Khaitan: Charged up

Goa, April 25: The 100-year old Eveready brand has been valued at Rs 660 crore by Ernst & Young.

Eveready Industries managing director and executive vice-chairman Deepak Khaitan has approached fund managers abroad to create an awareness for the company, which has a 46 per cent market share in the battery business.

Following the demerger of the tea and battery businesses, Eveready Industries will be listed as a separate company on the bourses on Wednesday.

Khaitan said, ?I have already conducted roadshows in Hong Kong and Singapore to draw the fund managers? attention. I have briefed them about the newly formed Eveready Industries. I have spoken to at least 45-50 fund managers. They have taken active interest in the company.?

On inviting a strategic investor, Khaitan said, ?We have no such plans at present.?

The company also plans to extend the Eveready brand to other products as well. Traditionally, Eveready is a brand associated with batteries and flashlights.

?We are planning to extend the brand to a new product, which is used in rural India. We will outsource the product from an MNC with a manufacturing unit in India. However, we cannot name the product right now. It will take another three months to launch the product,? Khaitan said.

The company expects to earn Rs 15-20 crore from this new product in 2005-06. It may be endorsed by Big B, who is the brand ambassador for Eveready torches and batteries.

Khaitan also said Eveready batteries will cost more from May 1. All the battery manufacturers have decided to increase the price by 5 per cent from May as the raw material cost, mainly that of zinc, has gone up substantially.

The company expects to sell 2 billion battery this fiscal. In 2004-05, it sold 1.1 billion batteries.

The packet tea business, which has come under Eveready Industries is also expected to see a quantum rise in the current fiscal. The company plans to sell 10,000 tonnes of packet tea in the current fiscal.

The packet tea is sold under the umbrella of the Greendale brand. ?We are also planning to introduce biscuits and coffee under the Greendale banner,? added Khaitan.

Eveready Industries expects to earn 30 per cent of its turnover from the non-battery and flashlight business by 2008-09. It currently contributes 10 per cent of the total turnover. ?We are expecting a 40-45 per cent growth in exports as well,? Khaitan said.

Regarding the company?s proposed joint venture with a Chinese battery maker, Khaitan said, ?It will take another six to eight months.?