Looking to add products under Eveready brand, says EIIL’s MD

By: |
September 29, 2021 8:12 AM

EIIL, the leader in the country’s dry cell batteries and flashlights markets, forayed into the small home appliances segment a few years back in line with its strategy to bring in new products to its selling basket.

Eveready“Hopefully with the situation improving, we should see all the businesses improving thereafter,” the MD stated.

Dry cell battery major Eveready Industries (EIIL) is looking at opportunities to see which products can be added under the brand ‘Eveready’ in the coming two-three years, in order to scale up the business both in terms of turnover and profitability.

EIIL, the leader in the country’s dry cell batteries and flashlights markets, forayed into the small home appliances segment a few years back in line with its strategy to bring in new products to its selling basket.

Replying to shareholders’ queries during the company’s 86th annual general meeting on Tuesday, managing director Amritanshu Khaitan said, “In home appliances, we do plan to stabilise the segment and see how we can scale it up in the future. The company is also looking at other opportunities to see which are the products that can be added under the brand Eveready in the coming two-three years. This will help scale up the business both in terms of turnover and profitability.”

Khaitan said the battery and flashlights businesses were less impacted by the ongoing pandemic, but lighting and appliances businesses were more impacted in the last 18 months. “Hopefully with the situation improving, we should see all the businesses improving thereafter,” the MD stated.

Amid curbed non-essential purchases in key products and supply constraints caused by the pandemic, the company, the Williamson Magor group’s flagship, faced some headwinds in the home appliances segment, with turnover dropping to Rs 51.80 crore in FY21, against Rs 61.50 crore in FY20.

“Currently, the category is in the gestation period. The vertical is still in the red, registering negative Ebidta. As we consolidate our position in the market and expand our product line and create an omnipresent distribution network, we see the vertical becoming a strong driver of our growth in the future,” Khaitan said.

He said imports from China in the battery segment continues to be low due to the implementation of quality standards issued by the Bureau of Indian Standards (BIS). Eveready Industries is aiming to be debt-free in the next two-three years, from the current debt level of Rs 418 crore. “Over the next to two-three years, we endeavour to become a zero-debt company from the current debt level of Rs 418 crore, backed by robust operational cash flows. We still continue to focus on improving our operating efficiency,” Khaitan said.

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