The Eveready Industries India (EIIL) board approved the company’s proposal to reorganise its packet tea business. The battery manufacturer has decided to ‘provide sharper focus’ for its packet tea operations in the country and chart out a higher growth trajectory.
Amritanshu Khaitan, EIIL managing director said in a press conference, “While the packet tea business will continue to leverage the company’s widespread distribution network, we will evaluate various options for future growth including the possibility of continuing with the business through a subsidiary or a special purpose vehicle by roping in a strategic partner.”
He also added, “The objective of the exercise is to provide sharper focus to the packet tea business which is currently not adequate as it remains mixed with the Eveready branded product verticals of dry batteries, flashlights, lighting product and home appliances.”
The company will also be able to look at the acquisition of packet tea brands to grow its business. EIIL’s packet tea has a Rs. 75 crore turnover and contributes a little over 5% to the company’s topline. Currently, Eveready’s packet tea volume is around 4 million kg and speaking about this, Khaitan said, “The focus on packet tea business will help us scale up the volume to 10-15 million kg and double turnover by 2020-21 through organic and inorganic routes making the new entity the third largest player in the packet tea business after Unilever and Tata Global Beverages.”