Eveready re-enters alkaline batteries segment

By Our Corporate Reporter

CHENNAI, NOV. 2. Eveready Industries, market leader in the dry cell battery and flashlight industry in India, has re-entered the alkaline batteries segment with the launch of `Eveready alkaline max batteries'.

Eveready was earlier engaged in the distribution of alkaline batteries of Energizer under a joint venture agreement. The agreement was subsequently terminated and Eveready is currently importing alkaline batteries from a Japanese company and selling in the domestic market.

Launching the product here, Mr. Roshan L. Joseph, director, Eveready Industries, told presspersons that these world-class batteries were available in two versions `AA' and `AAA' and were ideal for all battery operated equipment such as toys, cameras, calculators, personal cassette and CD players. Though alkaline batteries were fully eco-friendly, there was not much transition from conventional batteries to alkaline batteries. However, the company, with its vast dealer network, was hoping to garner 30 per cent market share in this segment in a year. The total battery market in India was Rs. 1,200 crores and Eveready was commanding over 40 per cent share, he said.

Mr. Aniruddha Roy, another director of the company, said at present there was no proposal to manufacture these batteries in India because of economies of scale. A similar project was viable only with a capacity of 60 million batteries annually involving an investment of Rs. 70-80 crores. As the demand was only 15-20 million batteries in India, the manufacture cannot be taken up here. Even in Japan people switched over to alkaline batteries from the conventional batteries very late, while in the U.S. the switchover was fast, he said.

Mr. Roy said there was no threat from Chinese batteries entering the Indian market as it was only in the conventional batteries segment with poor quality products.

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