eiil - case

Eveready Industries India LtdEveready Industries India Ltd


TABLE OF CONTENTSTABLE OF CONTENTS

I. Introduction & Milestones……………………………………….3

II. Business Locations…………………………………………….. 4-5 i) Manufacturing locations ii) Sales Branches

III. Business Divisions i) Overall… ……………………………………………………….6-7 ii) Batteries… ….…………………………………………..……..8-10 iii) Flashlights… …………………………………………...…...11-12 iv) Packet Tea………………………………………………...…...13-14

v) New Business…………………………………………….........15-16 vi) Lighting Business… ……………………………………….. ..17-18 vii) Export………………...……………………………………….…..19

IV. Sales Operation in EIIL……………………………………20-21

V. Support Functions i) Manufacturing …….………………………………………….........22 ii) Research & Development……………………………………...….22 iii) Quality Control System……………………………………….......19 iv) Finance………….....…………………………………………........20 v) Information Technology...….………………………………….......21 vi) Human Resource ……………………………………………….....23

VI. Powercell Division…………………………………….24-25

VII. Work Ethos in EIIL……………………………….…....26


I.I. INTRODUCTION INTRODUCTION

The organisation started in India in 1905 with the first dry cell batteries being

imported from USA and sold in the major cities of the country. These batteries were

primarily used in imported torches. The value of the first consignment, nearly a

hundred years ago, was less than Rs 500. The company was incorporated in the year

1934 as Ever-Ready Company (India) Ltd. Today, EIIL has a turnover of nearly

Rs.1000 crore and has a diverse product portfolio ranging from carbon zinc batteries,

flashlights and rechargeables, packet tea, mosquito coils liquid vaporisers and

Compact Fluorescent Lamps.

MILESTONES

19391939 :: Camperdown Works - first modern battery plant established at Cossipore in Kolkata.

1996 : McLeod Russel (India) Ltd, merged with EIIL, bulk tea business brought into EIIL fold.

2000 : Bishnauth Tea Company merged with Eveready Industries India Ltd.

2004: Demerger of McLeod Russel (India) Ltd with EIIL.

2005 : Brand EVEREADY is hundred years.

2006 : Acquisition of the 4th largest battery company – BPL Soft Energy Systems Ltd which is now the wholly owned subsidiary of EIIL renamed as Powercell Battery India Ltd.

2008: Amalgamation of Powercell Battery India Ltd (PBIL) with Eveready Industries India Ltd (EIIL)

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http://en.wikipedia.org/wiki/2005





II. II.BUSINESS LOCATIONSBUSINESS LOCATIONS

MANUFACTURING LOCATIONS & SALES BRANCHES MANUFACTURING LOCATIONS & SALES BRANCHES

LEGEND

╬BATTERY PLANTS REGIONAL OFFICES

CHUAPARA PACKET TEA FACTORY SALES BRANCHES

╬FLASHLIGHT PLANT ═ZINC PLANT

╩ ELECTRODE PLANT

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╬Haridwar

╬Kolkata

═Zinc Plant

╬Hyderabad

╩Electrode Plant

╬Chennai

═Zinc Plant

╬ Noida

╬Lucknow

W.UP

Delhi

Guwahati

Jaipur

Indore

Patna

Ahmedabad

Mumbai Bhubaneswar

Bangalore

Cochin

Chuapara

╬Maddur

═Zinc Plant


BUSINESS LOCATIONS BUSINESS LOCATIONS

i. Sales Branches

North: Delhi (Regional Office)Delhi, Western UP & Jaipur

East: Kolkata (Regional Office)Kolkata, Guwahati & Bhubaneshwar

West: Mumbai (Regional Office)Mumbai , Ahmedabad & Indore

South: Chennai (Regional Office)Chennai, Bangalore, Cochin & Hyderabad

Central: Patna & Lucknow

ii. Head Office

Location in Kolkata :

Eveready Industries India Limited2, Rainey Park, Kolkata – 700019.

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III.III. BUSINESS DIVISIONS BUSINESS DIVISIONS

Eveready Industries India Limited (EIIL) is one of India’s most renowned and

enduring FMCG companies, with the operations entrenched in the country for over

100 years. Over the decades, it has strengthened its position as the dry cell battery

and flashlight industry market leader in the second most populous country in the

world.

The Company’s contemporary product portfolio comprises the following :

Dry cell batteries, flashlights and rechargeable batteries and Compact

Fluorescent Lamps under brand ‘Eveready’.

Packet tea under brands ‘Tez’, ‘Jaago’, ‘Premium Gold’, ‘Classic’.

Insect repellents: Coil & Liquid Vaporiser under brand ‘Eveready

Poweron’.

Dishwash bar under brand ‘Poweron’.

The Indian operation started through dry cell batteries and then marketing the same

across major Indian cities. This led to setting up of manufacturing facilities and a

distribution network across India. Subsequently, this manufacturing presence was

integrated forward into the manufacture of flashlights – leading device category

consuming batteries.

Over time, the Company evolved into the largest dry cell battery player in India and

virtually the only organised flashlights player in the market. The company possesses

one of the widest and the deepest distribution networks among FMCG companies in

India, reflected in its premium brand equity and customer loyalty. To leverage the

growth of this pan-national distribution pipeline, the Company extended its product

category to the marketing of packet tea, lighting products and home care products

like insect repellents and dish wash bars.

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The Company’s existing share of packet tea market is limited. However the company

expects the quality level of its products and its strength of retail penetration will

eventually translate into a significant market share over the foreseeable future.

Insect repellents were launched by the Company in 2006. The operation is still in its

learning phase, but the company expects to garner a reasonable share in this market

within a foreseeable timeframe based on its rural reach and tangible differentiation

from other products available in the market.

The company entered the Lighting products market with CFLs during 2007. The

market response to this initiative has been very enthusiastic and EIIL plans to be a

significant player in this product category.

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BATTERIES

DRY CELL BATTERY(CARBON ZINC)

Eveready Industries India Limited. is the world’s third largest

producer of Carbon Zinc batteries, selling over 1 billion batteries

every year. Present in all segments of Dry cell batteries.

The Indian market for dry cell batteries is estimated at 2.4 billion

pieces by volume and Rs.14 billion by value.

Eveready holds the dominant market share in every segment.

Overall market share of close to 50%.

Major competitors are Nippo, Panasonic, Geep and Powercell.

Eveready product range consists of Zinc carbon batteries like D size, C size, AA,

AAA, 9V and Alkaline range of AA and very shortly into AAA and 9V.

These batteries are ideal for:

Flashlights Remote Controls Toys Penlights Cameras Clocks Medical Equipments Electrical Equipments Walkman / Discmans FM Radios / MP3 / MP4 players Transistors etc.

Industry Details and Eveready Performance :

As per AC Nielsen Retail Stores Audit, the market for batteries is stagnant. While there is growth in devices using dry cell batteries, due to improving efficiencies of the battery operated equipments (like flashlights) as well as increasing usage of Lithium Ion based rechargable batteries in devices like digital cameras / MP3 / MP4 players the growth in replacement demand for batteries is getting neutralized.

The D size battery segment, which mainly get consumed in brass flashlights, is showing a de-growth of 20% while the AA and AAA battery segments are displaying

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a growth of around 10 – 12%. The latest trend, however, is indicating that the rate of de-growth of D segment is coming down and the market seems poised for growth in the coming years.

Growth in AA segment will continue to be fuelled by proliferation of clocks, remote control devices and growth of newer devices across both rural and urban India. Growth in this segment in the recent years have been driven by the new generation ‘LED’ flashlights, which have been popularized by the company. The new AAA segment will take higher share of the battery market, with introduction of smaller size devices like FM radios, a/c remotes, etc.

RECHARGEABLES BATTERY

Eveready Industries India Limited, India's No 1 battery

company was amongst the foremost players to make a

foray into the 'Rechargeable Batteries' segment with its

'Eveready Recharge' brand of rechargeable batteries and

chargers. 'Eveready Recharge' took the rechargeable

battery market in India by storm, with its world-class,

value-for-money product range. Till then, the market was

flooded with poor-quality grey-market products, which

consumers were scared to touch.

This Eveready sub-brand now boasts of an enviable range of rechargeable batteries

and chargers.

The portfolio now includes:

Cylindrical Rechargeable Batteries

i) AA NiMH

ii) AA NiCd

iii) AAA NiMH AA NiCd AA NiMH AAA NiMH

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Battery - Chargers for

i) AA batteries

ii) AA/AAA Combo

Rechargeable Batteries for Cordless Phones

Three variants: T107, T109 & T110


The rechargable batteries get consumed in digital cameras, MP3 players and other high drain devices. With the explosive growth in use of these devices, the demand for rechargable batteries is expected to rise in the coming years.

Eveready currently enjoys a healthy marketshare of 60% with a turnover

of INR 15 crores in the rechargables business.

The other major competitors are UniRoss, Sony, etc.

Rechargables continue to be one of the drivers of the Company’s revenues.

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FLASHLIGHTS

Eveready Industries India Limited is the largest manufacturer of flashlights in

South Asia. Since pioneering the portable lighting revolution in the country a century

ago, Eveready has enjoyed an uninterrupted leadership position in this segment. An

unparalleled distribution network ensures that Eveready torches are always available

within easy reach, wherever you are. From remote villages to the city heights,

Eveready flashlights light up lives across the length and breadth of the country.

BRASS TORCH

The trusted ‘Jeevan Sathi’ brass torch, has been a constant

companion for generations of Indians and is one of the most

trusted brands in rural India, across product categories. Known for

its reliability and durability… it enjoys an enviable 90% market

share in its segment.

METAL & PLASTIC

Eveready also markets a comprehensive range of over 50 varieties of

metal and plastic flashlights, comprising handy Homelites for general

purpose use, a range of torches for Outdoor use, as well as trendy

Personalites for personal use. In addition, Eveready also has a range of

value for money Rechargeable lights, targeted at the urban and semi

urban consumers.

LED TORCHES

Eveready has NOW launched an altogether new 'category' of torches - the ‘LED’

torches. This category will offer to the consumers a torch which has…

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- low battery consumption

- focussed white light

- slide switch for easy operation

- strong durable body


Eveready is virtually the only organised player in the flashlights market. The

segments in the flashlights market were traditionally determined by the material used

for manufacturing the flashlights – Brass, Plastic, Aluminum. Historically, the

‘Brass’ segment was the most popular among consumers – especially in the rural

areas. However, in the recent past, prices of brass flashlight had to increase manifold

due to cost push of raw materials. This was thoroughly resisted by the consumers and

the brass flashlights market de-grew by a significant 50% p.a. in the last couple of

years.

As a mitigation measure and with a view to giving consumers a value-for-money

option, in the last couple of years we saw the advent of the new generation ‘LED’

lamps based flashlights. We have been at the fore front of introduction of this

segment and have encouraged the consumers to take to it due to the advantage of low

battery consumption. These products have been accepted enthusiastically by the price

conscious segment of the consumers.

This has led to an explosion in sales of Eveready flashlights which we believe, is due

to the increase in user-ship. Also, the in-use period of these flashlights being

considerably lower than the traditional metal flashlights, replacements will be more

frequent resulting in boost in battery too. In the current year (’08-’09) the market is

estimated to be at an annual volumes of 45 mln pcs with Eveready’s share of 50% of

the total market with an estimated turnover of INR 110 crores.

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PACKET TEA

Eveready Industries India Limited, brings all the goodness of nature, intact to every

home. From the valleys of Assam to the hills of Darjeeling, our promise of bringing

the freshness and strength to each cup of tea can be experienced in the brew of all our

brands.

We today have offerings worthy of the name of Williamson and Magor as well as

Eveready Industries India Ltd. – Eveready Tez, Eveready Premium Gold, Eveready

Jaago and Eveready Classic. Brands, which satisfy the diverse moods of the tea

drinker.

Eveready Tez

Eveready Tez is for those who drink tea to refresh and energize themselves at any time of the day.

• Brand positioning - For the woman of substance.

• Theme: Tez ho chai, to josh aa jaye

• 100 % Assam blend

• Pack sizes - LUPs, <50 gm, 50 gm, 100 gm, 250 gm , 500 gm and 1 Kg [also in 250 gm/500 gm cartons]

EVEREADY Jaago

Eveready Jaago is for those who prefer a strong cup of tea .

• Brand positioning - Strong Cup of tea with rich colour.

• Thme: Ab Aur Zyaada Dum,

• A blend of Assam & Dooars teas

• Pack sizes - LUPs, <50 gm, 50 gm, 100 gm, 250 gm , 500 gm

EVEREADY Premium Gold

Eveready Premium Gold blend is a delicate, aromatic, fragrant and refreshing.

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Brand positioning - a premium tea with full bodied flavour and aroma.

• A Blend of Assam and Darjeeling.

• Pack sizes - LUPs, <50 gm, 50 gm, 100 gm poly pouch, 100 gm carton, 250 gm poly pouch, 250 gm

cartons, 500 gm pouch and 1 kg packs

EVEREADY CLASSIC

Eveready Classic - The invigorating blend refreshes and recharges you with every sip.

Brand positioning - Strong and Stimulating tea.

• Pack sizes – Rs 5/- pack, 100 gm poly pouch, 250 gm poly pouch and 1 Kg Pack


Tea is a staple Indian beverage, sold either in loose, unbranded or packaged branded forms. In India, consumption is hugely skewed towards loose tea which comprises of 60% of total market. Indian packet tea industry is fragmented with a few large players occupying a significant share and several localized players accounting for regional competition.We are leveraging our distribution pipeline to market this product and thus grow additional revenue on virtually no additional costs. Given the fragmented nature and limited number of national players, we are confident of making it big in the coming years. Currently our value turnover is INR 85 crores with a market share of around 3% All India.

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NEW BUSINESS

The home care market which consists of fabric wash, dishwashing solutions,

household cleaners, air freshners, insect repellents etc. is growing like never before

thanks to changing lifestyles and the real estate boom. Till now the only problem

plaguing this sector has been the unavailability of homecare products in rural India.

For Eveready, this was just the right opportunity. With our extensive reach to the

smallest of villages, we could make sure that the product reaches the heart of rural

India. As a start we introduced mosquito coils followed by dishwash bars and also

extended the mosquito repellent category by introducting Liquid Vaporiser refills in

October 2007.

MOSQUITO REPELLENT

Mosquito Coils

In an endeavour to satisfy ever-changing consumer needs,

Eveready has developed Poweron, a mosquito coil which

provides powerful protection against the all-pervasive

mosquito menace.

Eveready Poweron the new generation fast action mosquito coil comes in 3 variants

Red 12 hours protection

Red 10 hours protection

Green 8 hours protection

Eveready Poweron, comes packed in a Power Dish, which ensures easy handling and

storage for the consumers. The Unique Eveready "E" Stand signifying energy holds

the coil and the broken pieces. The coils come in a heat sealed pouch which protects

the coil from moisture, fungus and dust. The pleasantly fragrant coils repel

mosquitoes powerfully and effectively, providing Poweron protection from Malaria,

Dengue and Filaria.

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Liquid Vaporiser

In August 2007, we have extended the mosquito repellent

range to Liquid Vaporiser refills. The Poweron liquid

vaporizer refill is a fast action solution to drive away

mosquitoes.

The refill pack comes with a special consumer offer of 15

nights free. The Poweron refill can be used with mostly any

machine unit. The prallethrin in the liquid evaporates and

drives away the mosquitoes quickly. The Poweron

Vaporiser leaves a pleasant fragnance in the room.

Eveready Poweron has reached a market share varies between 1% and 4% in various

states with a turnover of Rs.10 crores in 2007. Our target is to reach 10% market

share in 3 years time, taking our turnover to about 100 crores.

DISHWASH BAR

The Poweron Dishwash bar comes with tamarind & lemon extracts – the complete

cleaning solution for all kinds of utensils. It comes with a special Powerdish – no

sogginess, softening or wastage. It contains CMC (Carboxy Methyl Cellulose) which

prevents a white film from being formed on the utensils after washing. It is a value

for money product, it lasts longer than other bars.

Poweron Dishwash bar comes in the following SKUs

400 gms

200 gms

100 gms

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LIGHTING BUSINESS

Eveready entered into the Lighting Business in 2007 with the

launch of a range of Compact Fluorescent Lamps (CFL).

CFLs can replace the traditional incandescent lamps thus help reduce one’s energy

requirement (thus saving on the electricity bill) by 80%. CFLs also have a long life.

Together, these two factors help in not only monetary savings, but also help in reduction of

greenhouse gases and reducing global warming.

For Eveready, CFLs offer a great opportunity in terms of-

1) A ready market of 180 mln pcs having a value of INR 1170

crores, growing YoY @ 30%.

2) A clearly defined & stated need for consumers to use

CFLs given the huge shortfall in electricity & spiraling cost of the same

3) Being seen as a socially & environmentally responsible company

4) An opportunity to leverage the huge Eveready brand name & the great

distribution might of the company

Eveready notched up a turnover of INR 44 crores in the first year of its launch and targets to grow at a pace which is ahead of the market in the coming years in order to be a major player in this market.

Going forward, the Lighting business is likely to develop on the following lines-

1) Get into mass consumption items like incandescent lamps, Colour

decoration lamps etc.;

2) Develop the business for Energy Saving alternatives like T5 lamps,

Electronic Ballasts, Luminaires for Fluorescent/Compact Fluorescent lamps

with Electronic controls;

3) Get into new age technologies like LEDs & products around LEDs.

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Eveready Lighting portfolio:

Compact Fluorescent Lamps (CFLs)

1) Retrofit CFLs ELD

Product Type Wattage Available

ELS (Spiral) 15W, 20W, 23W, 27W, 55W

ELD (2U) 9W, 11W, 15W

ELT (3U) 15W, 20W, 23W CFL - S

Mini (2U & 3U) 5W, 8W,11W

2) Non - Retrofit CFLs

CFL-S (PLS) 5W, 7W, 9W, 11W CFL - D

CFL-D (PLC) 10W, 13W, 18W

CFL-L (HLL) 18W, 36W

Halogen Lamps

Product Type Wattage Available

Linear Halogen 150W, 300W, 500W, 1000W, 1000W (Video)

Linear Halogen

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EXPORTS

Eveready Industries India Ltd. operates in the international markets using Brand

name LAVA. LAVA batteries and Flashlights are presently sold in countries across

Eastern Africa. Africa being a highly price sensitive market, LAVA

is positioned at the premium segment of batteries providing high

performance compared to the usual cheaper products present in

these markets. LAVA presence in Africa is expanding both in

terms of Volume of business as well as number of markets where

LAVA is sold.

Besides, Eveready Industries India Ltd. also makes batteries for Toshiba Battery Co.,

Japan in their Brand name. Toshiba which sources batteries both from China and

India contributes a large part of our Export volumes indicating that when it comes

to quality batteries, Eveready Industries India Ltd. has Global capabilities

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IV. Sales Operation in EIIL

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EVEREADY Distribution

15 Branches & 40 Godowns

4000 Distributors

Direct Reach: 0.8 M

Outlets: Grocery, General / Provision, IS Stores, Photo, Music, Chemists, Electrical, Hardware, Stationery, Gift / Novelty, Paan / Cigarette… & Modern TradeAs per AC Nielsen, the indirect reach of Eveready batteries is 3.3 million outlets out of a total retail universe of 7.3 million FMCG outlets. Out of these 4000 dealers, 20% are van operators and balance are retail stockists.The distribution structure is so extensive that it reaches out to even 5000 population villages directly through our van operations.The company employs close to 300 sales people directly and as many as 1300 sales people indirectly to operate this extensive network successfully.

Eveready Distributor

Consumer

W/Saler

RetailerRetailer

Branch Godown


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Is to consolidate our benchmark supplier position in all traditional outlets for batteries and flashlights.

Is to employ Systematic and scientific approach towards increasing our reach and quality of reach.

Is to leverage our Sales & distribution competencies into identified newer channels.

Is to Enable superior focus on all non - battery product categories.

Is to constantly explore new selling arrangements in identified markets to improve effectiveness of servicing.

Our S&D Strategy


V. V. SUPPORT FUNCTIONSSUPPORT FUNCTIONS

MANUFACTURINGMANUFACTURING

Eveready’s state of the art manufacturing units are located at Kolkata, Noida,

Uttaranchal, Hyderabad, Chennai and Lucknow to maximize logistical efficiency and

reduce time-to-market. Today the Company has high-speed manufacturing units,

both for batteries and flashlights, with in-house facilities for metal flashlights along

with a fully automated injection-moulding set-up for plastic flashlights. Eveready

also has a full-fledged machine design group at Chennai with capabilities of making

special purpose machines for both captive consumption and customer-specific

requirements.

Central Machine Shop (CMS) was established in 1968. Central Design Group

(CDG) is part of CMS. It is situated within Natco Chennai, 1075 T H Road,

Thiruvottiyur, Chennai-600019. CMS is in the business of Design & Manufacture of

Special Purpose Machines (SPM), spares, sub- assemblies and Can extrusion

punches for battery manufacturing. CMS also provides the Technical support to

battery plants, Conducting Engineering audits, Import substitution of parts, Alternate

MOC, and Design and development, manufacture and supply of parts and sub-

assemblies for productivity and process improvements in the existing battery

manufacturing lines. The extrusion punch manufacturing is in-house whereas the

other manufacturing activities are farmed out. In addition to the design, manufacture

and assembly of equipment, CMS staff is involved in installation and commissioning

of the machines at the customers' premises.

RESEARCH & DEVELOPMENTRESEARCH & DEVELOPMENT

Eveready’s research team constitutes highly qualified Scientists, Engineers,

Chemists and Technicians dedicated to maintaining technology leadership in Zinc-

Carbon batteries, Flashlights and related components. The Research Centre has Pilot

Plant facilities, Analytical testing facilities such as Atomic Absorption

Spectrophotometer (AAS), Polarograph, X-Ray Diffractometer (XRD) and a

Chemical Laboratory. The Eveready Research Centre is capable of providing world-

class testing and research support to meet stringent customer requirements from

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across the world. The efforts of in-house R&D unit was recognized by the Dept. of

Science and Industrial Research and accorded recognition from Govt. of India. This

is the only In-House R&D Centre of a Primary battery company in India to have

accorded the recognition from the Dept. of Scientific & Industrial research, Govt. of

India. Eveready has a totally computerized battery testing facility where batteries

can be tested as per BIS, IEC and JEC standards

QUALITY ASSURANCEQUALITY ASSURANCE

The Company has adequate internal quality Assurance systems commensurate with

the Company’s size and nature of business. The objective of these systems are to

ensure Setting Product Performance Standards for all types of batteries based on

competitive assessment., Performance to reflect leadership vis-à-vis Best of

Competition as per agreed Standards with Marketing department., implement new

design inputs wherever required for product fortification, material substitution, cost

reduction of existing products, setting Material Usage / Specification Standards

(Process Specification Sheet) for all battery plants, Setting yearly Cost Reduction

targets with respect to OIP (Operation improvement program).

Eveready initiated World Class Maintenance (WCM) management system in1997,

based on the philosophy of focus on defect and variability reduction through

planning of maintenance to keep the production equipment in “As designed condition

always”.

FINANCEFINANCE

The Company’s performance is backed up by a strong accounts and finance team. The

team consists of seasoned professionals who carry out the various functions effectively

to enhance / improve the various business processes within the overall business

strategies. The various key functions may be summarized as follows:

Working Capital Management to reduce the interest burden on working capital loans

– Alert management on inventory holdings beyond norms as also negotiate

competitive interest rates from Banks

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Management of Term Loans to take care of the long-term business needs of the

company – Includes debt restructuring by retiring high cost debts in lieu of loans

with lower interest rates.

Treasury operations like commodity hedging (to mitigate the effect of volatile

metal prices), forex management (to mitigate the effect of volatility in the value

of rupee)

Profitability analysis and projections business wise to apprise management of the

effectiveness of business decisions and / or to facilitate new decisions

Ensure accurate pricing updation in order to facilitate error free invoicing

Capital Budgeting to analyze / justify new projects

Compliance of all statutory matters including taxation related issues

Monitor profitability of new projects to benchmark against the projected

profitability

Timely analysis of major accounts Trade Debtors, Institutional Debtors, CSD,

Claims, Bank, Payables – Appropriate action taken based on such analysis

Centrally coordinating payments through the RTGS / NEFT mode

Ensure timely data to operating groups for review of their respective areas of

performance

Ensure timely preparation of the quarterly and annual results ahead of the Board

Meetings

Custodial Control over the assets of the company and review at least on an

annualized basis any possible impairment of such assets

Liaison with various functional units related to accounts and commercial matters

including timely closure of accounts

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Coordination with Systems Group to enhance existing report platforms /

introduce new report platforms

Payroll preparation - Also facilitate tax planning

Monitoring the PF, Gratuity and other superannuation funds of the company

The company has an in-house Taxation Department which deals with all the Direct

and Indirect Tax cases covering all the manufacturing and commercial units. They

are responsible for smooth and timely completion of assessments and are also

responsible to ensure compliance of all fiscal laws by all the units. The Department

also supplements business decision making by suggesting ways and means for setting

up new projects in tax-free zones and also to minimize the incidence of duties / taxes

on existing product lines.

The company also has an in-house Internal Audit Department manned by trained

professionals. The pre-audit and post-audit checks and reviews are carried out to

ensure follow up on the observations made by the Audit teams. The Internal Audit

reports, the progress in implementation of recommendations contained in such

reports and the adequacy of internal control systems are reviewed by the Audit

Committee of the Board in its periodical meetings.

INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY

EIIL has traditionally invested in Information Technology (IT) to provide effective

business solutions amenable to inform decision making. The IT process at EIIL is

one of continuous improvement. During the year, EIIL standardized all its major

applications across all locations on the Oracle Business Suite as an ERP solution.

This exercise was not without the usual teething problems. However, the process

seems to have been internalized well in the organization. Needless to state, the ERP

system has brought the expected benefits associated with it and would certainly bring

in more in the forthcoming years.

THERE WAS A NEED TO MANAGE BUSINESS EFFECTIVELY. To bridge the

gap between what was available and what was needed Project UniBiz (Unified

Business System) was launched.

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Project UniBiz (Unified Business System)Project UniBiz (Unified Business System)

All modules of Oracle eBusiness suite (11i.5.9) was implemented across 70

locations on Big Bang. The project went live on 1st October 2005 simultaneously at

all locations. An integrated eBusiness solution spanning across 10 manufacturing

units, 15 sales branches, 44 warehouses, 350 sales force personnel, 10 key suppliers

and head office. Centrally served on two Intel servers with a SAN storage in an

active-active cluster, running a single instance of Oracle eBusiness suite (11i.5.9) on

Red Hat Advanced Server 3.0 and Red Hat Cluster Suite. Major plants and branches

are connected to head office through point-to-point leased lines with ISDN backup in

an auto failover mode. Warehouses are connected to head office through fixed IP

wireless Walkie phones with VSAT backup or with Broadband connectivity

wherever applicable.

Driving Greater Business Success using UniBizDriving Greater Business Success using UniBiz

o Linking up the value chain

o Addressing the operational gaps

o Enforcing controls

o Management Analysis

HUMAN RESOURCEHUMAN RESOURCE

People power is one of the pillars of success at EIIL. The Company employs nearly

2500 individuals across its various plants and branch locations, who share a passion

for excellence. The key attributes of human capital at EIIL are a rich knowledge

base, expertise and experience. The department has IT enabled HR systems, wherein

Oracle eBusiness suite (11i.5.9) is being used. The various key functions of the

department are as follows:

o Talent Acquisition Management

o Performance Management

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o Career & Succession Planning

o Compensation and Benefits management

o Training and Development

o Rewards & Recognition Management

o Formulation & Implementation of HR policies & procedures

o Employee Engagement

HR team operates out of Corporate Office in Kolkata.

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VI.VI. POWERCELL POWERCELL DIVISIONDIVISION

Powercell Divison, the erstwhile BPL Soft Energy Systems Ltd. was acquired by

EIIL in the year 2005 for strategic reasons and was operating as a subsidiary of EIIL

under the name Powercell Battery India Ltd. In January 2008 it was amalgamated

with EIIL and renamed as Powercell Division – Eveready Industries India Limited.

Product Range

Powercell is also in the business of manufacturing &marketing of dry cell batteries

(carbon zinc batteries) & flashlights (torches) but the batteries are marketed under

the brand Powercell & Shakti.

The Battery product range includes

(a) D Size segment. (b) AA Segment

R20 Shakti MJ R20 Power R6 Shakti R6 Power

Powercell also has products in the AAA and 9V segment.

In the Flashlight segment, just like

Eveready, Powercell Division markets a wide range of metal, plastic as well as LED

torches.

Powercell Force Powercell Spotlight Powercell Corona

Powercell Distribution Network

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MD

VP (Sales & Marketing)

Manager Flashlight Zonal Manager Institutional Sales

ZSM (East) ZSM (North)

ZSM (West) ZSM (South)

26 branches


There are 27 sales branches spread across India catering to the demands of the rural

and urban consumers. The Powercell division has a sales and distribution network

which is separate from that of Eveready can be represented in the following way:

The current S&D setup:

○ 4 Zonal Offices – North, South, East & West ○ 26 Branches

○ 27 Godowns (CFA) ○ 1171 Regional Stockist

○124 Retail Distributors ○ 1336 Sub Stockist

Powercell Sales Organisation Structure

29

PRIMARY

TERTIARYSECONDARY

RD CONSUMERSS RETAILER /WHOLESALER

SECONDARY

CFA

RS RETAILER /WHOLESALER CONSUMER

TERTIARY


VII. Work Ethos in Eveready Industries India Limited

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