Eveready Industries slumps after CCI imposes fine

Eveready Industries fell 9.63% to Rs 330.90 at 11:38 IST on BSE after Competition Commission of India imposed a fine on the company for cartelisation in pricing of zinc-carbon dry cell batteries.

The announcement was made after market hours yesterday, 19 April 2018.

Meanwhile, the S&P BSE Sensex was down 61.38 points, or 0.18% to 34,365.91.

On the BSE, 42,000 shares were traded in the counter so far compared with average daily volumes of 3,579 shares in the past two weeks. The stock had hit a high of Rs 350 and a low of Rs 328.30 so far during the day. The stock hit a record high of Rs 465 on 9 January 2018. The stock hit a 52-week low of Rs 270 on 7 August 2017.

The Competition Commission of India (CCI), in a Suo Moto case against Eveready Industries and others, about cartelisation in respect of zinc carbon dry cell batteries' market in India, has passed an order, imposing a penalty of Rs 171.55 crore on the company.

Net profit of Eveready Industries India fell 40.49% to Rs 20.94 crore on 12.17% rise in net sales to Rs 369.57 crore in Q3 December 2017 over Q3 December 2016.

Eveready Industries India is a market leader in the batteries segment, commanding over 50% of India's market share, and holding 75% of India's organised flashlights market. The company sells dry cell and rechargeable batteries under the brand names 'Eveready', 'Powercell' and 'Uniross'. It sells flashlights and lanterns under the brand names 'Eveready' and 'Powercell'. It also sells packet tea under the brand names 'Tez', 'Jaago', 'Premium Gold' and 'Classic'.

Powered by Capital Market - Live News