Eveready looking for Rs200 crore acquisition in FMCG space

Eveready Industries India (EIIL) is looking for acquisitions again, after a nine-month hiatus. This time, the company is eyeing a Rs200-crore company in the domestic FMCG space and has formed an internal team to identify the target. EIIL hopes to conclude the deal within the next fiscal.

Talking to newsmen in Kolkata on Friday, Deepak Khaitan, executive vice-chairman and managing director of EIIL, said the company had acquired an 80 per cent stake in French rechargeable battery maker Uniross SA in May 2009. He added that the company was not merely keen on a firm with an interest in the battery or flashlights business. He said that finance was not a problem and that the company was confident of wrapping up a deal within six weeks once a target company had been identified.

Eveready is also working towards consolidating existing business to double turnover of Rs2,000 crore within three years.

He added that Eveready's lighting and homelight business would drive future growth. He said the company had been a leader in the battery space and would continue to grow it further with focus on Double A batteries. He added that the company would also try to boost sales of their D size batteries.

CFL and GLS bulbs which the company had launched in June-July last year, had been able to generate a turnover of Rs100 crore, he said, adding that the company now sold 3 million pieces of bulbs in the country annually.

In April 2009, EIIL launched a new class of LED (light emitting diode) lanterns and flashlights which were pegged as energy savers and the same had taken off well in rural areas and were fast replacing kerosene lamps.
 
Khaitan said that the company's extensive distribution network would help it garner a large pie in the market dominated by unorganised players and with the power scene in the country likely to take some time to improve the products were expected to do well in the long run.
The company would also leverage the extensive distribution network of Uniross to market its LED flashlights and lanterns in South East Asia and South Africa.