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Tag: Nomarks.

  • Bajaj Consumer Care bags Vishal Personal Care’s Banjara’s brand in southern swoop

    Bajaj Consumer Care bags Vishal Personal Care’s Banjara’s brand in southern swoop

    MUMBAI; Bajaj Consumer Care, one of India’s oldest and most trusted FMCG companies with a 70-year legacy, has planted its flag firmly in the herbal beauty market by completing the first phase of its acquisition of Vishal Personal Care, maker of the popular Banjara’s range of natural beauty products.

    The company announced today it has secured a 49 per cent stake in the Hyderabad-based manufacturer, with plans to acquire the remaining 51 per cent  within the next three to four months, subject to regulatory approvals.

    The deal, valued at approximately Rs 120 crore for complete ownership, gives Bajaj immediate access to Banjara’s burgeoning business of ayurvedic and herbal personal care products, which generated revenues of Rs 51.53 crore in the 2023-24 financial year.

    “This strategic acquisition perfectly aligns with our growth ambitions in the natural beauty segment,” said Bajaj Consumer Care managing director Jaideep Nandi. “Banjara’s botanical brilliance and strong southern presence provides us with both product prowess and geographical growth opportunities, complementing our existing portfolio of trusted brands like Bajaj Almond Drops Hair Oil and Nomarks.”

     

    Established in 2012, Vishal Personal Care has shown consistent revenue growth, climbing from Rs 39.43 crore in 2021-22 to Rs 45.36 crore in 2022-23, before reaching Rs 51.53 crore last year.

    The Banjara’s brand is particularly well-established in southern India, offering more than 60 products including rose water, face washes, hair oils and natural henna. The company operates a manufacturing facility in the outskirts of Hyderabad with Ayush licensing for ayurvedic and herbal production.

    The acquisition comes as Bajaj Consumer Care continues its expansion beyond its flagship hair oil products. Part of the storied Bajaj group, the company has been an integral part of the Indian consumer experience for over seven decades, with its products reaching households across the country and international markets.

    Industry analysts note that Bajaj’s herbal handshake with Banjara’s could create competitive challenges for established players in the natural beauty space, particularly given Bajaj’s extensive distribution network currently being optimised through Project Aarohan.

    “This acquisition crowns Bajaj with credible credentials in the fast-growing natural beauty segment,” said a market analyst from a leading brokerage firm. “The company can now harness Banjara’s herbal heritage while leveraging its own distribution dominance and the trust it has built over generations.”

    The purchase agreement was originally approved by Bajaj’s board on 14 February, involving Peepul Capital Fund III LLC as the selling majority shareholder.

    Bajaj Consumer Care indicated that the acquisition will accelerate its innovation pipeline and new product launches in the five southern states, while providing access to Vishal’s robust sales processes and experienced management team.

    This move into herbal beauty aligns with Bajaj’s recent quarterly reports highlighting the company’s focus on diversification and strengthening its modern trade and e-commerce channels, which have shown robust growth despite challenges in traditional general trade segments.

  • Nomarks for guessing who’s self-reliant

    Nomarks for guessing who’s self-reliant

    MUMBAI: Bajaj Nomarks has come out with its latest brand campaign that highlights the advantages of the skincare cream. The campaign, led primarily by a video film, touches upon the core point of the cream being a companion to women who often face multiple skin complaints, especially on the face.

    Conceptualised by Mullen Lintas Mumbai, the film traverses the journey of a woman who decides to test her husband’s attention by attempting changes to herself.

    Bajaj Corp head of marketing Ameya Dangi said that Nomarks was a cream completely Ayurvedic, and clinically tested for its efficacy quotient which makes it a unique product in the anti-marks category. They wanted to encourage people not to be bothered by small things like skin marks but to focus on realising their bigger ambitions irrespective of what others might think of them.

    The film has been developed based on the insight that in today’s day and age, wives have a common complaint – husbands are so engrossed in doing their own thing that they fail to notice some obvious changes, especially about them. For example the husband will not notice any change in the appearance of the wife or for that matter even miss the new dress that she is wearing and so on and so forth. It was this insight that gave birth to the campaign idea of “Men Don’t Notice.”

    Mullen Lintas EVP Ayyappan Raj said that the mark removal skincare category was seeing a visible growth in the number of players and it was imperative that each one differentiate their offering from the others. With Nomarks, the plus point was its reliance on herbal remedies along with the guarantee of delivering visible results in the quickest possible time.

    The film has been launched offline on all popular channels and will also be rolled out extensively across Print and Outdoor. The film is being launched online as well and will play on major social channels.

  • Nomarks for guessing who’s self-reliant

    Nomarks for guessing who’s self-reliant

    MUMBAI: Bajaj Nomarks has come out with its latest brand campaign that highlights the advantages of the skincare cream. The campaign, led primarily by a video film, touches upon the core point of the cream being a companion to women who often face multiple skin complaints, especially on the face.

    Conceptualised by Mullen Lintas Mumbai, the film traverses the journey of a woman who decides to test her husband’s attention by attempting changes to herself.

    Bajaj Corp head of marketing Ameya Dangi said that Nomarks was a cream completely Ayurvedic, and clinically tested for its efficacy quotient which makes it a unique product in the anti-marks category. They wanted to encourage people not to be bothered by small things like skin marks but to focus on realising their bigger ambitions irrespective of what others might think of them.

    The film has been developed based on the insight that in today’s day and age, wives have a common complaint – husbands are so engrossed in doing their own thing that they fail to notice some obvious changes, especially about them. For example the husband will not notice any change in the appearance of the wife or for that matter even miss the new dress that she is wearing and so on and so forth. It was this insight that gave birth to the campaign idea of “Men Don’t Notice.”

    Mullen Lintas EVP Ayyappan Raj said that the mark removal skincare category was seeing a visible growth in the number of players and it was imperative that each one differentiate their offering from the others. With Nomarks, the plus point was its reliance on herbal remedies along with the guarantee of delivering visible results in the quickest possible time.

    The film has been launched offline on all popular channels and will also be rolled out extensively across Print and Outdoor. The film is being launched online as well and will play on major social channels.

  • Q2-2015: Bajaj Corp marketing exp up 20 per cent, ad exp down 2 per cent

    Q2-2015: Bajaj Corp marketing exp up 20 per cent, ad exp down 2 per cent

    BENGALURU: Note: (1) Bajaj Corp’s Limited (Bajaj Corp) Advertisement and Sales Promotion (ASP) expense comprises two parts – Advertisement (Ad) and Sales Promotion (SP). The ASP figures have been obtained from the Company’s investors’ presentations over various quarters and the Ad Exp from its financial results. SP results have been obtained by deducting the Ad Expenses from the ASP. The figures in the investors’ presentations have been rounded off by the company and hence are assumed as approximate. Consequently the SP figures are assumed to be approximate.
    (2) Bajaj Corp Limited is a subsidiary of Bajaj Resources Limited (BRL) and is an exclusive licensee of the brands owned by BRL for a period of 99 years starting 2008.
    (3) Rs 100 lakh = Rs100,00,000 = Rs 1 Crore = Rs10 million.
    Bajaj Corp’s mother brand is Bajaj with sub brands/products such as Bajaj Almond Drops Hair Oil, Bajaj Kailash Parbhat Cooling Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai, Bajaj Jasmine Hair Oil, Bajaj Kala Dant Manjan, and creams, soaps, face washes and face scrubs under the brand name Nomarks.
    Bajaj Corp spent Rs 33.45 crore (17.8 per cent of Total Income from operations or TIO) in Q2-2015 towards advertisement and sales promotion (ASP), which was 19.8 per cent more than the Rs 27.92 crore (17.6 per cent of TIO) in the year ago quarter and 9.6 per cent more than the Rs 30.53 crore (16 per cent of TIO) in the immediate trailing quarter.  In HY-2015, the company’s ASP at Rs 63.97 crore (17.9 per cent of TIO) was 11.8 per cent more than the Rs 56.45 crore (17.2 per cent of TIO) in HY-2014. The company’s ASP shows an upward trend in terms of percentage of TIO as well as in absolute rupee terms across 11 quarters starting Q2-2012 until Q2-2014.
    The company’s advertisement expense (ad expense) in Q2-2014 at Rs 12.38 crore (6.6 per cent of TIO) was 1.7 per cent lower than the Rs 12.60 crore (8 per cent of TIO) in Q2-2014 and 6 per cent less than the Rs 13.17 crore (6.6 per cent of TIO) in Q1-2015. For HY-2015 the company’s ad expense of Rs 25.55 crore (6.7 per cent of TIO) was 7.9 per cent lower than the Rs 27.58 crore (8.4 per cent of TIO) in HY-2014. Overall across the 11 quarters under consideration, Bajaj Corp’s ad expense shows a downward trend in terms of percentage of TIO
    At the same time, the company’s SP shows a linear upward trend, indicating that it is depending more on sales promotion activities. Its SP expense at Rs 21.07 crore (11.2 per cent of TIO) was the highest during the 11 quarters under consideration in terms of absolute rupees.  Please refer to fig A below.


    Bajaj Corp’s TIO shows an upward linear trend during the 11 quarter period under consideration. However, its PAT has shown a downward trend both in terms of absolute rupees as well as in terms percentage of TIO. Please refer to fig B.

    The company had earlier announced that it was focussing on rural penetration to tap the increase in disposable income of rural India and to convert rural consumers from unbranded to branded products by providing them with an appropriate value proposition. The initiative seems to be working.  In its investor presentation for Q2-2015, Bajaj Corp says that in Q2 FY 15 its Bajaj Almond Drops Hair Oil got 39.8 per cent of its sales from Rural India.  The company reports volume growth in rural India by 5 per cent (Urban + Rural) = {-1.2} per cent, hence showing a decline in the urban market) and claims a market share in rural India of 63.1 per cent (urban + rural = 58.5 per cent).

    Click here to read the investor presentation

    Click here to read the unaudited standalone statement

  • Bajaj Corp ad & sales promo exp up 11 per cent in FY-2014

    Bajaj Corp ad & sales promo exp up 11 per cent in FY-2014

    BENGALURU:  Note: (1) Bajaj Corp’s  Advertisement and Sales Promotion (ASP) expense comprises  two parts – Advertisement (Ad Exp) and Sales Promotion (SP). The ASP figures have been obtained from the Company’s investors’ presentations over various quarters and the Ad Exp from its financial results. SP results have been obtained by deducting the Ad Exp from the ASP Exp. The figures in the investors’ presentations have been rounded off by the company and hence are assumed as approximate. Consequently the SP figures are assumed to be approximate.

    (2) Rs 100 lakh = Rs100,00,000 = Rs 1 crore = Rs 10 million

    Bajaj Corp Limited (Bajaj Corp) spent 10.98 per cent more towards Ad and Sales Promotion Expense (ASP) in FY-2014 at Rs 113.30 crore (16.87 per cent of Operating Income or Op Inc) as compared to the Rs 87.92 crore (14.49 per cent of Op Inc) in FY-2013. The breakup of these figures was – FY-2014 Ad Exp Rs 46.427 crore (6.91per cent of Op Inc), SP Rs 66.872 crore (9.96 per cent of Op Inc) and FY-2013 Ad Exp Rs 41.8354 crore (6.90 per cent of Op Inc), SP Rs 46.0846 crore (7.60 per cent of Op Inc). During three financial years from FY-2012, to FY-2013, ASP, Ad Exp and SP show an increasing trend in terms of absolute value in rupees as well as in terms of percentage of Op Inc.

    Bajaj Corps ASP was just 0.81 per cent more in Q4-2014 at Rs 28.54 crore (15.47 per cent of Op Inc) as compared to the Rs 28.31 crore (17.85 per cent of Op Inc) in the immediate trailing quarter Q3-2014 and (-5.62) per cent lower than the Rs 30.24 crore (16.42 per cent of Op Inc) during the year ago quarter of Q4-2013. Please refer to Fig 1 and Fig 1A below for more details and breakup of ASP. Overall, during nine quarters starting from Q4-2012 until Q4-2014, ASP shows an upward trend in absolute rupee value terms as well as in terms of percentage of Op Inc.

    Fig 1C below indicates that over the nine quarters under consideration, Ad Exp show a decreasing trend, while SP shows an increasing trend.

    Fig 2 and Fig 2 A below indicate the Op Inc and PAT trends of Bajaj Corp

    Bajaj Corp’s mother brand is Bajaj with sub brands/products such as Bajaj Almond Drops Hair Oil, Bajaj Kailash Parbhat Cooling Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai, Bajaj Jasmine Hair Oil, Bajaj Kala Dant Manjan and creams, soaps, face washes and face scrubs under the brand name Nomarks.

    The company in its April 2014 investor presentation says that it intends to gain market share from other hair oil segments. To that end it intends to 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. It is aiming for a market share of 65 per cent by the year 2015-16.

    It says that it will focus on rural penetration and 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. Also, among its key competitors, Bajaj Corp’s Almond Drops is the only brand which is available in sachets – a marketing initiative to penetrate the rural market.

    Bajaj Corp says that it will leverage its existing strengths to introduce new products. Bajaj Corp claims that it has over the years created a strong distribution network across 26.7 lakhs retail outlets which can be optimally utilized by introducing new products. The company 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.

    It says further that it will also pursue inorganic 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 Bajaj Corp’s  strong distribution network so that they can be made pan India brands.

  • Bajaj Corp posts highest percentage spend toward ASP in Q3-2014

    Bajaj Corp posts highest percentage spend toward ASP in Q3-2014

    BENGALURU: In the last seven quarters starting Q1-2013 till Q3-2014, Bajaj Corp Limited (Bajaj Corp) reported the highest ever spend in percentage terms towards Advertisement and Sales Promotion (ASP) in Q3-2014 at 17.85 per cent of Income from Operations (Op Inc).
    It may be noted that Bajaj Corp’s ASP spend comprises both Advertisement (Ad Exp) and Sales Promotion (SP). While ASP figures have been obtained from presentations over various quarters to company investors, Ad Exp has been taken from the firm’s financial results. Consequently, SP has been derived by deducting Ad Exp from ASP. All figures are taken as approximate. Significantly, Rs 100 lakh = Rs 100,00,000 = Rs 1 crore = Rs 10 million.
     On 22 August, 2013, Bajaj Corp acquired the ‘Nomarks’ brand and entered a non-compete agreement with the seller for a period of three years. The management inter alia considered the non-compete period and estimated the useful life of the brand as three years. As per Accounting Standards (AS) 26 – Intangible Assets, the acquisition cost of the brand and non-compete needs to be amortized over the estimated useful life of three years. Accordingly, a pro-rata (for Q3) amount of Rs 11.75 crore has been amortized during the quarter ended December 31, 2013. The same has been shown under exceptional items. Whereas in Q2-2014, a pro-rata (for 40 days) amount of Rs 5.10 crore had been amortized and shown under exceptional items.
    Here’s looking at the figures reported by Bajaj Corp from Q1-2013 to Q3-2014.
    As mentioned earlier, in percentage terms, the company’s ASP spend was the highest at 17.85 per cent of Op Inc or Rs 28.31 crore in Q3-2014. However in value terms, it was the highest at 16.42 per cent of Op Inc or Rs 30.24 crore in Q4-2013. Also, ASP spend in Q1-2014 was slightly higher in value terms at Rs 28.53 crore but at 16.76 per cent of Op Inc. Over the last seven quarters, Bajaj Corp’s ASP has increased both in value and percentage of Op Inc terms.
     Its Ad Exp trend is almost flat while SP is trending upward. Fact is, in Q3-2014, the company spent the lowest amount toward Ad Exp at 5.43 per cent of Op Inc or Rs 8.611 crore as compared to Q1-2014, when it spend the highest amount toward Ad Exp at 8.8 per cent of Op Inc or Rs 14.9847 crore.
    Correspondingly, the company’s SP spend has been increasing steadily from an all-time low of 5.45 per cent of Op Inc or Rs 7.5308 crore in Q1-2013, to the highest across seven quarters in terms of percentage and value at 12.42 per cent of Op Inc or Rs 19.6989 crore in Q3-2014.
    Trends for ASP, Ad Exp, and SP in terms of percentage of Total Expense and percentage of Op Inc are almost similar. The company’s Ad Exp proportion has been going down while its SP has been increasing progressively.
     Overall, ASP has been going up with the share of SP growing. From a high of 56.62 per cent of ASP or Rs 9.8282 crore in Q1-2013, Ad Exp in Q3-2014 has been the lowest at 30.42 per cent of ASP or Rs 8.6111 crore.

    Please refer to figures A, A-1 and B below.

    Figures B  and C indicate that Bajaj Corp’s Ad Exp proportion has been going down, while its SP has been increasing progressively. Overall, ASP has been going up with the share of SP growing. From a high of 56.62 per cent of ASP, (Rs 9.8282 crores) in Q1-2013, Ad Exp in Q3-2014 has been the lowest at 30.42 per cent of ASP (Rs 8.6111 crores).

    Over the seven quarters under consideration, both Op Inc and Total Expense show an upward trend while PAT shows a downward trend. PAT peaked in Q4-2013 at Rs 47.014 crore and was the lowest at Rs 29.1003 crore in Q3-2014. PAT has been affected on account of Bajaj Corp having amortized its ‘Nomarks’ acquisition, as mentioned earlier. Also, in Q1-2014 and Q3-2014, ‘change in inventories of finished goods, work-in-progress and stock in trade’ added to expense as compared to the reduction in expense in Q2-2014 and Q4-2013. Further, the company purchased 44.85 per cent higher stock-in-trade in Q3-2014 at Rs 16.27 crore vis-a-vis Rs 11.23 crore in Q2-2014 and 53.31 per cent more than Rs 10.61 crore in Q3-2013. In the event Bajaj Corp repeats its Q4-2013 performance in the last quarter of this year, the PAT trend is likely to swing upward.
     
    Op Inc too peaked in Q4-2013 at Rs 184.182 crore, moving up from Rs 136.017 crore in Q2-2013, later falling over Q1-2014 and Q2-2014 to reach a low of Rs 158.4016 crore in Q2-2014. Q3-2014 has seen a slight improvement in Op Rev at Rs 158.5762 crore. If it duplicates or improves upon the performance of Q4-2013, the Op Inc upward trend would be even steeper.

    About Bajaj Corp
    Bajaj Corp’s mother brand is Bajaj with sub-brands or products such as Bajaj Almond Drops Hair Oil, Bajaj Kailash Parbhat Cooling Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai, Bajaj Jasmine Hair Oil, Bajaj Kala Dant Manjan and creams, soaps, face washes and face scrubs under the brand name, ‘Nomarks’.