Burmans, the promoters of Dabur India, have become the promoters of Eveready Industries India Ltd, pursuant to an open offer. Burman family nominees will join the company’s board within a week, according to sources.

“Pursuant to the open offer, Puran Associates, VIC Enterprises, MB Finmart, Gyan Enterprises and Chowdry Associates have become the promoters of the target company in accordance with the provisions of SEBI (LODR) Regulations,” Eveready said in a regulatory filing.

Increased shareholding

The Burman family’s shareholding in Eveready has gone up to 38.3 per cent as they obtained 14.3 per cent equity through the open offer. According to sources, the Burman family has sought three board seats and may also look to appoint a Chairman, post the open offer according to SEBI guidelines.

In February this year, the Burmans had announced an open offer for acquiring an additional 26 per cent in Eveready for ₹605 crore. Following that, the Burmans had said they plan to “professionalise” the company and consolidate its market leadership in the dry cell business. Eveready holds nearly 50 per cent share in the Indian dry cell battery segment with about 1.3 billion batteries sold annually.

Turnover decline

In its latest annual report (2022), Eveready said it would look at augmenting product portfolio, enhancing reach to consumers through wider array of products at affordable price points and focus on bringing in improvements in processes as it sets out on “transformation” with a clear focus on growth across categories.

Eveready had witnessed nearly 3 per cent decline in turnover at ₹1,207 crore in FY22 compared with ₹1,249 crore in FY21. This was primarily due to a slowdown in Q4 in the core categories of batteries and flashlights, and also due to the gradual exit from the appliance business in the second half of last fiscal.