Eveready Industries to increase price of batteries due to rising Zinc prices

Eveready Industries India Ltd has announced that Zinc prices have been on the upswing for quite sometime now. The Company uses zinc in significant quantities - in production of its dry cell batteries.

The Company has been progressively taking price increases over the last 18 months or so, to neutralize the adverse impact of zinc input cost. These increases have been in varying degrees for the various classes of products. For example, in 'D' size batteries which represent about 55% of total battery volumes, the price increases have been to the extent of 35 to 40 % over the 18 month period up to September 2006.

With the recent run-up in price of zinc again in the last one month, the Company has decided to take further increases in consumer prices for its various types of batteries. The timing of the increase will match the supply chain position of the products. This action will represent increase of about 7 to 16 % over current prices for the various sizes and will neutralize the adverse impact.

Source : Equity Bulls

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