Business Daily from THE HINDU group of publications
Saturday, Jul 22, 2006
Corporate - Outlook
Eveready plans to unlock real estate value
25 acres property in Hyderabad produces 300 million of batteries each year.
The 7-acre Chennai facility produces 40 million pieces per annum.
Uttaranchal plant to make total capacity to 2 billion pieces per annum.
Kolkata , July 21
Eveready Industries India Ltd, the flagship company of the BM Khaitan Group, is hoping to unlock the value of the real estate it owns all over the country.
According to Mr Deepak Khaitan, Vice-Chairman and Managing Director of Eveready Industries, there are two properties which could be developed. Of these, two are the manufacturing units of the company and the third is a vacant land.
Mr Khaitan was talking to reporters after addressing the shareholders at the company's 71st annual general meeting. The three properties are located in Hyderabad, Noida and northern Chennai.
The company owns 7 acres each in Chennai and Noida and 25 acres in Hyderabad.
At Noida, Eveready has 7 acres of vacant land and it is situated between two factories. Mr Khaitan said that the existing factories would first be relocated and then the properties would be developed.
"When these factories were set up it used to be less congested areas. Now things have changed. We would have to shift new areas. Once that happens we could develop it in the manner we have already done in Chennai," he said.
Eveready Industries used to have a factory at Guindy in Chennai. The manufacturing facility was shifted and the place was developed as an IT complex. The company earned Rs 60 crore-70 crore from the whole exercise.
Output to rise
Earlier, in his address to the shareholders, Mr B.M Khaitan, Chairman of the company, said that the Uttaranchal plant would take Eveready Industries total capacity to 2 billion pieces per annum from the existing level of 1.5 billion-1.6 billion pieces per annum.
The plant is expected to go on stream in April-May 2007.
For the quarter ended June 30, 2006, Eveready Industries registered a gross sales of Rs 256.02 crore as compared to Rs 213.15 crore in the corresponding quarter of 2005-06. Net sales increased to Rs 226.65 crore from Rs 188.29 crore.
Net profit jumped to Rs 12.18 crore from Rs 6.29 crore. Profit before tax increased to Rs 16.15 crore from Rs 11.12 crore.
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