Eveready Industries India

The financial statements for the last year indicate happy outcome and
 vindicate your Companys efforts to turn around from an extremely
 challenging business environment of the last 2 years to the current
 years improved position. It is all the more encouraging that this step
 up has come at a time when the economy was in a down turn.
 
 The declining trend in consumption pattern in dry cell batteries seems
 to have finally been arrested. Though the year as a whole saw a decline
 of 8 % in volume, the current trends indicate a gradual return to
 stability.
 
 Battery consumption is ultimately a function of population of devices
 which run on batteries. Flashlight is considered to be a key device
 using batteries, and is incidentally an important product segment of
 your Company. The marvelous work being done by your Company in
 marketing of this product is not only good for profitability - but is
 also good for higher battery consumption.
 
 Flashlights volume grew by 84 per cent and revenue grew by 66 per cent
 in the current year. This excellent growth was fuelled by the new
 generation LED torches, which were pioneered at this scale by your
 Company in the Indian market.
 
 There are more exciting developments in the offing in the area of
 portable lighting solutions with the recent launch of the Homelite
 range of products, which offer unique lighting solution in homes in the
 absence of electricity.
 
 Contributions from other products like packet tea, insect repellents
 and lighting products were healthy.  These new products continue to
 leverage your Companys existing brand and distribution and continue to
 play a key role in improving scale and profitability of your Companys
 business.
 
 Throughout the challenging environment of the recent past and also in
 the current year, your Company was able to maintain its market position
 and this was possible due to its initiatives on branding and
 distribution. Fresh plans in marketing and new product offerings are on
 the anvil and next years operations will benefit from the same.
 
 I firmly believe that the difficulties of the recent past are well
 behind us.  The path to further improvement is well laid out and it
 will be duly walked. Each of the key business segments - primary
 batteries,
 
 rechargeable batteries, flashlights, packet tea, lighting products and
 insect repellents - will contribute to the overall scale and
 profitability of the Company.
 
 I am also happy to state that such quick turn around from a difficult
 situation was possible due to your Companys belief in following
 fundamentally sound business processes. These will continue to provide
 shareholder value in the years to come.
 
 We are in the midst of a global down turn. India also has not been able
 to escape it altogether with its growth rate slowing down compared to
 the past recent years. However, there are signals in the economy that a
 recovery process has already started.  The improvement in the economy
 will further enhance your Companys business.
 
 I wish to end this note by mentioning a few groups of people who
 provide the foundation to this Company. I would like to mention the
 Companys employees who are continuously endeavouring to make it a more
 valuable one. I also wish to thank all our customers and vendors who
 have stood by us. Lastly, very special thanks to all shareholders for
 their faith and spirit.
 
 With warm regards
 
 B. M. Khaitan
 Chairman