Bajaj Consumer care hosted a conference call on May 9, 2022. In the conference call the company was represented by Mr. Jaideep Nandi – Managing Director, Mr. Dilip Kumar Maloo – Chief Financial Officer and Mr. Richard D'Souza – GM (Finance).

Key takeaways of the call

Company is the leading player in Light Hair Oil category with the flagship brand Bajaj Almond Drops Hair Oil commanding around 65% market share in its category.

Company launched 15 new Hair Care products in FY22, management expects to launch more products going forward.

The company markets and distributes its products in India and exports to over 30 countries, with primary focus in SAARC, Gulf & Middle East, ASEAN and African regions.

Hair oil category value grew by 4.2% YoY in FY22, recovering to Pre Covid levels. Out of which rural growth was 3.2% and urban growth was 5.1% on YoY basis.

Hair oil category value fell by 4.6% YoY in Q4 FY22. Out of which rural growth fell by 3.7% and urban growth fell by 5.3% on YoY basis.

In Q4 FY22, Volume growth fell by 6.5% on YoY basis. Out of which rural volume growth fell by 5.9% and urban volume growth fell by 7% on YoY basis.

In FY22, Volume growth was 2.2% on YoY basis. Out of which rural volume growth was 1.5% and urban volume growth was 2.8% on YoY basis.

Inflationary pressures continue to impact consumer spending. Company expects to take price increases and cost saving initiatives to counter inflationary pressures.

Prices have corrected downwards in RMO (Refined Mustard Oil) considering the good crop in India. Due to the issues in supplies of other edible oils, the price correction has been lesser than expected.

Prices of Light Liquid Paraffin (LLP) had started moving up from Feb and have since flared up in March post Ukraine crisis and shutdowns by refiners. Expected to be on the higher side in the short term till the situation eases out in Ukraine.

In Q4 FY22, General trade contributed 81.6% of total revenue, organised trade 16% and international business 2.4%.

In FY22, General trade contributed 83.2% of total revenue, organised trade 14.1% and international business 2.7%.

General trade witnessed clear slow down in demand coupled with downtrading being observed in rural markets especially in key HSM impacting both Wholesale and Sub Stockist.

Retail grew over last year while the decline was mainly in wholesale and rural markets. Retail is being further strengthened across top towns with new retail activation program being rolled out.

In modern trade, January 2022 event was not as high as expected due to muted footfalls. Feb and March 2022 saw very good revival in sales across chains leading to 13% growth for Q4 in MT B2C.

Bajaj Coconut oil got listed in major chains like Dmart, Reliance, Star Bazar and many local independent chains.

E Commerce continues to scale up well with growth of 50% YoY in Q4 FY22 and 80% growth on a full year basis over last year. Strategically exclusive SKUs for the channel continue to drive growth.

Company collabrated with all major E-commerce players like Amazon, Flipkart, Grofers, Big Basket, Nykaa, Swiggy, Milk Basket, Purplle, Health & Glow and Deal Share.

New launches contributed to 9% of Ecom B2C sales in Q4. Digital brands such as Natyv Soul and Bajaj 100% Pure is scaling up well.

In Bangladesh, strong momentum continued with field force augmentation. In MENA, company made significant changes in the infrastructure and business practices. Economic situation in Nepal worsened in Q4 impacting demand.

Amla Portfolio in Q4 FY22 has continued to ramp up. Share on Amla Portfolio has hit 3% in Q4, with Sarson Amla at 0.3%.

Company planned focussed brand led initiatives and distribution drives in Q1 FY23 to continue building up the momentum.

Both Bajaj Pure Coconut oil and Bajaj Coco Onion hair oil was rolled out across India in Feb and march 2022. Bajaj Pure Coconut oil continues to scale led by gains in GT in West and D Mart in MT.

Further New Products are being rolled out starting with under the Almond Drops Umbrella.

Bajaj 100% Pure Oils saw Good Traction on Castor which has a conversion of 9.63%.

Company started work in the area of water conservation by measuring the water consumption sources, installation of controls at critical places. It has reduced 27% of its water consumption in H2 FY 22 over last year.

Company continuous its thrust towards Premiumization of ADHO Brand.