Eveready In Midst Of Transformation, Says Managing Director
Eveready has exited from the appliance business in the second half of the last fiscal to focus on core activity.
Batteries and flashlights maker Eveready Industries India Ltd. on Wednesday said it is in the midst of a “transformation” that lays the road map for a growth journey.
Chairing the company's AGM virtually, Managing Director Suvomoy Saha said that Eveready is now actively working towards improvement in portfolio augmentation, reaching out to consumers and process upgradation.
Saha said that the fundamental strengths of the businesses remain intact with a solid brand, strong distribution reach and significantly high market share in the core categories of batteries and flashlights.
“The management of the company is now purely focused on harnessing these strengths for delivery of results. Some of the initiatives may need some time to fructify, but directionally these are for long-term and sustainable value creation,” he told shareholders.
Eveready has exited from the appliance business in the second half of the last fiscal to focus on core activity.
“... the company's growth in the recent past has been negligible. This is an identified area for improvement. Towards this, the company is working to chart out a strategy for growth and also improve existing operational areas,” the MD said.
Speaking about the economy and market, he said that a slowdown in demand for FMCG products was seen in large parts of the market, particularly rural ones due to high inflation resulting from geopolitical headwinds.
“Turnover for the year was down by 3.4% primarily due to a slow-down in the Q4 in the core categories of batteries and flashlights, and also due to the gradual exit from the appliance business in the 2nd half,” Saha said.
"The flashlights market was quite badly affected by dumped cheap imports from China. The lighting business is an area for growth for the company. This business already contributed 20% of the total company turnover," he said.
The Burman family is now the largest shareholder of the company with a 38.3% stake after acquiring 14.3% shares in the recently concluded open offer. The family is expected to claim promoter status in early July and the chairman will be from it.
The Khaitans who were earlier controllers of the company have resigned from the board.