Eveready Industries India Ltd. (EIIL), popularly known for dry cell batteries, expects a turnover of ₹1,000 crore through its FMCG segment by 2023.
The company, which had diversified into several related fields like lighting and small appliances, is now trying to mark an increased presence in the FMCG segment by bringing in variety to the product basket.
Talking to The Hindu , EIIL managing director Amritanshu Khaitan said that the firm was trying to penetrate the FMCG segment, where its presence was now only through the tea joint venture, which turns in an annual revenue of ₹80 crore.
“I am trying to leverage the two assets we have — an iconic brand and a strong distribution network — and we are targeting ₹1,000 crore turnover from new businesses and from our packet tea business,” he said.
Batteries now contribute 50% to EIIL’s turnover, followed by 30% from lighting and flashlights, 7% through the small appliances segment and 5% via packet tea. In five years, this matrix will change. Batteries and flashlights would contribute 33% to the turnover, followed by lighting and appliances, and 33% from tea, confectionery and new businesses, Mr. Khaitan said.
Presently, batteries and lighting remain the only profitable business segments for EIIL, although the small appliance sector has turned EBIDTA positive.
Other segments
EIIL has been in the business of manufacturing and selling dry cell batteries and flashlights after the acquisition of the Eveready brand in 1995.
Subsequently, the company got into rechargeable batteries, packet tea and recently, lighting products, hinging on the government drive for energy efficient lighting.
EIIL saw a 33% increase in its third quarter turnover on lightings at a time when its overall turnover rose by 12%. Recently, it received a ₹22-crore order.
The firm entered the small devices segment in 2016, introducing small household products which have been received well, said Mr. Khaitan.
Recently, EIIL made two announcements – getting into the confectionery segment and buying into an overseas FMCG company – signifying its intent on a firmer entry into these sectors. “Our entry will be through an asset-light model and as a brand-extension plan, to cover high-value and technology-driven categories, which will not only generate additional revenue for the company, but will also uplift Eveready as a brand,” said Mr. Khaitan.
EILL has a 4,000-strong distributor network across the country.
Eveready’s confectionery entry is through a third party manufacture and sale of fruit chewies.
Its joint venture is with Universal Wellbeing Pte., an Indonesia-based company engaged in development and manufacture of a range of fabric, household and personal care products as well foods and beverages.
