Eveready charged up, aims to double revenue in 4 years with existing biz

Company's focus shifts to topline growth under Burmans; may look at new categories later

Eveready Industries India, the country’s largest dry cell battery maker, has said it plans to double revenues in the next four years.

The company’s control passed from the Brij Mohan Khaitan family to the Burmans of Dabur India in July and its focus now is to grow the topline from existing businesses. Newer categories are unlikely in the next 18 months, but may be added later. 

Eveready’s three main business verticals are: batteries, flashlights and lighting. In dry cell batteries, Eveready is the market with a more than 50 per cent share. It has about a 70 per cent share in the organized flashlights segment and it is a nascent player in the lighting segment. As the company gears up to double revenues-- in four years from the next financial year-- lighting will be an important vertical.

“We are hoping to close FY23 with revenues in the range of Rs 1,350 crore-Rs 1,400 crore. So, the debate is how soon we can double that,” said Suvamoy Saha, managing director of Eveready. In FY22, total revenue from operations stood at Rs 1,206.75 crore.

The Rs 10,000-crore consumer lighting segment has the best growth potential, said Saha. In FY23, the segment is expected to clock in sales of Rs 330 crore and by FY27, the aim is to take it to Rs 1,000 crore. So when the topline doubles, the share of lighting and batteries in revenues is likely to be at similar levels.

The growth in batteries, the mainstay for the company, has been near-flat over the years. Covid-19 threw up an opportunity with the use of medical devices. Such demand has died down since with the pandemic subsiding.

“This year, the batteries segment has grown at 13 per cent so far in FY23. And the company is totally energized to make it sustainable,” said Saha.

“Though we are a market leader, there are pockets where we are under-indexed and we are trying to tap those areas,” he said.

Future growth in batteries is expected from the proliferation of new-age devices like electronic locks, doors, sensors, electronic safe and even mechanised toys. Currently, remotes consume about 50 per cent of all batteries. 

Across verticals, Eveready’s focus is on product, brand and distribution. In flashlights, the company plans to tap into the unbranded rechargeable segment.

The company hired consultancy firm Bain & Company in January this year to get suggestions on operational efficiency and improvements that will pave the way for topline growth.

“We are looking at a company that would have a high level of growth with a reasonable level of profitability in the next few years. If we can achieve the level of turnover that we are targeting, then the profits will flow,” Saha said.