Bajaj Corp surged 5.31% to Rs 252.75 at 10:48 IST on BSE, with the stock extending Thursday's gain triggered by board securing nod for acquisition of the
Meanwhile, the BSE Sensex was up 90.15 points, or 0.49%, to 18,403.09
On BSE, 8,333 shares were traded in the counter as against average daily volume of 25,663 shares in the past one quarter.
The stock hit a high of Rs 257.90 and a low of Rs 244 so far during the day. The stock had hit a record high of Rs 284 on 13 May 2013. The stock had hit a 52-week low of Rs 158.50 on 28 August 2012.
The stock had outperformed the market over the past one month till 22 August 2013, falling 2.66% compared with the Sensex's 9.16% decline. The scrip had, however, underperformed the market in past one quarter, falling 10.61% as against Sensex's 8.72% fall.
The mid-cap company has equity capital of Rs 14.75 crore. Face value per share is Re 1.
Bajaj Corp gained 8.69% in two trading days from a recent low of Rs 232.55 on 21 August 2013 after the company said its board of directors at a meeting held on Thursday, 22 August 2013 accorded its approval for acquisition of the "NOMARKS" anti marks skin care brand from Ozone Ayurvedics for an undisclosed amount. The transaction envisages transfer of NOMARKS brand related business (inclusive of trademarks, patents, goodwill and existing contracts) of Ozone Ayurvedics. Ozone Ayurvedics is a proprietorship company owned by Mr. S.C. Sehgal. The announcement was made during market hours on Thursday, 22 August 2013, when the stock had ended with a gain of 3.2%.
Bajaj Corp said it has also acquired the NOMARKS trade marks from Ozone U.K. The trade mark is registered by Ozone U.K. under the Madrid Protocol which protects it in 90 countries, and is also registered in another 8 countries in SAARC, ASEAN & Middle East /West Asia.
NOMARKS will continue to be manufactured by OA for one year under a Transition support agreement, Bajaj Corp said.
NOMARKS is the second largest brand in the fast growing Anti Marks / Anti Blemish Category. NOMARKS has more than 12% market share in a Rs 342 crore Anti marks category which is growing at 27% per annum.
NOMARKS is a strong niche brand with a product portfolio consisting of face wash, facial cream, facial soap, facial scrub and lotion based on the natural science of Ayurveda.
Commenting on the acquisition, Mr. Kushagra Nayan Bajaj, Chairman, Bajaj Corp, said: "The acquisition of the NOMARKS brand by Bajaj Corp is a strategic move as it enhances our presence in the personal care market and gives us an entry in to the skin care category. It widens the company's position in the personal care sector as Bajaj Almond Drop Hair Oil is already the third largest brand in the overall hair oil category.
NOMARKS brand gives us an opportunity to play in an additional Rs 8500 crore Personal Care space besides the Rs 5222 crore non coconut hair oil market where we are market leaders in the Light Hair Oil Segment with 57.4% volume market share. We see a great future for the NOMARKS brand which was the pioneer of the anti-marks category in India. The anti-marks segment of skin care is one of the fastest growing and NOMARKS offers huge opportunity in the anti-blemish as well as several face care problem solution offerings that are growth segments world over.
Our investment strategy for NOMARKS will be similar to that employed by us for our lead brand Bajaj Almond Drops Hair Oil. The objective will remain to build a large consumer franchise for the brand through availability and communication."
Mr. Sumit Malhotra, MD, Bajaj Corp, added: "I am very excited with the acquisition of the NOMARKS brand and adding it to the Bajaj Corp portfolio of brands as it gives our management team the challenge to repeat the success that we have demonstrated over the last several years by making Bajaj Almond Drop Hair oil a market leader. NOMARKS offers tremendous potential for innovations and new product development by the continued use of the Ayurvedic platform. By leveraging the distribution strength of our company we expect to take NOMARKS directly to six lakh plus retail stores through the huge stockists and sub stockist network infrastructure that we have built. NOMARKS has potential to grow rapidly in modern retail and Canteen Stores Dept. and for both these we have a dedicated set of sales professionals who will also help in rapidly building the brand.
We have opportunities to restructure the brand architecture using current consumer insights and then relaunch some of the products under NOMARKS brand as well as launch new innovative products with the necessary advertising and promotional investments."
Bajaj Corp's net profit rose 25% to Rs 47.01 crore on 23.2% increase in net sales to Rs 170.05 crore in Q1 June 2013 over Q1 June 2012.
Bajaj Corp is an FMCG company with major brands in hair care category. The company's product portfolio includes Bajaj Kailash Parbat Thanda Tel, Bajaj Almond Drops Hair Oil, Bajaj Brahmi Amla Hair Oil, Bajaj Amla Shikakai Hair Oil and Bajaj Jasmine Hair Oil.
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