Eveready Industries has decided to exit from the mosquito repellent coil business where it forayed in 2006 as part of its diversification strategy.
"We have decided to stop the mosquito coil business by the end of the current fiscal as it has failed to make headway against the leading players," Eveready Vice Chairman Deepak Khaitan said.
Eveready mosquito repellent coil is sold under the brand name Poweron and faces competition from established players like Reckitt Benickser, Godrej & Jyothy Laboratories who sell Mortien, Goodnight and Maxo brand of coils.
According to Khaitan the company's strategy of harnessing distribution channel and its brand did not work in making the business viable owing to the spurt in cost of input.
Huge investment is needed in branding, he said.
Khaitan said Eveready was, however, confident of turning around Uniross, the French rechargeable battery company, by next year.
Eveready had acquired 80 per cent stake of Uniross for euro 10 million in 2009 in a bid to create a foot print in the European and Chinese rechargeable battery markets, where it is a leader and took the global melt down as an opportunity to restructure its business.
The company has already upped dry cell battery prices by 9 per cent and will take another review of the prices after the Union Budget.
"Margins during the quarter will be under pressure despite the hike in price as zinc price has shot up sharply," Khaitan said.
Zinc prices have gone up by an average of $2,400 per tonne from $1,800 per tonne in a year's time.
