Informist, Thursday, Sep 23, 2021

By Avishek Rakshit

KOLKATA – After correcting supply issues in its luminaires business, Eveready Industries India Ltd is aiming to more than double its revenue from the lighting and home appliances segment to around 7 bln rupees over the next three to four years, Managing Director Amritanshu Khaitan told Informist.

The luminaire and home appliances business usually accounts for 22-25% of the company’s annual sales. In 2020-21 (Apr-Mar), this segment accounted for around 2.7 bln rupees after registering a 10% on-year fall, primarily on account of the COVID-19 induced lockdown and muted macroeconomic scenario. The company had posted net sales of 12.36 bn rupees in the previous financial year.

Batteries make up for the largest share of revenue for the Williamson Magor Group company at around 65%. It is the country's market leader in dry cell batteries.

With the expected growth in batteries and flashlights as well, the segment mix is expected to remain the same.

Khaitan said plans are afoot to increase the product range as well as distribution points for the luminaires and home appliances business.

In the 8.5-mln-strong fast moving consumer goods retail points across the country, Eveready has a presence in over 4 mln outlets and 4,000 distribution points.

While the company is focussing on expanding its retail network further to rope in more outlets, it will soon be reaching out to electrical hubs across the country with its luminaires and home appliances. Electrical trade channels are also being roped in for the luminaires and the home appliances range.

Khaitan said that the company is shortly going to roll out its products across modern format electrical stores and e-commerce platforms as well.

On the product front, after its success with light-emitting diode bulbs, the company is coming up with light-emitting diode based luminaires like streetlights, floodlights, downlights, spotlights and panels, both in the consumer and professional lighting space.

"There were some issues with the supplier, but it has been taken care of now and we have three suppliers," Khaitan said. "With the momentum in the market, I think it should suffice and help us achieve the revenue target for the next 3-4 years."

In 2020-21, Eveready faced supply disruptions owing to the COVID-19 pandemic and the availability of its products in retail stores was limited. The lockdowns and the global macro-economic scenario reduced raw material availability, and the lighting and appliances business faced logistical challenges as well. This, in turn, led Eveready to opt for multiple suppliers.

The company does not manufacture lights and appliances directly, but resorts to contract manufacturing.

At 1247 IST, shares of Eveready Industries were trading 8% higher at 375.50 rupees on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Snigdha Kuttikat

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2021. All rights reserved.