Eveready Industries India Ltd. , a leading manufacturer of batteries and flashlights, is set to embark on a strategic initiative to unlock value from its underutilized resources. The company's Managing Director has announced plans to initiate preliminary discussions for monetizing unused land and idle assets.

Strategic Move to Optimize Resources

The decision to explore the monetization of unused land and idle assets represents a significant step for Eveready Industries. This move is aimed at:

1. Unlocking Hidden Value: By identifying and potentially selling or leasing unused land and idle assets, the company could generate additional revenue streams.

2. Improving Asset Utilization: The initiative demonstrates a proactive approach to optimizing the company's asset portfolio.

3. Enhancing Shareholder Value: Successful monetization could potentially boost the company's financial position and, in turn, benefit shareholders.

Initial Discussions Underway

According to the announcement, Eveready Industries is in the early stages of this process. The Managing Director stated that the company will begin initial discussions to explore various options for monetizing these underutilized resources.

Potential Impact

While specific details about the unused land and idle assets have not been disclosed, this strategic move could have several implications:

• Financial Benefits: Monetization could lead to an influx of cash or recurring revenue, depending on the chosen approach (sale, lease, or other arrangements).
• Operational Efficiency: By divesting non-core or unused assets, the company may streamline its operations and focus on its primary business activities.
• Future Growth: The proceeds from asset monetization could potentially be reinvested in core business areas or used to fund expansion plans.

As Eveready Industries moves forward with these discussions, stakeholders will be keen to learn more about the extent of the unused land and idle assets, as well as the potential value that could be unlocked through this initiative.

The company has not provided a timeline for the completion of these discussions or any potential transactions. Investors and industry observers will likely watch closely for further updates on this strategic move by Eveready Industries.

Eveready Industries India Limited , a leading manufacturer of batteries and flashlights, has reported a 7% year-on-year revenue growth in the first quarter, driven by strong performance in its core segments. The company also announced the settlement of a long-standing arbitration dispute, paving the way for potential strategic moves in the future.

Financial Performance

The company achieved a robust EBITDA margin of 14.30% during the quarter, demonstrating its ability to maintain profitability despite challenging market conditions. The battery segment, which remains the core of Eveready's business, showed particularly strong results:

• Carbon zinc batteries maintained a dominant market share of 59.10%
• Alkaline batteries saw significant growth, with market share increasing to 15.30%, up 50 basis points quarter-on-quarter
• The alkaline battery segment reported over 50% year-on-year growth in both revenue and volume

Segment-wise Performance

Batteries

The battery segment reported an impressive margin of 19.00%, with carbon zinc batteries showing growth in both volume and value. The company's extensive distribution network and strong brand equity continue to support its market leadership position.

Flashlights

The flashlight segment achieved a 13.00% margin, with rechargeable flashlights growing by 39% year-on-year. The company expects the recent BIS certification to drive market consolidation in its favor.

Lighting

While the lighting segment remained flat in terms of revenue, Eveready reported volume growth across various product categories, including emergency lamps, luminaires, battens, and panels.

Strategic Developments

Arbitration Settlement

Eveready has entered into a settlement agreement with Real Touch Finance Limited, resolving a long-standing arbitration dispute. The company will pay Rs 15.00 crore to settle all claims, which will lift restrictions on asset disposal and capital restructuring.

Alkaline Battery Manufacturing Facility

The company's greenfield alkaline battery manufacturing facility in Jammu is on track for commercial production by March 2026, with an internal target of January 2026. This facility is expected to strengthen Eveready's competitiveness in the growing alkaline battery market.

Workforce Optimization

Eveready incurred an exceptional charge of Rs 7.07 crore for non-recurring ex-gratia payments to approximately 50 workmen across multiple locations. This move is part of the company's efforts to enhance long-term cost efficiency, with expected annual cost savings of about Rs 4.00 crore and a payback period of 3-4 years.

Outlook

Suvamoy Saha, Managing Director of Eveready Industries, expressed confidence in the company's growth trajectory, stating, "We are now in the process of leveraging the advantages from a robust distribution system that got completed last year for our general trade channel. The rapid rise of quick commerce and continuing importance of e-commerce has made us anticipate trends faster, replenish with greater efficiency, and continue to innovate on products to retain and improve market share."

With its strong market position in core segments and ongoing initiatives to improve efficiency and expand product offerings, Eveready Industries appears well-positioned for sustained growth in the coming quarters.