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ANNUAL REPORT2015-16DELIVERINGDIVERSITYBRIGHTER IDEAS FOR A BETTER FUTUREEVEREADY INDUSTRIES INDIA LIMITED
INSIDETHISREPORTCORPORATE OVERVIEWDriven by Varied Aspirations 04Net sales CroresDiversity of Offerings 07Managing Director’s Message 081,322.52Key Performance Indicators 10Delivering Diversity 12Corporate Information 17Operational EBIDTA Crores120.49STATUTORY OVERVIEWReport of the Directors 18Management Discussion and Analysis 36Report on Corporate Governance 39FINANCIAL STATEMENTSStandalone Financials 47PAT Crores50.65Earnings per share6.97Figures of 2015-16Statement of Subsidiaries 87Consolidated Financials 88
Some brands represent people’s aspirations for generations. Eveready is onesuch brand. For decades, it has kindled hope and touched millions of livesacross rural and urban India. Our journey is still on; and our best days areahead of us.MR. B. M. KHAITAN, CHAIRMANEveready Industries India Ltd.
ACROSS INDIA’S VAST TERRAINSA SURGE OF NEW ENERGY ANDOPTIMISM IS VISIBLE. THE COUNTRYIS TRANSFORMING LIKE NEVERBEFORE.A LARGE SECTION OF THEPOPULATION NOW HAS BETTERINFRASTRUCTURE FACILITIES,CONNECTIVITY AND OPPORTUNITIESFOR EMPLOYMENT ANDENTREPRENEURSHIP. THE RESULT ISAN ASPIRATIONAL SOCIETY, SEEKINGA BETTER QUALITY OF LIFE.
At Eveready, we are happy to partnerthis macro positivity and progress.And our legacy of over a hundredyears inspires us to continue toinnovate to unveil better, smarter andmore efficient solutions.During the year, we launched thebrightest and one of the mostenergy-efficient range of LED lightingsolutions; and the market responsehas been overwhelming.We also forayed into the homeappliances segment with a widerange of contemporary and costefficient products, catering to thediverse needs of India’s households.Diversity helps us touch lives in somany different ways; and we willcontinue to cherish diversity as a partof our product strategy to strengthenour brand.Over the years, we have built arobust distribution network withan aim to get closer to potentialcustomers; and touch more villages,small towns and cities.Our portable energy lighting solutionsand flashlights continue to bepreferred by millions of people. Ourfootprint remains unrivalled in theindustry; and we leverage our supplychain, brand visibility and deep insightinto the consumer goods industry toextend and enrich our product basket.The inspiration of our customers,business partners and the entirestakeholder fraternity energises us todeliver diversity.And to take the Eveready brand tonew heights of visibility and valuecreation.
ANNUAL REPORT 2015-16CORPORATE OVERVIEWDRIVEN BY VARIEDASPIRATIONSFROM THE MOST HAPPENING URBANLOCATIONS TO RURAL BACKWATERS,INDIA THROWS UP AN AMAZINGARRAY OF ASPIRATIONS. AND ATEVEREADY, WE HAVE BEEN CATERINGTO THOSE ASPIRATIONS FOR WELLOVER HUNDRED YEARS.Brand EVEREADY entered into Indian markets in1905. The Company was incorporated in 1934,and became a part of the Williamson MagorGroup in 1993.We have retained and strengthened our timelessappeal, touching lives and bringing hope tomillions. Our brand is trusted across generationsfor the value it endures. We have become anintegral part in the daily lives of millions of Indiansand brand EVEREADY has emerged as one ofIndia’s most preferred brands.We continue to increase the efficiency of existingproducts and adding new products to the productportfolio. We have many milestonesto accomplish. Our finest achievements areahead of us.OUR VISIONOur vision is to improve the quality of life of people through cutting-edge, portableenergy and lighting solutions and to strengthen the timeless appeal of our brand.ABOUT WILLIAMSON MAGOR GROUPFounded in 1860, the Williamson Magor Group has played a pivotal role in India’stea business. Headquartered in Kolkata (India), the Group has gradually emergedas the world’s largest bulk tea producer. Over the years, the Group has successfullydiversified its business interests into consumer goods, engineering and constructionwith a turnover of over 5,000 crores. Moreover, the Group has expanded its globaloperations through its subsidiaries.4COREBRANDS
DRIVEN BY VARIED ASPIRATIONSINDUSTRIES INDIA LTD.EVEREADY AT A GLANCE70%50% 75% Brand Eveready enjoys 70% top-of-the-mind recallUndisputed market leaderin the Indian dry cell batterysegment, commanding over50% market shareCommands over 75% marketshare in the Indian organisedflashlights market1 MN 154,000 Over 1 million outlets areserviced by our network,enabling more customersconnectSales office branches at15 prominent centresacross IndiaOver 4,000 distributornetwork with 42 closelyconnected distributioncentres, addressing evolvingcustomer requirements3.2 MN 1.3 BN 20 MN Our products reach out tocustomers through a vastnetwork of over 3.2 millionoutletsSelling over 1.3 billion units ofdry cell batteries annuallySelling more than 20 millionunits of flashlights annually1,000 Our 1,000 van servicingretailers enhance flexibilityand wider reachONE OF THELEADINGLED players in the Indianmarket5
ANNUAL REPORT 2015-16CORPORATE OVERVIEWDRIVEN BY VARIEDASPIRATIONS (CONTD.)ADVANCED MANUFACTURING ASSETSWe have our best-in-class manufacturing facilities, equipped with globallybenchmarked technology platforms at Kolkata, Noida, Haridwar, Chennai, Lucknowand Maddur (near Bengaluru).WE HAVE: Full-fledged machine design team for special-purpose machine at Chennai forcaptive consumption Flashlight and lighting design and development unit with the latest computer-aideddesign technology Best-in-class operating standards; we never compromise on quality (ISO 9000certified) and environmental best practices (ISO 14000 certified) Best-in-class quality management, safety, energy conservation and cost control,enabling higher efficiency; we conduct stringent audits of manufacturing locationsto sustain our quality standardsCONSISTENT INNOVATIONOur research and development (R&D) facility is approved by the Department ofScientific and Industrial Research (DSIR), Ministry of Science and Technology,Government of India.We have an NABL-accredited computerised testing facility to check the life cycle andcapacity of primary as well as rechargeable batteries. Besides, we have a world-classdesign and testing facility for flashlights, CFL bulbs, LEDs and rechargeable products.We have been an early mover in LED technology; and also one of the industry firsts tointroduce digiLED range of products.6
DIVERSITY OF OFFERINGSINDUSTRIES INDIA LTD.DIVERSITY OFOFFERINGSWE HAVE VARIED OFFERINGS FOR A WIDE SPECTRUMOF CUSTOMERS. THESE PRODUCTS ARE THE RESULT OFCONSISTENT INNOVATION BY OUR DEDICATED TEAM.We aspire to be at the cutting-edge of consumer trends and preferences. Therefore, we are always seeking new ways to refresh our portfolio. And we willcontinue to unveil more products, suited to the changing lifestyles of aspirational India.BATTERIESFLASHLIGHTSPACKET TEASMALL HOME APPLIANCESAt Eveready, we offer a wide variety of batteries,ranging from traditional to rechargeable ones. Weenjoy a strong brand recall in the country owingto our high quality standards and reliability of ourbatteries.Tea is an integral part of India’s socio-culturalfabric. We offer a wide range of tea blends,aligned to the diverse preferences of India.We leverage the Group’s knowledge fortea business and Eveready’s pan-Indiadistribution network.Our advanced designing facilities coupled withcutting-edge innovation, ensures a wide rangeof top-notch flashlights in varied shapes, sizes,wattages and colours. Our flashlights are designedto meet various needs.We have forayed into the segment of Small HomeAppliances. The range includes ceiling fans,choppers, coffee maker, irons, food processors,induction cookers, juicers, mixer grinders, kettles,grillers, pop-up toasters, rice cookers, roti makers,sandwich makers, steam irons and water heaters.7LIGHTING AND ELECTRICALWe provide tailor-made electrical and lightingsolutions to cater to the needs of both rural andurban India. Our wide range of lighting solutionsmatch international standards in terms of energyefficiency, longevity and safety. We are amongthe top three players in the LED bulb market; andoffer the highest lumen efficiency at 120 lumensper watt.
ANNUAL REPORT 2015-16CORPORATE OVERVIEWMANAGING DIRECTOR’SMESSAGEDEAR SHAREHOLDERS,INDIA’S GDP GREWBY 7.6% IN FY 2015-16,MAKING IT ONE OFTHE WORLD’S FASTESTGROWING LARGEECONOMIES.Too slow for too long. That’s the big picture for theglobal economy.Global economic activity remained largely subduedduring FY 2015-16. While advanced economieswitnessed a modest and largely uneven recovery,emerging markets and developing economiesfaced significant headwinds.India’s GDP grew by 7.6% in FY 2015-16, makingit one of the world’s fastest growing largeeconomies. The pro-reform policy initiatives ofthe Government, low interest rates, decline infiscal deficit and moderate inflation have enabledthe Indian economy to stay on an attractivegrowth trajectory. However, India’s rural economywitnessed a slowdown owing to unseasonal8rainfall and drought across 10 states resultingin depressed rural spending affecting consumerdemand.The Government is implementing sweeping reformsin the agricultural, manufacturing and servicessectors, while putting emphasis on infrastructurecreation and encouraging entrepreneurship. Indiais a large and growing consumer economy; bothurban as well as rural markets offer a humongousgrowth potential. Rising aspirations, growingdisposable income, digital conveniences andsupportive government policies have helped createan overall macro environment of positivity.Operating in such a scenario, we are focusing onfive key imperatives: (a) offer a winning consumer
MANAGING DIRECTOR’S MESSAGEINDUSTRIES INDIA LTD.During the year under review, we encounteredadverse cost pressure owing to the recent currencydepreciation. Therefore, we were compelled toraise prices for batteries across range. Despitechallenges, we were able to sustain our marketleadership with over 50% market share.OUR LIGHTINGAND ELECTRICALSEGMENT WITNESSEDSIGNIFICANT GROWTH,DRIVEN BY THEENHANCED SCALEAND SCOPE OF OURLED-BASED LIGHTINGPRODUCTS.experience; (b) get digitally connected withcustomers and stakeholders; (c) implement a goto-market model; (d) consistently expand productbasket and (e) elevate capabilities of our people.PERIOD UNDER REVIEWFY 2015-16 was a busy year for us at Eveready.We concentrated on our core businesses (portableenergy and flashlight), expanded our portfolio ofLED-based lighting solutions and forayed into anew product segment (home appliances). Duringthe year, our net sales touched 1,322.52 crores( 1,277.76 crores in FY 2014-15); our operatingprofits stood at 120.49 crores in FY 2015-16( 123.68 crores in FY 2014-15); our PAT was at 50.65 crores in FY 2015-16 vis-à-vis 49.03crores in FY 2014-15.Our core business of battery remained marginallysubdued due to dumping of cheap Chinesebatteries. Hence, the Association of Indian Dry CellManufacturers have applied to the Government toimpose an anti-dumping duty for this segment. TheGovernment is at an advanced stage of reviewingthe application. Implementation of the antidumping duty will significantly benefit the dry cellbattery industry.We are coming up with a new manufacturingplant in Goalpara, Assam, spanning across 17acres approximately. This facility is expectedto come on stream by March 2017. Thisproject will provide tax reliefs applicable tothe area.Our flashlight volumes declined owing to stresson the rural sector and proliferation of cheapflashlights. Although our diversification into LEDbased flashlights helped sustain this temporarychallenge, Eveready continues to be the leader inthis organised segment as well.Our lighting and electrical segment witnessedsignificant growth, driven by the enhanced scaleand scope of our LED-based lighting products. Witha thrust on innovation, we created an extensiveLED bulb range with best-in-class quality. Ourcutting-edge technology has enabled us to offerthe brightest and one of the most energy-efficientLED lights in the industry. We also enhanced ourrange of luminaires and other light products tomake the basket more comprehensive. Eveready isvying for 5-10% of the LED market share. DuringFY 2015-16, we bagged our first LED order from theGovernment of India worth 48.31 crores.Our packet tea segment continues to strengthenour FMCG offerings. We focused on extendingour reach across high-growth markets through anenhanced distribution drive and bespoke brandinginitiatives across focused growth markets.NEW SEGMENTDuring the year, we forayed into the small homeappliances segment and are expecting to achievearound 5% of the market share over the next fiveyears. We are positioning ourselves in the ‘valuefor money’ and premium brand segments with therollout of a wide range of small appliances. Weare currently leveraging synergies of our existingpan-India distribution network in batteries andflashlights and adding new appliance selling outletsto this vertical. Besides, we are strengthening9our presence in all modern format stores ande-commerce platforms.GROWTH INITIATIVESWe believe that growing scale, innovatingconsistently, enhancing quality standards, andgrowing market reach will keep us ahead of thecurve. During FY 2016-17, we will focus on thefollowing areas: Consolidate our market leadership acrossbattery and flashlight segment Expand our distribution channels by creating anew electrical network Increase market presence in LED segment Set up an exclusive network for appliancesbusiness across 50 towns to expand reach Enhance Return on investment (ROI) throughstrategic asset light outsourcing model formanufacturing of LED product and homeappliancesI am happy to note that the consistent efforts ofour highly motivated team has helped us maintainour leadership over the years. We expect ourteam’s support and input in the future as well. Inour journey towards sustainable value creation,I, on behalf of the entire leadership team, seekthe encouragement and cooperation of all ourstakeholders.Warm regards,Amritanshu KhaitanManaging Director
ANNUAL REPORT 2015-16CORPORATE OVERVIEWKEY PERFORMANCEINDICATORSOPERATIONAL EBIDTA2011-12 2012-13 2013-14 2014-15 2015-167.75(9.74)2011-12 2012-13 2013-14 2014-15 2015-162011-12 2012-13 2013-14 2014-15 2015-163.50% Y-O-Y(2.58)% Y-O-Y2.22% Y-O-YPATEARNINGS PER SHARESHARE OF TURNOVER(%)2011-12 2012-13 2013-14 2014-15 7( )6.74( Crores)59.3958.10123.6890.5965.3850.53120.49( Crores)1,322.521,277.761,152.34( Crores)1,034.30976.20( Crores)OPERATIONAL PBT(10.18)NET SALES2011-12 2012-13 2013-14 2014-15 2015-163.30% Y-O-Y10Batteries 59Flashlights 15Lighting and electricals 21Packet tea 5
KEY PERFORMANCE INDICATORSINDUSTRIES INDIA LTD.BALANCE SHEET METRICSRETURN ON 187.52207.27225.05(%)276.13285.96( Crores)RETURN ON CAPITALEMPLOYED*33.34DEBT POSITION2011-12 2012-13 2013-14 2014-15 2015-162011-12 2012-13 2013-14 2014-15 2015-16*Adjusted for Goodwill2011-12 2012-13 2013-14 2014-15 2015-16*Adjusted for GoodwillSHAREHOLDERS METRICSMARKETCAPITALISATION( )2011-12 2012-13 2013-14 2014-15 2015-16(11.14)% 332.18121.391,892.78( Crores)163.91KEY FINANCIAL RATIOSSHARE PRICE2011-12 2012-13 2013-14 2014-15 2015-16(11.14)% Y-O-Y112013-14 2014-15 e ratio1.533.073.47Debt servicecoverage ratio0.350.520.58
ANNUAL REPORT 2015-16CORPORATE OVERVIEWDIVERSITY FULFILS CUSTOMER ASPIRATIONSCUSTOMERS HAVE HIGHEXPECTATIONS. THEY SEEK THEBEST VALUE FOR MONEY.WE ENGAGE WITH OUR POTENTIALCUSTOMERS AND TRY TO INTEGRATETHEIR INSIGHTS INTO OURPRODUCTS. WE PROVIDE VALUEAND QUALITY FOR THE DISCERNINGCUSTOMER.We have recently introduced a new range ofenergy-efficient LED products to help minimiseelectricity bills for Indian consumers.During FY 2015-16, we introduced the brightestever LED bulb in India. Our 8W LED bulb offersthe highest lumen efficacy at 120 lumens perwatt. We also focus on widening our LED productbasket and introducing a comprehensive rangein the country. Today, we are one of the leadingplayers in the LED lighting solutions market.We bagged our first Government LED bulb orderworth 48.31 crores in FY 2015-16.We have a dedicated outsourcing facility inHyderabad, which manufactures LED products.Our endeavour is to come up with brighter andmore energy-efficient LED products.With increasing awareness, customers arerealising the value proposition of using LED bulbs.The result is that they are making a smart movetowards a brighter tomorrow.IN STEP WITH NATIONAL AGENDAThe Government’s ambitious national LEDprogramme, Unnat Jyoti by Affordable LEDs for All(UJALA) will be implemented across the countryby 2019. Nearly 77 crores incandescent bulbswill be replaced by 2019, which will help reduceelectricity bills of the people. This will entail anannual benefit of 40,000 crores to the people intheir electricity bills; and will enable the country tofulfil its need for energy security.ROAD AHEADWe aim to expand our footprints into newermarket segments. We will capitalise on our strongdistribution network, energy-efficiency quotientand higher lumens to enhance our market share.12EVEREADY LED OFFERS More brightness perwatt - 120 lumensper watt Most energy-efficient- 50% energy-efficientcompared to CFL Longer life
DELIVERING DIVERSITYINDUSTRIES INDIA LTD.DIVERSITY DRIVES OUR BRANDWE REFRESH OUR PORTFOLIO.TO SUSTAIN OUR BRANDPROMINENCE.DURING FY 2015-16, WE FORAYEDINTO THE SMALL HOME APPLIANCESSEGMENT WITH A WIDE RANGE OFCONTEMPORARY PRODUCTS.Our offerings are competitively priced to cater todiverse household needs. Besides, the attractiveas well as informative packaging plays a pivotalrole in product positioning. We have launchedour products on the e-commerce platform, whichwere well accepted by customers. Besides, ourproducts are also available across the countrythrough formal channels. We are capitalising onthe strength of our electrical and lighting networkto expand the home appliances segment.We have opened 100 authorised service centresacross multiple states to ensure maximumcustomer satisfaction. Moreover, we areexpecting a big push in sales through our largeformat retails (LFR).OPPORTUNITY!The small home appliancesmarket, growing at 10-12%annually, is expected totouch 25,000 crores by2021 from the current 10,000 crores.ROAD AHEADGoing forward, we are prepared to set up anexclusive network for appliances across 50 towns,enhancing our reach. Besides, we aim to utilisemodern trade and e-tailing formats to cater tomore customers.Recognising the importance of the role played byan influencer in popularising a product segment,we are partnering with various stores to maximiseour point of sales activities. This will make variouscustomer segments aware of our brand.PRODUCT RANGEFood Processor Mixer Grinder JuicerMixer Grinder Juicer Iron CeilingFan Oven Toaster Griller SandwichMaker Electric Kettle Pop-up Toaster Induction Cooker Rice Cooker Instant Water Heater ImmersionHeater Chopper Coffee Maker Multi Grill Roti Maker13
ANNUAL REPORT 2015-16CORPORATE OVERVIEWDIVERSITY ENABLES NATIONAL VISIBILITYEVEREADY EVERYWHEREINSPIRES US ALL.YES, THAT’S THE CORPORATE CREDOWE ARE PASSIONATELY TRYINGTO ACHIEVE. OVER THE YEARS,WE HAVE CREATED A STRONGDISTRIBUTION CHANNEL; AND WEARE CONSISTENTLY BUILDING NEWDISTRIBUTION NETWORKS.Our objective is to touch a wide customer baseacross urban, semi-urban and rural India. Inaddition, our on-ground initiatives and socialmedia outreach are strengthening customerengagements.The ‘Give Me Red’ campaign has made our brandidentity synonymous with power and energy. Wehave increased our focus on point-of-sale (POS)marketing efforts and the role of an influencer.Besides our marketing initiatives that createproduct awareness, we are partnering with storesto enhance our product sales.MARKETING OBJECTIVES Consolidate our position across all traditionaloutlets for batteries and flashlights Employ a systematic and scientific approachtowards increasing our reach and its quality Leverage our sales and distributioncompetencies to strengthen the process Service the outlets with a diversified rangeof products, including batteries, flashlights,portable lanterns, packet tea, lighting productsand home appliances Explore new selling arrangements in identifiedmarkets to improve the effectiveness ofservicingDEEPENING REACHOur batteries and flashlights are available atgrocery, general provision, music, electrical,hardware, stationery, gift stores and at thechemists’ shops; and also at photo studios andprinting centres. We have a strong sales forcethat successfully drives the extensive salesnetwork.We have strengthened our electrical networkin over 350 metros, Tier I and Tier II towns tocover 20,000 electrical outlets through over 350dedicated channel partners/distributors. Thisdedicated team specialises in electrical products;and is the backbone for our business. They havebeen consistently contributing to the growth ofour lighting business.14
DELIVERING DIVERSITYINDUSTRIES INDIA LTD.BRAND BUILDINGUrban Marketing Proactive on socialmedia Sponsorship andparticipation in events Visit to schools andcolleges to enhancebrand visibility Campaigns in IndianPremier League (IPL)Rural Marketing In-shop signage anddisplays Wall-painting in villages Television commercials(TVCs)15 Participation in melas On ground activities inHaat and Chaupal
ANNUAL REPORT 2015-16CORPORATE OVERVIEWEN-LIGHT A GIRL CHILDEveready continues to be associatedwith a unique sustainable initiativecalled ‘En-Light a Girl Child’. One of themain objectives of the ‘En-Light a GirlChild’ is to empower girls in backwardregions where deficiency of power stillposes a problem. The interventions aimat creating positive discrimination forgirl child, replacing their only source oflighting (kerosene lamp) with bright LEDLights for promoting education.16
CORPORATE INFORMATIONINDUSTRIES INDIA LTD.CORPORATE INFORMATIONBOARD OF DIRECTORSBOARD COMMITTEESVICE PRESIDENT - LEGAL &COMPANY SECRETARYMr. Brij Mohan KhaitanChairman (Non-Executive)Audit CommitteeMr. Subir Ranjan Dasgupta, ChairmanMrs. Ramni NirulaMr. Sudipto SarkarMrs. Tehnaz PunwaniMr. Aditya KhaitanVice Chairman (Non-Executive)Mr. Amritanshu KhaitanManaging DirectorMr. Suvamoy SahaWholetime Director & CFOMr. Subir Ranjan DasguptaMr. Sanjiv GoenkaMrs. Ramni NirulaMr. Sudipto SarkarNon-Executive Independent DirectorsNomination & Remuneration CommitteeMr. Sudipto Sarkar, ChairmanMr. Subir Ranjan DasguptaMr. Sanjiv GoenkaStakeholders Relationship CommitteeMr. Subir Ranjan Dasgupta, ChairmanMr. Suvamoy SahaCorporate Social Responsibility CommitteeMr. Amritanshu Khaitan, ChairmanMr. Subir Ranjan DasguptaMr. Suvamoy SahaAUDITORSDeloitte Haskins & SellsREGISTERED OFFICE1, Middleton StreetKolkata 700 071West Bengal, IndiaPhone: 91-33-22883950Fax: 91-33-22884059CORPORATE OFFICE2, Rainey ParkKolkata 700 019West Bengal, IndiaPhone: 91-33-24559213Fax: 91-33-24864673CIN: L31402WB1934PLC007993Email: m17
ANNUAL REPORT 2015-16STATUTORY REPORTSREPORT OF THE DIRECTORSFor the financial year ended March 31, 2016DIVIDENDYour Directors are pleased to present the Annual Report, together with theAudited Financial Statements of your Company for the financial year endedMarch 31, 2016.During the year under review, your Directors had declared and paid an interimdividend of 1.00 per equity share on 7,26,87,260 fully paid up equity shares of 5/- each, being 20% on the paid up value of the equity shares of the Companyfor the year ended March 31, 2016. Additionally, your Directors are pleasedto recommend, for approval of the shareholders, a final dividend of 1.00 perequity share on 7,26,87,260 fully paid up equity shares of 5/- each, being 20%on the paid up value of the equity shares of the Company for the year endedMarch 31, 2016 (previous year – Nil), which if approved at the ensuing AnnualGeneral Meeting will be paid to all eligible members whose names appear inthe register of members on July 25, 2016 or appear as beneficial owners as perparticulars furnished by the Depositories on July 18, 2016.FINANCIAL RESULTSThe Financial Results of the Company are summarised below:Net SalesOther Income from operationsTotal Income from OperationsTotal Expenditure adjusted for increase/decrease of stocksProfit from Operations before OtherIncome, Depreciation, Finance Costsand TaxationOther IncomeProfit from Operations beforeDepreciation, Finance Costs andTaxationDepreciationInterest and Exchange FluctuationProfit before TaxationProvision for TaxationProfit after TaxationBalance brought forward fromprevious yearDepreciation on transition to Schedule IIof the Companies Act, 2013Amount available for appropriationAppropriations :- Interim Dividend (already paid)- Tax on Interim Dividend- Proposed Final Dividend- Tax on proposed Final Dividend- General ReserveBalance carried forward to Balance Sheet2015-161,322.520.781,323.301,202.81 .68TRANSFER TO RESERVESThere was no transfer to General Reserves during the year under review.OPERATIONAL REVIEW & STATE OF THE COMPANY’S .68-7.271.487.271.4832.18(0.97)Batteries & FlashlightsThe battery market grew at a healthy pace, estimated at 10%. However, theorganised players could not capture this growth, due to the market being disturbedby poor quality products imported from China at dumped prices. As a result, theCompany’s volume and value both registered a marginal de-growth during the year.The market share position of the major players remained unaltered during theyear under review, with your Company’s share being estimated at 50%.The flashlights market was subdued during the year due to an erratic monsoon,the period during which flashlights sales peak and proliferation of cheapflashlights of poor quality by the unorganised and gray market players. YourCompany’s volumes for flashlights de-grew by around 18% while value turnoverde-grew by 14.5% as compared to that of the previous year.Your Company’s share of the organised flashlight market was maintained at75%. However, this has to be seen in the perspective of a large unorganisedmarket, which is estimated at nearly the same size as the organised market.The manufacturing operations of your Company in these product categoriescontinued to focus on total quality management, safety, energy conservationand cost control. This helped your Company in achieving efficiency in themanufacturing function.Operations at the manufacturing facilities at Taratala Road, Kolkata havebeen relocated to facilities at Transport Depot Road, Kolkata for purposes ofconsolidation and smoother operations.Net sales for the year were higher by 3% over the previous financial year. Profit beforeDepreciation, Interest and Taxation (PBDIT) was higher by 0.8% at 128.59 Crores(previous year 127.58 Crores) There were no exceptional items (previous year Nil).With depreciation of 30.59 Crores (previous year 31.98 Crores), a decrease ininterest / exchange fluctuation charge of 30.50 Crores (previous year 33.60 Crores)and a charge of 0.47 Crores (included in other expenses) consequent to the adoptionof a change in accounting policy in respect of hedge accounting (refer Note 24.21 tothe accounts for the year under review) (previous year Nil), Profit after Taxation stoodat 50.65 Crores for the year as against a profit of 49.03 Crores in the previous year.Your Company has commenced planning of a project for manufacturing facilitiesat Assam for which the leasehold land has been allotted to the Company. Thisproject will provide tax reliefs applicable to the area.Lighting & Electrical ProductsYour Company had diversified to the marketing of lighting and electrical productsin the recent past. These products found excellent fit to the Company’s brands– Eveready and PowerCell, which are synonymous with portable energy andlighting. There was also synergy in these products with the existing distributionnetwork of your Company.18
REPORT OF THE DIRECTORSINDUSTRIES INDIA LTD.At the point of entry to this diversification initiative, the leading products wereCompact Fluorescent Lamps (CFL) and General Lighting Service Lamps (GLS).However, towards the end of the previous year, your Company had launchedLight Emitting Diode (LED) bulbs which added significant technology edge tothe product basket being offered by the Company.MATERIAL CHANGES AND COMMITMENTSThere are no material changes and commitments, affecting the financial positionof the Company, between the end of the financial year of the Company i.e. March31, 2016 to which the financial statements relate and the date of this Report.While the Company’s distribution in general trade and modern retail provideda good platform to enter this category, further expansion is underway to tapthe exclusive electrical trade. Your Company successfully bagged an EnergyEfficiency Services Ltd. (EESL) tender worth 48.31 Crores – for supply of LEDbulbs as part of the scheme to light up consumer homes at affordable prices.SUBSIDIARIES & CONSOLIDATED FINANCIAL STATEMENTSThe Company’s subsidiary at Hong Kong, Everspark Hong Kong Private Limitedregistered a turnover of 39.43 Crores during the current year ( 52.36 Croresduring FY 2014-15). However, the Company did not earn any profits duringthe year.The Company continued to invest significantly towards brand building in thecategory during the year with a view to enhance brand salience.Another subsidiary, Litez India Ltd. registered a turnover of 0.0
INSIDE THIS REPORT Net sales Crores 120.49 Operational EBIDTA Crores 50.65 PAT Crores 6.97 Earnings per share Figures of 2015-16 CORPORATE OVERVIEW Driven by Varied Aspirations 04 Diversity of Offerings 07 Managing Director's Message 08 Key Performance Indicators 10 Delivering Diversity 12 Corporate Information 17 STATUTORY OVERVIEW
