Eveready to acquire controlling stake in French firm

Fri May 15, 2009 2:00pm IST

Related Topics

Battery major Eveready is looking to acquire a minimum of an 80% stake in Uniross for $13.65 million.

Battery major Eveready Industries us getting ready for an acquisition. After reporting a profit for fiscal year 2009, the company has set its eye on French company Uniross SA. For this, the company has set up a special purpose vehicle (SPV) to acquire minimum of an 80% stake in Uniross for $13.65 million.

Uniross is into the business of manufacturing and distribution of rechargeable batteries and allied products. Eveready has signed a term sheet with Paris-based CG Holding for investment through SPV. The company plans to invest a total of $13.65 million or Euro 10 million in the deal through mix of debt and equity, it said in a filing to BSE. The deal closing is subject to certain conditions and approvals.

Indian equity markets have rallied by more than 20% since April, even though uncertainty over election results persists. Several companies have also filed for IPO. But are Indian companies now ready for overseas acquisitions?

Eveready's stock was up by nearly 5% closing at Rs 25.40 on a day when markets fell by 1.22%. The company has a market cap of Rs 185 crore.

Last month Eveready reported an after-tax profit of Rs 19.40 crore fiscal 2009 against a loss of Rs 19.32 crore in 2007-08. While battery contributes around 70% of the company’s turnover, it's also into lighting, packet tea and flashlight businesses. The company is promoted by Khaitan group.

Eveready recently launched recently launched 'Ultima' alkaline battery and 'HomeLight' LED cells, and is expecting revenues to double to rs 1600 crore in FY10. The company is now focusing more on alkaline batteries, CFLs, LEDs as it believes they have the highest growth potential.

In 2005, Eveready had acquired BPL Soft Energy System, the battery business of BPL, for Rs 67 crore. That acquisition had helped it consolidate its position in the Indian market. The company has a 56% market share in conventional battery market in India.

-- Copyright 2008 VCCircle.com. All rights reserved.

This content/article is provided by Mosaic Media Ventures Private Limited and not by Reuters. All rights, including copyright, in this content/article provided by VCCircle.com are owned or controlled by Mosaic Media Ventures Private Limited. The content may not be copied, broadcast, downloaded and stored (in any medium), transmitted, adapted or changed in any way whatsoever without the prior written permission of Mosaic Media Ventures Private Limited.

FILED UNDER:
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage