BAJAJ CORP LTD

Topics: Brand, Brand management, Marketing Pages: 15 (3925 words) Published: April 26, 2015


BAJAJ CORP LTD
Bajaj Corp Ltd is a FMCG company in the hair oil category in Indian market. It belongs to the Shishir Bajaj Group. The key people include Kushagra Nayan Bajaj - Non Executive Chairman, Sumit Malhotra - Managing Director, Jimmy Rustom Anklesaria - Whole Time Director, Gaurav Dalmia - Ind. Non-Executive Director, Dilip Cherian – Ind. Bajaj Corp Ltd mainly operates in Light Hair Oil Segment of the hair care segment through its main brand Bajaj Almond Hair drops. Company History:

Bajaj Corp Ltd was incorporated on April 25, 2006 as a private limited company with the name Bhaumik Agro Products Pvt Ltd. In September 11, 2007, the name of the company was changed from Bhaumik Agro Products Pvt Ltd to Bajaj Corp Private Ltd. In October 16, 2007, the company went public and the name was changed to Bajaj Corp Ltd. The company's products have been in existence since 1953 and were sold by different Bajaj group companies. Bajaj Sevashram (BSL) an erstwhile Bajaj group company manufactured and sold the products until December 2000. From January 2001, the products were marketed under Deccan Ayurvedashram Pharmacy Ltd which subsequently changed their name to Bajaj Consumer Care Ltd (BCCL). In March 12, 2008, Bajaj Corp Ltd (BCL) entered into a brand licensing agreement with the promoter BCCL for the exclusive use of all the brand names under which the company markets their products. In April 2008, the company commenced manufacturing and sale of the products. It currently is the third largest player in the hair oils business in India. FMCG Industry

Indian FMCG Industry’s growth in recent times has been fuelled by increasing population, urbanization and rising incomes in rural areas. In the past decade disposable income increased rapidly with a growing economy which has resulted in the industry to grow to Rs 2 Trillion as of 2012. It is expected that industry will continue to grow due rising population and rural benefit policies of the government. Hair Care Category

Hair Care category forms approximately 8% of the FMCG industry by value. It can be divided into Shampoos, Hair Dyer, Hair Conditioners, and hair oils. Hair Oils
Type of Hair Oil
Total Sales(in Rs Cr) for CY 2012
Coconut Hair Oil
3620.2
Amla based Heavy Hair Oil
1180.5
Light Hair Oil
1259.2
Cooling Hair Oil
865.7
Others
944.4
Total
7870

Company Sales & Products analysis
Product
Category
% of Total Sales
Bajaj Almond Drops
Light Hair Oil
95.3
Bajaj Kailash Parbat Cooling oil
Cooling Oils
2.4
Bajaj Bramhi Amla Oil
Heavy Amla based oil
1.5
Bajaj Amla Shikakai Hair Oil
Heavy Amla based oil
0.2
Bajaj Jasmine Hair Oil
Others(Perfumed oil)
0.3
Bajaj Tooth Powder
Tooth Powder
0.3
As of FY13
Changed Product Mix Post Acquisition of Nomarks:
Product
Category
% of Total Sales
Bajaj Almond Drops
Light Hair Oil
95.3
Bajaj Kailash Parbat Cooling oil
Cooling Oils
1.4
Nomarks
Skin Care Product
1.2
Bajaj Bramhi Amla Oil
Heavy Amla based oil
1.2
Bajaj Amla Shikakai Hair Oil
Heavy Amla based oil
0.1
Bajaj Jasmine Hair Oil
Others(Perfumed oil)
0.3
Bajaj Tooth Powder
Tooth Powder
0.3

As seen from the table above key product or brand of Bajaj Corp Ltd is Bajaj Almond Drops which belongs to Light Hair Oil category. Thus key factor which will determine the growth and sustainability of Bajaj Corp Ltd is the growth of Light Hair Oil category. The Light Hair Oil Category has grown at 16.3% CAGR in volumes and 24.9 % CAGR in value as compared to 11.5% CAGR in volumes and 18.8% CAGR in value of the overall hair oil market in last five years. Thus the category has outperformed the overall hair oil market due to following reasons: 1. Gradual increase in usage of Hair oils

2. Conversion from un-branded to branded products
3. Conversion from Coconut based oils to Light Hair oils

Bajaj Almond Drops Hair Oil has 52.6% market share in volume and 55% market share by value...
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