Eveready Industries India to form joint venture with McLeod Russel India
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Find Service Near You Eveready Industries India (EIIL) on Tuesday said it plans to enter into a joint venture with tea growing firm McLeod Russel India for development of the packet tea business through a separate entity.
“The company will initiate discussion with McLeod Russel India for participating in a joint venture as a strategic business partner for development of the packet tea business through a separate entity,” EIIL said in a statement.
Both the companies belong to the Williamson Magor Group and the alliance is subject to all necessary approvals. The joint venture (JV), if finalised, will bring their skills of marketing and distribution to focus and develop the packet tea business.
The company said the alliance will enable McLeod to have direct access to the Rs 10,000 crore packet tea market. Eveready Industries India is into the business of dry cell batteries and also markets LED, CFL, and other lighting products, packet tea and small home appliances.
Meanwhile, Eveready Industries' board of directors also approved the company's results for the fourth-quarter (Q4) ended March 31, 2017, and for the financial year 2016-17. The company posted a 12.35 % increase in its net profit at Rs 10.46 crore in Q4 FY 2016-17 as against Rs 9.31 crore posted in the same quarter of the financial year 2015-16.
Revenue from operations during the period under review was up 6.56 % to Rs 317.34 crore (Rs 297.79 crore) mainly due to a turnover growth in the lighting and appliances segments. Turnover for batteries and flashlights remained subdued during the quarter due to lower consumer off-take and de-stocking in trade channels post demonetization.
For the financial year 2016-17, the company's topline at Rs 1420.75 crore grew by 1.8 % as against Rs 1394.26 crore earned in fiscal 2015-16. Annual profit at Rs 93.63 crore during the year under review was up 35.55 % against Rs 69.07 crore in the 2015-16 financial year.
On the outlook, the company said: "Introduction of the GST in the near future is expected to have a positive impact on the economy, thereby augmenting demand, which will be beneficial to the company. Additionally, the GST regime is expected to bring in higher degree of tax compliance in the country."
Presently, two of the product categories marketed by the company, viz., batteries and flashlights, bear the impact of non-compliance with tax laws by unorganized part of the market – either through undervalued dumped imports from China for batteries or grey market local operators in the flashlights market. Company officials feel the GST regime will bring such elements into its net as well as eliminate the unfair gap in the pricing structure with tax compliant organizations.
“The company will initiate discussion with McLeod Russel India for participating in a joint venture as a strategic business partner for development of the packet tea business through a separate entity,” EIIL said in a statement.
Both the companies belong to the Williamson Magor Group and the alliance is subject to all necessary approvals. The joint venture (JV), if finalised, will bring their skills of marketing and distribution to focus and develop the packet tea business.
The company said the alliance will enable McLeod to have direct access to the Rs 10,000 crore packet tea market. Eveready Industries India is into the business of dry cell batteries and also markets LED, CFL, and other lighting products, packet tea and small home appliances.
Meanwhile, Eveready Industries' board of directors also approved the company's results for the fourth-quarter (Q4) ended March 31, 2017, and for the financial year 2016-17. The company posted a 12.35 % increase in its net profit at Rs 10.46 crore in Q4 FY 2016-17 as against Rs 9.31 crore posted in the same quarter of the financial year 2015-16.
Revenue from operations during the period under review was up 6.56 % to Rs 317.34 crore (Rs 297.79 crore) mainly due to a turnover growth in the lighting and appliances segments. Turnover for batteries and flashlights remained subdued during the quarter due to lower consumer off-take and de-stocking in trade channels post demonetization.
For the financial year 2016-17, the company's topline at Rs 1420.75 crore grew by 1.8 % as against Rs 1394.26 crore earned in fiscal 2015-16. Annual profit at Rs 93.63 crore during the year under review was up 35.55 % against Rs 69.07 crore in the 2015-16 financial year.
On the outlook, the company said: "Introduction of the GST in the near future is expected to have a positive impact on the economy, thereby augmenting demand, which will be beneficial to the company. Additionally, the GST regime is expected to bring in higher degree of tax compliance in the country."
Presently, two of the product categories marketed by the company, viz., batteries and flashlights, bear the impact of non-compliance with tax laws by unorganized part of the market – either through undervalued dumped imports from China for batteries or grey market local operators in the flashlights market. Company officials feel the GST regime will bring such elements into its net as well as eliminate the unfair gap in the pricing structure with tax compliant organizations.
