Professional Documents
Culture Documents
January 2017
Industry Overview
FMCG
Rs. 2,58,122 cr
Hair Care
Rs. 19,064 cr
Shampoo
Rs. 5,678 cr
(30%)*
Perfumed Oil
Rs. 6,411 cr
(34%)*
Coconut Based
Oil
Rs. 3475 cr
(18%)*
7% CONTRIBUTION
Hair
Conditioners
Rs. 461 cr
(2%)*
Hair Dyes
Rs. 3,038 cr
(16%)*
Coconut based
Oils
(35%)**
Amla
based Oils
(15%)**
Cooling Oils
(9%) **
Others
(25%)**
251
253
10,000
150
100
50
194
7,867
8,000
6,000
9,886
7,472
6,981
4,498
5,044
5,728
4,000
0
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
YTD Dec
08-09
09-10
30.0
30.0
31.9
31.0
19.9
13-14
1,474
14-15
15-16
16-17
YTD Dec
15.0
10.0
5.0
1,602
1,223
1,080
1,200
1,000
800
1,503
1,311
1,400
24.7
22.4
18.4
12-13
1,600
26.8
25.0
11-12
1,800
32.3
(Rs. Cr.)
35.0
10-11
9,278
2,000
20.0
8,676
214
247
610
710
YTD Growth 3 %
200
197
238
250
236
269
(Rs. Cr.)
300
831
600
400
200
0.0
0
16-17
08-09 09-10
YTD Dec
Source: AC Nielsen Retail Audit Report, Dec 2016; LHO nos. adjusted from 15-16 for like to like comparison
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
10-11
11-12
12-13
13-14
14-15
15-16
16-17
YTD Dec
Hair Oils category shows Vol growth as compared to YTD Dec FY15-16. LHO segment shows value & volume growth.
3
30.0
19.9
22.4
15.0
10.0
5.0
1,602
1,223
1,080
1,200
1,000
800
1,503
1,311
1,400
24.7
(Rs. Cr.)
18.4
1,474
1,600
26.8
25.0
20.0
31.0
1,800
32.3
30.0
31.9
610
710
YTD Growth 3 %
35.0
831
600
400
200
0
0.0
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
08-09
16-17
YTD Dec
09-10
10-11
11-12
12-13
13-14
14-15
15-16
16-17
YTD Dec
17.9
18.7
13.9
8.1
08-09
9.6
09-10
11.0
10-11
11-12
12-13
1,000
13-14
14-15
15-16
14.1
16-17
YTD Dec
861
746
800
594
600
400
897
284
360
964
YTD Growth 1.6 %
16.3
18.1
(Rs. Cr.)
20.0
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
1,200
441
200
733
0
08-09
09-10
10-11
11-12
12-13
13-14
14-15
Source: AC Nielsen Retail Audit Report, Dec 2016; LHO nos. adjusted from 15-16 for like to like comparison
15-16
16-17
YTD Dec
Bajaj Almond Drops shows growth in both volume & value as compared to YTD Dec FY15-16
4
Market Shares Trends in Light Hair Oil Category (All India Urban Plus Rural)
Volume MS
Value MS
70.0%
70%
60.0%
50.0%
48.0% 49.1%
51.9%
54.4%
60%
51%
50%
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
13-14
14-15
15-16
16-17
YTD Dec
53%
55%
58%
60%
60%
57%
59.9%
12-13
13-14
14-15
15-16
16-17
YTD Dec
47%
08-09
09-10
10-11
11-12
Market Share in the Light Hair Oil Category, LHO nos. adjusted from 15-16 for like to like comparison.
Source: AC Nielsen Retail Audit Report, Dec 2016
Market Shares Trends in Total Hair Oil Category (All India Urban Plus Rural)
Volume MS
Value MS
8.0%
7.1%
7.0%
6.6%
7.4%
7.3%
12.0%
6.7%
9.5%
10.0%
5.8%
6.0%
5.0%
4.5%
9.9%
9.7%
9.7%
9.8%
13-14
14-15
15-16
16-17
YTD Dec
8.5%
7.7%
8.0%
4.7%
7.1%
6.3%
4.1%
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
13-14
14-15
15-16
16-17
YTD Dec
08-09
09-10
10-11
11-12
12-13
Bajaj Almond Drops has increased its Value MS in the THO category this year
6
Relative MS Value
5.0
4.3
4.5
4.0
4.2
4.3
14-15
15-16
4.5
4.0
3.5
3.2
3.0
2.5
3.4
2.7
2.1
2.0
1.5
1.0
0.5
0.0
08-09
09-10
10-11
11-12
12-13
13-14
16-17 YTD
Dec
Source: AC Nielsen Retail Audit Report, Dec 2016; LHO nos. adjusted from 15-16 for like to like comparison
States
Relative Market
Share
Rank
States
Delhi
Rajasthan
Punjab
3.9
1.6
3.2
1
1
1
2.2
6.2
HP-JK
3.4
4.5
3.6
North East
Orissa
WB
Maharashtra
Mumbai
UP
6.8
3.3
Uttaranchal
4.0
Gujarat
AP
Karnataka
Kerala
3.4
2.0
1.3
5.1
1.3
Assam
TN
1.3
Bihar
4.5
10.7
All India
4.5
Jharkhand
7.7
Haryana
Madhya Pradesh
Chhattisgarh
1
1
1
2.7
4.5
Relative Market share is the ratio of Almond Drops market share value to the next largest competitor in LHO segment
Rank is the position of ADHO in respective state
Source AC Nielsen Retail Audit Report, Dec 16
Rank
1
1
1
1
1
1
1
1
All India
Delhi
Raj
Punjab
Har
HP-JK
MP
Chattisgarh
UP
Uttar
Assam
Bihar
JharKhand
North East
Orissa
WB
Guj
Maha
AP
Kar
Kerala
TN
LHO Volume
Saliency
100.0%
6.3%
7.4%
4.2%
6.1%
0.6%
10.2%
3.0%
23.3%
1.0%
2.7%
5.8%
1.3%
2.1%
1.8%
9.7%
4.3%
7.2%
1.3%
1.1%
0.2%
0.5%
Rural
42.9%
0.0%
46.6%
31.1%
24.6%
57.7%
48.2%
58.8%
57.5%
46.0%
60.3%
54.4%
44.0%
45.0%
45.7%
40.9%
31.2%
28.1%
12.5%
26.8%
19.6%
1.2%
Urban
54.9%
55.1%
52.0%
56.8%
55.6%
51.2%
55.8%
62.0%
58.3%
52.6%
60.3%
72.9%
67.0%
37.7%
61.0%
41.2%
50.1%
59.0%
50.4%
62.7%
31.1%
35.4%
Rural
60.3%
41.4%
52.7%
70.6%
47.1%
55.5%
75.8%
62.8%
67.3%
69.9%
83.1%
71.5%
46.8%
74.7%
47.4%
60.2%
56.7%
43.2%
75.0%
24.8%
4.4%
9
Source: AC Nielsen Retail Audit Report, Dec 16
8%
Urban dominated
segment due to its
relatively higher
pricing
40%
60%
6%
Grocers dominate
distribution
78%
AI Urban
AI Rural
Modern Trade
Pan Plus
Chemists
Cosmetics
Grocers
10%
12%
32%
23%
26%
Sales tend to be
concentrated in
the Central part of
the country
24%
35%
36%
0-15 ml
16-50 ml
51-100 ml
>100 ml
NZ
CZ
EZ
WZ
SZ
11
Company Overview
Haircare Portfolio
Skincare Portfolio
Bajaj Nomarks Creams for
Normal Skin, Oily Skin & Dry Skin Types, available in
sizes 12g(Normal skin) & 25g
47%
51%
55%
53%
57%
60%
58%
60%
59.9%
60
50
40%
40
30%
30
20%
20
10%
10
0%
08-09
09-10
10-11
11-12
12-13
13-14
14-15
15-16
35
32
40
38
46
42
55
50
60
58
60
Jul--06 Mar-08 Jul-08 Jan-10 May-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Dec-16
16-17
YTD Dec
Comparative Price of Different Brands for 100 ml in the Hair Oil Segment
Competitor Brands
66
70
60
60
50
60
45
42
40
30
56
47
45
32
25
20
10
0
Almond
Drops
Kailash
Parbat
Parachute
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.)
15
Distribution Structure
Factory (9)
OWN Himachal Pradesh -2, Uttarakhand- 1,
Guwahati 1
THIRD PARTY - Himachal Pradesh-2, Bangladesh-1,
Uttarakhand- 2
45
45
213
70
154
20
1805
539
417
198
688
352
635
179
516
Urban Distribution
45
277
Redistribution Stockist
1479
247
Sub-Stockist- 5999
124
30
Rural Distribution
236
523
16
Over the years, BCL has created a large distribution network (that continues to grow) which can be
leveraged to introduce new products
Organization Structure
Chairman
Mr. Kushagra Nayan Bajaj
Managing Director
Mr. Sumit Malhotra
GM- Operations
Mr. Kabir Sahni
3 Works
Manager
(3 MUs)
HeadQC &
R&D
Head Supply
Chain &
Procurement
Mr. Devendra Jain
President Operations
Mr. Apoorv Bajaj
CFO
Mr. V.C. Nagori
VP - Finance
Mr. D.K. Maloo
Head Purchase
Mr. Subroto
Ghosh
HeadTreasury
Regional
Commercial
Manager- 5
in No's
DGM
L&D
AGM / Sr.
MgrFinance
Sales Head
R Ghosh
ESS
Company
Secretary
Hitesh
Kanani
Head Legal
Mr. Ashish Kr.
Panigrahi
Head IB
P Banerji
Sr. Mgr
Plng &
Distribution
Head
GM IT
Mr. Dharmesh
J. Sanghavi
Head
Internal
Audit
VP HR
Mr. Subhamay
Chatterjee
Sr.
Manager
Payroll
AM Admin
Country
ManagerBangladesh,
Nepal, GCC
and SEAN
Mktg Head A
Dangi
Category
Managers,
Research &
Media Mgrs
DGM
South &
West
AGM North
AGM Central
AGMEast
18
Financial Information
Summary Income Statement
(Rs. In Crore)
Particulars
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
Q3FY17 Q3FY16 9M FY 17 9M FY 16
186.40 195.70
586.28
585.41
62.33 68.83
202.68
201.96
34.57%
34.50%
33.44% 35.17%
73.48
74.44
232.39
217.96
11.75
18.38
35.24
73.48 62.69
57.80 49.31
31.01% 25.20%
214.00
168.29
28.70%
182.72
143.73
24.55%
(Rs. In Crore)
Particulars
(Rs. In Crore)
Shareholders Equity
Net Fixed Assets
BTP
0.2%
AHO
1.3%
NOMARKS
2.8%
BAHO
1.3%
As on
31.03.2016
654.11
485.82
50.27
65.59
603.05
414.93
0.79
5.30
Investments
(including Bank FDs, Debt MF and
Government Securities & Bonds)
Net Current Assets
Key Highlights
As on
31.12.2016
ADHO
94.1%
19
Particulars
Q3 FY17 Q3 FY16
YoY% 9M FY 17 9M FY 16
YoY%
EBITDA
62.33
68.83
-9.44%
202.68
201.96
0.36%
73.48
74.44
-1.29%
232.39
217.96
6.62%
11.75
18.39
35.24
73.48
62.69
17.20%
214.00
182.72
17.12%
57.80
49.31
17.20%
168.29
143.73
17.09%
20
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.)
Q3 FY17
186.40
0.51
Q3 FY16
195.70
0.39
64.38
34.54%
15.71
8.43%
24.85
13.33%
19.64
10.54%
62.33
33.44%
13.75
0.24
1.26
1.10
73.48
72.61
37.10%
11.46
5.86%
23.03
11.77%
20.16
10.31%
68.83
35.17%
7.77
0.01
1.12
1.03
74.44
73.48
15.68
57.80
31.01%
3.92
11.75
62.69
13.38
49.31
25.20%
3.34
YoY%
-4.75%
-9.44%
-1.29%
17.20%
17.20%
9 M FY 17
586.28
1.72
Rs. in Crore
9 M FY 16
YoY%
585.41
0.15%
1.67
200.94
34.27%
44.17
7.53%
78.25
13.35%
61.96
10.57%
202.68
34.57%
37.03
0.67
3.35
3.30
232.39
222.85
38.07%
33.78
5.77%
66.77
11.41%
61.72
10.54%
201.96
34.50%
22.20
0.03
3.08
3.09
217.96
18.39
214.00
45.71
168.29
28.70%
11.41
35.24
182.72
38.99
143.73
24.55%
9.74
0.36%
6.62%
17.12%
17.09%
21
Sales Performance
Sales (Value) :
Q3FY16 v/s Q3FY17
700
200
In ` Crores
In ` Crores
250
150
100
Sales (Value) :
9M FY 16 v/s
9M FY17
195.70
186.40
50
600
500
400
300
585.41
586.28
9M FY16
9M FY17
200
100
Q3 FY16
Q3 FY17
22
KPCO
FY 16
FY 17
FY 16
AHO
FY 17
Nomarks
FY 16
FY 17
FY 16
Others
FY 17
FY 16
Q1
1,269,703
1,241,928
7,483
45,072
49,630
29,195
40,210
8,081
Q2
1,210,568
1,191,034
2,107
40,865
45,290
27,225
41,136
Q3
1,186,481
1,238,671
764
27,043
43,207
26,300
41,315
Total
FY 17
BAHO
FY 17
Total
FY 16
FY 17
FY 16
7,538
1,371,335
1,360,814
7,640
8,445
1,303,781
1,304,512
4,886
6,764
1,257,235
1,344,011
3,666,752 3,671,633 10,354 10,277 38,938 43,892 112,980 138,127 82,720 122,661 20,607 22,747 3,932,351
4,009,337
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
188.72
183.11
0.64
1.29
2.36
2.68
4.18
4.27
6.37
7.57
1.46
1.22
203.73
200.14
Q2
181.18
172.57
0.17
0.23
3.10
3.23
3.79
3.83
6.54
8.28
1.37
1.43
196.15
189.57
Q3
175.28
180.18
0.08
0.12
2.34
2.45
2.49
3.63
5.29
8.12
0.92
1.20
186.40
195.70
Total
545.18
535.86
0.89
1.64
7.80
8.36
10.46
11.73
18.20
23.97
3.75
3.85
586.28
585.41
23
35.00%
31.88%
30.00%
28.37%
27.09% 27.04%
30.86%
31.67%
32.35%
33.62%
35.37% 34.82%
33.44%
25.00%
20.00%
Gr (Value)
15.00%
Gr (Vol)
EBIDTA
-4.75%
-6.46%
3.47%
1.80%
0.77%
-3.24%
-4.95%
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%
-6.40%
6.85%
0.90%
0.00%
16.48%
14.96%
5.00%
23.18%
20.16%
10.00%
Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3FY17
-5.00%
-10.00%
24
% to Sales
% to Total Cost
LLP
8.34%
24.31%
Glass Bottles
9.17%
26.73%
4.58%
13.35%
3.59%
10.47%
Corrugated Boxes
1.79%
5.22%
Caps
2.03%
5.92%
Others
4.80%
13.99%
TOTAL
34.30%
100.00%
25
100
100
80
80
Amount (Rs.)
Amount (Rs.)
60
40
54.70
20
46.37
57.87
44.86
60
93.76
40
83.97
82.88 79.21
20
0
9M FY16 vs FY17
9M FY16 vs FY17
During the quarter average price of LLP decreased to Rs 46.37/Kg from Rs 54.70/Kg in corresponding
quarter of previous year.
Prices of Refined Oil decreased to Rs 83.97/Kg from Rs 93.76/Kg in corresponding quarter of previous
year.
26
Fund Position
Fund Position:
The total Fund available with the company as on 31st Dec 2016
is Rs. 487.06 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 Deposit
Particulars
Bank FDs
12.98
Bonds
466.12
7.96
487.06
27
Dividend Payout
% to Capital
(Rs in Lacs)
Dividend per
share
(Rs.)
Year
No. of Shares
(in Lacs)
Face
Value
2016-17
1,475
16962.50
1150%
11.50
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
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 (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 2017.
The Bajaj Group is well aware of issues regarding Corporate Governance and
would like to state that there will be no financial interaction between any of the
listed entities within the group.
29
Growth Strategy
Strategy
Action Steps
Focus on rural
penetration
Leverage existing
strengths to introduce
new products
Pursue inorganic
Opportunities
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 value market share of 10%
on Total Hair Oil category by 2017-18 .
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
30