Eveready Sets Ambitious Goal to Double Alkaline Battery Portfolio Share
Kolkata-based dry cell battery leader Eveready Industries India has unveiled a strategic plan to significantly enhance its alkaline battery segment over the next three years. This initiative follows the recent commissioning of its state-of-the-art manufacturing facility in Jammu, which is poised to transform the company's product mix and financial performance.
Strategic Shift Towards Higher-Margin Alkaline Batteries
In an exclusive interview, Eveready Industries India CEO Anirban Banerjee revealed that the company aims to double the alkaline share of its portfolio. Currently, alkaline batteries constitute approximately 8% of Eveready's overall product range, but this figure is projected to rise to 16% within the next three years. Banerjee emphasized that this shift is not merely about volume growth but also about improving profitability. "Once we start making alkaline end to end, our margin would go up," he stated, highlighting the economic benefits of in-house production.
Eveready's Dominance in the Dry Cell Market
Eveready continues to maintain its leadership position in India's dry cell battery market, which is valued at an estimated Rs 3,900-4,000 crore. Within this market, alkaline batteries account for about 15%, translating to roughly Rs 550-600 crore. Eveready holds a commanding 52% market share in the zinc carbon segment and has seen its alkaline market share double over the past year, now standing at 15%-16%. This growth underscores the increasing consumer preference for high-performance batteries.
Jammu Plant: A Milestone in Battery Manufacturing
The new Jammu manufacturing plant represents a significant investment of around Rs 200 crore and is a cornerstone of Eveready's expansion strategy. Banerjee described it as "the first operating alkaline plant in South Asia," marking a pivotal moment for both the company and India's energy sector. The facility boasts an annual peak production capacity of approximately 360 million alkaline batteries, with an installed capacity of 456 million. Additionally, it can produce 67 million flashlights and 6 million LED bulbs annually, diversifying Eveready's output beyond batteries.
Banerjee elaborated on the plant's broader impact, noting, "The commissioning of India's only operating alkaline battery facility marks a significant milestone not just for Eveready, but for the country's evolving energy landscape. As consumer demand shifts towards high-performance, power-intensive devices, the need for advanced battery technologies has never been greater." This facility is not limited to serving Eveready alone; it will also supply other industry players and target export markets, positioning India as a key player in global battery manufacturing.
Business Growth and Future Outlook
Eveready's business mix remains balanced, with roughly two-thirds derived from batteries and one-third from other products like flashlights and LED bulbs. The company has experienced a notable acceleration in growth, moving from a relatively flat compound annual growth rate (CAGR) of 4% between 2022 and 2025 to currently clocking 8% growth. This uptick is partly driven by the rising demand for alkaline batteries, which dominate 60% of the dry cell market in regions like the US and Europe, indicating substantial growth potential in India.
With the Jammu plant now operational, Eveready is well-positioned to capitalize on this trend, aiming to not only strengthen its domestic market leadership but also expand its footprint in international markets through exports and partnerships.
