Tea and batteries major Eveready Industries India is re-entering the alkaline batteries business, as part of its endeavour to be a one-stop shop for batteries. The move would mark the company's presence in the top-end of the battery market and fill the only gap in its battery portfolio.
Deepak Khaitan, vice-chairman and managing director of Eveready, said the company had entered into an agreement with a world-class Japanese firm for battery manufacturing. The AA or pencil batteries and the AAA version of battery have been branded the Eveready Alkaline Max Batteries.
Eveready will also export the alkaline batteries to the North Amercian markets under the Lava brand.
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Eveready had in 2000-01 exited the alkaline battery business following the termination of its joint venture, Eveready Energizer Miniatures Ltd, with EVC India Co and Energizer India. The venture was engaged in distribution of miniature batteries and alkaline batteries.
Khaitan said the separation then was primarily on account of continued negative returns and difference in business perception of the two partners. Alkaline batteries are ideal for all battery-operated equipment such as toys, cameras, personal cassette and CD players, clocks, remote control equipment, calculators, transistor radios and flashlights.
Khaitan admitted the alkaline penetration would be slow on account of higher initial cost. However, rechargeable and alkaline were the batteries of tomorrow on account of re-usability and lower pollution load.
The domestic alkaline batteries market is around 17 million pieces in size valued at Rs 50 crore. Eveready is eyeing 30 per cent of this market in 18 months' time. The alkaline batteries will be launched initially in Chennai, Bangalore and Kolkata.
In the Rs 1,100 battery market, Eveready has a 43 per cent market share. This year, the market has grown by 8-9 per cent though in the previous year it dropped by around 6 per cent.
Roshan Joseph, director, Eveready, said the launch would further enhance the health of the Eveready brand. A brand-health check will also be done in the near future by Rediffusion DY&R.
Khaitan said Rediffusion would be doing a brand-health check for its clients and this will also include Eveready.
Awareness of the brand, relevance, personality and what the brand means to the consumer are some of the parameters for measuring the brand-health, Joseph said. "The study will be done in the next fiscal," he said.
Eveready is also integrating the distribution networks of tea and batteries. Khaitan said, for the first time tea will be offered by the 850 Eveready vans throughout the country. Cross promotions are also in the offing. "This will help promote Eveready's tea brands which will go national," he said.