It is indeed a pleasure to inform you that your company has demonstrated an impressive financial performance during the year 2011-12.
Your company continues to grow at a healthy pace and despite the sharp rise in the input costs, your Company has been able to judiciously mitigate the impact to a large extent. We have ended the year with good growth in both revenue and profitability.
The highlights of the Company's performance include:
You will be pleased to know that the flagship brand of the Company, Bajaj Almond Drops Hair Oil, continues to grow and remain the market leader in light hair oil category. It is now available in 23 lacs outlets across India. During the FY2012, the Company had launched a new product, Bajaj Kailash Parbat Cooling Oil. Despite intense competition, this new brand has met with some success. Within one year of launch, the brand has been accepted by a significant number of consumers due to its differentiating unique selling proposition of sandalwood and notched up a market share of 1.8% . The brand is available in 2.02 lacs outlets across India. We believe this brand will continue to make significant inroads into the cooling oil market
During the year 2011-12, commodity prices continued their upward trend. Our main Raw Materials and Packing Material viz. Light Liquid Paraffin (LLP), Refined Oil and Glass Bottles experienced an increase which was compensated by a corresponding price increase in April 2012. Your Company continues its focus on expanding distribution by targeting the semi-urban and rural areas through increased manpower and stock points. The promotion strategy of using a Bollywood celebrity to promote the lead Brand – Bajaj Almond Drops Hair Oil continues. We have signed up with Ms. Kangana Ranaut and also released the TV commercial featuring her in November 2011.
The commendable rate of growth achieved by the Indian economy through the past two decades of economic reforms has transformed both the rural and urban demography. Time and again, India has exhibited to the world that a prudent mix of visionary government policies and forward looking participative execution from the Indian industry can propel the GDP growth to almost double digits.
The FY2012 was characterized by high inflation, fulled partly by the high crude prices. During the first half of the FY2012, inflation continued to remain within the 9-10% range, though this dropped in the last quarter of the year. Despite inflationary pressures, the Indian GDP demonstrated its robustness and resilience and grew around 6.9%.
The Fast Moving Consumer Goods (FMCG) sector, which is among one of the largest sectors in India, has performed quite encouragingly. While most analysts feared a slowing down of the FMCG market, there were no visible signs of this. The primary reason for this is the impressive growth in the rural consumption. As you must be aware 72% of the Indian population resides in rural India. With the pro-rural policies of the Indian Government, the rural demand continues to be strong. Your Company has benefited from this and now over 36.3% of its sales are attributed to rural India. This can be compared to the fact that just 30% of our sales came from rural India in the year 2008-09. Your company continues to focus its energy on this market through a combination of distribution, promotions and also small sized Stock Keeping Units meant specifically for the small towns and villages.
Your company is a part of the Bajaj Group which has a rich and glorious history, we will continue to build this company in the true Bajaj spirit of trust, integrity and entrepreneurship. I take this opportunity to thank all our employees and all stakeholders, who have contributed to a successful performance. I would like to thank our business partners, vendors and other business associates. Finally, I would like to thank our esteemed shareholders for once again reposing their trust and support.
With Warm Regards,
Kushagra Nayan Bajaj