Eveready has made headlines ever since the Burmans stepped in to take control of the batteries and flashlights maker from the Khaitans. In an exclusive interaction with CNBC-TV18, Dabur India Vice-Chairman Mohit Burman said Eveready is "an extremely well known and regarded brand" in India.
"We plan to keep it that way and look for faster growth in existing and new areas," he said. He said the Burmans want to manage the company professionally "just as we do our other businesses".
Dabur, promoted by the Burmans, has said the open offer for Eveready has no impact on it. The family has been investing in their personal capacity in ventures outside of Dabur.
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Here's what else Burman said in response to CNBC-TV18's queries:
What prompted you to increase your stake in Eveready?
We felt the company now needs direction going forward and us being the largest shareholder we decided to come on board, it was a logical step. We do hope to provide fresh impetus and direction to the company going forward.
Are you seeking management control of Eveready as well, apart from the board seats?
Yes, this is an offer for control so we do seek management but we want to manage this company professionally just as we do our other businesses.
What’s the growth strategy for Eveready from here on? What revenue potential do you see for the company in 3-4 years from now?
We believe Eveready is an extremely well known and regarded brand in India and we plan to keep it that way and look for faster growth in existing and new areas.
What are the debt and other liabilities on Eveready’s books? What’s the deleveraging plan?
As far as we understand the leverage in this company is around 450 odd crore which is not very high but yes ideally we would like to bring the leverage down.
What synergies do you see between Dabur and Eveready?
The Eveready purchase, as you know, is being funded by the Burman family and it is independent of Dabur. This is a personal investment of the Burman family and it has nothing to do with Dabur India Ltd. The Burman family has been investing their personal wealth in a variety of ventures outside Dabur and this investment in Eveready is one of them. It is not connected to Dabur India Ltd in any way.
Is there a possibility of Dabur and Eveready merging at some point in the future?
No, we have no such plans. As I mentioned, this investment is not connected to Dabur India Ltd in any way.
How will this impact the operations of Dabur?
This is completely independent of Dabur India Ltd and would not have any impact at all on Dabur. All our companies, including Dabur, are totally professionally managed and we are like any shareholder, and what’s good for us is good for all shareholders majority and minority.
Areas and categories of growth for Eveready going ahead?
We would like to consolidate the core businesses first and then hopefully extend the brand later., we hope to get the best talent possible with good governance to enable this.
Is there an exit strategy for the current promoters, or a non-compete agreement?
This is not a negotiated transaction, so there is no agreement between us, the company or the current promoters.
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