Battery maker Eveready Industries India Ltd (EIIL) on Wednesday said it has agreed to enter into a joint venture (JV) with Indonesia-based Universal Wellbeing Pte. Ltd for manufacturing or importing and marketing of fast moving consumer goods (FMCG) in India.
The city-based battery and lighting major would acquire 30 per cent shares of the joint venture while 70 per cent would be acquired by the Indonesian firm.
Universal Wellbeing, part of the Wings Group of Indonesia, is one of the leaders in the FMCG market in Southeast Asia and develops, manufactures and sells a wide variety of products in fabric and household care, personal care, skincare, and foods and beverages.
Speaking on the occasion, company's Director Annie An said, "India presents with immense potential, especially as the economy grows and per capita incomes rise, crossing certain thresholds. We believe with our experience in a number of categories in similar emerging markets combined with robust distribution of Eveready, we will be able to add value and improve lives of the Indian consumers."
The new venture, which is yet to be named, will market FMCG products using the respective strengths of its shareholders, viz., the product expertise of Indonesian firm and the distribution strength of Eveready which has a presence in home appliances, packet tea along with dry cell battery and lighting space.
EIIL's Managing Director Amritanshu Khaitan said: "As I had mentioned sometime back that we are looking to scale up our FMCG play. With this joint venture, we will be able to unlock more value from our vast distribution network. We will be able to offer to the Indian consumer better products that are affordable yet of international quality."
The Kolkata-headquartered company had recently announced that it was entering the confectionery business.
--IANS
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