Eveready scouting for buys in packet tea biz

KOLKATA: Eveready Industries India (EIIL) is looking at acquisitions in the packet tea segment. The company is scouting around in Gujarat, Maharashtra and Uttar Pradesh for acquisitions in this segment.

Speaking to mediapersons at a meeting in Kolkata on Thursday, EIIL executive vice-chairman & MD Deepak Khaitan said: “The move is part of our corporate strategy to become a Rs 2,000-crore company over the next three years from the current Rs 770 crore.”

Incidentally, the company’s packet tea business with four sub-brands, including Jaago and Premium gold sold under the Greendale brand is approximately Rs 100 crore.

Besides packet tea, the company plans to look for acquisitions in other FMCG space as well - both in domestic and overseas market, Mr Khaitan added.

The company plans to appoint a merchant banker for the acquisitions soon. “The merchant banker will have the mandate to help acquire packet tea brand as well as few FMCG brands in some other segments,” he said.

On the company’s future business mix, Mr Khaitan said more than 50% of the EIIL’s business will come from non-battery and non-torch segment by 2010. At present, the battery and torch business accounts for over 70% of EIIL’s turnover.

Meanwhile, group company McLeod Russel India has written to West Bengal government seeking permission for jatropha farming in the state. It has already formed a joint venture with D1 Oils plc to develop jatropha plantation in north eastern India.