Eveready will focus on growth but in a profitable manner: Mohit Burman

In a Q&A, the non-executive director who spearheaded the firm's change of hands from the Khaitan family to the Burmans, says he plans to sustain the current level of growth, if not exceed it

In July 2022, the control of Eveready Industries India passed from the Brij Mohan Khaitan group to the Burman family, promoters of Dabur India. Mohit Burman, who spearheaded the takeover of India’s largest dry cell battery maker and is a non-executive director of the company tells Ishita Ayan Dutt in an email interview that the expectation is to sustain the current level of growth if not exceed it. Edited excerpts:

It’s almost a year since the Burman family took control of Eveready Industries India. Has the company's performance lived up to your expectations?

The company is trying to transform itself into a growth-oriented profitable enterprise benchmarked to best-in-class practices. The journey has just started and so far the progress has been good.

As new promoters, what key changes has the Burman family initiated in Eveready during the past one year?

For one, we have separated ownership from management – Eveready is now a professionally managed company, not a family-owned and family-operated enterprise.

We have augmented the board with seasoned professionals. We have also brought in new management talent at all levels from various well-reputed consumer-facing companies.

Also, we hope to have brought in a new impetus into the company so as to achieve the growth aspirations that we have as promoters for all stakeholders, be it shareholders, employees and our customers.

The company was in the red in Q4FY23 even as it narrowed losses on a year-on-year basis. Has the strategy shifted to growing the top line even at the cost of the bottomline?

In FY23, the company took on a number of non-recurring costs and invested in certain areas as part of the transformation journey, resulting in lower profits for the year as a whole. Going forward, the company will focus on growth, but in a profitable manner.

Where do you see Eveready’s revenues in the next five years? What is the Burman family's vision for the company?

Eveready clocked 14 per cent growth for FY23, ignoring the discontinued business of appliances. The medium-term plan for the existing categories is to sustain this level of growth, if not exceed it.

Eveready appointed Bain & Co in early 2022, to help it rejig its business strategy. Is its work over and how has it helped streamline the business?

Bain was appointed to improve operational efficiencies. As part of that, they helped the company in restructuring its route to market. That exercise has been concluded.

Has the consultant identified new areas of growth? If so, what are these and when is an entry into new categories likely?

This was not part of the exercise. We will initiate this after the company optimises its current categories.

Are any synergies possible between Dabur and Eveready?

Both companies work independently of one another. We will leverage learnings but the companies will remain separate.

The arbitration process in the KKR case is currently on. Is Eveready fettered by the restrictions in the KKR case?

While current operations have not been impacted, this legal case has imposed restrictions on the company in raising fresh capital and selling non-core assets, which may impact our longer-term plans.

Would you like to increase your holding in Eveready and is the KKR case coming in the way?

As already mentioned, the ongoing legal case does not allow us to increase our shareholding by fresh infusion of funds in the company.

The Khaitans are classified as promoters in Eveready. Would they continue to enjoy the promoter tag?

The answer to this question is best left to them.