You are here » Home » Companies » Company Overview » Eveready Industries India Ltd

Eveready Industries India Ltd.

BSE: 531508 Sector: Consumer
NSE: EVEREADY ISIN Code: INE128A01029
BSE 00:00 | 28 Feb 65.40 -4.75
(-6.77%)
OPEN

68.70

HIGH

68.70

LOW

65.00

NSE 00:00 | 28 Feb 65.65 -4.35
(-6.21%)
OPEN

67.10

HIGH

68.65

LOW

63.80

OPEN 68.70
PREVIOUS CLOSE 70.15
VOLUME 35661
52-Week high 218.80
52-Week low 34.40
P/E 10.14
Mkt Cap.(Rs cr) 475
Buy Price 65.40
Buy Qty 499.00
Sell Price 66.50
Sell Qty 36.00
OPEN 68.70
CLOSE 70.15
VOLUME 35661
52-Week high 218.80
52-Week low 34.40
P/E 10.14
Mkt Cap.(Rs cr) 475
Buy Price 65.40
Buy Qty 499.00
Sell Price 66.50
Sell Qty 36.00

Eveready Industries India Ltd. (EVEREADY) - Chairman Speech

Company chairman speech

BEING RESILIENT

Dear Shareholders

We deeply mourn the passing away of Mr. Brij Mohan Khaitan our Founderand Chairman Emeritus on 1st June 2019. This is an irreparable loss to each member of theEveready family which we must all accept with grace and humility. Even though he is nomore with us we will continue to be guided and inspired by his values work ethic and‘humanitarian industries' approach. He embedded the culture of resilience andinclusive growth into the very fabric of the Company.

He envisioned Eveready as an enterprise that empowers billions ofIndians to pursue their aspirations with intelligent portable power and energy-efficientlighting solutions that offer value for money. In his lifetime he participated in varioussocial development initiatives that touched the lives of millions. At Eveready we aredetermined to follow in his footsteps and grow his legacy.

MACRO TRENDS THAT IMPACT OUR BUSINESS

In 2018-19 despite global headwinds India continued to displayresilience. As the world's sixth largest economy India grew at 6.8% marginallybelow the previous year's growth rate. India remains a crucial cog in the globaleconomic development as one of the world's fastest growing major economies driven byits political stability domestic consumption favourable demographics healthy savingsrate moderate inflation and a gradual improvement in the private investment cycle.

Further India has started to witness the positive impact of theGovernment of India's structural reforms carried out in the past three years alongwith infrastructure development push and income support to the rural milieu reliant onagriculture. These initiatives also helped India improve its ranking considerably in theWorld Bank's Doing Business 2019 report.

BRAND EVEREADY AN INTRINSIC PART OF INDIA'S LIFE

At Eveready we have established a strong brand that has always movedin step with the evolving times while staying rooted to the legacy that upholdsinnovation and values stakeholder trust. Our offerings are trusted across generations forthe value they provide and are available at all corners of India.

Of late we have diversified into home appliances such as fanstoasters water heaters and coffee makers among others. We are committed to ensuring thatour extended product portfolio delivers the same trust with intelligent andenergy-efficient solutions of brand Eveready. We have also forayed into healthyconfectionaries business with jelly candies under the Jollies brand.

For both these businesses we are utilising our extensive distributionnetwork that provides us deep-rooted pan-India reach.

OUR RESILIENT PERFORMANCE

During 2018-19 our businesses faced several headwinds. Volatile crudeoil prices increased our distribution costs while a weak Indian rupee led to a rise inour input costs as we source the bulk of our raw materials from China.

Despite these challenges we managed to deliver sales of र 1442 Crorein 2018-19 marginally down from र 1451.95 Crore in 2017-18. We registered a PAT of र47.26 Crore. Our turnover was र 747.2 Crore in the batteries segment; र 181.3 Crore in theflashlights business; र 319.7 Crore in lighting and electrical products division; र 138.8Crore in the small home appliances segment and र 68.3 Crore in the packet business.

OPERATIONAL INSIGHTS

During the year we maintained our market share in most of thesesegments despite stiff competition from low-cost Chinese imports and the vast unorganisedmarket. We effectively leveraged our distribution channels and simultaneously strengthenedthem. We also undertook several initiatives to reinforce our brand salience.

Our batteries were stocked in ~70% of FMCG outlets that store batteriesduring 2018-19 which is higher than any other battery brand by a wide margin. In ourflashlights segment we are tapping the vast potential in both rural and urban marketsthrough new and innovative offerings.

Currently we are concentrating on capitalising on the growth potentialin LED lighting in India given the favourable market shift. With the Government of Indiafocused on providing ‘power for all' and ‘housing for all' demand forlight bulbs is slated to increase. The manufacturers of LED light bulbs are set to gainmore traction as LED bulbs illuminate more while consuming less electricity than CFLbulbs. The Government of India's nationwide campaign for providing LED bulbs andLED-based luminaires at affordable prices has also boosted to the category.

We are still in the build-up phase of our small home appliancesbusiness and seek to scale it soon. Our packet tea business continues to grow strongleveraging our distribution network. The superior quality of our offerings finds resonanceamong consumers and we are deriving additional revenues at virtually no extra cost.

PEOPLE AT THE CORE

At Eveready our people are at the centre of all our strategies. Weacknowledge that their constant support and loyalty are driving us. We offer a conducivework environment and nurture our team members with training and upskilling opportunities.

ON THE ROAD TO VALUE CREATION

Going forward our focus will be on consolidating our traditionalbusiness of batteries and flashlights; scaling our new ventures of home appliances andconfectionaries; driving cost-efficiency initiatives across various undertakings andgalvanise our team into a streamlined unit ready to take on future challenges.

I conclude by thanking our people customers distributors andinvestors for their continued support.

Regards

Amritanshu Khaitan

Managing Director