Eveready in export focus

Eveready Industries India, the market leader in dry cell batteries, is working out the second phase of expansion plans which will help broaden the export market, said Executive Vice Chairman and MD Deepak Khaitan.

"The expansion plans are still at the drawing board stage and it will be too early to detail it. These plans will help increase our exports to 300 million pieces in the next few years from last year's 45 million," said Khaitan.

The company plans to enter new markets like North America and Europe, apart from stepping up presence in Africa and South East Asia like Sri Lanka, Japan, Nepal, Ethiopia and Sudan.

The company is also keen on setting up a unit at a special economic zone (SEZ), Khaitan said without further details.

Eveready's expansion plans are expected to be finalised in another two months. While refusing to give likely investment estimates, he said, for a unit to produce 350-400 pieces, about Rs 50 crore is required as dry cell industry is not capital intensive.

"Rising zinc prices are helping us in expansion as small scale battery manufacturers are finding it hard to manage rising production costs, considering the limited potential to raise price battery product," he said.

Exide has emerged as the market leader with 57 per cent share, after buying BPL's PowerCell, with a capacity to make 1.6 billion pieces which is expected to rise to 2 billion in March 2007 when its Uttaranchal unit becomes operational.

To raise battery prices: The company will raise dry cell battery prices by Re 1, across all categories, from June 1. The hike mirrors increase in prices of zinc, said Deepak Khaitan, executive vice chairman Eveready.