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.
300
250
200
150
100
50
0
Overall Hair Oil Market by Volume Overall Hair Oil Market by Value
Source: A C Nielsen
mn Ltr.
25
20
15
10
5
0
FY07 FY08 FY09 FY10 FY11 Q1FY12
A C Choksi Institutional Research 7
Rs. bn
70
60
50
40
30
20
10
0
FY07 FY08 FY09 FY10 FY11 Q1FY12
Light Hair Oil Segment is growing faster than overall hair oil market:
Light Hair Oil (LHO) category is growing faster than overall Hair oil market in India.
LHO category grew at 17.6% CAGR from FY07 to FY11 in volume terms while it
grew at 25.5% CAGR from FY07 to FY11 in value terms.
Light Hair Oil Market by Volume Light Hair Oil Market by Value
Source: A C Nielsen
FY07 FY08 FY09 FY10 FY11 Q1FY12
Rs. bn
10
8
6
4
2
0
FY07 FY08 FY09 FY10 FY11 Q1FY12
Thus, share of LHO category increased consistently in overall hair oil category during
past few years. This steady increase in LHO share was primarily driven by an increase
in realizations which signifies a structural shift in consumer preference for non-sticky
hair oils for which consumers are willing to pay premium price. This shift in consumer
preference is attributable to rapid urbanization, favorable demographics, increase in
disposable income, better distribution network and increasing penetration of branded
oils in low SKUs.