.00

400%

4.00

2010-11

295

2,802.50

190%

9.50

28

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 experienced managers from well
known FMCG companies
In this process Mr. Sandeep Verma has joined the organisation as PresidentSales & Marketing. He is an Mechanical Engineer from Motilal Nehru Engineering
College, Allahabad and holds a Management Degree from IIM, Lucknow. Mr. Verma
has worked more than 14 years in different function in HUL.
Mr. Sandeep Verma will lead the Sales & Marketing Department and contribute
towards the companys change management process.

29

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 end of 2016.

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.

30

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 2016-17

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 3.6 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 BCLs
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

31