launch in India

www.bajajgroups.com

Content

• Company Profile – Vision, Mission, Core Values

• Company History – story so far

• Hair Care Market & Competitive Landscape

• Product portfolio

• Brand Strategy

• Sales Strategy

• Distribution Strategy

BAJAJ HERBALS - VISION- MISSION- VALUES

Lets identify with…

Bajaj Herbals – Vision

• To be a globally competitive MNC with expertise and prominence in personal care & food products, creating growing value for all its stakeholders

Bajaj Herbals – Mission

• Our mission is to deliver innovative and quality products much to the delight of our valued customers making them feel, look and be good

Core Values

Integrity

Trust

Customer Focus

Innovation

Excellence

BAJAJ HERBALS - HISTORY

Story so far…

About Bajaj Herbals

• Started operations in the year 1998

• The company ventured in the global market with a variety of food products like Peanut butter, Instant Powder Drink, Flavoring Essence & Food which were mainly exported to the countries in Europe and USA.

• In a short span of 10+ years managed to earn reputation globally

continued…

• It then forayed into the range of hair care products like Hair Oil, Hair Henna, Hair Spa and others to cater to the needs of the consumers globally

• Currently turnover of the group is 15 million USD. Our company is growing at the rate of 25-30% every year.

• Monthly production capacity of 500-600 metric tonnes of products

Global Markets

Malaysia

Singapore

Australia

USA

Canada

Europe

Congo

Angola

Ethiopia

Suriname

Panama

UAE

Saudi Arabia

Oman

Kuwait

Bahrain

Qatar

Yemen

Lebanon

Jordan

Syria

Iran

Iraq

Palestine

Egypt

Morocco

Algeria

Libya

Tunisia

Sudan

and more…

INDIAN HAIR CARE MARKET

Brief overview

Paradigm Shift for India’s Hair Care

• The growing purchasing power of India's consumers, combined with trend and product awareness, have created a burgeoning market for hair care products.(GLOBAL report: hair care)

• Hair Care is a Rs. 8683 crore market having a growth rate of 17%

• FMCG penetration is almost 84 %

• Hair Oils:

Hair Oils: All India

(U+R)

Jun MAT

2009

Gr. YA

(%)Volume (000 Liter) 82,979.1 10.8

Val (Cr. Rs.) 2794.3 21.9

Stores (lacs) 46.7 4.9

Source: Nielsen Report - 2009

Hair Oils: Category has witnessed value led growth

42 42 35

25 2428

22 2219

11 11 17

0

20

40

60

80

100

Volume Value Stores

North East West South

(16)

(18)

(28)

(7)

(9)

(7)

(18)

(17) (2)

(6)

(4)

(7)62 63

39

38 37

61

Volume Value StoresUrban Rural

(12)

(9)

(1)

(21)

(22)

(7)

(13) (27)

54 5159

25 26 15

7 106

8 8 184 5 2

25

50

75

100

Volume Value Stores

Grocer Gen Stores Chemists Paan Plus Cosmetics - Urban

(10)

(15)

(9)

(16)

(23)

(20)

(22)

(26)

(6)

(4)(15)

(-2)

(1)

Source: Nielsen Report - 2009

Hair Oil Category

• Heavy Amla and Light Hair Oil segments together contribute to 51% oftotal volumes of Hair Oil category

• Heavy Amla category size is around 730 crores growing @ 20%

• Light hair oil category size is around 600 crores growing @ 32%

• North followed by West zone is the largest market for both the segments,while contribution from South zone is about 4% only

• Both the segments have retail penetration in excess of 2mn stores, withmost off takes moving through Grocers and General Stores

• Major markets for the segments: UP, Raja., MP & Delhi for both thesegments, and WB for Light Hair Oil

Focus markets: Heavy Amla-Based Oils

Heavy Amla based

Oil

Volume

Contri. (%)Vol Gr YA (%) PDO (ltr)

Gr in PDO

(%)

All India (U+R) 24,869 8 10.1 7

Delhi 6.9 13 26.1 16

Punjab 7.5 15 13.0 13

Haryana 6.6 6 18.0 10

Rajasthan 10.3 25 13.9 29

Uttar Pradesh 27.1 10 10.5 3

Uttaranchal 1.3 9 7.7 -2

Assam 1.7 -2 5.0 -4

Bihar 5.7 -1 7.3 2

Jharkhand 1.6 -13 5.0 -14

Orissa 1.4 8 3.9 -2

West Bengal 1.8 22 3.4 12

Gujarat 5.6 6 11.6 1

Madhya Pradesh 10.4 1 14.4 0

Chattisgarh 2.6 -12 10.3 -33

Maharashtra 5.1 8 8.3 16

Andhra Pradesh 2.3 17 6.5 36

Kerala 0.5 15 6.4 44

Tamil Nadu 0.7 9 3.3 8

Karnataka 0.9 -3 5.1 13

In Bihar, the decline is in rural areas, whereas in Urban areas, the volumes and throughputs have increased

In Maharashtra, the growth is driven by Dabur Amla and Mahabhringraj in Urban and Shanti Amla in Rural areas

Category has witnessed growth in off takes and throughputs in Southern states, especially AP

Northern states are driving category growth riding on increased throughputs

Source: Nielsen Report - 2009

Page 16

Competitive Landscape

The category is characterized by presence of 3 dominant players and few regional players

While Dabur is the largest player across zones, Marico has notable presence in North and West. Bajaj consumer also has notable share across zones

West and south zones have notable presence of players priced at premium

Source: Nielsen Report - 2009

Focus Markets: Light Hair Oils

Light Hair OilVolume

Contri. (%)Vol Gr YA (%) PDO (ltr)

Gr in PDO

(%)

All India (U+R) 17,525 17 8.7 10

Delhi 8 41 21.6 30

Punjab 6 22 10.0 32

Haryana 5 23 15.0 28

Rajasthan 9 21 11.7 22

Uttar Pradesh 22 15 8.7 5

Uttaranchal 1 -2 5.2 -36

Assam 7 11 8.9 4

Bihar 5 14 6.8 7

Jharkhand 1 -4 3.9 -2

Orissa 1 19 2.5 1

West Bengal 8 12 7.2 4

Gujarat 4 15 5.7 -8

Madhya Pradesh 10 8 11.0 10

Chattisgarh 2 -1 6.8 -32

Maharashtra 7 30 9.2 31

Andhra Pradesh 2 13 5.3 7

Kerala 0 -12 3.0 8

Tamil Nadu 1 33 4.6 18

Karnataka 1 15 6.6 31

Northern and Western states are large markets growing on the back of increased throughputs

While Eastern states are emerging markets

The category has witnessed healthy growth in Urban areas of AP, TN and Karnataka

Source: Nielsen Report - 2009

Page 18

Competitive Landscape

The category is characterized with presence of 3 large players garnering major chunk of off takes

J & J has strengthened its position in South by growing at a faster rate than the category and increasing reach

Bajaj Cons. has increased share across zones accompanied by gain in distribution while Dey’s Medical lost share and distribution across zones

While Marico increased its share in North and South but lost share in East and West. Its distribution declined in West and South zones

Source: Nielsen Report - 2009

Hair Colours

• Hair Colour was primarily used to cover grey hair till the late '80s. However inthe last decade, it has emerged as a style statement.

• Size of the market in 2009: Rs 1,100 crore growing @ 14% per annum

• Hair colours were traditionally aimed at the 15-45 age female segment butthere was a growing population of 15-45 males which patronized the categoryin a big way, with men wanting to look smart and trendy too

• The expanding distribution network ensured that more and more people hadaccess to these products. For instance, Godrej which has been one of the frontrunners in this category went to the smaller towns and rural parts of thecountry. This resulted in significant growth for the category.

• Today, the powder hair dye still constitutes almost 50 per cent of the haircolour category with oil-based liquids forming 25 per cent and cream-basedcomprising the rest, with each growing steadily

Hair Spa (post-wash conditioners)

• In India, the youth below the age of 25 years, accounts for 54% of theentire population and a majority of them find the usage of hair oils to bemessy & outdated. To cater to this new mindset of the young Indianconsumer, post wash conditioner market is emerging.

• Share of Hair Conditioners in Hair Care is still 3% only (approx Rs. 260crores)

• Conditioners market in India growing fast with huge potential though it isstill restricted to the premium segment or those who are very involvedwith the hair care

Veola Product Portfolio

Almond Oil

Amla Oil/ Enriched

Coconut oil/ Henna Hair

Colours

Local brands/ Sachets (price-point driven)

Loose oil/ unbranded products

Upper Middle (17%)

Middle (19%)

Lower (24%)

Lower Lower (29%)

We will target the upper, upper-middle and middle (47%) economic classes of India. Also Sachet Market which serves the lower class.

Upper (11%) Olive Oil/ Color Lock/ Hair Spa

Brand Architecture

Veola

Hair Oils

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ColourB

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Bro

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Bu

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Hair Spa

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VEOLA BRAND STRATEGY

Veola

Brand Essence

Beauty

Brand Relationship

Best Friend

Brand Personality

Friendly, Knowledgeable,

Safe, Caring, Charming,

Confident & Bold

Personal Beliefs

- She believes in freedom of expressions and she is care free- She doesn’t need emotional or financial support- High Self Esteem - She wants to be seen as determined, ambitious, ‘Arrived’, meticulous

Grooming

- High spends on self care - Seeks admiration and control

Seeks from Brands

- Control over her problems ( product & Life ) & enhancement of her appeal - Brands in which product benefit dominates- Brands that will reflect her status and get her admiration

Veola Woman

Largely the product range will be segmented in 4 key Benefit Segments

Nourish + Stimulate + Rejuvenate + Protect +

VEOLA AMLA HAIR OIL

Target AudienceGirls in the age group of 18-35 years from SEC B, C who want to look attractive

Functional BenefitVeola Amla awakens your hair roots by stimulating them and makes your hair

strong, soft & shiny

RTBStimulate +

Brand PositioningVEOLA Amla hair oil for attractive looking

hair

Brand PersonalityFriendly, Knowledgeable, Young, Lively, Attractive

Veola Amla Hair Oil

Veola – range of hair oils

Veola Henna-based Hair Colours

Veola - Hair Spa range

Price-list of all products

Sr. No. Product Pack Size MRP Sr. No. Product Pack Size MRP

1 VEOLA AMLA HAIR OIL 3ml 1 21 VEOLA HAIR SPA - OLIVE & ALMOND OIL 250gm 200

2 VEOLA AMLA HAIR OIL 50ml 16 22 VEOLA HAIR SPA - OLIVE & ALMOND OIL 500gm 360

3 VEOLA AMLA HAIR OIL 100ml 32 23 VEOLA HAIR SPA - ALOE VERA & TEA TREE OIL 250gm 200

4 VEOLA AMLA HAIR OIL 200ml 62 24 VEOLA HAIR SPA - ALOE VERA & TEA TREE OIL 500gm 360

5 VEOLA AMLA HAIR OIL 300ml 90 25 VEOLA HAIR SPA - GARLIC & LEMON OIL 250gm 200

6 VEOLA AMLA HAIR OIL 500ml 138 26 VEOLA HAIR SPA - GARLIC & LEMON OIL 500gm 360

7 VEOLA ALMOND OIL 3ml 1 27 VEOLA HAIR SPA - ROSEMARY & HENNA EXTRACT 250gm 200

8 VEOLA ALMOND OIL 50ml 23 28 VEOLA HAIR SPA - ROSEMARY & HENNA EXTRACT 500gm 360

9 VEOLA ALMOND OIL 100ml 38 29 VEOLA ENRICHED COCONUT OIL 3ml 1

10 VEOLA ALMOND OIL 200ml 67 30 VEOLA ENRICHED COCONUT OIL 150ml 45

11 VEOLA ALMOND OIL 300ml 90 31 VEOLA ENRICHED COCONUT OIL 300ml 80

12 VEOLA ALMOND OIL 500ml 160 32 HIMSHAKTI THANDA HAIR OIL 50ml 25

13 VEOLA COLOUR LOCK 100ml 60 33 HIMSHAKTI THANDA HAIR OIL 100ml 47

14 VEOLA COLOUR LOCK 200ml 110 34 HIMSHAKTI THANDA HAIR OIL 200ml 85

15 VEOLA OLIVE OIL 100ml 60 35 VEOLA FAIRNESS CREAM 25gm 34

16 VEOLA OLIVE OIL 200ml 100 36 VEOLA HAND & BODY LOTION 250ml 100

17 VEOLA HENNA HAIR COLOUR - BLACK 15gm 20 37 VEOLA KALI MEHANDI 10gm 8

18 VEOLA HENNA HAIR COLOUR - BROWN 15gm 20 38 VEOLA AMLA HAIR OIL 25ml 10

19 VEOLA HENNA HAIR COLOUR - CHESTNUT 15gm 20 39 VEOLA ALMOND OIL 25ml 10

20 VEOLA HENNA HAIR COLOUR - BURGUNDY 15gm 20

• Create Awareness

• Be in the Consideration Set

• Generate Trials

Veola Brand Objective

VEOLA SALES STRATEGY

Zone-wise Sales break up (Q1 – 2010)

* Sales figures in lacs

Zone Sales % Total

East 56 14%

North 172 44%

South 22 6%

West 140 36%

All Zone 390

Sate-wise Sales break up (Q1 – 2010)

Zone State Sales % Total

East Assam 13 3%

Bihar 9 2%

Jharkhand 5 1%

Orissa 7 2%West Bengal 22 6%

North Delhi 5 1%

Haryana 10 2%

Himachal Pradesh 11 3%

Jammu & Kashmir 7 2%

Punjab 15 4%

Rajasthan 35 9%

Uttar Pradesh 75 19%Uttrakhand 15 4%

South Andhra Pradesh 7 2%

Karnataka 5 1%

Kerala 4 1%Tamilnadu 7 2%

West Chhattisgarh 22 6%

Gujarat 24 6%

Madhya Pradesh 62 16%Maharashtra 31 8%

Grand Total 390

Veola Sales Targets/ Projections

•Figures to be added…

DISTRIBUTION STRATEGY

Distribution Stategy

• We have observed that products like Amla Hair Oil and Henna Hair colourhave relatively easy acceptance and favorable response in up-countrymarkets and interiors compared to metros. Hence our focus will be to tapsemi-urban towns for volume driven products

• Products like Hair Spa, Olive and Colour lock hair oil (being new concepts)will be distributed well in metros and top 35 cities in India. We are inadvance talks with Modern format stores for product placement andvisibility.

• We have recently shifted to a Consignee Agent system to bring inadditional resources, better control and effective demand management.

Distribution Channel Structure

•Operations: PAN India•Focus Markets: UP, MP, Rajasthan, Gujarat, Maharashtra and Bihar•CA: getting implemented•Super Stockists: 30+ nos (covering all states)•Distributors: 1200+ nos•Sales force: 200+ nos

State-wise DistributionZone State Town

No Of

Super

Stockies

No Of

Direct

Dealers

No Of

Sub Super

Stockies

No Of

Sub

Dealers

EAST Assam Guwahati 1 25 3 8

Bihar Patana 1 24 4

Jharkhand Jamshedpur 1 14 1 0

Orissa Cuttack 1 47 0 0

WB Kolkata 1 35 5 16

Siliguri 1 31 4 18

EAST Total 6 176 17 42

NORTH Delhi Delhi 1 18 1 6

Haryana Ambala 1 24

HP Parwanoo 1 20

J & K Jammu 1 11

Punjaba Ludhiyana 1 36

Rajashtan Jaipur 1 69 8 32

UP Ghaziabad 1 30 3 11

Kanpur 1 19 4 11

Lucknow 1 26 4 13

Uttarkhand Deharadun 1 39 4 13

NORTH Total 10 292 24 86

SOUTH AP Hyderabad 1 41

Karnataka Bangalore 1 48

Kerala Earnakulam 1 14

Tamil Nadu Chennai 1 32

SOUTH Total 4 135

WEST Gujarat Ahmedabad 1 84 2 7

Maharashtra Mumbai 1 22

Nagpur 1 35 7 6

Pune 1 30 2 2

MP Indore 1 60 4 4

Jabalpur 1 27

Chattisgarh Raipur 1 19 4 4

WEST Total 7 277 19 23

Grand Total 27 880 60 151

VEOLA STORY SO FAR…

Veola launch in India

• Press launch in Mumbai in the month of Jan with Dia Mirza. Got adequate media coverage across print and web medium

• Did a campaign on major GEC, music and news channels to create brand awareness

• Ongoing print campaign in all leading dailies

• Brand is adequately supported by various BTL activities, trade & consumer schemes, cross promotions, outdoor visibility etc.

• Total marketing spends of approx. Rs. 10 crores on the launch and post-launch activities

Thanking you,

Open for Discussion...