The country’s largest dry cell manufacturer, Eveready Industries India, is developing a roadmap of growth and profitability coupled with the “highest” degree of good corporate governance to take it to new heights. peaks.
Addressing shareholders, Chief Executive Suvamoy Saha, who was elected to chair the Annual General Meeting (AGM), said the company was now on its way to higher levels and was in the midst of a transformation that provides The roadmap.
There was a clear focus on revenue growth, he said later, answering questions from shareholders.
“The company has seen virtually no growth over the past few years,” Saha said. He added that the roadmap involved generating sustainable profits and that the company’s mantra was to stick to the highest degree of good corporate governance.
“We believe the combination of all of this will see the business at new high levels,” Saha said.
The company developed improvement plans for each of its business categories, and teams from separate business units were working on the plans. The three main categories of Evereadys business are: batteries, flashlights and lighting.
The battery industry experienced an unprecedented cost surge in the second half of the fiscal year, particularly in the fourth quarter. Saha said the company has taken steps to transfer around 12-15% of it to the market.
But he added that while prices seemed to be softening recently, it was still difficult to predict how things would play out.
The flashlight business was impacted by cheap imports from China. But Saha said the product portfolio has been adjusted to meet market demands fueling cheap imports.
Eveready identified lighting – which accounts for 20% of revenue – as an area of growth. “It is reasonable to expect brand and distribution support to increase business activity in the near term from where it is today. The business was near breakeven in 2021- 22 and should become profitable in the immediate future.
Earlier this year, Eveready tapped consultancy Bain & Company. Saha explained that the firm was appointed to advise and support improvement in operational areas. It would also provide insight into the strategy the company should adopt over the next 2-3 years.
The company has already recruited new talent to improve the scale of its operations. On debt, Saha said current operating cash flows are sufficient to meet scheduled debt repayments. Everready’s debt is around Rs 340 crore.
Asked about the Burman family joining as promoters of Everready, Saha said that the open bidding process has been completed and that the next steps upon completion of the process should take place within coming days. “Afterwards, they would officially join us as promoters,” he said.
Myanmar’s open offer closed earlier this month. The group acquired 14.3 percent of the shares, increasing its stake in the company to 38.3 percent. It is likely to onboard directors into Eveready after completing the shareholder payment and share transfer exercise. The Burmese would also appoint the president.
The top job became vacant after Aditya Khaitan, younger son of the late Brij Mohan Khaitan, resigned as non-executive chairman following the announcement of the open bid by Burman Group.