NAKURU – Eveready’s diversification gained momentum today after shareholders approved two key projects.
Meeting in Nakuru at the 48th AGM, shareholders gave the nod to the management to sell idle equipment at the closed factory in Nakuru as well as the green light to partner with Orbit Chemicals to create a joint 50-50 manufacturing venture.
“This gives us an opportunity to diversify into new products, which fits in well with our strategic plan that is anchored on diversification,” said Mr Jackson Mutua, the Managing Director of Eveready East Africa. “The approval now allows the management and board to set in motion plans to actualize these strategic decisions.”
Disposing of the equipment will allow the utilization of the factory land profitably, he said, adding that a feasibility study has been done to identify the best investment options. The equipment have already been written off in the company’s books. “We want to see if we can set up a shopping mall or hospitality facility,” Mr Mutua said.
The joint manufacturing venture will give Eveready a presence in the household manufacturing segment, including production of detergents, which is considered a growth sector in Kenya. He said the joint venture would leverage on Eveready’s distribution network countrywide while Orbit will provide manufacturing expertise. “The partnership will apply only to the specific products that will be manufactured and does not affect he entire company.”
He said the two moves would ensure sustainable growth for the company, which closed manufacturing in Kenya last year to source for supplies from Energizer Egypt. Mr Mutua said the implementation of the company’s five-year strategy launched in September 2014 places diversification at the centre of Eveready’s business.
He told shareholders that the company has already launched a quality range of car batteries for a broad spectrum of usage under the TURBO® brand in its household category. The batteries are manufactured by Chloride Egypt. Besides, he said, Eveready has also introduced a range of incandescent and energy saving bulbs under the EVEREADY brand name.
“Eveready will continue to unveil new products across personal care, energy and household categories in the coming months,” he said. “Consumer and market reception of our new products so far has been fantastic and we look forward to embedding the new products into our consumer spending culture and deepening its contribution to our business.”
The company’s chairperson Lucy Waithaka said the board had evaluated the strategic decisions and was confidence they will provided sustainable growth for the company. “We are remodeling the company to give value to our customers and shareholders,” she said.
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