Eveready Industries India Ltd

Eveready Industries India Limited (EIIL) was incorporated on June 24, 1934 as a Public Limited Company. The Company was formerly a subsidiary of Union Carbide Corporation, US and was subsequently taken over by B M Khaitan and the Williamson Magor Group of Companies. The name of the Company was changed to Eveready Industries Ltd., eleven years after its Bhopal plant was involved in one of the world's worst industrial disasters. The Company is in the business of manufacture and marketing of batteries and flashlights under the brand 'Eveready'. The Company distributes a wide range of lighting and electrical products. It has manufacturing facilities at Lucknow, Noida, Haridwar, Maddur, Kolkata and Goalpara (Assam) and is supported by a sales and distribution network across the country. Over the decades, the Company has been the leader in the dry cell batteries and flashlights markets in India. The company's contemporary product portfolio in the domestic market comprises dry cell and rechargeable batteries under the brand names Eveready', PowerCell' and Uniross', flashlights and lanterns under the brand names Eveready' and PowerCell', LED bulbs and luminaires under the brand names Eveready' and PowerCell', devices like mobile power banks, rechargeable fans and radio under the Eveready' brand, small home appliances under the Eveready' brand and packet tea under the brand names Tez', Jaago' and Premium Gold'. The capacity of the company to produce batteries stood at 1350 Million Pcs as on Mar 31, '05 and 12.5 Million Pieces for flashlights including the expansion carried out during the fiscal 2004-05. EIL entered alkaline batteries segment in 2001-02 by launching alkaline batteries under its own umberlla brand 'Eveready'. But before that in 1995 the company through Energizer India Pvt Ltd, a 50:50 JV between EIL and Ralston Purina Overseas Battery Company of US, manufactures reowned Energizer brand of alkaline batteries in India. In 1995, a MoU was signed with Gold Peak Industries, Hong Kong, to develop rechargeable Ni-Cd and Ni-Mg batteries in India. The company has already commenced marketing miniature watch batteries. During 1999-2000, the company commissioned a new poly sleeve jacketed battery line at Camperdown Works at Calcutta. EIL battery plant and metal processing plant at Calcutta, as well as the electrolytic manganese dioxide plant at Bombay have received the ISO 9002 certification. Since 1996-97 the company undergoes series of mergers and demergers. In 1996-97, McLeod Russel India (MRIL) and Faith Investments were amalgamated with the company. The business of MRIL is being carried on by the company as its tea division in the trading name of Mcleod Russel. Later Bishnauth Tea Company was amalgamated with Eveready Industries India Ltd. And recently the company demerged its Bulk Tea division to McLeod Russel India Ltd (formely Eveready Company India Ltd, a Company floated to facilitate demerger) effective April 1, 2004. The company has decided to set up a factory in Uttaranchal for the manufacture of dry cell batteries with a capacity of 40 crore pieces per annum at an estimated investment of Rs.60 crores. The project is envisaged to be implemented before September 2006. The company has shifted its entire manufacturing facilities at Guindy, Chennai to its another existing unit at Chennai on Tiruvottiyur High Road. The integrated plant will have a capacity of upto 450 Million batteries per annum. As a result of this shifting, 8.39 acres of prime land at Guindy will be released and the company has entered into an agreement with Khivraj TechPark Ltd of Chennai for development of this site as a building complex particularly suitable for the Information Technology Sector, having a Information Technology sector, having a built-up area in excess of 10,00,000 Sq.ft. and build at a cost of the developer company Khivraj Techpark but towards consideration for the land the copany will in return gets an upfront payment of Rs.25 Crores and 20% of the built-up area together with proportionate car parking spaces. Williamson Magor & Co Ltd was ceased to be associate from 10th January 2005. In its Lighting And Electrical Products business, Eveready Industries India Limited (EIIL) started distributing compact fluorescent lamps (CFLs) through its distribution network from 2007. As a natural progression, the company introduced ordinary GLS bulbs from 2009. The year 2013-14 was a challenging one for operations of the company in terms of market being flat and unprecedented depreciation of the rupee. Eveready Industries could however overcome these challenges partially through periodic price increases, enhancement of distribution channel and introduction of newer products - thus improving overall operating results over the previous year. During the year ended 31 March 2014, Eveready Industries retained its market share in the batteries segment estimated at more than 50%. During the year under review, the usage of flashlights using incandescent bulbs and D' size batteries came down very significantly. In addressing this, Eveready Industries started introducing a range of value-for-money, smart and efficient flashlights with LED' as the light source option - mostly using AA' batteries. Initially introduced as a value offer, this segment eventually became the standard and thereafter evolved as life-style products - in multifarious styling & colour, at several price points - both premium and popular. During the year under review, Eveready Industries' share of the organised flashlights market remained at 76%. In Electrical & Lighting Products business, Eveready Industries launched a few other products during the year - tube lights, LED lamps among others.In view of the outsourcing possibilities being available at very competitive prices, Eveready Industries' building and other assets at its tea blending and packaging unit at Chuapara, West Bengal were sold and transferred after receiving necessary consent of the shareholders by way of Postal Ballot during the year under review. During the year under review, Eveready Industries kept tight over its finances, with emphasis on reduction of debt. During the financial year ended 31 March 2015, Eveready Industries retained its market share in the batteries segment estimated at 52%. The company also maintained its market share of the organised flashlights market at 75% during the year under review. In electrical & lighting products business, Eveready Industries launched the new generation Light Emitting Diode (LED) bulbs towards the end of the year under review, which added significant technology edge to the product basket being offered by the company. The company's distribution in general trade and modern retail provided a good platform to enter this category. The company also invested significantly towards brand building in the category during the year with a view to enhance brand salience. In the packet tea business, efforts were concentrated to scale up turnover in a few focused markets through extensive branding strategies and enhanced distribution drive. During the financial year ended 31 March 2016, Eveready Industries retained its market share in the batteries segment estimated at 50%. The company continued to emphasise on strengthening its distribution network. The company's brand campaign featuring batteries and flashlights continued to add positive qualities to its brand value. The company also maintained its market share of the organised flashlights market at 75% during the year under review. The company continued to invest significantly towards brand building in its lighting and electrical products category during the year with a view to enhance brand salience. In FY 2016, Eveready Industries diversified its product portfolio into a new product range, viz., small home appliances. The launch of appliances was initiated close to the end of the year. During the financial year ended 31 March 2017, Eveready Industries' batteries business category was adversely impacted due to lower consumer off-take and de-stocking in trade channels post demonetization, announced by the Government during the latter part of the year. The company retained its market share estimated at 50%. The company continued to emphasize on strengthening its distribution network. The company's brand campaign continued to add positive qualities to its brand value. The operations at the company's flashlight manufacturing facility at Assam commenced on February 23, 2017. This project will provide tax reliefs applicable to the area. The company continued to invest significantly towards brand building in its flashlight business category during the year under review with a view to enhance brand salience. In its Small Home Appliances segment, Eveready Industries launched a range of ceiling fans and appliance products, namely, Mixer Grinders, Irons, Room Heaters, Juicer Mixer Grinders, Water Heaters, Induction Cookers, Sandwich Makers among many others. It has also launched a range of Air Purifiers to augment the portfolio. During the latter part of the year, Eveready Industries' Board of Directors authorized initiation of a suitable re-organization of the company's packet tea operations in order to provide greater focus to this category. Later, the Board of Directors decided that the company would initiate discussions with McLeod Russel India Limited (McLeod) (the world's largest tea plantation company in the private sector), for participating in a joint venture as a strategic business partner for development of the packet tea business through a separate entity. It is envisaged that with this measure, the company and McLeod will bring their respective skills of marketing & distribution and tea plantation knowledge to focus and develop the packet tea business to a much higher level and that this alliance will enable the company to upscale its FMCG operation. With regard to the news item in the media, 'B M Khaitan - led Williamson Magor rolls out sale plan for flagship Eveready', Eveready Industries clarified to the stock exchanges on 11 January 2019 that the company has always been updating the stock exchanges regularly with all the events, information, etc. that are required to be intimated under Regulation 30 of SEBI (LODR) Regulations, 2015. As and when applicable, appropriate disclosures which are required to be made pursuant to the SEBI (LODR) Regulations, the same shall be made by the company. The Competition Commission of India (CCI) issued an Order dated April 19, 2019, imposing penalty on certain zinc carbon dry cell battery manufacturers, concerning contravention of the Competition Act, 2002 (The Act). The penalty imposed on the Company was Rs71.55 Crores. The Company filed an appeal and stay application before the National Company Law Appellate Tribunal, New Delhi, (NCLAT) against the CCI's said Order. The NCLAT vide its order dated May 09, 2019, has stayed the penalty with the direction of depositing 10% of the penalty amount within 15 days with Registrar of NCLAT which has been duly deposited by the Company. Based on legal advice received by the Company, it is believed that, given factual background and the judicial precedents, there are reasonable grounds on the basis of which NCLAT will allow the appeal and accordingly, the Company is hopeful on adjudication upon the quantum of penalty imposed or remand to CCI for de novo consideration. However, at this stage it is not possible for Company to quantify or make a reliable estimate of quantum of penalty that may be finally imposed on the Company. It may be noted that a certain amount of penalty will be levied on Company as it had also earlier filed an application under Lesser Penalty Regulations under the Act. The Company launched a range of fans and appliance products, namely, Mixer Grinders, Irons, Room Heaters, Juicer Mixer Grinders, Water Heaters, Induction Cookers and Sandwich Makers, etc. It also launched Air Purifiers during 2020. It divested the packet tea segment through an Asset Transfer Agreement entered into with Madhu Jayanti International Private Ltd. on July 4, 2019. Preferred Consumer Products Private Limited, ceased to be an associate of the Company with effect from March 20, 2023.