Eveready Industries India Limited today officially decided to reorganise their packet tea business examining and evaluating all alternatives.
"The board has authorised Managing Director Amritanshu Khaitan to examine and evaluate all relevant aspects and alternatives for the reorganisation, including the option of continuing with packet tea operations through a wholly owned subsidiary," a company statement said.
"The objective of the exercise is to provide sharper focus to the packet tea business which is currently not adequate as it remains mixed with the Eveready branded product verticals of dry batteries, flashlights, lighting product and home appliances," it said.
The Indian packet tea market is estimated at Rs 10,000 crore dominated by HUL and Tata Tea.
The reorganisation will help the company to induct strategic partners or even hive-off.
The Eveready packet tea owns brands like Tez, Jaago, and Premium Gold brands and contributed to about just five per cent of the company's Rs 1,331 crore annual sales during 2015-16.
Currently, these brands account for anywhere between one and five per cent of the tea market across India.
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