baj~ coNsuMER CARE June 20, 2019 DCS-CRD Listing Compliance BSE limited National Stock Exchange of India L First Floor, New Trade Wing Exchange Plaza, 5th Floor Rotunda Building Plot No.C/1, 'G'Block Phiroze Jeejeebhoy Towers Bondre- Kurla Comple Dalal Street, Fort, Mumbai 400 023 Bandra East, Mum 400 051 Fax No. 2272 3719/ 2037 Fax No. 2659 8 I 8238 Script Code: 533229 e: BAJAJCON ISIN - INE933K01021 E933K01021 Dear Sir/Madam, Sub: 13th Annual General Meeting of the Members of the Company Pursuant to Regulation 34 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached Annual Report for the financial year 2018-19 containing, inter a/ia, the notice convening the 13th Annual General Meeting of the Company. The entire annual report is available on the website of the Company and that of Karvy Fintech Private Limited, RTA of the Company. The same may please be taken on record and suitably disseminated to all concerned. Thanking you, Yours truly, For Bajaj Consumer Care Limited " ran nataki ead al & Company Secretary Membership No. ACS 14509 Encl: as above Bajaj Consumtr Care Ltd /Formerly !laiai Corp Ltd) Registered Oltice, Old Station Road, Sevashram Chouraha, Udaipur . 313 001 IRaiasthanl. Tel., +91 0294-2561631, 2561632 Corporate Office: 221, Solita ire Corporate P ark, U7. Guru Haq~ovind Mar-g. Chaka la . Andhe ri (Eastl. Mumbai - 400 093. Tel., +91 22 66919477 / 78 I Fa,, +91 22&6919476 I CIN, L01110RJ2006PLC047173 I Web , www.bajajconsumercare.com baj~ coNsuMER cARE Progress today for a brighter tomorrow Registered office: Old Station Road, Sevashram Chauraha, Udaipur 313 001, Rajasthan. Thirteenth Website: www.bajajconsumercare.com | Email: [email protected] Annual Report 2018-19 CSR Programmes Shiing of cropping pattern, from traditional to environment friendly crops, cultivation of turmeric crop in Wardha. Rejuvenation of rivers/streams thereby reviving the livelihood and lifeline of the distressed agrarian community in Wardha. t yu,.,...< 1 , - I ~ Antlmarks .~ ,i i ~ Cream j ,a f c:: EE ~ fw~Ln., Soi ! I ~ <t <v ~ -· -- ■ I»' l@J --.i• 11111rlal I www.bajaJnomarkl.com #ChehrePeSirfShaan of ■n In-vitro atudy dona In ■n lndapendllllt 1■.-.r, orwtlw vlauallzatlon. 1 Contents Annual Report 2018 - 19 Board of Directors 2 th Chairman’s Letter 3 Notice 5 Directors’ Report 14 Bajaj Consumer Care Limited 13 Bajaj Consumer Care Corporate Governance Report 45 Management Discussion and Analysis Report 69 Business Responsibility Report 79 Independent Auditors’ Report on Standalone Financial Statements 87 Balance Sheet (Standalone) 94 Statement of Profit and Loss (Standalone) 95 Cash Flow Statement (Standalone) 97 Notes to Financial Statements (Standalone) 98 Independent Auditors’ Report on Consolidated Financial Statements 124 Balance Sheet (Consolidated) 130 Statement of Profit and Loss (Consolidated) 131 Cash Flow Statement (Consolidated) 133 Notes to Financial Statements (Consolidated) 134 Salient Features of Financial Statements of Subsidiaries/Associates/Joint Ventures 160 2 Board of Directors Mr. Kushagra Nayan Bajaj Non-Executive Chairman Annual Report 2018 - 19 th Mr. Sumit Malhotra Managing Director Mr. Aditya Vikram Ramesh Somani Bajaj Consumer Care Limited 13 Bajaj Consumer Care Independent Director Mr. Dilip Cherian Independent Director Mr. Gaurav Dalmia Independent Director Statutory Auditors Sidharth N Jain & Co. Ms. Vasavadatta Bajaj Chartered Accountants Non-Executive Director (Upto March 19, 2019) Secretarial Auditors A.K. Jain & Co. Ms. Lilian Jessie Paul Company Secretaries Independent Director (w.e.f. March 19, 2019) Bankers Kotak Mahindra Bank Limited Mr. D. K. Maloo Corporation Bank Chief Financial Officer HDFC Bank Limited Citibank N.A. Mr. Makarand Karnataki Company Secretary & Compliance Officer Registrar & Transfer Agent Karvy Fintech Private Limited Karvy Selenium Tower B, Plot 31-32, Gachibowli Financial District, Nanakramguda, Hyderabad – 500 032 3 Annual Report 2018 - 19 th Chairman’s Letter Bajaj Consumer Care Limited 13 Bajaj Consumer Care Dear Stakeholders, I have great pleasure in presenting the Annual Report of consumers across the world to help them get more out the company for the financial year 2018-19. of life”. Macro-Economic Outlook Company performance Despite several global headwinds, the Indian economy The overall performance during the year was satisfactory achieved stable growth mainly on the strength of ongoing and for the first time in history, we crossed the operating structural reforms. However, the year also witnessed revenue of ` 900 crores on a standalone basis with significant volatility in crude and currency movements. a growth of 9.4% compared to the previous year. The The rupee was under constant pressure and declined EBITDA for the year has been 284 Crores, which is a very considerably on account of rising crude oil prices and healthy 32% of our sales. This is despite rising cost of two strengthening of dollar due to higher fed rates. The key raw materials viz. light liquid paraffin which is directly consumer price inflation was within comfortable zone linked to crude oil and mustard oil. The cost of other raw despite elevated crude oil prices during most part of and packaging materials like perfume and glass bottles the year. India continued to improve its ranking in the also witnessed upward revision. However, by proactive ease of doing business and is continuously emerging purchases and selling price increases, we were able to as an important player in the world economy. The contain the rise in cost of goods sold and thereby mostly recent landslide victory of the BJP government and the retaining our margins. continuous pace of bold reforms is further expected to strengthen the growth prospects of the economy, though Continuing with our practice of rewarding shareholders, global challenges due to emerging trade tensions need to we have paid a handsome dividend of 1400% during the be assessed. year under review. New brand identity Brands At the beginning of the year, we had initiated an exercise Bajaj Almond Drops Hair Oil in corporate brand building to enable us to create a more For the first time in 25 years, Bajaj Almond Drops, our unified group brand and align our various businesses to a iconic hair oil brand witnessed a brand new packaging. shared brand identity. With the help of a globally renowned We hired a UK based design agency to help design the brand strategy and design company, we unveiled a new biggest change in its history. The brand has moved on brand identity for the organization. This includes a new from its classic color palate to a premium pearl maroon corporate logo and renaming the Company as “Bajaj and gold combination. The bottle design is sleeker, and Consumer Care Limited”, with more focus and purpose label taken an almond like tactile effect. towards “why we exist in the marketplace”. This has also helped us to realign ourselves as an organization which The brand re-launch has been very successful and has “Thinks Tomorrow”. Our new Vision now is “To harness resulted in market share as well as penetration gain. The our heritage of 90 years and combine it with leading edge value market share in light hair oil went up to 64% and scientific knowledge to bring innovative products for the performance of the brand in the total hair oil segment 4 touched an all-time high of 10%. This rise in market share approaches that sets benchmarks and standards for has been driven by increase in household penetration. others to emulate for sustainable development”. We The penetration of Bajaj Almond Drops has gone up from strive to empower rural communities to take charge of 17.6% to 20.1%, which is an impressive rise of 2.5% in their own development in a participatory manner by penetration within one year. developing and managing natural and human resources. Community development interventions focus on water Annual Report 2018 - 19 th The brand’s new look is a crucial step for the brand, and resources development and strengthening agro based it aims at targeting the new age consumers & build on livelihoods. Bajaj Foundation also promotes alternate its key imagery attributes of lightness, nourishment & agro based livelihood opportunities such as dairy farming, premium feel in an environmentally sustainable manner. natural farming, horticulture development, women’s In the last quarter of the year, we also launched ‘Bajaj empowerment through formation of their self-help Cool Almond Drops’ in a cooling hair oil segment have groups, promoting farmers’ producers companies, climate been well received in the market. proofing projects and biogas which not only provides Bajaj Consumer Care Limited 13 Bajaj Consumer Care additional steady income but enhances the quality of life Nomarks of the rural community. The other brand we relaunched during the year was ‘Nomarks’ which is showing positive result. On a company I wish to thank our villagers, government agencies and level, the brand has shown an impressive growth of 14% all stakeholders for their support which has ensured that on an annual basis. The market share of the brand in anti- we now reach 1120 villages benefitting 2.10 lakh families marks category continues to do well and is currently at covering 10.38 lakh people in Wardha (Maharashtra) and 8.6%. We also launched ‘Bajaj Nomarks Sunscreen’ in the Sikar (Rajasthan) districts to make them socio-economically ayurvedic anti-marks sunscreen category during the last prosperous districts. quarter of the year. Employees & organization culture Distribution The Company is continuously striving to attract the Distribution is one of the strengths of your company best talent, enhance employee experience and improve and we continued our focus on further improving it by employee retention. With the objective of being a great implementing latest technologies to improve efficiencies employer, we have conducted a cultural assessment of sales force. Today our brands are distributed through a through Egon Zhender, an HR consultancy firm of network of more than 7000 stockists which covers about international repute, to help us evolve an industry best 4 million retail outlets in the country.