Dry cell batteries market leader Eveready Industries India Ltd (EIIL) Tuesday said prices of its batteries are being hiked because of the rise in excise duty by two percent.
"Excise duty on batteries has gone up by two percent, after the concessional rate of excise duty earlier allowed for consumer durables was not extended beyond Dec 31 last year. The same quantum is now being recovered through price increases with immediate effect by rationalisation of trade margins," company managing director Amritanshu Khaitan said in a statement.
The company sells more than 1.2 billion units annually and is eyeing a growth between 10-15 percent this year. It has taken a hike of over 20 percent in batteries over the past 18 months.
Shares of the company traded Rs.176.25, down by 3.48 percent, in the evening trade in BSE.