Bajaj Corp hikes almond hair oil price by over 8%
Hair oil maker Bajaj Corp has raised price of its largest selling brand 'Almond Drops' by 8.6% to offset input costs pressures, MD Sumit Malhotra said on Wednesday.
April 27, 2012 / 09:42 IST
Nachiket Kelkar
Moneycontrol.com
Hair oil maker Bajaj Corp has raised price of its largest selling brand 'Almond Drops' by 8.6% to offset input cost pressures, MD Sumit Malhotra said on Wednesday.Among key raw materials, Light Liquid Paraffin (LLP) and vegetable oil prices increased over 25% in the last fiscal year, while glass bottles were expensive by around 12%.Malhotra said LLP prices were fairly stable in the fourth quarter, but the input cost outlook was not encouraging, forcing the company to take a price hike."We have hiked price of Almond Drop hair oil by 8.6% towards end of March, which will come into effect some time in April," he said in a post earnings conference call.The company, which also makes Kailash Parbat Cool Oil, Brahmi Amla Hair Oil and Jasmine Hair Oil, had on Tuesday reported a 26% year-on-year rise in fourth quarter net profit at Rs 34.05 crore. Net sales for Jan-March were up 33.5% from a year ago to Rs 146.59 crore.Bajaj Corp's total expenses surged 43% from a year ago to Rs 113.9 crore in the fourth quarter as raw material expenses rose 44% to Rs 62.68 crore. The company's advertising expenses also more than doubled to Rs 13.34 crore in the three-month period.The higher advertising spends were mainly on its Kailash Parbat Cool Oil, while it also increased marketing of its Almond hair oil. Going ahead too advertising spends could be on the higher side.Analysts say overall ad spends could go up from their average 11-12% of sales to around 14% if competitors in the cooling oil segment increase their spend and company launches any new product.Meanwhile, Bajaj Corp is keenly eyeing acquisitions this fiscal to boost its growth and hopes to conclude at least one deal in fiscal 2013."M&A efforts have been intensified over last six months and results should be visible soon," he said.Bajaj Corp was close to an acquisition last year but lost out and it is close to another acquisition now, Malhotra said, without giving any more details.Bajaj Corp shares closed down 1.5% at Rs 122.85 on NSE on Wednesday.
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