Burman family will not take up any executive role in Eveready: Mohit Burman
Mohit Burman, vice-chairman of Dabur India, who is instrumental behind the takeover bid of Eveready, shares his thoughts with Business Today.
- Mar 14, 2022,
- Updated Mar 14, 2022 11:53 AM IST
The Burman family that has diversified business interests, including fast moving consumer goods and restaurant chains, has recently made an attempt to take ownership of Kolkata-based Eveready Industries from the Khaitans. If successful, the family, through its various group entities, will get a majority stake in the dry cell battery major soon that has been with the Khaitans for decades. Mohit Burman, vice-chairman of Dabur India, who is instrumental behind this takeover bid, shares his thoughts with Business Today. Edited excerpts:
BT: Since it's now evident that the Burman Group is willing to take control of the company, what are the reasons behind this move? Also, since this is a completely different type of business from packaged goods or restaurants chains that Burman Group is involved in, how does this fit in the broader scheme of things?
Mohit Burman: We think that the brand Eveready is very strong and is a clear leader in the dry cell market. It’s also a very well-known consumer brand and we do like to invest in businesses like these. We believe that the brand has significant potential and we plan to focus on its existing businesses in the immediate future and then look at new businesses in the medium to long term.
BT: The Burman Group, through its various entities, have picked up stake in tranches over the past few years. Was it the part of the plan to takeover Eveready?
MB: No, we never intended to own or control the company initially. We only invested because we thought the business was cheap initially.
BT: After the exit of the two Khaitans from the top jobs - chairman and MD - of Eveready, will someone from the Burman Group now take charge? What’s your plan on representation at the board and at the top management?
MB: We have asked for three board seats post the Open Offer. We like our companies to be run professionally. So the Burman family is not going to be on Eveready board in any executive capacity. We generally run our businesses professionally and our intent is to run this too in a similar fashion.
BT: What is the value propositions that you see in Eveready?
MB: It’s a very strong brand with great recall. We believe that if provided the right thrust and focus, we can scale the current business and look at new businesses too. The dry cell market today is around Rs 1,500 crore in size but then there are segments within the industry like Alkaline, that are growing very fast. We plan to go after that for sure, besides upgrading our range and focusing on lighting too. So, we believe, there is good potential here.
BT: The Burman Group, through JM Financials and its entities, has sought to purchase 5.26 per cent and 26 per cent shares of Eveready, respectively. What is the 'plan B’, if the bids fall through?
MB: We have made what we believe is a fair offer according to our estimates. So, let’s see how it goes.
BT: Is the takeover bid in understanding with the promoter group, i.e., Khaitans?
MB: No, there is no such understanding. This is not a structured deal.
The Burman family that has diversified business interests, including fast moving consumer goods and restaurant chains, has recently made an attempt to take ownership of Kolkata-based Eveready Industries from the Khaitans. If successful, the family, through its various group entities, will get a majority stake in the dry cell battery major soon that has been with the Khaitans for decades. Mohit Burman, vice-chairman of Dabur India, who is instrumental behind this takeover bid, shares his thoughts with Business Today. Edited excerpts:
BT: Since it's now evident that the Burman Group is willing to take control of the company, what are the reasons behind this move? Also, since this is a completely different type of business from packaged goods or restaurants chains that Burman Group is involved in, how does this fit in the broader scheme of things?
Mohit Burman: We think that the brand Eveready is very strong and is a clear leader in the dry cell market. It’s also a very well-known consumer brand and we do like to invest in businesses like these. We believe that the brand has significant potential and we plan to focus on its existing businesses in the immediate future and then look at new businesses in the medium to long term.
BT: The Burman Group, through its various entities, have picked up stake in tranches over the past few years. Was it the part of the plan to takeover Eveready?
MB: No, we never intended to own or control the company initially. We only invested because we thought the business was cheap initially.
BT: After the exit of the two Khaitans from the top jobs - chairman and MD - of Eveready, will someone from the Burman Group now take charge? What’s your plan on representation at the board and at the top management?
MB: We have asked for three board seats post the Open Offer. We like our companies to be run professionally. So the Burman family is not going to be on Eveready board in any executive capacity. We generally run our businesses professionally and our intent is to run this too in a similar fashion.
BT: What is the value propositions that you see in Eveready?
MB: It’s a very strong brand with great recall. We believe that if provided the right thrust and focus, we can scale the current business and look at new businesses too. The dry cell market today is around Rs 1,500 crore in size but then there are segments within the industry like Alkaline, that are growing very fast. We plan to go after that for sure, besides upgrading our range and focusing on lighting too. So, we believe, there is good potential here.
BT: The Burman Group, through JM Financials and its entities, has sought to purchase 5.26 per cent and 26 per cent shares of Eveready, respectively. What is the 'plan B’, if the bids fall through?
MB: We have made what we believe is a fair offer according to our estimates. So, let’s see how it goes.
BT: Is the takeover bid in understanding with the promoter group, i.e., Khaitans?
MB: No, there is no such understanding. This is not a structured deal.