Dry cell battery maker Eveready Industries has appointed international consultancy Bain & Co to chart the roadmap for the company’s next phase of development.

The consultant will assist Eveready to leverage the power of the century-old brand and deep distribution network to diversify the business profile. Apart from devising the strategy, the consultant will also work with the management to execute the plan.

The appointment comes months after it inducted a professional as a joint managing director, acceding to the desire of the largest shareholder, the Burman family
of Dabur, to professionalise the management. The appointment of a top-notch consultant is being seen as another move in that direction.

“It is a step towards Eveready 2.0. The plan is to grow both the top and the bottomline,” Amritanshu Khaitan, managing director of the company, said this afternoon.
Bain is likely to work with Eveready for at least a few quarters to effectively implement the diversification plan.

Battery and flashlights are the mainstays of the business at present, contributing 75 per cent of the revenue and earning 95 per cent of the profit. The company also has presence in the lighting and electrical (LED bulbs) and small home appliance segments.

The management has been on the lookout to grow the lighting and home appliance business but its efforts have so far met with limited success.

In a commentary accompanying the third quarter result, where income, gross margin and net profit slid 4 per cent, 21 per cent and 51 per cent, respectively, Eveready admitted that the lighting and electrical category could not be scaled up to the level planned and it also stopped selling some of the appliances to cut losses.

“Measures to reach such growth (lighting & electrical), in correcting earlier supply chain issues and marketing initiatives took longer than expected time. The company stopped selling all unremunerative and low margin appliances which resulted in a drop in turnover,” it said.

The company, however, has sorted out the supply chain issue in the lighting segment. The last quarter also witnessed pressure on battery margin due to all round cost push from raw materials (zinc and chemicals). It took a 15 per cent price hike and another round is expected.