Spurned by spiraling inputs costs for batteries, Eveready Industries Ltd (EIL) has decided to drastically cut down its dependence on batteries and torches by acquiring regional brands in the FMCG sector including personal care products and help them attain national footprint using Eveready?s distribution strength.
A negative bottom line has also forced the company to snap ties with Amitabh Bachchan citing endorsement fatigue and is now looking for a new brand ambassador.
?We are adopting a two-pronged strategy to reduce our dependence on batteries and allied products. First, we will be acting as distributors of successful regional brands who otherwise can’t expand owing to want of funds and help them reach out across the country leveraging our distribution network. Second, we will be introducing a slew of products in the FMCG segment ourselves,? EIL managing director Deepak Khaitan told shareholders at the 72nd annual general meeting of the company. ?A beginning has already been made through our agreement with Phoenix Lamps for marketing of compact fluorescent lamps under the Halonix brand. We are looking at similar arrangement with high volume brands in any FMCG category including personal care,? Khaitan added. Eveready, which is also present in the branded packet tea segment, plans to leverage its brands like Tez and Jaago and may extend them to snack foods also. He, however, clarified that the plan is still at the drawing board and would consider the high-voltage marketing campaign by rivals, notably ITC, which has recently come out with Bingo range of eatables.