It is indeed a pleasure to inform you that your Company has demonstrated an impressivefi nancial performance during the year 2015-16.
Sales increased to Rs. 86657 Lacs in the FY 2015-16 registering a growth of 5.74 %over the previous FY. 2015-16.
Profit aftert tax increased to Rs. 19791 Lacs registering a growth of 14.19%over the previous FY.
Your company has continued the practice of rewarding its shareholders with handsomedividends. This year an interim dividend of Rs. 11.50 per Share was declared and paid.
The year started with the new government focusing on reforms and trying its level bestto implement GST. However in both the cases success is to be achieved and hence theeffect is yet to be felt. Infl ation led by the benign crude prices was under control at5.5%. The foreign exchange reserves were at a very comfortable US$ 351 Billion led by FDIinfl ows of US$ 27.7 billion during the period April-Dec 2015. All in all the basiceconomic parameters have been trending towards positive consumer sentiments throughout theFinancial Year 2015-16.
The big disappointment was the second consecutive poor monsoon. This has led to slowingdown of rural consumption and has resulted in the FMCG market itself losing steam. Thefall in infl ation has resulted in the urban demand improving but the sheer size of therural populace is having a negative impact on consumption of FMCG products. Variouscategories in the FMCG space has seen slowing down and this is the cause for worry. Withthe prediction of good monsoons during 2016 there is again hope that the rural demandwill pick up. The government has also shown its intent by increasing the allocations forrural employment schemes and fi scal stimulus in form of MSPs.
Bajaj Almond Drops
Despite the overall bleak scenario in the Hair Oil Industry our lead Brand BajajAlmond Drops Hair Oil continues to show impressive growths both in Volumes and MarketShare.
Bajaj Almond Drops is the second largest brand in the overall hair oil segment and itis a market leader with over 60 % market share of Light Hair Oil market.
The Nomarks brand was acquired by the Company in the year 2013 and has over the last 3years established itself in the Indian FMCG market. The Bajaj Nomarks Cream is the No. 1cream in the Anti Marks segment (as of March 2016 market share by volume). The BajajNomarks Face Wash has achieved the No. 2 position (by Volume) in the Anti Marks Face Washsegment (as of March 2016). Investments behind building the brand as well as the AntiMarks category continue with joining hands with Indian Star Badminton Player- Ms. SainaNehwal
We continue to focus on improving the distribution of our brands. Our brands are beingsold through more than 7500 stockists and is now available in more than 3.69 millionretail outlets across the country.
Your Company has been constantly implementing better systems and processes to enhancecustomer value and build leadership and functional skills at all levels in theorganisation. We have been able to drive sustainable learning culture that enhancedperformance capabilities and customer value. In the changing scenario the competencyframe work has been revised and integrated with the processes like Talent AcquisitionEnabling Performance and Individual and Organisational objectives.
Responsibility Towards Society
The Company contributed to the corpus of Kamalnayan Janmnalal Bajaj Foundation("KJBF") which has been strengthening livelihood of the distressed agrariancommunity in the Wardha district of Vidharbha region in Maharastra as per theideologyofthefounderfatherofBajajGroup Shri. Jamnalalji in the domain of integrated landand water resources development through participatory approach thereby sustaining socioeconomic and environment development.
Going forward we shall continue to create value for our customers through innovationacross product segments. We shall also bring in more efficiencies / automation in ourbusiness processes in order to provide greater value to our stake holders formulateclean strategy and shall remain focussed on competitive profitable and sustainable growthin years to come by upholding highest level of corporate governance and integrity.
With warm regards
Kushagra Nayan Bajaj