AC Choksi Share Brokers Private Limited - Myiris.com

A C Choksi
Share Brokers Private Limited
INITIATION REPORT | BAJAJ CORP LTD. Sept 09, 2011
mn Ltr
25
20
15
10
5
0
AHO share as a % of LHO - Volume AHO share as a % of LHO - Value
FY07 FY08 FY09 FY10 FY11
AHO LHO AHO volume as a % of LHO volume
Source: A C Nielsen
60%
50%
40%
30%
20%
10%
0%
A C Choksi Institutional Research 10
Rs. bn
Strong volume growth of Almond hair oil:
9
8
7
6
5
4
3
2
1
0
FY07 FY08 FY09 FY10 FY11
AHO LHO AHO value as a % of LHO value
During Q1FY12, ADHO had achieved a dominant market share (volume) of 50.4% in
LHO category as compared to 38.4% in FY08. During the period, Almond hair oil
category registered ~29% CAGR by volume far higher than LHO category’s ~18%
CAGR and overall Hair oil’s ~17% CAGR. Heavy hair oils like coconut oil and Amla
oils are growing in high single digits while LHO are growing in high teens. It is visible
that ADHO gained market share at the expense of its competitors. With rising
disposable income, consumers tend to up-trade and ADHO emerged as a key
beneficiary of changing consumer preferences. ADHO is gaining market share from
coconut hair oil, amla oils, other LHO and unbranded hair oil. Major conversion came
from Marico’s Parachute Coconut Oil (CNO) and Dey’s Keo Karpin. While Marico
maintained its dominant market share in CNO category due to continuous conversion
from unbranded hair oil users to branded CNO users, Dey’s Medical’s Keo Karpin lost
its dominant position in LHO segment. Keo Karpin had market share of 42% in LHO
category during FY04 which declined to 19% in FY11.
60%
50%
40%
30%
20%
10%
0%