Investor Presentation. October 2011

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Julian Norris
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1 Investor Presentation October 211

2 Industry Overview

3 2 Industry Size and Structure FMCG Rs.133,876 cr (USD 29.8 bn) Hair Care Rs. 1,243 cr (USD 2.3 bn) 8% salience Shampoo Rs. 3277cr (USD 728 mn) (32.%)* Perfumed Oil Rs cr (USD 75 mn) (31.%)* Coconut Oil Rs cr (USD 478 mn) (21.%)* Hair Conditioners Rs. 24 cr (USD 45 mn) (2.%)* Hair Dyes Rs. 1,434 cr (USD 319 mn) (14.%)* Hair Oil Market Coconut based Oils (5%)* Heavy Amla based Oils (15%)* Light Hair Oils (13%)* Cooling Oils (12%) * Others (1%)* Perfumed Hair Oil Segment Source: The AC Nielsen Retail Audit Report. * Value based share of Hair Care Market Only branded products data for CY 21 Hair Oil is > 55% of the overall hair care industry in India

4 (In KLtr) (In KLtr) Y-o-Y 33% Y-o-Y 3% Y-o-Y 18% Y-o-Y 14% Y-o-Y 6.1% Y-o-Y 6.7% Y-o-Y 16.8% Y-o-Y15.1% H-o-H 3.7% H-o-H 18% (Rs. Cr.) (Rs. Cr.) Y-o-Y 4% Y-o-Y 31% Y-o-Y 29% Y-o-Y 21% Y-o-Y 14% Y-o-Y 1.5% Y-o-Y 19.7% Y-o-Y 17.9% H-o-H 26.3% H-o-H 23.5% 3 Hair Oil Market in India Overall Hair Oil Market Volume Overall Oil Market Value 3, 25, 2, 15, 1, 245,655 21, ,57 172, ,24 7, 6, 5, 4, 3, 2, 2, ,77 4,498 4,971 5,862 3,412 5, 1, (6M) (6M) Light Hair Oil Volume Light Hair Oil Value 25, 22,464 19,516 2, 18,39 15,63 15, ,463 1, 5, Source: The AC 6-7 Nielsen Retail 7-8Audit Report (6M) Light hair oils is one of the fastest growing segments in the hair oil market in India (6M)

5 (In KLtr) (In KLtr) Y-o-Y 51% Y-o-Y 33% Y-o-Y 18% Y-o-Y 35% Y-o-Y 6.1% Y-o-Y 15% Y-o-Y 19% Y-o-Y15.1% H-o-H 18% H-o-H 2.9% Y-o-Y 54.5% Y-o-Y 4% Y-o-Y 48.9% Y-o-Y 29% Y-o-Y 14% Y-o-Y 23.5% Y-o-Y 26% Y-o-Y 19.7% H-o-H 26.3% H-o-H 29.1% 4 Light Hair Oil Market in India Light Hair Oil Volume Light Hair Oil Value 25, 2, 15, 1, 5, 12, 1, 8, 6, 4, , , , , , Almond Hair Oil Market - Volume Almond Hair Oil Market - Value Almond Drops is the brand which is driving light hair oils and in turn the overall market (Rs. Cr.) (Rs. Cr.) (6M) (6M) 11,21 9,3 8,18 5,988 6, , (6M) Source: The AC Nielsen Retail Audit Report (6M)

6 5 Market Shares Trends (All India - Urban Plus Rural) Volume MS Value MS 6% 5% 4% 38.4% 44.1% 47.7% 49.1% 5.2% 6% 5% 4% 4.3% 46.5% 5.3% 53.% 53.9% 3% 3% 2% 2% 1% 1% % (6M) % (6M) *Market Share in the Light Hair Oil Category Source: The AC Nielsen Retail Audit Report.

7 6 Statewise Market Share Oct1-Sep11 LHO Volume Proportion % ADHO Market Share % (Vol) Saliency Urban Rural Total Urban Rural All India (U+R) Punjab Haryana Delhi NA Rajasthan Uttar Pradesh (U+R) Uttaranchal Assam Bihar Jharkhand Orissa West Bengal Gujarat Madhya Pradesh Chattisgarh Maharashtra Karnataka Andhra Pradesh Tamil Nadu Kerala Source: The AC Nielsen Retail Audit Report

7 Light Hair Oil Market Key Characteristics Rural Urban break up of LHO market Share of

% Urban dominated segment due to its relatively higher pricing Modern Trade, 3%, (34%) Cosmetic,

1%) Gen Stores, 28%, (%) Others, 6%, (8%) Local Grocer Stores, 51%, (12%) Traditional channels

rate (%) Growth rates; % - Market share SKU wise break up of LHO market Region wise break up of

8 7 Light Hair Oil Market Key Characteristics Rural Urban break up of LHO market Share of Distribution Channels in LHO market FY11 Rural 33.% Urban 67.% Urban dominated segment due to its relatively higher pricing Modern Trade, 3%, (34%) Cosmetic, 5%, (-3%) Chemists, 7% (2.1%) Gen Stores, 28%, (%) Others, 6%, (8%) Local Grocer Stores, 51%, (12%) Traditional channels dominate distribution, but alternate channels like modern retail demonstrating higher growth rate (%) Growth rates; % - Market share SKU wise break up of LHO market Region wise break up of LHO market 25ml, 1.7% 5ml,.8% 2ml, 2.4% 3ml, 1.% 2-5ml, 3.5% 1ml, 39.% 2-45ml, 1.8% 5ml, 17.9% 75ml, 4.9% Given the dominance of the urban market, larger units account for bulk of the sales. However, smaller units to increase rural penetration South, 4% West, 23% East, 22% North, 51% Sales tend to be concentrated in the Northern regions of the country which is also the fastest growing zone Source: AC Nielsen

9 Company Overview

Hair Oil Market leader with over 54% market share* of LHO market Premium positioning commands one of the highest per unit prices in the industry New Product Launch: Bajaj Kailash Parbat

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

10 9 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 Consumer Care Ltd. (BCCL) BCL is the exclusive licensee of brands owned by BCCL Brands licensed to BCL for 99 years from 28 3 rd largest player in the overall hair oils segment Key brand Bajaj Almond Drops Hair Oil Market leader with over 54% 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 Other brands - Brahmi Amla, Amla Shikakai and Jasmine (all hair oil brands) and Red / Black tooth powder *Source: The 211 AC Nielsen Retail Audit Report. 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 Kailash Parbat Cooling Oil An ayurvedic formulation containing Sandal & Almond extracts Competitors: Himani Navratna 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.

11 (MRP of 1ml (Rs.) Bajaj Almond Drops - A Premium Brand Strong Market Share Growth in Recent Years... But not at the cost of pricing power 6% 5% 4% 3% 2% 1% % % 36.7% 4.3% 46.5% 5.3% 53.% Comparative Price of Different Brands for 1 ml in the Hair Oil Segment Competitor Brands Mar-3 Mar-5 Dec-5 Jul-6 May-8 Jul-8 Jan-1 May-1 Apr Amla Shikakai Brahmi Amla Almond Drops Kailash Parbat Parachute Keo Karpin Dabur Vatika Dabur Amla Hair & Care Navratna Source: The AC Nielsen Retail Audit Report, 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.) 1

12 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 A1-11% A2-16% B1-15% B2-12% Source - IRS 11

Strong Distribution Network Distribution Network Distribution Structure 47 5 181 132 59

2 mn retail outlets serviced by 5913 direct distributors and 11,57 wholesalers Factory

Central Warehouse (1) 526 1329 442 294 Regional Distribution Centre (32) 13 353 433 571

(1,756) Super Stockist (145) Sub-Stockist (423) 82 Retail Outlets (967,84) 1 1 - as on

13 Strong Distribution Network Distribution Network Distribution Structure The company reaches consumers through 2.2 mn retail outlets serviced by 5913 direct distributors and 11,57 wholesalers Factory (5) OWN Himachal Pradesh -2, Uttarakhand-1 THIRD PARTY - Himachal Pradesh-1, Rajasthan-1 Central Warehouse (1) Regional Distribution Centre (32) Urban Distribution Rural Distribution MT - 68 Redistribution Stockist (1,756) Super Stockist (145) Sub-Stockist (423) 82 Retail Outlets (967,84) as on June 3, 211 Retail Outlets (1,62,8) 1 Over the years, BCL has created a large distribution network which can be leveraged to introduce new products

14 13 Organization Structure Chairman Mr. Kushagra Bajaj Vice Chairman Mr. R.F. Hinger Managing Director Mr. Sumit Malhotra Director Business Development Mr. Jimmy Anklesaria President Operations Mr. Apoorv Bajaj CFO Mr. Dilip Maloo GM Sales Mr. Sudhir Taneja GM Marketing Mr. Gurpreet S. Amrit GM- HR Mr. S. Chatterjee Company Secretary DGM Finance DGM Finance Sr. Manager Treasury DGM Sales Sr. Manager Finance Works Manager Sr. Manager- Finance Sr. Manager- EDP AGM- West RSM North 1 Purchase Manager QC Manager Manager- Logistics Regional Commercial Managers RSM North 2 RSJM Central

Financial Information Particulars (In Rupees Crores) Summary Income Statement Q2 212 Q2 211 HY1FY12 HY1FY11 Sales (Net) 16.77 81.24 213.35 162.95 EBITDA 27.42 23.18 54.3 51.87 EBITDA Margin 25.68% 28.

15 Financial Information Particulars (In Rupees Crores) Summary Income Statement Q2 212 Q2 211 HY1FY12 HY1FY11 Sales (Net) EBITDA EBITDA Margin 25.68% 28.53% 25.32% 31.84% Net Profit after Tax* Net Profit Margin 26.92% 18.6% 26.79% 23.21% * Net profit for Q2 Fy11 & HY 1 FY11 after exceptional items of Rs Crore (IPO expenses). Particulars (In Rupees Crores) Summary Balance Sheet HY 212 HY Shareholders Equity Total Debt Net Fixed Assets Investments (including Bank FDs and Bank CDs) Net Current Assets Sales Break Up in HY1 212 by Brand Key Highlights Strong demonstrated growth track record Among the highest EBITDA margins in the industry The company has allotted 45 Lacs equity shares (face value Rs. 5) by means of an IPO in August 21 at a price of Rs. 66 Consequently the paid up Equity share Capital and securities premium account have increased by Rs Crores and Rs Crores respectively Subsequently in May 211 the shares of face value of Rs. 5/- each were split into 5 shares of Re. 1/- each. Hence the total number of shares rose to 1475 lacs from 295 lacs Net Current Assets includes ICD of Rs 49.5 crores provided to subsidiary and accrued interest on Bank FDs and CDs of Rs crores. 14

16 15 EBITDA & PAT Performance (Rs. in crores) Particulars Q2 FY12 Q2 FY11 YoY% HY1FY12 HY1FY11 YoY% EBITDA % % Profit Before Tax & Exceptional Items Exceptional Items (IPO Expenses) % % Profit Before Tax (PBT) % % Profit After Tax (PAT) % %

17 Profit & Loss Q2 & HY1 FY212 In Rs. Crores Q2FY12 Q2FY11 YoY% HY1 FY12 HY1 FY11 YoY% Net Sales % % Other Operating Income Material Cost % of Sales 46.7% 42.86% 47.12% 41.34% Employees Cost % of Sales 5.33% 4.96% 5.2% 5.4% Advertisement & Sales Promotion Exp % of Sales 12.5% 12.76% 12.16% 11.37% Other Expenses % of Sales 1.9% 11.5% 1.4% 1.55% EBITDA % % % of Sales 25.68% 28.53% 25.32% 31.83% Other Income % of Sales 9.26% 2.99% 9.11% 1.57% Finance Cost Depreciation Profit Before Tax & Exceptional Item % % Exceptional Items Profit Before Tax(PBT) % % Tax Expenses Profit After Tax(PAT) % % % of Sales 26.92% 18.6% 26.79% 23.21% Diluted EPS (Rs.)

In Rs. Crores In Rs. Crores 17 Sales Performance Sales (Value) : Q2FY11 v/s Q2FY12 Sales (Value) : HYFY11 v/s HYFY12 12 25 1 8 6 4 2 81.24 16.77 2 15 1 5 162.95 213.

18 In Rs. Crores In Rs. Crores 17 Sales Performance Sales (Value) : Q2FY11 v/s Q2FY12 Sales (Value) : HYFY11 v/s HYFY Q2FY11 Q2FY12 HY1FY11 HY1FY12 Sales for Q2 FY increased by 31.43% in value terms and 21.98% in volume terms. Sales for the half year 212 has increased by 3.93% in value terms and 2.96% in volume terms.

19 18 Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases ) ADHO KPCO BAHO ASHO Others Total % Increase over Pr. Year Qtr1 765, ,856 28,777 14,125 14,888 4,451 6,232 4,249 5, ,46 681, % Qtr2 793, ,747 7,562 12,272 18,152 3,751 4,68 6,53 6, , , % Total 1,559,678 1,3,63 36,339 26,398 33,4 8,22 1,839 1,32 12,63 1,64,919 1,356, % STATEMENT OF QUARTERWISE SALES (VALUE - In Rs. Crores) ADHO KPCO BAHO ASHO Others Total % Increase over Pr. Year Qtr % Qtr % Total %

20 19 Breakup of RM/PM Costs (for HY1 FY12) Key Raw & Packing Material % to Sales % to Total Cost LLP 19.2% 41.4% Glass Bottles 11.4% 24.6% Refined Veg. Oil 3.8% 8.3% Perfumes & other additives 3.6% 7.7% Corrugated Boxes 2.3% 5.% Caps 2.2% 4.7% Others 3.8% 8.3% TOTAL 46.4% 1.% * Consumption is 46.4% of Sales *For Bajaj Almond Drops

21 2 Change in Prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of Oil Qtr1 Qtr2 HY1 FY21-11 FY Qtr1 Qtr2 HY1 FY21-11 FY During the current quarter company faces major increase in the prices of its raw material s key ingredient namely LLP (Light Liquid Paraffin) and Refined Oil. Price of LLP increased to Rs 85.68/Kg from Rs 65.37/Kg in Corresponding quarter of previous year i.e. an increase of 31.7%. This has adversely affected the overall profitability of the company. Prices of Refined oil for the Q2FY12 increased from Rs per Kg to Rs 67.5 per Kg witnessing an increase of 31.47% over Q2FY11. Prices of our other key ingredients (except glass bottles with 15% increase) have remained more or less on the same level. 2

22 21 Growth Strategy Strategy Market share gains from other hair oil segments 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 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 2.2 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

Investor Presentation. May 2011

Investor Presentation. May 2011 Investor Presentation May 211 Industry Overview Industry Size and Structure FMCG Rs.116,1 cr (USD 24.8 bn) Hair Care Rs. 9,2 cr (USD 2. bn) 8% salience Shampoo Rs. 2,84 cr (USD 6 mn) (31.%)* Perfumed Oil