The Hindu Business Line : Eveready to set up new plant in Uttaranchal

Looking to further consolidate its position in the dry cell batteries market, Eveready Industries India Ltd (EIIL) is investing Rs 60 crore in setting up a new plant in Uttaranchal to take its overall annual production capacity to two billion units.

"By the end of 2007, the overall production capacity of the company will be two billion with the new plant in Uttaranchal expected to go onstream," the EIIL Executive Vice-President Sales and Marketing, Mr Ravi Grover, said.

He said the new plant would have an annual production capacity of four million batteries and the company has invested Rs 60 crore on the project.

This will be the 12th plant of the company, which currently commands about 55 per cent of the market after its takeover of BPL's dry cell battery unit last year, he added.

Price hikes

Mr Grover said the company has effected two price hikes in January and April-May ranging from Re 0.50 to Re 1 across different battery categories in order to lessen pressure on margins following rising input costs specially that of zinc, which has almost tripled in the last 14 months.

New campaign

EIIL is also giving a new impetus to its advertising and has renewed contract with its brand ambassador Amitabh Bachchan to release a new campaign.

"After we signed Mr Bachchan, our market share jumped to 47.2 per cent from 41.6 per cent. The new campaign featuring him communicating on the extra advantages of our product should help to further enhance our share," he said.