Investor Presentation

Oct 2013

Updated on 21st October 2013

Industry Overview

Industry Size and Structure

Light Hair Oil is now the largest non-coconut hair oil segment

2

Perfumed Hair Oil Segment

FMCG

Rs.199,401 cr (USD 36.3 bn)

Hair Care

Rs. 15,141 cr (USD 2.75 bn)

Shampoo

Rs. 4694cr

(USD 853 mn)

(31.0%)*

Perfumed Oil

Rs. 4283 cr

(USD 779 mn)

(28.3%)*

Coconut Based Oil

Rs. 3587 cr

(USD 652 mn)

(23.7%)*

Hair Conditioners

Rs. 302 cr

(USD 55 mn)

(2.0%)*

Hair Dyes

Rs. 2,271 cr

(USD 413 mn)

(15.0%)*

Hair Oil Market

Coconut based

Oils

(46%)**

Amla

based Oils

(15%)**

Light Hair Oils

(16%)** Cooling Oils

(11%) **

Others

(12%)**

Source: AC Nielsen Retail Audit Report.

Only branded products data for CY 2012

* Value based share of Hair Care Market

** Value based share of Hair Oil Market

8% salience

Hair Oil Market in India

Overall Hair Oil Market – Volume Overall Oil Market – Value

Light Hair Oil – Volume Light Hair Oil – Value

Light hair oils is one of the fastest growing segments in the hair oil market in India

Source: AC Nielsen Retail Audit Report, Sep2013.

(In K

Ltr

) (I

n K

Ltr

)

(Rs.

Cr.

) (R

s. C

r.)

Y-o

-Y 30%

Y

-o-Y

33%

Y-o

-Y 40%

Y-o

-Y 14%

Y-o

-Y

8.6

%

Y-o

-Y 1

0.1

%

Y-o

-Y 18%

Y-o

-Y

8.3

%

Y-o

-Y 1

2.5

%

Y-o

-Y 29%

Y-o

-Y

16.4

%

Y-o

-Y 1

7.1

%

Y-o

-Y 31%

Y-o

-Y 21%

Y-o

-Y

12.1

%

Y-o

-Y

13.6

%

Y-o

-Y 1.2

%

Y-o

-Y 19.5

%

Y-o

-Y 22%

Y

-o-Y

30%

3

Y-o

-Y 5.1

%

Y-o

-Y 12.6

%

Y-o

-Y 10.8

%

Y-o

-Y 20.3

%

132560

172,528 197,057

214,002 235,539 238,283

250,396

127,081

0

50,000

100,000

150,000

200,000

250,000

300,000

06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14(6m)

2,827.3

3,707 4,498

5,044 5,728

6,981

7,861

4,137.2

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14(6m)

11764

15,603 18,390

19,908 22,406

26,768 29,663

15,586

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14(6m)

335.6

472

610 710

831

1,080

1299

713

0

200

400

600

800

1,000

1,200

1,400

06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14(6m)

6M

-o-6

M

6.4

%

6M

-o-6

M

14.1

%

6M

-o-6

M

4.6

%

6M

-o-6

M

0.7

%

123 191

284

360

441

594

739

416

0

100

200

300

400

500

600

700

800

06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14(6m)

3978

5,988

8,108 9,559

11,006

13,895

16,157

8,853

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14(6m)

335.6

472

610 710

831

1,080

1299

713

0

200

400

600

800

1,000

1,200

1,400

06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14(6m)

11764

15,603 18,390

19,908 22,406

26,768 29,663

15,586

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14(6m)

Light Hair Oil Market in India

Light Hair Oil – Volume Light Hair Oil – Value

Almond Drops Hair Oil Market - Volume Almond Drops Hair Oil Market - Value

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

(In K

Ltr

)

(Rs.

Cr.

)

Y-o

-Y 5

4.5

%

Y-o

-Y 4

8.9

%

Y-o

-Y 2

6.7

%

Y-o

-Y 2

2.6

%

Y-o

-Y 5

1%

Y-o

-Y 3

5%

Y-o

-Y 1

7.9

%

Y-o

-Y 1

5.1

%

(In K

Ltr

)

Y-o

-Y 26.2

%

Y-o

-Y 34.8

%

4

Source: AC Nielsen Retail Audit Report, Sep2013.

Y-o

-Y 16.3

%

Y-o

-Y 24 .

4%

(Rs.

Cr.

)

Y-o

-Y 33%

Y-o

-Y 40%

Y-o

-Y 18%

Y-o

-Y

8.3

%

Y-o

-Y 1

2.5

%

Y-o

-Y 29%

Y-o

-Y

16.4

%

Y-o

-Y 1

7.1

%

Y-o

-Y 19.5

%

Y-o

-Y 30%

Y-o

-Y 10.8

%

Y-o

-Y 20.3

%

6M

-o-6

M

6.4

%

6M

-o-6

M

14.1

%

6M

-o-6

M

13.3

%

5M

-o-5

M

18.8

%

Market Shares Trends (All India - Urban Plus Rural)

Source: AC Nielsen Retail Audit Report, Sep2013

*Market Share in the Light Hair Oil Category

Volume MS Value MS

5

38.4%

44.1%

48.0% 49.1% 51.9%

54.5% 56.8%

0%

10%

20%

30%

40%

50%

60%

07-08 08-09 09-10 10-11 11-12 12-13 13-14(6m)

40.3%

46.5%

50.7% 53.0%

55.0% 56.9% 58.3%

0%

10%

20%

30%

40%

50%

60%

70%

07-08 08-09 09-10 10-11 11-12 12-13 13-14 (6m)

ADHO – Relative Market Share – Value Trend

Source – AC Nielsen Retail Audit Report, Sep2013

Growth in Relative market share demonstrates the strength of the brand

Relative Market share is the ratio of Almond Drops market share to

the next largest competitor in LHO segment

6

2.08

2.65

3.17

3.43

4.04

4.26

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

2008 2009 2010 2011 2012 2013 (9M)

Relative MS - Val

ADHO – Relative Market Shares – Value

Source – AC Nielsen Retail Audit Report, Sep2013

State Relative MS Rank

Delhi 3.8 1st

Rajasthan 1.6 1st

Uttar Pradesh 3.4 1st

Punjab 3.9 1st

HP-JK 3.2 1st

Haryana 4.4 1st

Uttaranchal 4.5 1st

North Zone 4.1 1st

Assam 5.7 1st

North East 1.7 1st

Bihar 8.3 1st

Orissa 4.3 1st

West Bengal 3.0 1st

Jharkhand 5.0 1st

East Zone 5.7 1st

All India 4.3 1st

State Relative MS Rank

Madhya Pradesh 3.8 1st

Chhattisgarh 6.3 1st

Gujarat 2.2 1st

Central Zone 3.5 1st

Mumbai 3.8 1st

Maharashtra 4.1 1st

West Zone 4.1 1st

Andhra Pradesh 0.8 2nd

Karnataka 6.9 1st

Kerala 1.2 1st

Tamil Nadu 0.5 2nd

South Zone 1.4 1st

All India 4.3 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

7

Statewise Market Share

Oct 12 - Sep 13 LHO Volume Proportion % ADHO Market Share % (Vol)

Saliency Urban Rural Total Urban Rural

All India (U+R) 100.00% 65% 35% 56.20% 54.40% 59.40%

Punjab 6.19% 69% 31% 53.30% 52.10% 56.10%

Haryana 6.54% 80% 20% 58.50% 55.60% 70.20%

Delhi 5.82% 100% 0% 54.10% 54.10% NA

Rajasthan 8.93% 60% 40% 47.20% 46.30% 48.60%

Uttar Pradesh (U+R) 21.67% 61% 39% 59.40% 56.50% 64.20%

Uttaranchal 0.97% 59% 41% 61.50% 56.90% 68.30%

Assam 5.60% 45% 55% 54.10% 45.00% 61.60%

Bihar 4.30% 64% 36% 74.40% 72.70% 77.50%

Jharkhand 1.45% 60% 40% 62.60% 61.60% 66.00%

Orissa 0.83% 77% 23% 58.50% 57.30% 60.30%

West Bengal 6.50% 64% 36% 38.80% 38.50% 39.30%

Gujarat 5.98% 75% 25% 52.70% 51.30% 57.30%

Madhya Pradesh 11.98% 43% 57% 61.60% 65.20% 58.90%

Chattisgarh 3.39% 48% 52% 70.60% 65.10% 75.80%

Maharashtra 6.75% 82% 18% 58.00% 58.80% 54.40%

Karnataka 1.05% 87% 13% 63.30% 62.40% 69.10%

Andhra Pradesh 1.44% 72% 28% 32.50% 37.80% 18.10%

Tamil Nadu 0.48% 96% 4% 23.00% 23.90% 3.20%

Kerala 0.14% 90% 10% 19.20% 20.80% 5.10% Source: AC Nielsen Retail Audit Report, MAT Sep2013

8

Light Hair Oil Market – Key Characteristics

Rural –Urban break up of LHO market Share of Distribution Channels in LHO market

SKU wise break up of LHO market Region wise break up of LHO market

Urban dominated

segment due to its

relatively higher

pricing

Given the

dominance of the

urban market,

larger units

account for bulk

of the sales.

However, smaller

units to increase

rural penetration

Sales tend to be

concentrated in

the Northern parts

of the country, but

West is the fastest

growing region

% - Market share

Traditional

channels dominate

distribution, but

alternate channels

like modern retail

demonstrating

higher growth rate

9

All India - Urban 64%

All India - Rural 36%

Local Grocer Stores 51%

Gen Stores 28%

Chemists 7%

Cosmetics 4%

Modern Trade

3%

Others 7%

North, 48%

East, 21%

West, 28%

South, 4%

Source: AC Nielsen Retail Audit Report, Mar2013

2-5ml, 4.6% 10-45ml,

3.7%

50ml, 20.0%

75ml, 4.4%

100ml, 36.9%

200ml, 18.1%

250ml, 0.6%

300ml, 7.1%

500ml, 3.6%

485

594

667

760

869

682

0

100

200

300

400

500

600

700

800

900

1,000

CY08 CY09 CY10 CY11 CY12 Jan13-Sep13

12,416

14,655

16,610

18,520 19,498

14,226

0

5,000

10,000

15,000

20,000

25,000

CY08 CY09 CY10 CY11 CY12 Jan13-Sep13

Cooling Hair Oil Market in India

Y-o

-Y -

18

%

Y-o

-Y -

13

%

Y-o

-Y -

12

%

Cooling Hair Oil – Volume

Y-o

-Y -

23

%

Y-o

-Y -

12

%

Y-o

-Y -

14

%

Cooling Hair Oil – Value

KLt

r

Rs.

Cr.

Source – AC Nielsen Retail Audit Report, Sep2013

Kailash Parbat – Distribution Trend Kailash Parbat – Volume Market Share Trend

Lakh

ou

tlet

s

%

10

Y-o

-Y –

5.0

%

Y-o

-Y –

14

%

9M

-o-9

M –

-7

.4%

9M

-o-9

M –

0.7

%

0.0

0.4

0.9 1.2

1.5 1.6 1.4

1.5 1.8

2.0

2.5 2.8

3.0 3.2 3.1

2.8 3.0

3.2 3.5 3.6 3.6

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

0.0%

0.4%

0.8% 1.0%

1.2% 1.4%

1.0% 1.2%

1.0%

1.3% 1.5%

1.7%

2.0%

2.6%

2.2% 2.5%

2.3% 2.5%

2.1% 1.9%

2.5%

2.9%

2.8% 2.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

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)

BCL is the exclusive licensee of brands owned

by BRL

Brands licensed to BCL for 99 years from 2008

3rd largest player in the overall hair oils segment

Key brand – Bajaj Almond Drops Hair Oil

Market leader with over 58% 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

Acquired Nomarks from Ozone Ayurvedics on 22nd

August 2103

Other brands - Brahmi Amla, Amla Shikakai and

Jasmine (all hair oil brands) and Black tooth

powder

Bajaj Almond Drops Hair Oil - A premium perfumed

hair oil containing almond oil and Vitamin E

Competitors – Keo Karpin (Dey’s Medical), Hair &

Care (Marico), Clinic All Clear (HUL)

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.

*Source: AC Nielsen Retail Audit Report, Jun2013.

Bajaj Kailash Parbat Cooling Oil – An ayurvedic

formulation containing Sandal & Almond extracts

Competitors: Himani Navratna

12

Bajaj Almond Drops - A Premium Brand

Source: AC Nielsen Retail Audit

Report Aug2013, Kotak

Institutional Research

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.)

. . . But not at the cost of pricing power

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

Strong Market Share Growth in Recent Years

(MR

P o

f 100m

l (R

s.)

Competitor Brands

13

28 29 30 32 35

38 40 42 46

50 55

0

10

20

30

40

50

60

23

36

55 55

27

44 42 38

44

60

0

10

20

30

40

50

60

70

Amla Shikakai Brahmi Amla Almond Drops Kailash Parbat Parachute Keo Karpin Dabur Vatika Dabur Amla Hair & Care Navratna

31.4% 36.7%

40.3% 46.5%

50.7% 53.0% 55.0% 56.9% 58.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

05-06 06-06 07-08 08-09 09-10 10-11 11-12 12-13 13-14(5m)

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 14

Strong Distribution Network

Over the years, BCL has created a large distribution network (that continues to grow) which can be leveraged to

introduce new products

Factory (5)

OWN – Himachal Pradesh -2, Uttarakhand-1

THIRD PARTY - Himachal Pradesh-1, Rajasthan-1

Central Warehouse (1)

Regional Distribution Centre (29)

Urban Distribution Rural Distribution

Redistribution Stockist

(1,749)

Retail Outlets (990,079)1

1 - as on August 31, 2013. Nielsen New Sample

Super Stockist (184)

Sub-Stockist (5091)

Retail Outlets

(1,415,573)1

Distribution Network Distribution Structure

The company reaches

consumers through 2.41mn

retail outlets serviced by

6840 direct distributors and

14,848 wholesalers

47

50

1605

157

217

562

593

551

182 441

207

164

519

262

284

98

379

379

MT - 69

66

15

Nielsen Panel Expansion

Nielsen has expanded its retail audit panel in 2013 – up by 60% from the existing

panel with significant increases in Rest of Urban and Rural.

This enhancement improves country level precision for all states and pickup more

regional / local brands, thereby significantly improving accuracy in reported

estimates.

Since Nielsen data is based on statistical projection of sample to the actual

universe, any change in sample leads to a change in the projected data with

retrospective effect. As a result of this expansion the data from Jan 2011 onwards

has changed to reflect the bigger panel and hence better data.

16 Source: Nielsen Retail Audit Report, Jun2013

Category outlets Old Panel New Panel

Hair Care oils 6,923,929 6,032,262

LHO 4,865,663 4,177,911

HAB 3,063,306 2,554,584

CHO 3,299,790 2,802,538

Organization Structure

16

Chairman

Mr. Kushagra Bajaj

Managing Director

Mr. Sumit Malhotra

Director – Business Development

Mr. Jimmy Anklesaria President Operations

Mr. Apoorv Bajaj

Chief Financial officer

Mr. V.C.Nagori

Vice President (Finance)

Mr. D.K. Maloo

Company

Secretary

DGM -

Finance Sr. Manager

Treasury

Sr. Manager

Finance Sr. Manager

Finance

Works Manager

Purchase

Manager

Quality Control

Manager Sr. Manager

EDP

Manager

Logistics

Regional

Commercial

Manager

VP – Sales

Mr. Sudhir

Taneja

GM – Marketing

Mr. Gurpreet S.

Amrit

GM – HR

Mr. S.

Chatterjee

DGM Sales

AGM - West

RSM – North 1

RSM – North 2

RSM - Central

DGM -EDP

GM- Operations

Mr. Kabir Sahni

Head International

Business –

Arnab Banerjee

Financial Information

Summary Income Statement Summary Balance Sheet

Particulars HY2014 HY 2013 2012-13Particulars HY1 HY1 HY2014 HY 2013 2012 13

(Rs. In Crore)Shareholders Equity 566.84 503.88 483.80 Long Term Debts 60.00 - -Net Fixed Assets 184.23 38.81 45.85

Q2 FY14 Q2 FY13 HY1 FY14

HY1 FY13(Rs. In Crore)

Sales (Net) 158.25 135.86 328.29 273.91

EBITDA 42 87 39 07 91 11 77 99Investments

441.97 444.83 423.04 (including Bank FDs, Bank CDs and Government Securities & Bonds)

EBITDA 42.87 39.07 91.11 77.99

EBITDA Margin 27.09% 28.76% 27.75% 28.47%

Net Profit after Tax 36 02 38 40 83 03 76 02

Sales Break Up in HY1 FY 2014 by Brand Key Highlights

)

Net Current Assets 0.64 20.24 14.91

36.02 38.40 83.03 76.02

Net Profit Margin 22.76% 28.27% 25.29% 27.76%

p y y g g

Strong demonstrated growth track recordKPCO

BAHO1 2%

ASHO0.1%

JHO0.3% BTP

Among the highest EBITDA margins in theindustry

KPCO2.0%

1.2%0.3%

18

ADHO96.2%

EBITDA & PAT Performance

` in Crore

Particulars Q2 FY14 Q2 FY13 YoY% HY1 FY14 HY1 FY13 YoY%

EBITDA 42 87 39 07 9 73% 91 11 77 99 16 83%EBITDA 42.87 39.07 9.73% 91.11 77.99 16.83%

Profit Before TaxProfit Before Tax(PBT) 45.61 48.08 -5.14% 105.12 95.21 10.41%

Profit After Tax (PAT) 36.02 38.40 -6.20% 83.03 76.02 9.21%

19

Profit & Loss Q2FY2014` in Crore

Particulars Q2FY14 Q2FY13 YoY% HY1 FY14 HY1 FY13 YoY%Net Sales 158.25 135.86 16.48% 328.29 273.91 19.86%Other Operating Income 0.15 0.16 0 34 0 35Other Operating Income 0.15 0.16 0.34 0.35

Material Cost 63.28 58.24 131.91 120.01 % of Sales 39.99% 42.87% 40.18% 43.81%Employees Cost 8.67 6.73 16.98 13.66 % of Sales 5.48% 4.96% 5.17% 4.99%Advertisement & Sales Prom. 27.92 18.77 56.45 36.13 % of Sales 17.64% 13.82% 17.19% 13.19%Other Expenses 15 67 13 20 32 19 26 46Other Expenses 15.67 13.20 32.19 26.46 % of Sales 9.90% 9.72% 9.81% 9.66%EBITDA 42.87 39.07 9.73% 91.11 77.99 16.83%% of Sales 27.09% 28.76% 27.75% 28.47%Other Income 10.12 9.84 22.18 18.84948 8 8 9% of Sales 6.40% 7.24% 6.76% 6.88%Finance Cost 1.31 0.02 1.32 0.0324Depreciation 0.96 0.81 1.7461 1.5949Profit Before Tax & Exceptional Item 50.72 48.08 5.50% 110.23 95.21 15.78%Exceptional Item 5.11 - 5.11 Profit Before Tax(PBT) 45.61 48.08 -5.14% 105.12 95.21 10.41%Tax Expenses 9.59 9.67 22.09 19.18 Profit After Tax(PAT) 36 02 38 40 -6 20% 83 03 76 02 9 21%

20

Profit After Tax(PAT) 36.02 38.40 -6.20% 83.03 76.02 9.21%% of Sales 22.76% 28.27% 25.29% 27.76%Diluted EPS (Rs.) 2.44 2.60 5.63 5.15

Sales for the quarter ended September ’13 has increased by 16.48% value wise and

14.96% volume wise over corresponding quarter of previous year.

Sales for the half year ended September,13 has increased by 19.86% value wise

and 17.59% volume wise over corresponding half year of previous year.

Sales Performance

21

135.86 158.25

0

50

100

150

200

Q2 FY13 Q2 FY14

In `

Cro

res

Sales (Value) : Q2FY13 v/s Q2FY14

273.91 328.29

0

50

100

150

200

250

300

350

H1 FY 13 H1 FY 14

In `

Cro

res

Sales (Value) : H1FY13 v/s H1FY14

Statement of Quarter wise Sales (Volume & Value)

STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases )

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

22

ADHO KPCO BAHO ASHO Others Total % Inc

over PY

FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13

Q1

1,163,796

952,959

21,653

28,665

9,853

11,481

1,732

2,455

4,779

4,639 1,201,812 1,000,199 20.16%

Q2

1,094,484

944,632

11,823

12,739

9,770

11,019

1,986

3,095

5,563

5,926 1,123,626 977,411 14.96%

Total

2,258,280

1,897,591

33,476

41,404

19,623

22,500

3,718

5,550

10,342

10,564 2,325,438 1,977,610 17.59%

ADHO KPCO BAHO ASHO Others Total % Inc

over PY FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13 FY 14 FY 13

Q1

162.71

129.46

4.33

5.45

1.94

2.07

0.18

0.26

0.89

0.81

170.05

138.05 23.18%

Q2

153.00

129.88

2.11

2.49

1.89

2.08

0.21

0.33

1.04

1.08

158.24

135.86 16.48%

Total

315.70

259.34

6.44

7.94

3.83

4.15

0.39

0.59

1.93

1.89

328.29

273.91 19.86%

Consistent Performance over the last 14 successive quarters

23

8.6

4%

11.1

9%

17.3

9%

21.0

9%

19.9

6%

21.9

8%

20.4

5%

22.2

7%

22.3

5%

18.7

0%

22.3

3%

19.1

2%

20.1

6%

14.9

6%

14.9

1%

19.1

9%

24.0

7%

27.6

0%

30.4

4%

31.4

3%

30.7

5%

33.4

6%

29.5

3%

27.2

5%

31.8

4%

25.3

1%

23.1

8%

16.4

8%

35.12%

28.53%

30.29%

28.26%

24.96%

25.68%

25.51%

23.17%

28.19%

28.76%

29.03%

28.25%

28.37%

27.09%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Q1FY11 Q2FY11 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14

Gr (Vol)

Gr (Value)

EBIDTA

Breakup of RM/PM Costs (for Q2 FY14)

Key Raw & Packing Material % to Sales % to Total Cost

LLP 14.58% 36.46%

Glass Bottles 9.09% 22.73%

Refined Veg. Oil 3.82% 9.56%

Perfumes & other additives 2.95% 7.39%

Corrugated Boxes 1.63% 4.06%

Caps 2.14% 5.34%

Others 5.78% 14.46%

TOTAL 39.99% 100.00%

* Consumption is 39.99% of Sales

*For Bajaj Almond Drops

24

Change in Prices of Key Ingredients

During the quarter average price of LLP decreased to Rs 75.33/Kg from Rs 81.43/Kg in

corresponding quarter of previous year. Additional gain on account of decrease in LLP prices in

current quarter is Rs 188.80 lacs

Prices of Refined oil decreased from Rs 84.93/Kg in Q2Fy13 to Rs 70.85/Kg in Q2Fy14 in

corresponding quarter of previous year. The additional gain on account of decrease in Oil

prices in current quarter is Rs 118.88 lacs

25

81.43 80.88 75.33 74.39

0

20

40

60

80

100

Qtr2 FY13 vs FY14 HY1 FY13 vs FY 14

Am

ou

nt

(Rs

.)

Per Kg Rates of LLP

84.93 80.32 70.85 71.38

0

20

40

60

80

100

Qtr2 FY13 vs FY14 HY1 FY13 vs FY 14

Am

ou

nt

(Rs

.)

Per Kg Rates of Oil

Debt and Cash Balances

Debt:

As a part of structuring to fund the acquisition of Nomarks the company has taken a bank

loan Rs. 100 Crore – out of which Rs 40 Cr is payable with in one year and balance Rs 60 Cr is

payable within next two and half years.

The company intends to repay the Loan in February 2014 without incurrence of any Pre-

Payment Penalty.

Cash Balances:

The total cash balance with the company as on 30th September 2013 is Rs. 390.16 Crores

This has been invested in Bank Fixed Deposits, Certificate of Deposits of Banks , PSU Bonds

and Liquid MFs.

There is no investment in ANY Corporate Deposit

26

Summary

Particulars Amount (in Rs. Crores)

Bank FDs 205.30

Liquid Plans of Mutual Funds 9.10

PSU Corporate Bonds 10.00

Certificate of Deposit of Banks 165.76

Total 390.16

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.

27

Growth Strategy

Strategy Action Steps

Market share gains from

other hair oil segments

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

Focus on rural

penetration

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

Leverage existing

strengths to introduce

new products

BCL has over the years created a strong distribution network across 2.41 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

Pursue inorganic

Opportunities

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

28