Eveready Industries India Ltd. is within the “midst of a transformation” of its enterprise and has taken steps to deal with areas of weaknesses in its operations and the product portfolio, whereas the battery and flashlight maker expects development within the coming days, stated its managing director Suvamoy Saha.
In the annual report, Mr. Saha stated, “While the operating results were somewhat disappointing, a good area to highlight is the balance sheet, which was under stress in the recent past.
“Measures taken via prudent provisioning have now rectified that deficiency,” said Mr. Saha who joined Eveready as managing director in March this year after the exit of Khaitains.
Saha, erstwhile joint managing director of the company, was asked to assume the responsibilities as interim managing director after the resignations of former non-executive chairman Aditya Khaitan and erstwhile managing director Amritanshu Khaitan on March 3, following an open offer from the Burman group for a controlling stake in the company.
The Burmans have a 19.84% stake in Eveready and have already announced an open offer to acquire another 26% at a price of ₹320 per share.
“Despite the outcomes, I sincerely imagine that the corporate is now on a journey in the direction of the upper reaches and is within the midst of a change that gives the highway map. The firm has now taken steps to deal with areas of weaknesses in its operations and the product portfolio,” he said.
According to Mr. Saha, work is afoot in improving areas such as portfolio augmentation, reaching out to consumers and process improvements.
“The elementary strengths of the companies stay intact — stable model, sturdy distribution attain and considerably excessive market share within the core classes of batteries and flashlights. The administration of the corporate is now purely centered on harnessing these strengths for supply of outcomes,” he added.
Some of the initiatives may need some time to fructify, but directionally these are for long-term and sustainable value creation, Mr. Saha said.
“I’m conscious that the corporate’s development prior to now has been negligible. This is an recognized space for enchancment. Towards this, the corporate is working to chart out a technique for development and in addition enhance current operational areas,” he said.
Eveready’s accent will centre on growth in the coming days. Its existing businesses of batteries, flashlights and lighting already provide that opportunity, he added.
The uncertainties caused by the war and the pandemic led to major disruptions in the supply chain and significant increases in materials prices. Soaring inflation was also an inevitable result and the Indian market was affected by these factors.
“A slowdown of demand for FMCG merchandise was seen in massive elements of the market, notably the agricultural ones. Despite this, the Indian market remained resilient with many sectors really making good progress,” said Mr. Saha.
However, he added that some FMCG players showed reasonable financial results.
“Unfortunately, I can not say the identical of your organization. Turnover was down by 3.4% to ₹1,248.76 crore in the course of the 12 months, primarily on account of a slowdown within the fourth quarter within the core classes of batteries and flashlights, and in addition because of the gradual exit from the equipment enterprise within the second half,” he said.
Eveready’s core business of batteries saw an unprecedented cost push, necessitating an increase of prices, which resulted in market resistance.
“The excellent news is that the corporate held on to its market share at 52.8% (AC Nielsen) throughout this quarter, which signifies that the slowdown out there was an industry-wide phenomenon. In any case, these elements have been addressed and that’s seeming to bear fruit within the outcomes of the next interval. I’m assured that the battery enterprise will return to a a lot greater degree of turnover and profitability is just not too distant a future,” Mr. Saha added.
The flashlight market was quite badly affected by dumped cheap imports from China and the company has adjusted its product portfolio to address market requirements and Mr. Saha is hopeful this will help Eveready in regaining lost market share.
“The lighting business is an area for growth for the company. This business already comprises 20% of the total company turnover,” he said. “The company is now completely focused on providing the consumer with a range of products relevant to her and at prices which deliver the best value for her money, Mr. Saha said.
“Our accent will centre on development within the coming days. Our current companies of batteries, flashlights and lighting already present that chance. We have the workforce and processes to make that potential. I stay assured that the longer term outcomes will justify this confidence,” he stated.
Source: www.thehindu.com
