Post on 18-Feb-2022
2
Key Indicators – Q3 FY 2020
SALES Growth: -7.44%
(Y-o-Y)Gross Margin: 66.74%
ASP to Sales: 21.70%
Market Share (Val) = 10.4%
Household
Penetration % = 21.2%
EBITDA %:27.10% NET PROFIT: 24.37%
Source: HH Penetration Kantar, Dec 2019, Nielsen Retail Audit Report, Dec 2019, All India
➢Focus on Hair Oils
➢Double our share in Hair Oils
➢Micromarketing
➢Focus on Alternate Channels
➢Leveraging Digital platforms
➢IT & Automation tools
➢Developing Manpower
3
STRATEGIC CHOICES
STRATEGIC CHOICE # 1 - FOCUS ON HAIR OILS
LEVERAGE STRONG EQUITY OF BAJAJ IN HAIR OILS
DRIVE GROWTH WITH ADHO AND BUILD A STRONGER HAIR
OILS PORTFOLIO
Do More Of What We Are Known For
5
WHY HAIR OILS?
6
INDIAN IN NATURE
PART OF THE LEGACY HANDED OVER FROM ONE GENERATION
TO ANOTHER
DEEPLY PENETRATED
93% INDIAN HOUSEHOLDS USING HAIR OILS
PENETRATION ACROSS SEC
SEC A/B/C HOUSEHOLDS IN URBAN & RURAL
FRAGMENTED CATEGORY TOP 10 Hair Oil BRANDs
CONTRIBUTE ONLY 75.2% of total branded hair oil market
LARGE & GROWING FAST
13,633 CR CATEGORY GROWING AT 4.7 % (YTD’19). CAGR OF 11.1% OVER LAST 2
YEARS
Source: Nielsen Retail Audit Report, Dec 2019, All IndiaHH Penetration Kantar, Dec 2019,
STRATEGIC CHOICE # 2 – Double market share within Hair Oils
MAXIMIZE REACHTHROUGH 360 MEDIA
SUPPORT & Digital Platform
EXPAND DIRECT DISTRIBUTION
PORTFOLIO PLAY –MORE SKUS, MORE
CATEGORIES WITHIN HAIR OILS
8
STRATEGIC CHOICE #3 - MICROMARKETING
Strategy Not For StatesBut By Clusters
CLUSTER BASED APPROACH CATERING TO UNIQUE NEEDS OF
CONSUMERS
PILOT IN 2 STATES SHOWS SIGNS OF SUCCESS
10
WHY MICROMARKETING?
• India is not a homogenous market
• India is a continent consisting of different markets across states
• Different cultural nuances across the country makes it difficult to make a single marketing plan for the product
• Hence different marketing plan across different states and districts
11
STRATEGY IN ACTION – STATE 1
USE OF LOCAL CELEBRITY
HIGH SOV = 20%
HIGHEST SOV IN THE CATEGORY
FOCUS ON HERO SKUS – 160ml & 50ml
COVERAGE EXPANSIONSource: Nielsen Retail Audit Report – Dec 19.
12
7.67.4
7.67.4
7.6 7.7
8.2
8.79.0
9.5
8.7
9.8 10.0
10.7
6.7
6.0 5.9
6.2
5.7 5.7
6
5.0
6.0
7.0
8.0
9.0
10.0
11.0
JUN19 JUL19 AUG19 SEP19 OCT19 NOV19 DEC19
MS VAL% - State 1
State 1 S1 Urban S1 Rural
Pilot
STRATEGY IN ACTION – STATE 2
HIGH SOV = 21% COVERAGE EXPANSION
RURAL ACTIVATIONS PORTFOLIO PLAY
ADHO + AHO+CAD Source: Nielsen Retail Audit Report – Dec 19. 13
16.1
16.416.7
16.5
17.6
18.318.5
16.116.9
17.718.0
19.3
18.5
19.7
16.116.1 16.0
15.4
16.2
18.1
17.5
14.0
15.0
16.0
17.0
18.0
19.0
20.0
JUN19 JUL19 AUG19 SEP19 OCT19 NOV19 DEC19
MS VAL % - State 2
State 2 S2 Urban S2 Rural
Pilot
GROWTH FUELLING CHANNELS– MT & E-COMMERCE
1. HIGH GROWTH CHANNEL ( CAGR~ 20%)
2.HAIR OIL STILL UNDERDEVELOPED
NASCENT CATEGORY
EXPANDING FAST
15
GROWTH IN ALTERNATE CHANNELS
Focus on Ecom: Doubled
Market Share of ADHO in Grofers*
Use of Visibility & Activations
Higher Share in Key Chains
* Period: Oct-Dec’19
16
Target Independent MT
Chains mushrooming in Tier 2 and Tier 3
cities
20.8%26.2%
13.2%22.5% 20.0%
Rel
ian
ceR
etai
l
VM
M
Big
Baz
ar
Easy
Day
Gro
fers
Market Share Val - Dec'19
MS VAL - (DEC'19)
WINNING CONSUMER MINDSPACE DIGITALLY
IMPACTFUL USER GENERATED
CONTENT FOR ENGAGEMENT –
TIKTOK
PRESENCE ACROSS PLATFORMS FOR BUILDING REACH
CURATED CONTENT TAILORED FOR
SEGMENTS
10% OF TOTAL INVESTMENTS ON
DIGITAL
18
CONSISTENT SUCCESS STORIES FROM DIGITAL
1 millionunique creators
3 millionvideos uploaded
3.2 billiontotal views
User generated content with #TheCombDrop in December
TIK TOK YOUTUBE
>50% VTRno of users who
view the ad when exposed
~40% higher than industry benchmark
First 3 days of Campaign
3 Curated Videos on YouTube in Jan
19
Strategic Choice 6: IT INITIATIVES & AUTOMATION
REAL TIME DATA REPORTING TO ALLOW EASE OF DECISION MAKING
ARTIFICIAL INTELLIGENCE TOOL FOR SALES SALES DATA ANALYSIS AND PREDICTIVE SALES TRENDS
21
HR Automation tool – Success Factor
Employee Central
• Employee Life-CycleProcesses
• Employee Self Service• Manager Self Service
Performance Management
• Goal Setting• Mid-Year Review• Stakeholder Feedback• Year-End Review
Succession & Development
Succession PlanningCareer Paths
RecruitmentSourcing to Onboarding
L&D• Learning Plans• Individual development
plans• Online learning• Evaluation
HR Automation Project initiated in Oct’19Go-live by April 1, 2020
One of the most reputed HCM solution used by over 100 Mn users globally, across 100 countries
22
Winning with People
• Mr. Jaideep Nandi joined BCCL as Chief Executive Officer effective January 2, 2020Critical Hiring
• Mid-Year reviews completion
• Talent Assessment for front line sales team
• 360-degree feedback survey for employees at AGM & above levels
• Focused learning interventions for Sales
Talent Management
• Personal coaching sessions were organized for high potential employees
• Group Coaching Sessions conducted for the front-line sales teamCoaching
• Multiple initiatives like Joy of Giving, Health & Wellness Week, Yoga Day, Diwali & Christmas celebration were organized across the organization.
Engagement & Celebration
24
Kushagra Nayan BajajChairman
Sumit MalhotraManaging Director
Ankit ChudiwalaHead - Internal Audit
Devendra JainHead - Supply Chain and Procurement
Makarand KarnatakiHead - Legal
Dipankar GhoshAssistant Vice President - Human Resources
Naresh GehlaudHead - Operations
Dilip Kumar MalooChief Financial Officer
Rajat GhoshHead - Sales
Abhishek PrasadHead - Marketing
He has been appointed as ManagingDirector of the company with effectfrom August 08, 2011. He holds abachelors degree in pharmacy from IIT -Benaras Hindu University, Varanasi anda PGDBM from IIM - Ahmedabad. He hasover 31 years of experience in the FMCGsector.
Joined BCCL in Feb 2017. He is aqualified Chartered Accountant (ICAI),Company Secretary (ICSI) and L.L.B(Government Law College, Mumbai),with 15 years of core experience inInternal Audit, Risk Management,Financial Controlling and ManagerialFinance.
Joined BCCL in Sep 2017. Makarand is Commerceand Law Graduate from Mumbai University andalso a member of Institute of Company Secretariesof India. He has 20 years of experience andworked with organizations like Colgate-Palmolive(India) Ltd. & Godrej Agrovet Ltd.
Joined BCCL on Aug 2018. He is Fullbright Fellow and holds aMBA from Jadavpur University and has 20+ years ofexperience in organizations like Diageo & Tata Motors.
Joined BCCL on May 2018. He is an ElectricalEngineer and a MBA in Marketing and has 23+years of experience in organizations likeEmami & Marico.
Joined BCCL on May 2018. He holds a MBA from FMS, Delhiand has 20 years of experience in organizations like ReckittBenkiser, Kraft Heinz & Pidilite.
Joined BCCL on April 2016. He is a PGDBM from IMT,Ghaziabad and has 21 years of experience inorganizations like Dabur and Britannia
Dharmesh SanghaviHead - IT
Dr. Suman MajumderHead – R&D
Joined BCCL on May 2019. He holds a Ph.D. inOrganic Chemistry from Center of AdvancedStudies, Kolkata and has over 15 years of richexperience in various R&D role in organizationslike Avery Dennison India, L’oreal and Unilever.
Joined BCCL on Sep 2012. He is a computerEngineer and a diploma in Business Managementfrom ICFAI University, Dehradun and has 14 yearsof experience in organizations like Yash BirlaGroup & The Loot India (P) Ltd
Joined BCCL on Nov 2015. He is a Civil Engineer & MBA and has15 years of experience in organizations like GSK, Johnson &Johnson. & Dabur
Joined BCCL on April 1991. He is a qualified CA & CSprofessional and has more than 30 years of experienceacross Finance, Accounts, Taxation & Secretarial
Rohit SaraogiAssistant Vice President - Finance
Joined BCCL on Mar 2019. He is a commerce graduate from St.Xavier’s, Kolkata and a qualified CA & CS Professional and has 17years of experience in organizations like Diageo India & Marico.
Jaideep NandiChief Executive Officer
He has been appointed as CEO of thecompany with effect from January 02,2020. He is a Mechanical Engineer fromJadavpur University and PGDBM from IIM- Bangalore. He joins us from Asian Paintswhere he has spent an extremelysuccessful and well-rounded professionalcareer of 29 years.
Dipen P DalalHead - Alternate Trade Channels
Joined BCCL on May 2018. He has completed
his PG Diploma in Supply Chain Management
from Symbiosis Centre for Distance Learning,
Pune and has 20 years of experience in
organizations like Piramal Enterprises Ltd,
Reliance Retail Ltd & Reliance Industries Ltd.
Apoorv Nayan BajajExecutive President
Factory (8)
OWN – Himachal Pradesh -1, Uttarakhand- 1,
Guwahati 1
THIRD PARTY - Himachal Pradesh-2, Baroda -1
Uttarakhand- 2
Central Warehouse (2)
Regional Distribution Centre
Urban Distribution Rural Distribution
Redistribution Stockist
754
Retail Outlets
16,02,468
Super Stockist - 315
Sub-Stockist- 7800
Retail Outlets –
24,32,450
Distribution Network Distribution Structure
The company reaches consumers through 4.03 Million
retail outlets serviced by 8869 distributors
757
774
247
297
294
84
265
20
2381713
786
271
120
53
80
386
565
170233
121
72
04
317
08
1704
02
60
Total Stock Point (Direct + Indirect)
Registered Zonal Office
Regional Zonal Office
01
09
Strong Distribution Network
27
Source: Nielsen Retail Audit Report, Dec 2019
28
✓ Our distribution has reached 40.3 lakh outlets as per Nielsen data
Sales & Distribution
35
35.8
36.5 36.6
37.6 37.5 37.4
37
37.6
38
37.637.9
39
39.739.9
39.6
40.1 40.1 40.1 40.140.3
32
33
34
35
36
37
38
39
40
41
Mar
-15
Ap
r-1
5
May
-15
Jun
-15
Jul-
15
Au
g-1
5
Sep
-15
Oct
-15
No
v-1
5
Dec
-15
Jan
-16
Feb
-16
Mar
-16
Ap
r-1
6
May
-16
Jun
-16
Jul-
16
Au
g-1
6
Sep
-16
Oct
-16
No
v-1
6
Dec
-16
Jan
-17
Feb
-17
Mar
-17
Ap
r-1
7
May
-17
Jun
-17
Jul-
17
Au
g-1
7
Sep
-17
Oct
-17
No
v-1
7
Dec
-17
Jan
-18
Feb
-18
Mar
-18
Ap
r-1
8
May
-18
Jun
-18
Jul-
18
Au
g-1
8
Sep
-18
Oct
-18
No
v-1
8
Dec
-18
Jan
-19
Feb
-19
Mar
-19
Ap
r-1
9
May
-19
Jun
-19
Jul-
19
Au
g-1
9
Sep
-19
Oct
-19
No
v-1
9
Dec
-19
Distribution Outlets ADHO (in Lacs)
29
Sales Value Breakup by Channel (Q3 FY 20)
Channel Q3 FY20 Growth Q3 FY20Salience%
General Trade 84.61% -7.67%
Modern Trade 9.62% 8.50%
Total Domestic excluding CSD 94.23% -6.24%
Canteen Stores Department 3.06% -30.77%
Total Domestic 97.29% -7.27%
International Business 2.71% -13.01%
Total For the Company 100.00% -7.44%
30
Standalone Financials
Particulars Q3FY20 Q3FY19 Growth% 9M FY20 9M FY19 Growth%
Sales 205.47 221.98 -7.44% 649.12 642.68 1.00%
Revenue from Operations 211.48 229.57 -7.88% 668.81 663.70
EBITDA 55.69 72.39 -23.07% 191.20 204.80 -6.64%
EBITDA % 27.10% 32.61% 29.45% 31.87%
Other Income 9.02 7.38 21.53 15.67
Profit before Tax 60.69 76.60 -20.77% 201.20 210.97 -4.63%
Tax 10.61 16.51 35.16 45.46
Profit after Tax 50.08 60.09 -16.66% 166.03 165.51 0.31%
PAT % 24.37% 27.07% 25.58% 25.75%
Rs. Crs
Breakup of Material Costs (for Q3 FY 20)
30%
25%14%
9%
22%
% to Total Cost
LLP
Bottles
Refined Veg. Oil
Perfumes & other additives
Others
31
Change in prices of Key Ingredients
63.65 61.93 59.39 60.36
0
20
40
60
80
100
Qtr3 FY19 vs FY20 9MFY19 v FY20
Am
ou
nt
(Rs.
)
Per Kg Rates of LLP
86.46 84.15 87.40 85.34
0
20
40
60
80
100
Qtr3 FY19 vs FY20 9MFY19 v FY20
Am
ou
nt
(Rs.
)
Per Kg Rates of Refined Veg. Oil
32
Performance over the last 15 quarters
1.8
0%
3.4
7%
-4.7
5%
-1.9
4%
-3.6
0%
3.8
4%
5.8
6%
5.0
1%
9.4
5%
1.0
1%
12
.50
%
11
.10
%
8.1
4%
2.6
5%
-7.4
4%
0.7
7%
-6.4
6%
-6.8
9%
-7.7
7%
5.0
9%
5.1
7%
5.8
6% 8.6
8%
-2.8
2%
7.0
0%
5.5
0%
4.6
6%
-0.2
2%
-8.6
2%
35.37% 34.82%33.44% 32.96%
31.51%29.26%
35%34.08%
32.79%
30.10%
32.61% 33.17%30.93% 30.12%
27.10%
-15.00%
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q2FY20 Q3FY20
Gr (Value)
Gr (Vol)
EBIDTA
33
Dividend Payout History
YearNo. of Shares
(in Lacs)Face Value
Dividend Payout(Rs in Lacs)
% to CapitalDividend per
share(Rs.)
2018-19 1,475 1 20,650.00 1400% 14.00
2017-18 1,475 1 17,700.00 1200% 12.00
2016-17 1,475 1 16,962.50 1150% 11.50
2015-16 1,475 1 16,962.50 1150% 11.50
2014-15 1,475 1 16,962.50 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% 9.5034
For more information & updatesContact:
Mr. Kushal Maheshwarikushal@bajajconsumer.com
Thank you
35