LIVING ON THE EDGE
Article Abstract:
The dry cell industry in India has four players; Eveready Industries ( with 43 percent marketshare), Indo- National (26%), Lakhanpal National(22%) and Geep Industrial Syndicate(8%). Uptil now competition was only with regard to dealership networks, brand visibility and recall through advertisements. No price war. Prices were maintained at the same level by all the players, thereby leading to a sort of cartel. However, the situation has changed now with the entry of BPL and Duracell. Both companies have set up plants to make alkaline batteries. BPL and Sony have entered the zinc carbon segment. The entry of BPL into this segment has reportedly changed the scenario. The total installed capacity of the industry has risen along with the rate of growth of production at 3 percent in 1997-98 (10 percent in 1996-97). BPL has increased its adspend and also offering freebies with its batteries. It is giving higher margins to its dealers. It is said that Geep Industrial Syndicate(GIS) may be left behind in the race with its substantial capacity idle. Eveready, which used to source part of its pencil cell requirement from Lakhanpal National, has commissioned its own plant. Eveready has reportedly brought down its dealer price to match the prices offered by BPL. The existing players are struggling to retain their marketshares as well as their profit. (tsm)
Comment:
The dry cell industry in India has four players; Eveready Industries ( with 43 percent marketshare), Indo- National (26%), Lakhanpal National(22%) and Geep Industrial Syndicate(8%).
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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TEA ON HOLD
Article Abstract:
The Indian tea industry has been hit by reduced exports to Russia even as domestic production has increased. For the period between January 1998 and August 1998, overall tea production rose by eight percent with Northern tea output rising by 10 percent and southern tea output by three percent. Tea prices have also declined with prices of tea grown in Assam and West Bengal dropping to Rs72.35 per kilogram (kg) in October 1998 (Rs77.33 per kg in August 1998). The price of South Indian tea fell to Rs58 per kg (Rs66.19 kg). Indian tea producers have been accused of over dependence on the Russian market with Russia accounting for 94 million kg of the total Indian exports of 203 million kg in 1997. India also exports to Iran, Libya, Iraq and the UK. It has been projected that India's production at the end of the tea season of 1998 will be 835 million kg (811 million kg at the end of the tea season of 1997). (tsm)
Comment:
The Indian tea industry has been hit by reduced exports to Russia even as domestic production has increased.
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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