Eveready Industries signs agreement with Phoenix

Eveready Industries India Ltd has announced that on April 20, 2007 the Company has signed an agreement with Phoenix Lamps Ltd (Phoenix) for sales and distribution in the country of the latter’s general lighting lamps (GLLs) excluding automotive applications.

The range of products includes Compact Fluorescent Lamps (CFLs). There is a worldwide move to save power by switching to CFL products and these are rapidly becoming mass- market consumer products. CFLs provide an energy saving of upto 80% compared to conventional incandescent bulbs, and the adoption of CFLs is a major contributor to sustainable and efficient use of energy to curb the emission of greenhouse gases. This trend is also setting in India, where the last few years have seen CFL products making rapid strides in the lamp market and now occupying a substantial part of the market with sustainable growth indicators.

The Company has recently been focusing attention to use its deeply entrenched distribution network to push a diversified product range that goes beyond its mainstay products of batteries and flashlights. The Company's products have a penetration reach in about 3.0 million FMCG outlets across the country and the Company's product diversification plans revolve around leveraging this penetration level to bring higher scale to its operations. Thus, after introducing packet tea and mosquito repellents to its chain, lamps will be the newest product category to be taken on by this network.

Phoenix is a leading manufacturer of lighting sources for general and automotive lighting applications. It is reportedly the Country’s leading manufacturer of CFLs and automotive halogen lamps. Actis Advisers Pvt Ltd is a leading private equity fund that has recently acquired a majority stake and management control in Phoenix.

The agreement thus brings together a leading manufacturer and a leading distributor for putting out new generation products into a market which is now very amenable to taking these on. The venture will be supported by the winning combination of two trusted brands - "Halonix" from Phoenix and "Eveready". All products covered by this distribution agreement will carry both the brands signifying an offering of world-class quality and value to the consumer.

Source : Equity Bulls

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