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Eveready Industries India Ltd, expects small home appliances and LED luminaries to be the growth drivers for the company in the future.
According to Amritanshu Khaitan, Managing Director, Eveready Industries India, the company will also look to set up exclusive Eveready branded stores on a franchisee model to push sales of the products.
“Most consumer brands have such exclusive outlets. These help to increase customer interface and push sales. We are yet to finalise on the number of outlets we plan to have,” he told BusinessLine .
With a network of over 4,000 distributors, the company has an extensive reach in rural India.
Appliances and lighting together is expected to account for nearly 30 per cent of the company’s turnover in FY18, up from nearly 20 per cent at present. The company is looking to complete its range of offerings with the introduction of new products in professional lightings, indoor and outdoor luminaries.
Q1 revenue dipsThe company posted a four per cent drop in standalone revenue to ₹358 crore during the quarter ended June 30, 2017, compared to ₹372 crore during same period last year.
Net profit fell 39 per cent to ₹13.56 crore (₹22.36 crore). According to Khaitan, the poor performance was primarily on account of a general trend of de-stocking in the trade channels following GST.
The impact was most prominently felt in the battery segment, wherein de-stocking by trade channels translated to a 10 per cent drop in volumes.
The lower turnover in the more profitable batteries segment resulted in lower operating EBIDTA margin for the quarter at 8.2 per cent (10.6 per cent).
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