Eveready to restructure tea business, open for FMCG tie-up

Battery major Eveready Industries India Ltd is planning to rejig its tea business and drawing a new strategy for the same.

"Packet tea will be a key driver. We are working on it and in the couple of months, we will able to share a clearer picture on our plans," Eveready vice-chairman Aditya Khaitan said on Thursday. There are 'rumours' that company may spin off the tea business.

Eveready's packet tea revenue was around just Rs 80 crore out of the total revenue in excess of Rs 1,200 crore. The company was struggling with packet tea since long despite it leverages Williamson Magor group company McLeod Russel's strength, a major bulk tea player.

Terming the diversification of Eveready into home aplliances as logical, a company senior official said that it is for survival and growth. "After 20 years down the line, we may not survive if we remain just into batteries," Eveready vice-chairman Aditya Khaitan said explaining the logic for the company to fary into home appliances.

EIIL managing director Amritanshu Khaitan said the company was also open for tie up with other FMCG companies offering distribution service. "The company has two major strengths, one brand and another unparallel robust distribution penetration. We may offer distribution service to other FMCG companies". However, he did not reply to a question whether the company was planning to 'demerge' to unlock value of the company.