Battery and electrical goods maker Eveready Industries India said it will float a joint venture the Wings Group of Indonesia to enter the market of fast moving consumer goods (FMCG) in India.
Eveready will acquire 30% shares in the new company, with the remaining held by Universal Wellbeing Pte. Ltd, part of the Wings Group.
Universal Wellbeing manufactures and sells a wide variety of products in fabric and household care, personal care, skincare, and foods & beverages, the Indian company said, calling it “one of the leaders in the FMCG market in South East Asia.”
The group has presence in several countries including Malaysia, Eveready said.
Some of its product categories are detergents, softeners, ironing aids, personal wash, hand wash, ready to drink & powder beverages, and instant noodles.
Kolkata-based Eveready is the market leader in the domestic dry cell batteries and flashlights in India. It has also built up a significant share in the lighting market, and has also entered the market for home appliances and packet tea.
Its latest diversification move was to enter into the confectionary business.
Eveready said it will leverage its pan-India distribution network for the new venture.
“The new venture, which is yet to be named, will market FMCG products using the respective strengths of its shareholders, viz., the product expertise of Universal Wellbeing and the distribution strength of Eveready,” the Indian company said.
“As I had mentioned sometime back that we are looking to scale up our FMCG play,” said Amritanshu Khaitan, Managing Director of Eveready. “We will be able to offer to the Indian consumer better products that are affordable yet of international quality.”
Annie An, director of Universal Wellbeing said her company was excited to enter India as it ‘crosses certain thresholds’ thanks to rising incomes and economic growth.
“We believe with our experience in a number of categories in similar Emerging Markets combined with robust distribution of Eveready, we will be able to add value and improve lives of the Indian consumers,” she said.