In order to provide “sharper focus” to packet tea business, Eveready Industries India Ltd has planned to reorganise its operation, a company official said on Monday.
In a board meeting on Monday, the company approved the move subject to the finalisation of a suitable modality for the same.
The board authorised the firm’s Managing Director Amritanshu Khaitan to examine and evaluate all relevant aspects and alternatives for the reorganisation, including the option of continuing with the packet tea operations through a wholly-owned subsidiary.
“The objective of the exercise is to provide sharper focus to the packet tea business which is currently not adequate as it remains mixed with the Eveready branded product verticals of dry batteries, flashlights, lighting product and home appliances,” Khaitan said.
He said while the packet tea business would continue to leverage the company’s widespread distribution network, it should examine all other options for the business, for example, continuing with the business in a subsidiary or special purpose vehicle or induction of a strategic partner, for further growth.
“After such reorganisation, the stand-alone remaining businesses will represent only the Eveready branded product verticals. We expect to complete this exercise in the course of the coming months,” he added.