Khaitan: Optimistic

Calcutta, Sept. 23: Eveready Industries India Ltd today said Uniross — the French manufacturer of rechargeable batteries that it had acquired in 2009 — could break even and return to profitability in two years. Eveready also aims to become debt-free within three years.

“A lot of money is being spent for brand building of Uniross. We are looking to launch Uniross beyond rechargeables to the alkaline and carbon-zinc segments, and take the brand to neighbouring countries such as Nepal, Bangladesh and Sri Lanka,” non-executive vice-chairman Deepak Khaitan said at the company’s 76th annual general meeting.

Uniross has also undergone a major restructuring to pare costs. Eveready has an 80 per cent stake in Novener SAS of France, which in turn controls Uniross SA.

Eveready acquired Uniross to gain access to geographies where the company has no presence such as Europe, Southeast Asia and parts of Africa.

At the time of acquisition, Uniross faced financial difficulties. The continuing grim economic situation in Europe and the overall sluggish demand for rechargeable batteries dimmed hopes of a turnaround.

Meanwhile, Eveready is sitting on a land bank of around 60-70 acres across the country in places such as Noida and Chennai, which could be sold to bring down debt. “But we will not do any distress selling. We are not rushed to sell,” said Khaitan.

The company’s debt stands at Rs 250 crore, while the working capital is Rs 100 crore.

Khaitan also said the company was not looking to diversify and was sticking to the battery business.