Eveready East Africa Managing Director at a press briefing |
Since its incorporation in 1967,
Eveready East Africa has been synonymous with the manufacture of the dry cell
battery commonly known as the D battery. The company invested in a
manufacturing plant in Nakuru. The battery has remained the manufacturer’s largest
revenue contributor with over 60% reliance. Additionally, the company has
historical linkages through trade and shareholder relationship with US firms
Eveready Inc. and Energizer Inc. This formal relationships have allowed access
to quality products and technology in the energy and lifestyle product
categories.
The proliferation of cheap dry cell
batteries into the market has seen the company review its operations to ensure
continued profitability and competitiveness in an increasingly cut-throat
business. Like many consumer-driven entities, Eveready East Africa is increasingly viewing its manufacturing, marketing
and distribution and means of achieving greater efficiencies without impacting
negatively on the consumer.
An upshot of the review is the implementation of
the five year strategy that places diversification at the center of company’s
business. One of the bold measures announced today is the closure of its manufacturing
plant in Nakuru and the consequent redundancy of up to ninety eight roles. The
company will henceforth source the D batteries from the Energizer factory in
Egypt.
In addition, the closure offers an opportunity to
venture into one of its other diversification strategy planks, Real Estate. The
company has set up a subsidiary – Flamingo Properties Kenya Ltd – to spearhead
its foray into the venture. The twenty acres of land in Nakuru will be one of
its flagship investment. The details of the real estate investments will be
announced in due course.
Commenting on the strategic milestones, Eveready
East Africa’s Managing Director, Jackson Mutua said; “The closure of our plant
reiterates the shift to a commercial oriented entity. It has taken away the long
cash conversion cycles and offers the flexibility to quickly react to market demands
whilst focusing on our core business of distribution”
He added; “With the board’s approval, we started
implementing this strategy last year and I am happy to announce that our
Ugandan subsidiary is operational and we have signed an agreement with a
competent distributor in Tanzania. The venture into real estate will be
mutually beneficial to our shareholders and also poised deepen our investment
in the county of Nakuru.”
On product diversification, the company has already
launched a leading brand of automotive batteries known as TURBO®. Eveready will soon launch new products across personal care, energy and
household categories.
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