Burmans’ pie crosses 10% in Eveready

Kolkata: The shareholding of Burmans of

Dabur

has crossed 10% mark in dry cell battery giant

Eveready

Industries. Currently, Burmans hold 11.05% in the debt-ridden Williamson Magor Group firm, which is the leader in battery and flashlights in India and almost synonymous with the segment.

Sources close to the development said that the Khaitan family, the owner of the Kolkata-based Williamson Magor Group, may not be averse to the idea of a long-term partnership with the Burmans as far as Eveready is concerned.

“The promoters of Eveready may not be against a board birth for Burman family if the Dabur owners asked for one as their holding now crossed 10% mark,” added sources.

It is also learnt that in the long run, it may open up an opportunity for the

Khaitans

to build a partnership with the Burman family. “Both have knowledge and interest in FMCG. Burmans, too, had earlier invested in stressed assets like Raligare,” sources argued.

Commenting on the development,

Mohit Burman

, vice chairman of Dabur, told TOI: “The group (Williamson Magor) is going through a tough time and this has even reflected on its stock price. But the company, brand and its core business remain intact. We believe Eveready is a strong brand and a market leader in its domain, and hence, we have built a stake in the company. We are just taking advantage of the price correction to add to our stake and average out.”

In the recent past, the group acquired over 14% stake in Punjab Tractors and was instrumental in acquisition of Balsara’s home and hygiene business by Dabur India. However, Eveready Industries MD Amritangsu Khaitan cannot be contacted for comment on this issue.

The country’s largest dry-cell battery maker, Eveready Industries, had earlier mandated Kotak Mahindra Bank to scout for potential financial or strategic investors. The strategic sale was intended to de-leverage promoter group holding which was 44% at that point of time in late 2018. Currently, promoters hold around 27.4% in Eveready.

Guardian Advisers is cornering shares of Eveready for the last couple of months. It has informed the stock exchange about the development. Guardian is picking up shares on behalf of MB Finmar, Puran Associates, UIC Enterprises, Gyan Enterprise and Chowdry Associates.

The portfolio management firm Guardian, owned by Arjun Lamba and others, manages investment for the Burmans, besides others. All the investment firms on whose behalf it is buying shares of Eveready belong to Burman family and Mohit Burman along with other family members are also in the board of these investment firms.

An FMCG expert pointed out that battery business is expected to do better due to decrease in dumping from China in recent months. “There can be temporary problem due to Covid 19 but that has led to a drastic fall in import from China as well,” the expert added.

In the last AGM, Khaitan had assured shareholders that whatever he would do that would be in the best interest of the shareholders. At that time here was a strong speculation that Duracell is buying Eveready. The Eveready stock was down to Rs 49.95, a 4.95% decline in the bourses.


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