The Hindu : Business : Eveready to extend brand to other FMCG segments

Online edition of India's National Newspaper
Thursday, May 18, 2006

Business

Business

Eveready to extend brand to other FMCG segments

Special Correspondent

Net profit up 69 p.c.; recommends 40 p.c. dividend

KOLKATA: B M Khaitan group flagship Eveready Industries India Ltd (EIIL) on Wednesday said it planned to extend the brand beyond drycell batteries.

Company vice-chairman Deepak Khaitan said the products had been identified and rural areas would be the thrust. "We would be in a position to elaborate only after finalising the cost of the projects and after establishing a supply-chain,'' he said. EIIL, which increased its market share in 2005-06 by three percentage points to touch 48 per cent, recently extended the brand to mosquito coils.

The net profit went up by 69 per cent to Rs. 79.65 crore in 2005-06 from Rs. 46.30 crore in the previous year. A dividend of 40 per cent has been recommended.

Mr. Khaitan said during the year sales, backed by increased volumes and prices, rose by 12 per cent to Rs. 732.80 crore with EIIL growing by seven per cent against an industry average of three per cent. Together with sales of the `Powercell' and the `Shakti' brands acquired from BPL, Eveready had a market share of 55 per cent. He ruled out a merger of brands, saying that they had an identity of their own. However, the use of the BPL brand would have to stop by March 2008 under an agreement.

Having earned a Rs. 76.60-crore profit on sale of real estate in Chennai, the group was keen to carry it forward although nothing was likely in this direction in the next 18 months, Mr. Khaitan said.

The company had a vast surplus land at its existing units in Lucknow, Noida and Hyderabad. "All these units were running to capacity and cannot be shifted till proper alternatives were found,'' he said.

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