Buy Eveready Industries India Ltd For Target Rs. 447 - Sushil Finance
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Enhance distribution through a new Route-To-Market initiative
Eveready Industries India Ltd’s (EIIL) new Route-To-Market (RTM) initiative aims to streamline their distribution channels,
making it cost-effective for them to deliver their products to the consumer. The new route-to-market comes with utilisation
of technology solutions and the leverage of data analytics in order to effectuate enhanced distribution and ensure seamless
operations throughout the supply chain. EIIL’s outlet reach prior to RTM implementation was around 4 million outlets. After
the recent implementation of the new RTM, the company continues to reach 4 million outlets, however, the process of
reaching those outlets has become far more efficient. Initially, EIIL was utilising a large number of distributors to reach these
outlets, whereas now, they have cut down and consolidated on the number of distributors, thereby, reducing the cost of
servicing.
Lighting business to be the cornerstone for future growth
The lighting business is considered by the management to be the cornerstone of the company’s growth journey going
forward. In the recent quarters, the lighting market witnessed a significant de-growth, whereas, EIIL’s lighting business
witnessed a surge in growth of nearly 20%. This is primarily attributed to the company’s extensive rural and semi-urban
reach. Additionally, the company has a robust product portfolio which is well suited not only for kirana outlets, which is at
the lower end of the products spectrum, but also for products in the higher end of the spectrum.
Targeted communication supplemented by 360° promotional activities
EIIL is striving to reinforce their brand equity through consistent communication, and introducing new products that provide
greater convenience and value to consumers. To accomplish this goal, the company has used a variety of techniques, one of
which is improving their brand communication through campaigns that are relatable and resonate with the target audience.
The company has also overhauled their brand logo to the new trending infinity avatar with a transformed tagline of “Give Me
Power, Give Me Red”.
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