Eveready East Africa says its diversification strategy has started paying off with new products contributing Ksh120 million in revenues last year. The amount represents 10 per cent of the Ksh1.2 billion turnover realised last year.
The company, which is positioning itself as a trading and distribution company for consumer fast moving consumer goods, has launched four products over the past four years including Turbo automotive batteries, Eveready incandescent and energy saving bulbs, Clorox bleach and recently started distributing writing instruments under the Piano brand.
Speaking at the 49th AGM held last week in Nakuru, the Eveready East Africa Managing Director Jackson Mutua said the company will launch two more products this year as part of its five-year diversification strategy, which was launched in 2014.
“Our diversification strategy has gained momentum and we hope to launch more products this year,” said Mr Mutua. “Incomes being realised are being invested in powering the diversification which is now bearing fruit.”
The Turbo battery brand is owned by Eveready but manufactured by chloride of Egypt while Clorox is being manufactured locally through partnership with Clorox Africa. He said the company’s revenues grew by Ksh600 million in 2015 after restating the value of its assets in line with international accounting standards.
The sale of the manufacturing plant which was closed last year in Nakuru, he said, had stalled after failing to get competitive prices for the property, which includes manufacturing equipment and the land on which it sits. The property valued at Ksh120 million before closure remains idle. “We are pursuing targeted selling of the property to investors who understand the value of the assets as opposed to wholesale disposal,” he said.
The implementation of the company’s five-year strategy places diversification at the centre of Eveready’s business. The strategy places emphasis on diversification. He emphasized that Eveready will continue to unveil new products across personal care and household categories in the coming months.
“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. We look forward to deepening the contribution of these new products to our business. We will utilize our superior route to market capabilities to achieve this focus.”