With the appliances market opening up new frontiers for Eveready Industries India Ltd., the company known for its dry cell batteries is now getting a good response to its ceiling fans.
These are being marketed under its own brand name and as part of its small appliance division, which was unveiled last year.
“We are seeing very good traction in our ceiling fan segment, which is nearly a ₹5,000-crore industry,” Amritanshu Khaitan, EIIL managing director said.
The product has been test marketed with a limited range, and distribution is being expanded following the response. Manufacturing has been outsourced.
EIIL unveiled items such as mixer grinders, juicers, ceiling fans, irons, winter appliances like geysers, room heaters and, recently, air purifiers under its fledgling appliance division. In 2017-18, EIIL is targeting a contribution of about ₹100 crore from appliances.
Since appliances are mainly discretionary purchases, they were impacted by the government’s withdrawal of high-value currency notes.
“Just when they had begun doing well, came the demonetisation drive but the recovery has been good,” according to Mr. Khaitan.
Portfolio diversification
For some years now, EIIL has been trying to diversify its portfolio beyond batteries, flashlights and packet teas.
It now has a major presence in the lighting segment, riding on the government’s thrust toward environment-friendly lighting. This fiscal, it expects ₹400 crore from the lighting segment, Mr. Khaitan said.
Mr. Khaitan said that by this fiscal, he expected the sales contribution from batteries to decline to 61% from 64 % now.
Packet tea, which is being hived off, is also seeing a declining share in EIIL’s turnover, while the share of lighting is projected to increase from 21% to 25%.
