Eveready set to transform with growth & governance-driven roadmap, says MD

The company has chalked out improvement plans for each of its business categories and separate business unit teams are working on the plans

The country’s largest dry cell battery maker, Eveready Industries India, is charting out a roadmap focused on growth and profitability, combined with the “highest” degree of good corporate governance, in order to take it to new heights.

Addressing shareholders, Suvamoy Saha, managing director, who was elected to chair the annual general meeting (AGM), said that the company was now on a journey towards higher reaches and was in the midst of a transformation that provides the roadmap.

There was an obvious focus on topline growth, he said later, responding to shareholder queries.  

“The company has shown virtually no growth over the last few years,” Saha said. He added that the roadmap entailed delivering sustainable profits and it was the company’s mantra to stick to the highest degree of good corporate governance.

“We believe that the combination of all these will see the company at new elevated levels,” Saha said.

The company has chalked out improvement plans for each of its business categories and separate business unit teams were working on the plans. Evereadys’ three main business categories are: batteries, flashlights and lighting.

The battery business saw an unprecedented cost push in the second half of the financial year, particularly the fourth quarter. Saha said the company took measures to pass about 12-15 per cent of this on to the market.

But he added that though prices seemed to be softening recently, it was still difficult to predict how things would pan out.

The flashlight business was impacted by cheap imports from China. But Saha said the product portfolio had been adjusted to address market requirements fueling cheap imports.

Eveready has identified lighting – accounting for 20 per cent of turnover – as a growth area. “It is reasonable to expect that the support of the brand and distribution will increase the business manifold in the near term from its current level. The business was at a near breakeven level in 2021-22 and is expected to turn profitable in the immediate future.”

Earlier this year, Eveready roped in consultancy firm Bain & Company. Saha explained the firm had been appointed to advise and support improvement in operational areas. It would also provide inputs on the strategy that the company should be taking over the next 2-3 years.

The company has already inducted new talent to improve the scale of operations. On debt, Saha said the current operational cash flows were sufficient to meet scheduled debt repayments. Eveready’s debt is at about Rs 340 crore.

To a question on the Burman family joining as promoters of Eveready, Saha said the open offer tendering process had been completed and subsequent steps on completion of the process were due to take place in the days ahead. “Thereafter, they would officially come on board as promoters,” he said.

The open offer by the Burmans closed earlier this month. The group acquired 14.3 per cent shares, taking its holding in the company to 38.3 per cent. It is likely to on-board directors in Eveready after completing the exercise of paying out shareholders and transferring shares. The Burmans would also be appointing the chairman.

The top post fell vacant after Aditya Khaitan, younger son of late Brij Mohan Khaitan, stepped down as non-executive chairman following the announcement of the open offer by the Burman Group.