Investor Presentation
March 2010
Disclaimer
Bajaj Corp Limited.” (“Company” or “BCL”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, an initial public offer of its equity
shares in the near future and has filed a Draft Red Herring Prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”). The aforesaid DRHP is available at the
website of SEBI at www.sebi.gov.in and the website of the BRLM at www.kmcc.co.in. Any potential Investors should note that investments in equity shares involve a high degree of
risk and for details, potential investors may refer to, but not rely on, the Draft Herring Prospectus, filed with SEBI, including the section titled “Risk Factors”. Subsequently,
potential investors should refer to the Red Herring Prospectus, which may be filed with the Registrar of Companies in future, including the section titled “Risk Factors”
THIS PRESENTATION IS NOT FOR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO THE UNITED STATES. This presentation and the information contained herein is not an offer of
securities for sale in the United States. The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the
"Securities Act"). The securities of the Company may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an exemption from
registration. The Company does not intend to register any portion of the offering in the United States or to conduct a public offering of any securities in the United States.
This is for informational purposes only and does not constitute or form part of, and should not be construed as, an offer or invitation to sell securities of the Company, or the
solicitation of any bid from you or any investor or an offer to subscribe for or purchase securities of the Company, and nothing contained herein shall form the basis of or be
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such information. The information in this presentation has not been independently verified. The information and opinions in this presentation are subject to change without
notice.
1
Investment Highlights
Investment Highlights
1
Strong Macro Environment Driving Consumption Growth in India

Increase in the proportion of the population in the age group of 15-59 years from 56% in 1990 to 63% in 2015

Growth of disposable income at an 8.7% CAGR between FY02 and FY07

Urban population expected to grow to from 25% of total population in 2001 to 35% in 2016

Organized retail as a % of total retail is expected to increase from 6% in FY07 to 12% in FY12
2
Light Hair Oil – An Attractive Segment in the Hair Oil Market

Hair oil market has grown at a CAGR of 13% in volume terms and 18% in value terms between CY06 and CY08

In the same period, the light hair oil (LHO) market grew at a CAGR of 14% in volume terms and 24% in value terms,
significantly outperforming the overall hair oil market

Market expected to continue to grow as users shift preference to LHO driven by the non sticky property of LHO
3
Strong Brand Positioning

The company’s “Almond Drops” brand is a leader in the light hair oil market with a market share of 49.5% in CY09, more than
2x its nearest competitor

It’s market share has grown from 30.0% in CY05 to 49.5% in CY09

Almond Drops is a premium brand with high pricing power – it is among one of the highest priced hair oil brands and has
gained dominant market position in the segment
3
Investment Highlights (Cont’d.)
4
Strong Distribution Network and Comprehensive MIS

The company reaches consumers through 1.49 mn retail outlets which are serviced by its strong distribution network of 4,300
direct distributors and 8,900 wholesalers

The company’s strong distribution network and reach will provide it a robust platform to launch new products

The company’s distribution network is supported by a comprehensive MIS whereby sales reports are generated by on the
ground sales force
5
Experienced Management Team with Promoter Backing

Qualified management team with significant sector experience backed by strong parentage of the Bajaj Group

Several members of senior management team have been associated with the Bajaj Group for several years

Independent Board of Directors
6
Strong Financials

Sales have grown at a CAGR of 22% over the last three fiscal years

EBITDA margins of over 21% in FY09

The asset light business model resulted in an ROCE of 188% as on March 31st 2009

Debt free company
7
Growth Strategy

Extend the ‘Almond Drops’ platform to other personal care products

Evaluate inorganic growth opportunities which provide access to new markets and augment existing product offerings

Convert coconut hair oil users to light hair oil users and increase market share

Increase focus on rural penetration
4
Enabling Macro Economic Factors
Strong Macro Environment Driving Consumption Growth in India
6
7
7
8
9
80%
60%
56
57
58
60
62
63
40%
20%
38
37
35
33
31
29
2010
2015
> 60 Years
0%
1990
1995
< 15 Years
2000
2005
15 - 59 Years
35%
30%
25%
20%
15%
10%
5%
2016E
2011E
2001
1991
1981
1971
1961
1951
1941
1931
1921
1911
0%
Source: Secondary research, CSO
CAGR: 8.7%
30,000
25,000
20,000
18,988
19,744
FY02
FY03
21,582
28,880
23,139
25,560
15,000
10,000
5,000
FY04
FY05
FY06
FY07
Growing organized retailing will drive consumption of
branded products
40%
1901
Urban Population/Total Population
Steady urbanization to drive demand and shift in
consumer preferences
35,000
(Share of organised retail market)
(% of Population)
6
Working Age Group
100%
Disposable income growth rate outperformed GDP
growth rate
(Disposable income per person)
Working population has expanded by 270 mn between
1990 & 2010
14%
12%
12%
10%
8%
6%
6%
4%
2%
0%
FY07
FY12
The combination of a large working population, increasing disposable income, steadily growing urbanization and
growth in organized retail is a very potent mix for the long term growth of consumer products in India
6
Industry Overview
Industry Size and Structure
FMCG
Rs.116,100 cr (USD 25.5 bn)
Hair Care
Rs. 9,150 cr (USD 2.0 bn)
8% market share
Shampoo
Rs. 2,840 cr
Perfumed Oil
Rs. 2,930 cr
Coconut Oil
Rs.2,110 cr
Hair Conditioners
Rs. 80 cr
Hair Dyes
Rs. 1,190 cr
(USD 0.6 bn)
(31.0%)*
(USD 0.6 bn)
(32.0%)*
(USD 0.5 bn)
(23.1%)*
(USD 0.02 bn)
(0.9%)*
(USD 0.3 bn)
(13.0%)*
Hair Oil Market
Coconut based
Oils
Heavy Amla based
Oils
(51%)*
(15%)*
Cooling Oil
Light Hair Oils
Others
(12%)*
(14%) *
(8%)*
Perfumed Hair Oil Segment
Source: The 2009 AC Nielsen Retail Audit Report.
* Value based share of Hair Care Market
Only branded products data
Hair Oil is > 55% of the overall hair care industry in India
8
Hair Oil Market in India
Overall Hair Oil Market – Volume
250,000
CAGR: 12.8%
192,578
150,000
144,948
6,000.0
208,189
100,000
50,000
4,000.0
4,280
3,030
2,000.0
1,000.0
-
CY06
CY07
CY08
CY09
CY06
Light Hair Oil – Volume
25,000
17,832
CY08
CY09
Light Hair Oil – Value
CAGR: 23.8%
700
19,244
600
14,828
(Rs. cr)
12,954
CY07
800
CAGR: 14.1%
20,000
(In KLtr)
3,530
3,000.0
-
15,000
4,940
CAGR: 17.7%
5,000.0
164,756
(Rs. cr)
(In KLtr)
200,000
Overall Oil Market – Value
10,000
500
400
683
572
444
360
300
200
5,000
100
-
CY06
CY07
Source: The 2009 AC Nielsen Retail Audit Report.
CY08
CY09
CY06
CY07
CY08
CY09
Light hair oils is one of the fastest growing segments in the hair oil market in India
9
Light Hair Oil Market in India
Light Hair Oil – Volume
25,000
17,832
12,954
19,244
600
14,828
10,000
500
400
683
572
444
360
300
200
5,000
100
-
-
CY06
CY07
CY08
CY09
CY06
Almond Hair Oil Market - Volume
10,000
CAGR: 30.7%
8,000
9,020
CY08
400
CY09
300
4,040
4,000
256
250
175
200
150
338
CAGR: 40.4%
350
7,612
5,506
6,000
CY07
Almond Hair Oil Market - Value
(Rs. cr)
(In KLtr)
CAGR: 23.8%
700
(Rs. cr)
(In KLtr)
15,000
800
CAGR: 14.1%
20,000
Light Hair Oil – Value
122
100
2,000
50
-
-
CY06
CY07
Source: The 2009 AC Nielsen Retail Audit Report.
CY08
CY09
CY06
CY07
CY08
CY09
Almond Drops is the brand which is driving light hair oils and in turn the overall market
10
Light Hair Oil Market – Key Characteristics
Rural –Urban break up of LHO market
Share of Distribution Channels in LHO market - FY09
Modern
Retail (12%)
Paan Plus
1%
(14%)
6%
Rural
32.0%
Urban dominated
segment due to its
relatively higher
cost
Urban
68.0%
Cosmetics
(8%)
5%
Chemists
(13%)
7%
General
Stores (9%)
30%
Grocers
(6%)
51%
Traditional
channels dominate
distribution, but
alternate channels
like modern trade,
‘paan’ shops etc.
demonstrating the
highest growth
rates
(%) – Growth rates; % - Market share
SKU wise break up of LHO market
2-5 ml
2%
300 ml
9%
20-45 ml
1%
50 ml
17%
200 ml
21%
75 ml
5%
100 ml
45%
Given the
dominance of the
urban market,
larger units
account for bulk
of the sales.
However, smaller
units to increase
rural penetration
Region wise break up of LHO market
Others
48.0%
North
52.0%
Sales tend to be
concentrated in
the Northern
regions of the
country which is
also the fastest
growing zone
Source: The 2009 AC Nielsen Retail Audit Report.
11
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
100% owned by Bajaj Group through Bajaj
Consumer Care Ltd. (BCCL)


BCL is the exclusive licensee of brands
owned by BCCL
Brands licensed to BCL for 99 years from
2008

3rd largest player in the overall hair oils
segment in India

Key brand – Bajaj Almond Drops Hair Oil


Market leader with ~49.5% market share*
of LHO market

Premium positioning commands one of the
highest per unit prices in the industry
Other brands - Brahmi Amla, Amla Shikakai and
Jasmine (all hair oil brands) and Red / 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 Anmol
Bajaj Amla Shikakai – Variant in the heavy hair oil
segment catering to cost 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: The 2009 AC Nielsen Retail Audit Report.
13
Bajaj Almond Drops - A Premium Brand
Strong Market Share Growth in Recent Years
60%
50%
40%
46%
41%
30%
. . . But not at the cost of pricing power
40
50%
35
28
29
30
Mar-03
Mar-05
Dec-05
30
35%
32
35
38
May-08
Jul-08
25
20
30%
15
20%
10
10%
5
0%
0
CY05
CY06
CY07
CY08
CY09
Jul-06
Comparative Price of Different Brands for 100 ml in the Hair Oil Segment
(MRP of 100 ml (Rs.))
70
Bajaj Brands
Competitior Brands
60
44
50
40
30
32
38
33
34
Coconut Hair
Light Hair Oil
Value Added
Oil
(1)
Coconut Hair
23
34
35
21
20
10
0
Amla Shikakai Brahmi Amla
Almond Drops
Source: The 2009 AC Nielsen Retail Audit Report, Kotak Institutional Research
Amla Hair Oil Light Hair Oil
(2)
Cooling Hair
Oil
Oil
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
Strong Distribution Network
Distribution Network
The company reaches
consumers through
1.49mn retail outlets
serviced by 4,300 direct
distributors and 8,900
wholesalers
Distribution Structure
Factory (3)
Central Warehouse (1)
Regional Distribution Centre (30)
Urban Distribution
Rural Distribution
Redistribution Stockist
(2,348)
Super Stockist (83)
Sub-Stokist (1,952)
Retail Outlets (755,102)1
Retail Outlets (713,928)1
1 - as on November 30, 2009
Over the years, BCL has created a large distribution network which can be leveraged to introduce new products
15
Manufacturing Facilities
Facility
Overview
Parwanoo,
Himachal Pradesh



Capacity 23mn litres
Manufactures Almond Drops and Amla Shikakai
Bottling Lines – 5 Almond Drops, 1 Amla Shikakai
Dehradun,
Uttarakhand



Capacity 16mn litres
Manufactures Almond Drops
Bottling Lines – 4 Almond Drops
Paonta Sahib,
Himachal Pradesh



Capacity 35mn litres
Manufactures Almond Drops
Bottling Lines – 6 Almond Drops
Parwanoo,
Himachal Pradesh



Capacity 9mn litres
Manufactures Almond Drops, Brahmi Amla, Jasmine Hair oil
Bottling Lines – 2 Almond drops, 1 Brahmi Amla, 1 Jasmine
Udaipur, Rajasthan*



Manufactures Tooth Powder
Bootling lines – 2
Third party facility
All the Company facilities are in tax free zones and benefit from excise and income tax exemption /
concession for a period of 10 years from commencement of production
* Udaipur facility does not enjoy Income tax exemption
16
Organization Structure
Kushagra Bajaj
Chairman
Roshan Hinger
Vice Chairman
Apoorv Bajaj
President (Operations)
Sumit Malhotra
Director (Sales & Marketing)
VC Nagori
Vice President (Finance)
DGM (HR)
D.K. Maloo
General Manager
(Finance) & Co.
Secretary
DGM - Sales
AGM - North
AGM - East
AGM - Central
Manager
(Finance & Acc.)
RSM – North West
SM Assam
Manager
(EDP)
RSM – U.P.
SM W.B.
Sr. Manager
(Prod. & QC)
SM - Rajasthan
DGM – Marketing
AGM – West
SM M.P.
RSM - South
RSM West
Brand Manager
SM Karnataka
SM Gujarat
Asst. Manager
(Logistics)
Asst. Manager
(Purchase)
17
Board of Directors
Mr. Kushagra Bajaj,
Non-Executive
Chairman
Mr. Haigreve Khaitan,
Independent Director
Mr. Gaurav Dalmia,
Independent Director
Mr. Dilip Cherian,
Independent Director

Over 10 years of experience in the consumer and sugar industry

Bachelor’s degree in economics, political philosophy and finance from Carnegie Mellon University,
Pittsburgh, USA and a Masters Degree of Science in marketing from the Northwestern University, Chicago,
USA

A lawyer by profession, he holds a bachelors degree in law from the Calcutta University and has over 15
years experience in the legal field

He is a member of the Bar Council of West Bengal, Incorporated Law Society, International Bar Association,
London, the Indian Council of Arbitration, the Indian Law Institute, the Bar Association of India and the
Entrepreneurs Organization

He is a member of the Dalmia industrial family and joined the company in February 2010

Holds a Bachelors Degree in Computer Science from Salford University, UK and has completed his Masters in
Business Administration with Beta Gamma Sigma honors from Colombia University

He co-founded ‘Infinity’ an angel investment fund with a corpus of $35 million

He was selected as the Global Leader for Tomorrow for the year 2000 by the World Economic Forum

Holds a Bachelors Degree in Economics from the Presidency College, University of Calcutta and a Masters
Degree in Economics from the Delhi School of Economics, University of Delhi

He was an Economic Consultant in the Bureau of Industrial Costs in the Ministry of Industry, Government of
India

He is also on the board of various government and non-profit making organizations such as the Advertising
Standards Council of India, Mudra Institute of Communication, Ahmedabad, JIVA Institute, Governing
Council of the National Institute of Design etc

He holds a Masters Degree in Commerce from Sydenham College, Mumbai, Post Graduate Diploma in
Business Management from S.P.Jain Institute of Management and Research, Mumbai and masters in business
administration from University of Pittsburgh, USA

He is the promoter director of Everest Industries Limited, a company engaged in manufacturing building
products and steel pre-engineered buildings
Mr. Aditya Vikram
Somani,
Independent Director
18
Key Management Team
Mr. Roshan F Hinger,

He is responsible for leading and directing the Company’s strategy and business operation
Vice Chairman, Whole
Time Director

Over 45 years of experience in the FMCG business

Bachelors Degree of Science from the University of Udaipur

He is responsible for sales and marketing of the company

Over 23 years of experience in the FMCG sector

Bachelors Degree in Pharmacy with honours from Institute of Technology, Benaras Hindu University,
Varanasi and a post graduate diploma in business management from IIM, Ahmedabad

He is a promoter of the company and is responsible for the finance, marketing and the HR functions of the
company in supervisory capacity

Bachelors Degree in Commerce from the University of Mumbai and has certification of e-business from LSS
(UK)
Mr. V C Nagori,
Vice President Finance

He has ~ 25 year of experience in finance, taxation, audit and legal compliance

He is a qualified chartered accountant from the Institute of Chartered Accountants of India
Mr. D K Maloo,
General Manager –
Finance & Company
Secretary

He has ~ 22 years of experience in finance, taxation, audit, taxation and legal compliance

He is a qualified chartered accountant from the Institute of Chartered Accountants of India

He is also a qualified company secretary from the Institute of Company Secretaries of India.
Mr. Sumit Malhotra,
Director-Sales &
Marketing
Mr. Apoorv Bajaj,
President-Operations
Qualified management team with extensive experience in the FMCG industry
19
Financial Information
Summary Income Statement
Particulars (In Rupees crore)
Summary Balance Sheet
FY 2009
9M FY 2010
Sales (Net)
244.4
233.5
EBITDA
51.6
64.1
21.1%
27.4%
47.0
56.5
EBITDA Margin
Net Profit
Particulars (In Rupees crore)
FY 2009
9M FY 2010
51.6
26.1
-
-
Net Fixed Assets
6.4
12.8
Net Current Assets
36.0
3.0
Inventory
7.7
9.8
Debtors
0.3
2.4
Cash
51.0
32.8
-
-
23.0
42.0
Shareholders Equity
Total Debt
Other Current Assets
Current Liabilities
ROCE%
Sales Break Up in FY09 by Brand
Amla
Jasmine
Shikakai
Hair Oil
2.0%
1.0%
Key Highlights

Strong demonstrated growth track record

Among the highest EBITDA margins in the
industry

Savings in input cost (like paraffin and
packaging material etc.) enabled company to
expand margins in 9m FY2010 from FY2009

Asset light business model resulting in high
ROCE
Black
Brahmi
Tooth
Amla
Powder
5.0%
1.0%
Almond
Drops
91.0%
188%
20
Growth Strategy
Strategy
Market share gains from
other hair oil segments
Focus on rural
penetration
Leverage existing
strengths to introduce
new products
Pursue inorganic
Opportunities
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

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 1.49 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 BCL’s
strong distribution network so that they can be made pan India brands
21
Objectives of the Initial Public Offer
 Expansion of Product Range

Extend the ‘Almond Drops’ platform to other personal care products to leverage the
strong association of ‘almonds’ with nutrition through its already existing distribution
network

The proceeds from the Initial Public Offer (IPO) will be used for marketing, distribution
and advertising the new products
 Acquisitions and Strategic Initiatives

Evaluate inorganic opportunities which may provide access to new markets, augment
product offering or save costs by consolidating sourcing of raw materials
 General Corporate Purposes and to meet Issue Expenses
Funding Requirements
Objective
Amount (INR crore)
Expansion of Product Range
220
Acquisition and Other strategic initiatives
50
General Corporate Purposes
TBD
22