The Hindu : Business : Eveready plans joint venture in China

Online edition of India's National Newspaper
Friday, Aug 27, 2004

Business

Business

Eveready plans joint venture in China

By Our Special Correspondent

KOLKATA, AUG. 26. Eveready Industries India Ltd (EIIL) is exploring the possibility of setting up a joint venture in China for making batteries, Executive Vice-Chairman and Managing Director, Deepak Khaitan, said.

Talking to reporters after the company's annual general meeting here, he said the company had begun to make enquiries and the process of locating a suitable partner was on. The joint venture was likely to be a minority stake venture for EIIL, Mr. Khaitan indicated.

He said that talks have been held with two to three companies but was unwilling to divulge any names or even the investment proposed for this venture. The product was likely be marketed under Eveready's brand name in India and under the Lava name worldwide. Mr. Khaitan said plans were afoot to expand the capacity of the unit here. Under its battery business, the Rs. 980.80 crore turnover EIIL has units in Chennai, Hyderabad, Kolkata, Noida and Lucknow. The company is the world's third largest carbon-zinc battery manufacturer. It has appointed Amitabh Bachchan as its brand ambassador.

Mr. Khaitan also announced before the shareholders (most of whom were irked over the losses), EIIL's plans to reorganise the existing business into two separate entities — one devoted to the FMCG business (batteries, flashlights and packet tea) and the other to bulk tea. Bulk tea business would be hived off as a new company called Mclead Russel. The merger would be effective April 1, 2004, subject to necessary approvals.

Commenting on the tea business, he said that although the price realisation for EIIL's tea business continued to be much above industry average, the price realisation was lower than that in the previous year by about Rs. 5 a kg.

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