The Hindu Business Line : Eveready may outsource raw materials, finished products from China

“A beginning has already been made,” Mr D. Khaitan, Executive Vice-Chairman & Managing Director of EIIL, told newspersons at the end of the company’s annual general meeting here recently. He pointed out that raw materials for the manufacture of batteries as well as finished LED torches were now being imported.

“In the current month, we hope to sell 5,00,000 pieces of LED torches, partly imported from China,” Mr Khaitan said. “About 80 per cent of triple A batteries are from that country.” Stating that the company officials recently visited China, he said, new battery products may hit the market towards the end of this year, he said.

Changing focus

Mr Khaitan, however, pointed out that within next three to four years, 50 per cent of the company’s business would be from non-torch and non-battery segments. “We’re going to use our distribution network to undertake retailing, particularly to launch various FMCG products of our own brands as also other brands,” he said.

He also indicated that the company has entered into an agreement with Phoneix Lamps Ltd for sale and distribution of its general lighting lamps, excluding automotive applications, under the brand of Halonix Eveready. Similarly, some of the packet tea brands might be used to introduce snacks. “We’ve many other plans to unfold in next six months or so to add to our scale and profitability,” Mr Khaitan observed.

In reply to a question, he said that nothing had been finalised as yet about the earlier plan to go for real estate development, particularly setting up malls and commercial complexes, in huge lands the company had in the north-east and other regions.

Earlier, while addressing the shareholders, Mr B.M. Khaitan, Chairman of EIIL, stated that the company had taken adequate pricing measures and metal hedging mechanism to counter the probable impact of metal price rise.

Between January 2006 and January 2007, the Managing Director pointed out that the zinc price had shot up.

He, however, felt that the price in the current year should stabilise at around $3,200 to $3,700 per tonne.

The effect of zinc price rise was passed on to the consumers, so the sale of D category batteries, mostly used by the poor, nosedived last year. “We say with confidence that the situation this year is going to be much better,” he said.

More Stories on : Outsourcing | Automobile Components

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
GEECL in talks with Durgapur Projects for gas pipeline revival

Eveready may outsource raw materials, finished products from China

Fiat keen to source auto components from India

Wockhardt to integrate Europe, India operations in 6 months

Minda Group ties up with France’s Valeo Electrical

Adayana in pact with SIAM for training technicians

Mahindra’s CSR activities focus on education, health in Nashik

Indian Oil plans foray into bio-crop biz

RIL delays exploratory activity in KG block D9

JCB eyes solid waste management sector to boost sales

Award for MMTC chief