You are here: Home » Companies » News
Business Standard

Burmans to pay out shareholders, induct directors on Eveready board by July

On Thursday, the open offer in Eveready by Burman entities closed with the Burmans acquiring 14.3% shares. The total holding of the in the company now stands at 38.3%

Topics
Eveready | Shareholders | shares

Ishita Ayan Dutt  |  Kolkata 

Khaitans step down from Eveready board after Burman Group open offer

The Burman Group will induct directors on the board of Industries India, the country’s largest dry cell battery maker, after paying out and transferring . The entire exercise is expected to be completed by July 5.

On Thursday, the open offer in by Burman entities closed with the Burmans acquiring 14.3 per cent . The total holding of the Burman Group in the company now stands at 38.3 per cent.

On the next steps in Eveready, Mohit Burman, who has been spearheading the family’s interest in the company said, “Now that the open offer has closed, we will look to on-board our directors post the pay-out to the investors and transfer of . This exercise is expected to be completed by the July 5.”

The Burman Group, in February, while proposing the open offer in had written to the Board for adequate representation through appointing three non-executive directors.

Asked about the appointments, Burman said that the names of nominee directors would be disclosed close to the time and will be intimated to the company first. “We would be appointing the Chairman,” he said.

It may be mentioned that key positions in the company prior to the open offer by Burmans were held by members of the Khaitan family, promoters of Eveready.

Aditya Khaitan, younger son of late Brij Mohan Khaitan, was the non-executive chairman.

Amritanshu Khaitan, son of Deepak Khaitan and grandson of Brij Mohan Khaitan, was the managing director. However, both stepped down from the board within days of the announcement of open offer by the Burman Group.

With the completion of the open offer, the Burmans would become promoters of Eveready. “We would be classified as promoters automatically in the next shareholder filing, post-July,” said Burman.

That would be about two years after the Burmans became the largest shareholder in Eveready. The Burmans had been buying into the company since 2019 and became the largest in July 2020. However, till they announced the intent to take control earlier this year, Eveready was but a financial for the Burmans.

On the vision for Eveready, Burman said, “We would want the company to concentrate on its core businesses of batteries, flashlights and lighting in the short term and look at one or two new categories in the medium to long term.”

“We would like to see revenue growth over time, as this is something the company has not managed over the past few years,” he added.

The company’s latest annual report also mentioned that growth in the past has been negligible. It said Eveready was working to chart out a strategy for growth and also improve existing operational areas.

However, even as the top line remained flat during the past few years, Eveready’s market share in the core segments continued to be robust, at more than 50 per cent in the dry cell battery segment and 70 per cent in the organised flash light market.

Timeline

July 2020: Burmans become largest shareholder in Eveready with 19.84 per cent stake

February 2022: Burmans propose open offer to acquire control

June 2022: Burmans acquire 14.3 per cent in open offer, taking total holding to 38.3 per cent

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, June 17 2022. 19:53 IST
RECOMMENDED FOR YOU
.