AC Choksi Share Brokers Private Limited - Myiris.com
AC Choksi Share Brokers Private Limited - Myiris.com
AC Choksi Share Brokers Private Limited - Myiris.com
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A C <strong>Choksi</strong><br />
<strong>Share</strong> <strong>Brokers</strong> <strong>Private</strong> <strong>Limited</strong><br />
INITIATION REPORT | BAJAJ CORP LTD. Sept 09, 2011<br />
Company Background:<br />
Bajaj Corp Ltd. (BCL), a leading producer of hair oils in India is a part of Shishir Bajaj<br />
Group of Companies. It was incorporated as ‘Bhaumik Agro Products <strong>Private</strong> <strong>Limited</strong>’<br />
on April 25, 2006. The name of the <strong>com</strong>pany was changed to Bajaj Corp Pvt. Ltd.<br />
Thereafter, the <strong>com</strong>pany was converted into public limited <strong>com</strong>pany in 2007 and the<br />
name changed to Bajaj Corp Ltd. The <strong>com</strong>pany <strong>com</strong>menced its business in April 2008.<br />
However, the products have been in existence since 1953 and were sold by different<br />
Bajaj group <strong>com</strong>panies.<br />
Bajaj Corp Ltd is one of the leading FMCG Company in India with brands in Hair care<br />
category. The brands have a track record of eight decades and the <strong>com</strong>pany is a part of<br />
one of the oldest business houses of the country. Bajaj Corp is promoted by Shishir<br />
Bajaj Group of <strong>com</strong>panies. Mr. Kushagra Nayan Bajaj is the chairman of the <strong>com</strong>pany.<br />
The <strong>com</strong>pany has a strong brand loyalty across the spectrum of Hair Oil category.<br />
Business Overview:<br />
The legacy of BCL’s products extends back to 1953 when Mr. Kamal Nayan Bajaj<br />
established Bajaj Sevahram (BSL) to market and sell hair oils and other beauty<br />
products. In 2001, in view of the impending Bajaj family settlement, the business was<br />
demerged to to form Bajaj Consumer Care Ltd (BCCL) in 2001 when BSL transferred<br />
its operating business and assigned all trademarks to BCCL. Subsequently, BCCL<br />
licensed these brands to BCL, pursuant to the Trademark License Agreement for a<br />
period of 99 years in 2008. As per the agreement, BCL will pay Royalty @ 1% of<br />
annual net sales turnover to BCCL.<br />
The <strong>com</strong>pany began operating as Bajaj Corp Ltd in April 2008. The <strong>com</strong>pany has since<br />
be<strong>com</strong>e India's third largest producer of hair oils and the largest producer of light hair<br />
oils, capturing an estimated 54.2% of the light hair oil market (based on value) in<br />
Q1FY12, according to Nielsen Retail Audit Report.<br />
The <strong>com</strong>pany’s key product is Bajaj Almond Drops Hair Oil (ADHO), a premium<br />
brand that is currently the market leader in the light hair oil segment. In addition, the<br />
<strong>com</strong>pany also markets other hair oil brands viz., Brahmi Amla Hair Oil (BAHO), Amla<br />
Shikakai (ASHO) and Jasmine Hair Oil (JHO). The <strong>com</strong>pany also produces oral care<br />
products under the brand name Bajaj Black Tooth Powder (BTP). During Q1FY12,<br />
Bajaj Corp forayed into cooling oil category with Kailash Parbat Cooling Oil (KPCO).<br />
A C <strong>Choksi</strong> Institutional Research 3