Eveready Industries India will launch a new category in Financial Year 2024-25 (FY25) as it works to double revenue, said a senior executive of the country’s largest dry cell battery maker.
It could be an adjacency or a new product under the Eveready brand and a final decision is expected by the end of this financial year.
“We are currently working on that exercise; it’s on the drawing board,” said Suvamoy Saha, managing director of Eveready.
The company partnered with consulting firm Bain & Company early in 2022 for strategy and improving operations.
Bain is helping in the exercise for the new category, said Saha.
It would be the fourth category for Eveready after batteries, flashlights and lighting.
The company is the leader in the battery market with a share of 53.4 per cent.
In the battery-operated flashlight market it has a share of 55 per cent.
The company has identified lighting as a growth driver and is just about taking off in the category.
“Our three categories provide adequate scope for growth at least for the next 18 months,” said Saha.
Eveready seeks to double revenue by FY27 and Saha said the fourth category would contribute to that target.
The target was set against FY22 revenues of Rs 1,206.75 crore. In FY23, the company’s total revenue from operations stood at Rs 1,327.73 crore.
Eveready has dabbled with diversification earlier, under the Brij Mohan Khaitan management: in packet tea, confectionery, small home appliances and lighting.
But only lighting was a partial success.
The company is now controlled by the Burman family, the promoters of Dabur India, and its focus is on growth.
Saha said the new category would be powered by the Eveready brand.
“There has to be a brand fit.”
Packet tea and confectionery were not under the Eveready brand.
The Eveready brand represents “power and empowerment. The new launch would have to centre around these brand values,” Saha said.
It may not entirely ride on Eveready’s distribution network, though.
Eveready recently unveiled a new logo and tagline to connect the new generation with the company.
The company’s iconic ‘Cat-O-9’ logo now sits next to a loop of infinity and the new tagline is ‘Give Me Power. Give Me Red’.
The company’s task on hand is to expand its share in battery markets where its penetration is lower than the national average.
It will also look to exploit the full potential in the premium segment of batteries where it has a small share.
In flashlights, there is opportunity for growth in the rechargeable segment.
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