BM Khaitan family, have been controlling the Eveready Industries India Ltd for 25 years. It currently holds a little over 22% stake in the Kolkata-based company, down from 44% a year ago.
promoters, the Burman family, may soon become a strategic partner of the BM Khaitan group controlled Eveready Industries India Ltd (EIIL), as part of current
restructuring, sources said on Tuesday.
The Burmans had previously picked up 19.8% stake in the dry cell battery major through market operations in the last 12-15 months. The last tranche of share purchase of 8.8% took place recently through a block deal, they said.
Burmans have rehabilitated their attention in Eveready and a strategic tie-up with the Khaitan family is inevitable. The deal is in the making and higher contours will be worked out. There had been powerful speculations that MNC battery makers were in talks with the home-grown battery major for takeover of the business. The new partnership will assist to keep Eveready Industries as an Indian company.
The Burman family had freshly said, “We discover worth in the stock and hence, we have bought it and the purchases were investments in nature.”
No comments were presented from the Burman family on the proposed strategic tie-up till the filing of this report.
The battery business has been experiencing superior demand with a fall in dumping from China, which helped the company improve its cash flow.
It had condensed debt by Rs 200 crore from Rs 550 crore by selling its land property in Hyderabad and Chennai.
Despite group-level debt issues, Eveready Industries had also effectively diversified into the appliances business.
The company posted a net profit of Rs 16.74 crore in the 4th quarter of the 2019-20 fiscal compared with Rs 5.48 crore in the previous year. The Burman family becoming the main investor and entering Eveready Industries India Ltd board room is not ruled out. The firm might be jointly managed by both the familes mutually.