Financial Daily from THE HINDU group of publications
Saturday, Oct 08, 2005

Port Info

Group Sites

Corporate - Mergers & Acquisitions

Eveready Ind takes over BPL Soft Energy

Our Bureau

Kolkata , Oct. 7

EVEREADY Industries India Ltd, the flagship of the B.M. Khaitan group, on Friday completed the takeover of the Bangalore-based BPL Soft Energy System Ltd.

Addressing a press conference here on Friday, Mr Deepak Khaitan, Vice-Chairman and Managing Director of Eveready Industries, said the newly acquired company will be renamed as Powercell Industries India Ltd.

He said it will be a wholly owned subsidiary of Eveready Industries and that there were no immediate plans for a merger of the company.

A formal application to the Registrar of Companies for changing the name will be made soon.

`Perfect fit': The acquisition was completed after eight days of due-diligence activity by Delloite Haskins. "We now find the acquisition a perfect fit for both of us," Mr Khaitan said.

As a first managerial decision, the Khaitans have decided to change the D-sized BPL Shakti battery, which is priced at Rs 8, from metal jacket to paper jacket. It will be manufactured in any of the three Eveready units. While BPL produces only metal jacket batteries, Eveready manufactures paper jacket ones for the D-size. According to Mr Khaitan, this decision will substantially reduce the losses of the BPL unit.

"We might also use their metal jacket production facility for our Lava brand, which we export. These flexibilities and synergies will soon be worked out, but we will not merge the sales force of the two companies," he added.

1.6 billion a year: BPL's existing capacity is 240 million pieces per annum. With this acquisition, Eveready's total battery production will be 1.6 billion per annum. BPL's market share is at around 10 per cent.

The acquisition will help Eveready increase its market share to 55-56 per cent from the existing 47 per cent.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Share Infoline Tata Safari Dicor

Stories in this Section
Saregama to co-produce Indo-American film

GM opts out of bidding for Daewoo
BHEL pays record dividend of Rs 196 cr
JK Corp is now JK Lakshmi Cement — Shifts part of corpus for new investment co
GMR Industries bags award
HC restrains DDA from physical possession of Escorts Heart
Priyamvada valuables to be shifted to bank lockers
Accenture helps BPCL build TRM capability
New corporate debt revamp norms soon, says RBI Governor
'Cos must disclose risk exposures'

Sutlej Ind to become an NBFC post-restructuring
Ruchi Soya to merge 6 group cos with itself
Reckitt swallows Boots' drug unit for $3.4 b — Agreement with Boots Piramal to continue: Swati Piramal
Delhi realtor buys 32% in Online Media
Eveready Ind takes over BPL Soft Energy
Innerwear brand Triumph to set up factory near Chennai
Gangotri Textiles plans Rs 351-cr expansion
Volkswagen team to visit AP for talks
A lesson or two from Dragon Land for Sundram Fasteners
Escorts' US arm to market SAME tractors in US, Canada
DaimlerChrysler holds road safety programme for school kids
HPCL plans to firm up debt for Punjab refinery by year-end

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line