MUMBAI: The largest battery (dry-cell) and flashlight brand 'Eveready' is expecting a 10 per cent growth in topline this fiscal on the back of the just-completed distribution channel rejig, wherein it has slashed the number of distributors to just about 1,100 from over 5,000 earlier.
The 90-year-old brand, launched way back in 1934, has been the leader in the dry cell battery market for decades, and has sold billions of batteries and flashlights/torchlights.
Over the years, Eveready has become synonymous with the industry.
Eveready Industries sells about 1.4 billion batteries and 25 million flashlights annually and its entire production is sold in the domestic market.
Across its three battery plants, the company has an installed capacity of 1.7 billion annually. Its plants, located in Matia, Lucknow, Noida, Haridwar, Maddur, and Kolkata, are running at around 85 percent capacity now.
"Business is looking good. Even though inflation is biting consumer spending, sales have been good so far this fiscal year, as against flat volumes and topline last fiscal. This was because we were reducing the number of distributors and as a result, their number has come down to just about 1,100 now from over 5,000, Suvamoy Saha, managing director of Eveready", told TNIE here on Tuesday.
"We closed FY24 with flat revenue at Rs 1,350 crore, from which we earned about Rs 65 crore, which grew by over 10 per cent, primarily because of premiumisation and soft commodity prices. We are confident of closing this fiscal year with at least 10 per cent growth in revenue and an over 10 per cent uptick in the bottom line", he added.
On the reduction in the number of distributors, he said 4,000-plus have been made sub-distributors now, and this was primarily done from a servicing angle as most of them were in far-flung areas and servicing them was a big challenge.
On the revenue front, Saha said batteries chip in with 65 per cent of the top line, lamps/lighting fetch 23 per cent, and the remaining 12 per cent is contributed by torch lights and he expects the revenue mix to remain the same.
He expects batteries, being a slow-growing, to grow only around 4 per cent in volume this year, lights to clip at 20 per cent, and flashlights to grow 10 per cent this fiscal year.
Meanwhile, the company today launched a new torch light called ‘siren torch’ with a safety alarm to help bolster women’s safety. The siren torch can emit a powerful 100-dBA safety alarm while flashing when its attached key chain is pulled, allowing the user in distress situations to alert passersby and seek help.