Eveready Industries India Ltd (EVEREADY) Q2 FY23 Earnings Concall Transcript

Eveready Industries India Ltd (NSE:EVEREADY) Q2 FY23 Earnings Concall  dated Aug. 03, 2022

Corporate Participants:

Nishid Solanki —

Suvamoy Saha — Managing Director

Analysts:

Nikhil — SIMPL — Analyst

Analyst — — Analyst

Deepak Poddar — Sapphire Capital — Analyst

Rajesh Kothari — AlfAccurate Advisors — Analyst

Cathal O’Dea — ValueQuest — Analyst

Darshan Shah — Nirvana Capital — Analyst

Mithun Aswath — Kivah Advisors — Analyst

Aditya — Skilled Ventures — Analyst

Dikshit Doshi — Whitestone Financial Advisors Private Limited — Analyst

Varsha Ganesh — Shravan Capital — Analyst

Priyanka Sarkar — Fahmi Anantha Capital — Analyst

Sultan — Perpetual AMC — Analyst

Gautham — GCJ Financial — Analyst

Sarkis Kapoor — Kapoor Company — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Eveready Industries India Limited Q1 FY23 Earnings Conference Call. [Operator Instructions]

I now hand the conference over to Mr. Nishid Solanki from CDR India. Thank you, and over to you, sir.

Nishid Solanki —

Thank you. Good afternoon, everyone and welcome to Eveready Industries India Limited’s earnings conference call. Today, we are joined by senior members of the management team, including Mr. Suvamoy Saha, Managing Director and Mr. Indranil Roy Chowdhury, Chief Financial Officer. Before we begin, let me share a disclaimer. Some of the statements made on today’s conference call could be forward looking in nature and the actual results could vary from these forward-looking statements. A detailed statement in this regard is available in the press release document, which has been circulated to you earlier and is also available on the stock exchange website.

I would now like to invite Mr. Saha to share his perspectives. Thank you, and over to you, sir.

Suvamoy Saha — Managing Director

Thank you, Nishid. Good afternoon, and a very warm welcome to everyone on the call hosted to discuss Eveready India’s first quarter performance for the period ended June 30, 2022. As you know, the company is home to the iconic Eveready brand synonymous with the category that name instantly conjures batteries. Throughout its history, Eveready has taken a very process-oriented approach to establish its credentials. In batteries, we enjoy the distinction of having a 50% plus market share, very consistently an achievement that is limited to only a handful of other FMCG companies.

This has been the result of an iconic brand together with one of the best-in-class distribution networks. Before we go into the discussion on the various businesses of the company, I would like to highlight the current cultural ethos and the professional ethos of the company in the backdrop of its recent history. The company went through a period of turbulence sometime back which has nothing to do with the fundamental structure of its businesses. However, as a consequence, there were many adverse impacts on the operations like a near stoppage of consumer communication, cutback on distribution investment and a complete deep focus on growth.

Over the last few months, the company has consciously worked itself out of this situation as a very fast and important step running of the organization has been handed over to our professional management. There is not one promoter, who is in an executive role now. Most importantly, the focus of the company is now generating growth. We ended FY2022 with the same level of turnover as we had eight years back. We have ambitious targets for growth, which in turn intends on investing in distribution and continuous communication to our consumers. The management team is working relentlessly to achieve the same.

The company today places the highest accent on governance and transparency and it is with this spirit that the company is initiating earnings calls from this quarter, whereby it reaches out to investors and analysts with a view not only to answer their queries as transparently as possible, but also improve from any meaningful input received during the process. Also another point to mention is that in the past, the company went into somewhat unrelated areas like key, confectionery or appliances. None of these ventures were supported and eventually all petered out. Today, the company is a focused three category play; batteries, flashlights and lighting. Even if we consider any new category in the future we will do so only after we are clear that we have lined up appropriate support for the same.

Now I’ll start my comments on the description of the business dynamics of the company. To start with, the brand Eveready has consistently enjoyed over 65% top of mind recall amongst consumers and that puts us at the forefront to take further share in our chosen segments. It has found acceptance in the new categories within batteries and in our other segments of flashlights and lighting. The company is also home to the power cell and numerous brands, which we have utilized across our range of portfolio as we seek to build strong affinity with differentiation.

The popularity of our brands is matched by our extensive distribution reach. Presently, we maintain a direct outlet reach of 750,000 stores in the country. Headed this with the aid of the wholesale channels, this reach enhances to covered approximately 4 million outlets. I’ve already mentioned that our business today is comprised of three business lines. Let me commence with batteries. In which we are present in both technologies for portable consumer drives namely carbon sink and alkaline. Since batteries of both technologies sought the same basic functional needs, usually consumers do not make purchasing decisions based on technology, but on price points affordable by them.

Alkaline vaccines are higher priced and offer proportionate higher service. We have an overall leadership of this market with share a 52% as per Nielsen data for the quarter ended June 30, 2022. The market share position has remained nearly unaltered over a long period of time with minimal rent brand investment support, indicating high legacy engagement of the consumers with the brand. Additionally, we have identified several high growth sub segments where we have opportunities to leverage our strengths to gain share in the foreseeable future.

Our research and marketing teams are engaged in taking a fresh look at the battery portfolio with a view to review innovation needs of the category, both from technology and brand perspective. We expect this work to be completed by end of this year. As a segment, batteries are well penetrated as an industry with a market size of 2.8 billion pieces and an estimated 2,750 crore in value terms. These are estimates as per Nielsen, and the value being at market operating consumer prices. Despite the high degree of penetration, our par capita consumption of batteries lags global averages thereby highlighting the headroom for growth. Therefore usage increase as well as premiumization our consumer trends that will drive growth in the future.

Now I move onto flashlights. This has been traditionally our second core category. Over time, particularly in the last few years, the marketplace has become crowded with a vast number of unorganized players. While we have an estimated 60% market share in the organized segment, we have not yet participated meaningfully in the market of rechargeable flashlights, which has grown fast though with significant share of several unorganized players and substandard products flooding the market. We intend to deliver quality products to our consumers and leverage the strength of our brand to capitalize on these growing segment. Flashlight market size is estimated at 1100 crores at comparable company level pricing of which traditional battery operated torches are At INR400 crores and the rechargeable torches have grown to INR700 crores. The latter provides a significant window of opportunity. The company’s brand and distribution are a terrific fit to the flashlights category. We also have the expertise of technology to bring out products, which will be decently superior to the products available in the market. What is already a foot in developing a full range of rechargeable flashlights, which will be introduced to the market over the next few months. We expect that we shall have a comprehensive range by end of this financial year. The range will cater to the needs of the price conscious rural consumers as well as meeting the expectations of higher priced products through urban distribution or e-commerce. The third segment that we are present in these LED lighting. The consumer market for LED lighting is a sizable one estimated at 12,000 crores at consumer price level growing around 10%. A key feature of the market is that it is quite fragmented and new single player accounts for a big share in these INR12,000 crore market. While the company made an entry into this market quite sometime back, it remains kind of a federal business has adequate focus was not provided. This approach has now changed. We believe that we can be a notable player in this market and all our plans are now centered around this belief. The company’s brands are great fit for this market as demonstrated by research and store uptick. Even our general and modern trade distribution are perfect fit for the purpose with some quicks in the route to the market on which work is under way. Sometimes that the company also initiated a distribution channel, addressing electrical outlets. Here again some work remains to be done to improve the efficiency of these channels. At the back end, we have now a dedicated development team that is working towards creating a range that covers every price, feature and utility as required by the customers. These transcends the entire gamut of pulps, panels, downlighters and emergency lamps. While we have an entire range of products in that consumer markets under our brands, we have also identified some products, which will serve as our so-called hero SKUs as we entrench ourselves in the market. We have negligible share in the market at this point of time, but we aim to go significantly faster than the market and expect to garner a reasonable market share as we go forward. With this as the backdrop, I would now like to share our perspectives on the key developments during the quarter ended June 30, 2022. We had revenues from operations of INR335.4 crores, representing growth of 19% as compared to the same period in the previous year. Actually, if the revenues of a disengaged business, namely appliances are ignored the growth stands at 21%. These healthy growth in top-line performance was backed by volume gains despite the market slowed down due to inflationary conditions. However, we do need to recognize that this growth is/are the low base of the same quarter last year on account of COVID. EBITDA during the quarter stood at INR42.1 crores at 12.6% of net sales. There is an erosion of 8% on account of inflation in key input materials part of which could not be passed on and the return of certain business overheads, which were not there last year vying to the pandemic restrictions. However, in a relief towards the end of the quarter, commodity prices started easing up, which should build back margins. However, exchange rate erosion continues to be a worry. We were actively engaged in augmenting the flashlight and lighting segments and the focus had been strengthening endeavor outreach during this period. In keeping with our growth aspirations, we augmented our managerial strength by way of several meet and senior level inductions. In line with our present business mix, we have healthy cash generation from our traditional segments of batteries and battery operated torches whereas as outlined earlier, our endeavor is to get growth flowing from our new business segments in a methodically and process oriented manner. The management retains clear focus in maintaining high level of revenue growth with healthy earnings profile and this will become evident as the business mix evolves. As shared by me today, the continuing emphasis of my management team is on enhancing presence in our chosen categories to achieve a healthy business momentum. With that I have reached the conclusion of my remarks and I would request the moderator to open the event for questions from the participants. Thank you very much.

Questions and Answers:

Operator

[Operator Instructions] The first question is from the line of Nikhil from SIMPL. Please go ahead.

Nikhil — SIMPL — Analyst

Yes, Hi, am I audible?

Operator

Yes. Please proceed.

Analyst — — Analyst

Yes. Hi, good afternoon. Thanks for the opportunity, and really appreciate company carrying out the con call. Clearly a great sign in terms of the improvement at the company level. Sir, continuing with what you mentioned, if you can help us understand — I have a few questions on the business itself. Now, while we’ve talked about — in our annual report we talked about improving the health of each business, but as a priority where do you see more low-hanging fruits for us. And similarly in terms of the organization structure, how is the organization structure being created for each of the segments and who would be the key hiring, which we would have done or who are the people who are already looking at each of the segments. So if you can help us understand on these two aspects?

Suvamoy Saha — Managing Director

Okay, thank you very much. Thanks for your questions. So, basically you know on the matter of priorities, I would say we are at three category play as I mentioned in my earlier speak. And we have equal priority for each one of these three segments. We have got coming to the organization structure, we have specific focus groups addressing these individual segments. So there is really no question of any diversion of priority from one to the other.

Now in terms of low hanging fruit, I would say that as I also you also understand, batteries and battery operated flashlights are mature businesses for at least for the company. The other two segments that I mentioned, rechargeable flashlights and lighting, these are really sort of a newer segments for us and both huge growth opportunities. So in terms of there being low hanging fruit and with my assumption that brand and distribution is strong for both these segments, are you turn those as low-hanging fruits for the company.

And again I would reemphasize — there is sort of low dispersion of priority in any which way because we have got clear-cut objectives for the three different business teams and they are pursuing those. In terms of organization hiring, the key hiring, we have a mancom [Phonetic] of 9%, three out of that — four out of those at the management committee level or new hires, who have joined talented individuals who have joined from outside the company. And we have got maybe another 10 odd people who would be at the CXO minus one level who have joined the company in the recent past in the last six months or so.

So we have structured the organization to cater to each of these three businesses in a most at risk manner. And towards that, naturally, we had to evolve those. So today 80% of CXO and CXO minus one level of people are handling new enhanced responsibilities. So that is, I believe I have answered your questions.

Nikhil — SIMPL — Analyst

Yes. Just one continuation on this. How would KPIs of the new high range or the heads of the each of the segment be connected with the goods of both the KPIs be more on the Growth of each of the segment, because we have amalgamation of business there are two business are quite mature and where the focus should be more on profitability and one business which is on growth. So how are the KPIs surround associated with each of the management segment.

Suvamoy Saha — Managing Director

Okay. So I would just clarify on one point, while I also did mention that batteries and battery operated torches are mature categories as stop on in my earlier speak. There are areas of growth opportunities, which we cannot forego. So I would say that the KPI would primarily be of course on top-line, but with a healthy profit profile. It is not that we would be chasing market share just for the heck of it with no money being made. So I would say it is a balanced approach. However greatest accent would be kept on top-line growth for the simple reason that this company has not grown over last year.

Nikhil — SIMPL — Analyst

Okay. And just last question. I’ll come back to the queue after that. In the lighting business, we are seeing that there are lot of incumbents with us equally stronger actually more stronger brand recall which they have built over the last eight years, 10 years. So the risk is like the way we had to close, we had to bring down our appliances business. How do you see our positioning in lighting different from what it was in appliances business? And what on based on whatever market research and whatever the study you would have done? How do you see our positioning versus incumbents? What gives you the confidence to build up on the lighting business?

Suvamoy Saha — Managing Director

Okay. So number one, I would like to sort of tell you that Eveready is among the top five recalled brands in the lighting segment. While our market share is small, there is tremendous amount of awareness of Eveready brand and very, very strong acceptance. So on the brand front, there is no disconnect vis-a-vis the consumer. Now coming to the point that you raised about appliance and lighting, how they are different, I would say that it is the degree of focus. See, the appliance category the way the company had done it, was purely kind of a trading operation where you know you just out source your products from someone, put Eveready brand and put it out to the market and there was very little value addition, whereas the lighting business that we are pursuing today is backed up by a full development team.

We have got tremendous control on the way that products are designed. We have an exclusive manufacturer who is only exclusive to us, who is doing the work on contract, which is really kind of an extension of the. — So, we have taken a tremendous amount of what shall I say, focus and address in going about this business. So it is quite different from what was there for appliances. Another point I would like to mention, is that the distribution is a strong fit, which was not the case in appliance. Appliances go through completely a different channel. And it doesn’t have to do anything with the FMCG channel. So I think we are on a much, much sweeter spot as far as lighting is concerned.

Nikhil — SIMPL — Analyst

Sure sir. Thanks for the explanation. I’ll come back in the queue.

Suvamoy Saha — Managing Director

Right.

Operator

Thank you. The next question is from the line of Deepak Poddar from Sapphire Capital. Please go ahead.

Deepak Poddar — Sapphire Capital — Analyst

Hello.

Suvamoy Saha — Managing Director

Yes, Deepak.

Analyst — — Analyst

Yes. Thank you very much for the call and interaction with the investor community. Sir, I just wanted to understand more from the strategy perspective. Now, that the new management has come. And you spoke about the three category focus area; battery, flashlight and LED light. But in general, all these three sectors, I presume, especially the our battery segment is this kind of a mature segment. So is there any other category that also we are looking at maybe on the EV side or something apart from the dry cell battery. So any thought process on that in terms of our strategy for growth over next maybe three to four to five years?

Suvamoy Saha — Managing Director

Okay, Deepak, our hands are completely full with these three categories. We have loads of work to do and loads of headroom exists for us to grow in these three categories, even in the battery category. The battery category itself in this quarter grew by 16% odd with a volume growth of something closer to 5%. The thing is that we just need to sort of peak our growth areas and grow from there. So at this point of time, if you ask me, if we have got any thoughts or vision on a new category, I would say no. But conceptually only at this point of time, we certainly would like to once they go into another segment, but we would go only after we know that we have done full justice to these three business categories and we have the support available for any new category that we take on. We would not like to repeat the mistakes of the past where categories were just added on with no support and in just about some amount of time they all sort of came to a kind of a natural death. I hope I have been able to answer your question.

Deepak Poddar — Sapphire Capital — Analyst

Yes. I understood. And in terms of battery, you said it’s growing at about 15%, that’s what you said?

Suvamoy Saha — Managing Director

So that is the growth that we clocked in the first quarter.

Deepak Poddar — Sapphire Capital — Analyst

Okay. And what sort of growth we expect over the next maybe one, two, three years?

Suvamoy Saha — Managing Director

So I would say that in the blended company business, we would certainly aspire for double-digit growth. The first quarter, the 21% growth, maybe a little sort of seem a little bloated for the simple reason that previous quarter of last — the same quarter in the previous year was a very low quarter because of COVID, but we would certainly like to settle for a growth level, which is maybe lower than 20%. But I would say somewhere around there.

Deepak Poddar — Sapphire Capital — Analyst

Maybe 15% to 20% growth, right?

Suvamoy Saha — Managing Director

Maybe I think mid 15% would be a very good target to chase for this company, where we have seen zero growth in 10 years.

Deepak Poddar — Sapphire Capital — Analyst

Correct. So that’s the CGR one may look at over next three to five years in terms of growth for our company?

Suvamoy Saha — Managing Director

Sorry come again.

Deepak Poddar — Sapphire Capital — Analyst

So that’s the CGR growth that we might look at over next three to five years?

Suvamoy Saha — Managing Director

Yes. One is looking at I’m not talking of the growth of one quarter to the other, that will happen due to the situation circumstances. I would say a long-term sustaining compounded growth of — I would say double-digit growth of between 12%, 15%, wherever it falls.

Deepak Poddar — Sapphire Capital — Analyst

Fair enough. I understood. And sir, in terms of EBITDA margin contribution, which segment gives the highest margin to us in terms of…

Suvamoy Saha — Managing Director

So this is dry batteries. That has the highest margin profile, followed by battery operated flashlights and then the new category of rechargeable flashlights and lighting.

Deepak Poddar — Sapphire Capital — Analyst

Sir I could not follow you. Can you please just repeat that?

Suvamoy Saha — Managing Director

So you asked me which category category gives the highest margin. So that is our traditional core category of dry cell batteries, which is the highest margin that is followed by battery operated flashlights and then the two categories of rechargeable flashlights and lighting.

Deepak Poddar — Sapphire Capital — Analyst

Okay. Fair enough. I understood. That’s it from my side. All the very best.

Suvamoy Saha — Managing Director

Thank you very much.

Operator

Thank you. The next question is from the line of Rajesh Kothari from AlfAccurate Advisors. Please go ahead.

Rajesh Kothari — AlfAccurate Advisors — Analyst

Thanks for providing an opportunity and really appreciate your time for this conference call. It is a good practice to do that. I have few questions. So my first question is in the lighting business. As you rightly mentioned that the focus basically to capitalize now on the brand and do the distribution network. So, what do you think, say, two, three years timeframe, what kind of building blocks you need to put in place to make sure that you become a, what I would say, sizable player. And also in this segment that are most players including the top number one, number two, number three, all these three players are basically reporting decline in margins in that segment, all of sudden is not growing because number of players are increasing. So in that kind of an environment, how do you think the profitability of this segment is going to be? And what is going to be your strategy to be different? Are you going to manufacture, are you going to do outsourcing? Can you give some more color in this lighting segment?

Suvamoy Saha — Managing Director

Yes. So see first of all, I’ll take you the growth and you know comparison with the bigger players. We are a very marginal player today as of now. So we have got enormous headroom. As you know, the market is highly fragmented. So anybody who offers decent distribution in other words availability to the consumer And who offers a well recognized brand has headroom to grow. Now some mature players may have hit the margin block. They may have hit their growth momentum, which is understandable, but their case and our case is slightly different. So we have — we ourselves feel that we have a tremendous amount of headroom and that is what we are going to sort of try to base our future tactics to grow. With regard to building blocks, see, as I said sometime before in this call, we have set up the entire team which is required to cater to the needs of the consumer, which starts with a very robust development team. So we design our own products. It is not that, obviously, there are some products which we outsource, because lighting as you know, has to have a very large range. It is not feasible to produce everything yourself. So some are certainly, but those are all as per our design. So that is the very basic thing that we are differentiating ourselves. Maybe finally the output of light is ultimately, that is what you are trying to get. But we do — we think we do it in an efficient manner. We have about 50% of our business coming through the manufacturing process of one of our exclusive contract manufacturer. So, which is 100% control on that process. So with this, I think we are going about it in a very systematic and process oriented manner and we are quite hopeful about despite you know what your remark, which may be correct about the bigger players the kind of blockages that they’re facing.

Rajesh Kothari — AlfAccurate Advisors — Analyst

Sir, currently what is the revenue of this segment. I’m sure we’ll be very marginal, but any number which you like to view currently?

Suvamoy Saha — Managing Director

So we in this quarter with INR67 crores and it is not really in order to understand the annual throughput. It is not a good to do 66% to 67% into four, because we are growing like this quarter itself was a big growth of 84% though again — once again draw your attention to the last year same quarter as being very low. So our growth trajectory obviously 84% would be sustained. But we would certainly look at 25% to 30% growth in the lighting segment in the current year.

Rajesh Kothari — AlfAccurate Advisors — Analyst

So, basically I don’t remember what was your FY22 full year lighting business. But did you see this year is roughly about first quarter is about INR67 crores, so in a three year timeframe, what do you think the size of this business can become for Eveready?

Suvamoy Saha — Managing Director

So this is — I’m doing these, but I’ll put a more concrete number for this year. One would think that we would be certainly higher than INR300 crores and in the next two years, the target of the company should be to cross INR500 crores, certainly.

Rajesh Kothari — AlfAccurate Advisors — Analyst

And at that level because you know the economies of scale starts probably know once you cross INR300 crores, INR400 crores. So as you reach that INR500 crores then that profitability of this business will be equivalent to the company profitability or still you think it will be kind of a mark down compared to the average company profitability?

Suvamoy Saha — Managing Director

As you are aware, the battery category is far ahead on the margin profile. I would very much doubt whether the lighting category can ever come to that, but yes you are right due to the shift, we will certainly improve our margin profile to something closer to the flashlight, which lies in between today.

Rajesh Kothari — AlfAccurate Advisors — Analyst

Understood. Last question from my side. On the overall company perspective, how do you see the brand investment including advertisement and non-advertisement? How do you see that as a percentage of the revenue?

Suvamoy Saha — Managing Director

So I would say, we are taking — see first of all, as I mentioned, there was really no communication in the previous five, six years due to financial difficulties that company had unconnected to it’s businesses. We have taken this year a target of spending at least 5% on ATL activities. So we will go on from there and PPL together could be about say 6% to 7%.

Rajesh Kothari — AlfAccurate Advisors — Analyst

Understood. So 6% to 7. So, and in first quarter also you would have spend something similar?

Suvamoy Saha — Managing Director

No, first quarter, we could not — we did not do because first quarter we could not have the films ready to be add which we hope to do in the second quarter. Towards the end of second quarter actually the films are currently in the process of making. So it depends on how quickly the producer can sort of do it for us. So it would be maybe towards the end of the quarter or latest early next quarter.

Rajesh Kothari — AlfAccurate Advisors — Analyst

So despite probably first quarter almost negligible and then second quarter also probably it looks like a very low number. Despite that the full year it will be 7%. So, are you seeing therefore the exit rate can be as high as 10% plus, which you plan to sustain?

Suvamoy Saha — Managing Director

No. I would say we will maintain a total uniform rate between ATL, BTL together about 7 odd percent.

Rajesh Kothari — AlfAccurate Advisors — Analyst

Okay, sir. Right now, it is more of BTL, that’s what you’re trying to say?

Suvamoy Saha — Managing Director

Yes, that’s right.

Rajesh Kothari — AlfAccurate Advisors — Analyst

Understood. Perfectly alright. Wish you all the best. I’ll come back in queue.

Suvamoy Saha — Managing Director

Thank you very much.

Rajesh Kothari — AlfAccurate Advisors — Analyst

Thank you, sir.

Operator

Thank you. The next question is from the line of Cathal O’Dea from ValueQuest. Please go ahead.

Cathal O’Dea — ValueQuest — Analyst

Yes. Thank you for the opportunity. Sir, if you can help us understand what is the inherent profitability for battery segment versus flashlight segment? In past it has been volatile so if you can help us understand what is the profitability or margin range one should expect.

Suvamoy Saha — Managing Director

So the volatility that you mentioned is purely a function of commodity prices. These categories do have some influence on their margin profile based on how the commodity prices sort of behaving. So prior to the recent commodity push that happened over say last eight or nine months, the margin was at for batteries was at 50%. It has then thereafter taken a heat of 20% cost increase in the input materials, which partly or about 50% of that could be passed on to the market. So the margin today has settled down at 45%. So I think 45% is a minimum sustainable margin for batteries. For flashlights, I would say the battery operated one it would range between 35% and 37.5%. And — but as I said that if commodity prices these off today, we will build back margins and it could come up to 50%.

Cathal O’Dea — ValueQuest — Analyst

Okay. And how about other two segments?

Suvamoy Saha — Managing Director

So again we are entrants to these segments. The rechargeable flashlights and lighting. Since the margin profile is certainly lower than the other two. So they would be between 30% and 32%.

Cathal O’Dea — ValueQuest — Analyst

Okay. And sir, just for battery and flashlight. Can you help us with the EBITDA margin range, broad range would be helpful?

Suvamoy Saha — Managing Director

So EBITDA percent of battery for last year was about — in the recent past has been trending at around 17%, 18%, but it went as high as about 25% eight or nine months back. The flashlights are currently flashlight as in battery operated ones are currently trending at around 14%, 15%. In lighting, we are just about breakeven.

Cathal O’Dea — ValueQuest — Analyst

Okay. And this 17%, 18% and 14%, 15%, is a maintainable margin going ahead? Is that understanding correct?

Suvamoy Saha — Managing Director

Because see the point to be noted is that this is after all the commodity adverse impacts that we had to observe after passing out about 50% of the impact to the market. Now what has happened from end of last quarter, commodity prices have started easing up as you also know. So this should actually help us make the margins better than what they are today, but I’m not taking a case on this because this is just my hope and optimism or as the trend currently suggests, there is one still adverse which is the currency rate which is certainly ruling much higher than the desired level.

Cathal O’Dea — ValueQuest — Analyst

Right. And sir, just my last question on, what is the current debt and cost of borrowing and capex plans over next two to three years?

Suvamoy Saha — Managing Director

So our current net debt stands at about INR325 crores. Our average cost of borrowing is 8%. We have no big capex plans just now, at least not for this year.

Cathal O’Dea — ValueQuest — Analyst

And gross debt would be sir?

Suvamoy Saha — Managing Director

Gross debt would be just about maybe INR40 crores higher than that. It is depends on the movement of cash at the month end. So really nothing much different from what I told you.

Cathal O’Dea — ValueQuest — Analyst

Okay. Thank you and all the best.

Suvamoy Saha — Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Darshan Shah from Nirvana Capital. Please go ahead.

Darshan Shah — Nirvana Capital — Analyst

Hi, sir. Thanks for the opportunity. I have couple of questions.

Operator

Sorry to interrupt, Sir. We are not able to hear you clearly.

Darshan Shah — Nirvana Capital — Analyst

Hello. Sir, I had couple of questions. One question on the contingent liability that we kind of have in our books. So can you just throw more light on what’s the case there and how do we foresee the outcome in that particular case, if you have any idea?

Suvamoy Saha — Managing Director

Sorry, which one are you referring to?

Darshan Shah — Nirvana Capital — Analyst

The INR171 crores.

Suvamoy Saha — Managing Director

Yes. I understand. So this is the penalty imposed by CCI which is currently being at is under appeal from the company. So the case is presently in the court process and sub duties and I am unable to make any comment further on this. So that is the factual situation. CCI has imposed a fine and we have appealed against that.

Darshan Shah — Nirvana Capital — Analyst

Okay. Sir, on the margin front, since you said after what the commodity this is what we have seen, the margin 17%, 18% in batteries and around 14%, 15% in flashlights battery operated. With the ease in commodity prices coming up, so what would broad blended margins — the company would probably do because the past two, three quarters have been quite volatile. We have done 20% on the lower side than 11%, 12% operating margins.

Suvamoy Saha — Managing Director

So the blended margin for the company provided we see the easing up as it does, it could be somewhere in excess of 10% because of nothing else, but the lighting segment, which is sort of which will pull down the overall rate. So I would say that in the immediately foreseeable future, we could certainly look at 10% plus. However, as I said as lighting picks up volume and as commodity prices sees up on the battery side that could grow at a faster rate.

Darshan Shah — Nirvana Capital — Analyst

So currently in lighting we are almost at breakeven at around INR300 crore kind of business.

Suvamoy Saha — Managing Director

That’s right.

Darshan Shah — Nirvana Capital — Analyst

Okay. And sir, you already mentioned on the currency part. So how are we kind of affected with currency, if you can please highlight?

Suvamoy Saha — Managing Director

So the battery raw materials, they are 70% of that are either imported or they are dollar denominated. So currency has a huge impact on us.

Darshan Shah — Nirvana Capital — Analyst

Got it. Sorry, sir from a little less understanding what are the major raw materials that we kind of — I understand that would be one of them.

Suvamoy Saha — Managing Director

We don’t use lead, we use zinc, manganese ore. This asset in black, we need tinplate, we need paper. These are the main commodities.

Darshan Shah — Nirvana Capital — Analyst

Okay, thank you.

Suvamoy Saha — Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Mithun Aswath from KeyWhy Advisors. Please go ahead.

Mithun Aswath — Kivah Advisors — Analyst

Hello, can you hear me?

Suvamoy Saha — Managing Director

Yes, we can.

Mithun Aswath — Kivah Advisors — Analyst

Yes. My question, I think a lot of that you’ve already answered in terms of the lighting business, but just wanted to since the group and the double group has now become the promoters of the business. I just wanted to…

Operator

Mr. Mithun Aswath, your audio is breaking up.

Mithun Aswath — Kivah Advisors — Analyst

Hello. Can you hear me now?

Operator

Yes, sir. Please go ahead.

Mithun Aswath — Kivah Advisors — Analyst

Yes. I just wanted to understand since the company is part of the GABA group now, are there any synergies that you get from the group which Eveready could benefit from? That was the first question. The second question was in order to reduce our debt, are there any assets that the company has which could be disposed off historical assets? Those are the two questions.

Suvamoy Saha — Managing Director

Okay, thank you. So let me answer the synergy. So first of all, let me clarify that we are not part of Dabur. We are an investment of the [Indecipherable] family. So Dabur is a separate operating company, we are separating operating company. We have our own businesses to handle. So really on the synergy front, I do not know what exactly do you mean because — and we are in unlike products in any case. The only synergy I can say is that we have got the new promoters who have come on board and we look forward to them for guidance. So you know I’d say the same type of guidance which has benefited Dabur over the years, I hope that benefit would also come to us. So that is on synergy. With regard to repayment of debt, I think the operational cash flows of the company are adequate to look after those. We will see you know if at all there is anything that needed to be done on the other front.

Mithun Aswath — Kivah Advisors — Analyst

Right. And one more question. There were quite a lot of write-offs in the last couple of years. Some of these receivables. Is there any potential chance of recovering any of that in the next coming quarters or years?

Suvamoy Saha — Managing Director

So you are correct. That was the way we completely cleaned up our balance sheet by taking provisions which are should have been taken as a measure of prudence. We have launched cases in respect of each of those receivables and we are pursuing those cases in a rigorous manner. Now, when and how the process will finally end in getting us some amongst back, I am really unable to say, but I can say the management is trying its best to recap.

Mithun Aswath — Kivah Advisors — Analyst

Right. And one last question. For the quarterly results, could you just give us the breakup of each segment’s revenue and within the -battery segment, you mentioned that you are quite strong on the dry cell battery. I just wanted to understand other segments of the battery market where you’re not present and you are looking to get into, how large are those opportunities. And do you sense that you could make inroads there? If you could just touch upon that.

Suvamoy Saha — Managing Director

Yes. So first of all let me go to the category-wise breakup. Batteries we ended at INR212 crores, flashlights at INR57 crores and lighting at INR67 crores. Those were the turnover of the three categories. We triggered to batteries. As I said that we are present both in carbon sink and alkaline. These are the technologies that occupy more than 99% of the market. There is a very small niche segment of rechargeable batteries in which we play. And I think we could be one of the market leaders, but the category is so small, it is really nothing much to track at this point of time and it is a category that winds up and then it died it’s debt because of the hassle factor.

People — the consumers found it too hard to keep taking batteries out of the gadget, putting them back after charging and many of time those batteries last so long that by the time you’re charging is required and extend the charger itself is lost. So that has become a very niche Segment used by professional photographers and no one else. So basically that’s it. We are presently not in button sales and that we are having a loop, but I don’t think that would be a segment for the company would find very exciting to enter. There are also a couple of other very old technologies. These are not new technologies, but because the company is taking a fresh view of the whole sector, we are trying to review all these other categories.

Mithun Aswath — Kivah Advisors — Analyst

Right. And one last one if I can squeeze in. Earlier there was quite a lot of imports from China and I think the government put clamps on that. I just wanted to understand how much of the market is unorganized and as things become more organized you could obviously grow the market. I just wanted to understand implications of that for you and how you’re seeing the scenario.

Suvamoy Saha — Managing Director

So the newly emerging rechargeable flashlights market is currently by and large a play of an informal economy, where the unorganized players rule the roost. So that is comprising of both imports from China and also unorganized players out here who do not pay taxes. So the thing is that the segment itself is so small that it would be hard for anyone to go and sort of get successfully and anti-dumping duty done, because these are basically all undervalued imports.

Now one way of doing it is if like the government has done in the past that it brings in the mandatory standards of minimum quality assurance for the consumers in terms of DIS standard, then that’s a great thing because you know that same thing happened in batteries and all these cheap undervalued imports stopped overnight. And we are appealing to the government to do the same for flashlights. And as a result, it is good for the economy area is today prevailing in the informal part where the government is losing out on taxation, everything is done in cash. So, certainly you know this is some area that the government should look into.

Mithun Aswath — Kivah Advisors — Analyst

Okay. Thank you, sir. And all the best.

Suvamoy Saha — Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Aditya from Skilled Ventures. Please go ahead.

Aditya — Skilled Ventures — Analyst

Hi, sir. Thanks for the opportunity. Sir, we have been looking to sell some of our non-core assets, but it had been put on hold because of proceedings initiated by KKR. So what is the current status now? And some of these assets had been pledged as collateral to some of our group companies. So how are we pleased with the group company defaults?

Suvamoy Saha — Managing Director

Okay. So first of all your last part, none of our assets have been ever collateralized to the, so called earlier group. We are no longer part of that group, but there was no collateral given to any of those entities. So the status of the case against KKR is now currently under arbitration and sub judice, but we expect that there could be some result in the foreseeable future. And as I mentioned in the earlier part of the conversation, our operational cash flows are good enough to sort of take care of our repayment schedules.

Aditya — Skilled Ventures — Analyst

Right. Sir, and we had some INR81 crores of the land, that had also been pledged. So these have been pledged for our own company’s manufacturing facilities for some other purposes?

Suvamoy Saha — Managing Director

Yes. So whatever you see as pledged or hypo-ticketed, those are for the company’s own borrowings.

Aditya — Skilled Ventures — Analyst

Right. And this land, are we looking to monetize this land?

Suvamoy Saha — Managing Director

I am not really being able to connect which land you are referring to, but at this point of time, in view of the KKR’s case that is going on, there is no plan as such to sell anything.

Aditya — Skilled Ventures — Analyst

Right. And just approximately what would be the value of these non-core assets?

Suvamoy Saha — Managing Director

See, there is nothing non-core. We utilize each and every asset for our productive use.

Aditya — Skilled Ventures — Analyst

Right. Okay. And in our annual report, we had mentioned that there were some non-recurring charges of advances inventory of closed appliance business and some other expenses as well. So what would be the amount of these non-recurring charges? These one-time expenses.

Suvamoy Saha — Managing Director

So to the extent that I remember, I think the provision was taken for something like 27 odd crores, which is a combination of all these factors that you mentioned just now.

Aditya — Skilled Ventures — Analyst

Right. So in the last year there were one-time charges around INR25 crores to INR30 crores?

Suvamoy Saha — Managing Director

Yes, that’s right.

Aditya — Skilled Ventures — Analyst

Thanks. And in other financial assets there is, we have given security deposits of INR28 crores. So have this been given toward promoter group companies?

Suvamoy Saha — Managing Director

No, these are for, I think a bulk of that is the security deposit that we have given to CCI for appeal that we made. So they have been entertaining our appeal. They have taken that 17% as security deposit, which we have given. So that is certainly the bulk of it. The operating deposits, which is related to plants and whatever is.

Aditya — Skilled Ventures — Analyst

Okay. And sir, my last question is, what would be the status of the preferred consumer products company limited. Will it be merged or will it be resolved.

Suvamoy Saha — Managing Director

No, this company owns something like 25% of shares in that. There is now no connection with that we are just plain shareholder and there are no sort of business transactions with that.

Aditya — Skilled Ventures — Analyst

Okay. So we are holding 25% of that company?

Suvamoy Saha — Managing Director

Yes.

Aditya — Skilled Ventures — Analyst

Thank you.

Suvamoy Saha — Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Dikshit Doshi from Whitestone Financial Advisors Private Limited. Please go ahead. Mr, Doshi your line is in the talk mode. Please proceed with your question.

Dikshit Doshi — Whitestone Financial Advisors Private Limited — Analyst

Hello.

Suvamoy Saha — Managing Director

Yes. Please go ahead.

Dikshit Doshi — Whitestone Financial Advisors Private Limited — Analyst

Yes. My questions have been answered. So thanks for the opportunity.

Suvamoy Saha — Managing Director

Okay. Thank you.

Operator

Thank you. We move onto the next question. That is from the line of Varsha Ganesh from Shravan Capital. Please go ahead.

Varsha Ganesh — Shravan Capital — Analyst

Am I audible?

Suvamoy Saha — Managing Director

Yes.

Varsha Ganesh — Shravan Capital — Analyst

Sir, firstly, thanks for the opportunity and for patiently solving our queries. Sir, I had two questions basically. On the context of exports, how does the company’s present look like in international markets, that’s my first question. And secondly as sir mentioned about combating the unorganized sector by pushing the government to implement the DSI standard. Does the company have any specific ideologic or any strategy, any particular strategy would may be implement to combat the same like maybe a price reduction for the rechargeable flashlights and LED lighting, something like that. Is there any particular strategy the company going to adopt?

Suvamoy Saha — Managing Director

So may I first take on your second question first. So it is like this, we are moving ahead with that business irrespective of PIS — CPIs is something that the government has to do, we can only appeal to them and we can as good citizens abide by such standards as and when they are established, correct? Now, so we are while we would be certainly making efforts to get that, so that Indian consumers in products of some minimum specification. Correct? But we are not banking on that. We are going ahead with the business in the current context where there is no BIS certification requirement.

So what we are doing is, we are trying to bring products and it is finally, the consumers call, because the consumer is one thing products at a particular price point. Now in order to meet that price point and also our own standard that we would meet certain specification is a challenge, but not an answer notable one. We have the advantage of technology. We have the advantage of our team that understands knows how to deliver. So that is the base of our current policy on this business. We would on One hand pursue actively in getting this country into a proper standards process on the flashlight category. But we will carry on with this business irrespective of that in reaching products to the consumers at the price points they desire. And that would again be based on the two key assets I keep mentioning about availability through our distribution and the brand assurance. I’ll now take on your second question. We are very small in exports and currently this is not a focus area for the company.

Varsha Ganesh — Shravan Capital — Analyst

Okay, sir. Thank you.

Operator

Thank you. We’ll move on to the next question. That is from the line of Priyanka Sarkar from Fahmi Anantha Capital. Please go ahead.

Priyanka Sarkar — Fahmi Anantha Capital — Analyst

Hi, thanks sir for taking my question and for doing the call. Sir a couple of questions. So I think Bain consultancy was appointed a couple of quarters back. So just wanted to figure out what are some of the big suggestions that they have made. That’s my first question. And the second question is that, are the promoters still looking to increase their stake further, that’s a broader question I have, these two.

Suvamoy Saha — Managing Director

Okay. So listen Bain came on board from 1st January. So they have barely spent about 6, 7 months working with the company, now they really have not been engaged to kind of give some kind of Bambasticks suggestion rather they’re working shoulder to shoulder with all of us in identifying areas of opportunity granularity of data, better decision making, et cetera, et cetera. So really the company has not told them or given them a mandate to come out with any peak time some market our suggestion. We just want to make improvements in our operations and they are assisting us in that pursuit. With regard to the promoters increasing their share, I have not had this conversation with them, so I’m afraid I cannot answer this question. And it is actually be better answered by the promoters, because it is entirely their privilege.

Priyanka Sarkar — Fahmi Anantha Capital — Analyst

Fair enough sir. Thank you very much. And wish you all the best.

Suvamoy Saha — Managing Director

Thank you very much.

Operator

Thank you. We’ll move on to the next question. That is from the line of Sultan from Perpetual AMC. Please go ahead.

Sultan — Perpetual AMC — Analyst

Hello, sir.

Operator

Sorry to interrupt Sultan, can you use the handset mode while speaking?

Sultan — Perpetual AMC — Analyst

Hello, am I audible?

Operator

Yes, sir. Please proceed.

Sultan — Perpetual AMC — Analyst

Thanks a lot for giving the opportunity. So I just wanted to ask as we are even frame to reach our rechargeable battery segment. So what different if we are going to offer that we will had hedge over the other players, and the unregulated market.

Suvamoy Saha — Managing Director

Okay. So first of all let me clarify we are already in the rechargeable battery market. And as I mentioned, we are the market leader in that space. The one that we are entering or we have already entered. We will enter more meaningfully is the rechargeable flashlights, again based on the products, which are currently prevailing are low priced products and did not really meet the standards of minimum specification that one would follow. So you know our offering would be based on the assurance that our brand provides yet, we would try to address the price points as per the requirements and affordable by the consumer. That is where we stand.

Sultan — Perpetual AMC — Analyst

Thank you.

Operator

The next question is from the line of Gautham from GCJ Financial. Please go ahead.

Gautham — GCJ Financial — Analyst

Good afternoon, sir.

Suvamoy Saha — Managing Director

Good afternoon.

Gautham — GCJ Financial — Analyst

Thanks for holding the con call and giving us the opportunity to ask questions. First, is there any one-off in this quarter in terms of any one-off cost?

Suvamoy Saha — Managing Director

No. There aren’t any one-off cost.

Gautham — GCJ Financial — Analyst

Okay. And just for suggestion that you should give us the segment breakup of each of the product every quarter which will help us to understand which sector is growing at what price, what rate.

Suvamoy Saha — Managing Director

Okay. We take your suggestion. We’ll think about it.

Gautham — GCJ Financial — Analyst

Okay. And can I get the EBITDA margin in each of the segments during the quarter?

Suvamoy Saha — Managing Director

So during this quarter as I mentioned a little while back battery was at around 17% plus, flashlights at 14% and lighting at a breakeven level.

Gautham — GCJ Financial — Analyst

Okay. And if I heard it correct that you mentioned that your revenue will grow by around 15% to 20% for next three, four years right?

Suvamoy Saha — Managing Director

I would say more like 15%.

Gautham — GCJ Financial — Analyst

Correct. And you used to have margin of above 20%, we had one quarter of 2022 and two quarter during 2021. So how soon can we achieve that kind of margin that was mainly due to battery and flashlight.

Suvamoy Saha — Managing Director

That is true. And as I mentioned, that was prior to this huge run that commodities took. So, if commodity prices is up to the levels that were prevailing at that point of time, we would come back to those kind of margins.

Gautham — GCJ Financial — Analyst

But we have a strong brand. So obviously we should be able to.

Suvamoy Saha — Managing Director

We already command a premium over all the competing products. Beyond a particular point, which is about 20% odd beyond that the market starts resisting and as a result we stopped, we did not pass any further after passing the first 50%. So at this stage the market is not ready to accept any further price increase. It is not just us, many other categories are facing the same problem. So I think let us not become inpatient commodity prices have already started easing up from the end of last quarter and let us hope that things will get better.

Gautham — GCJ Financial — Analyst

Do you believe that 20% plus in battery and 25% plus in flashlight margin is achievable right?

Suvamoy Saha — Managing Director

So as I mentioned to you, if we had to commodity prices as they were prevailing about say 9 or 10 months back, there is no reason it is mathematics, we don’t have to do anything special really.

Gautham — GCJ Financial — Analyst

Okay. And have we replaced our borrowing cost of borrowing. What is they have the cost?

Suvamoy Saha — Managing Director

We have done to the extent possible. Our current borrowing rate is 8%, which I think is a reasonable one considering our size and scale and past whatever.

Gautham — GCJ Financial — Analyst

Okay. And you said there is no capex during the year. Right. We don’t have any capex?

Suvamoy Saha — Managing Director

There is some small marginal capex but not any big ticket capex.

Gautham — GCJ Financial — Analyst

And in FY24 or FY25 if you.

Suvamoy Saha — Managing Director

So that will depend on how we scale up these categories. So that would be something you know obviously the capex decision would have to be supported by the payback, ROI and things like that. I cannot rule out that there will be no capex in the next three years. But certainly, this year there are big ticket capex.

Gautham — GCJ Financial — Analyst

Okay, sir. Great. And sir, what is the tax rate. Do we have some carry forward losses which continued for some years?

Suvamoy Saha — Managing Director

So we have some benefit from our plant in SM. Our current rate is max. So it is 16% odd.

Gautham — GCJ Financial — Analyst

Okay, thank you so much. And all the best for the future.

Suvamoy Saha — Managing Director

Thank you very much.

Operator

Thank you. The next question is from the line of Sarkis Kapoor from Kapoor Company. Please go ahead.

Sarkis Kapoor — Kapoor Company — Analyst

Yes. Thank you for listening to your investors request and giving us an opportunity to place forward before the management have a better understanding. Thank you. And we look for continuity of the sale.

Suvamoy Saha — Managing Director

Thank you.

Analyst — — Analyst

Yes. Sir, firstly, if you could give us some color on the seasonality factor. In our business how does the seasons pass with multi-factor plays and how do volumes play during those times. If you could give some color on that.

Suvamoy Saha — Managing Director

Yes, so the Saket it is like this July, August are typically high offtake months, primarily due to monsoon. This year has been a little disturbed because some parts of the country saw delayed onset of monsoon. But overall, I would say second quarter is higher volumes for battery, flashlight and then closer to Diwali is higher volume for lighting products. That is how it is. But I wouldn’t put too much into the seasonality because we have to do our business consistently right through the year. But what we have seen in the past also the fourth quarter is always a lower quarter.

Analyst — — Analyst

Correct. And

Sarkis Kapoor — Kapoor Company — Analyst

Looking at the employee cost as a percentage of sales, how should this line item.

Suvamoy Saha — Managing Director

So currently we are 12% and this is what you know is one of our address areas this year in which you know somebody mentioned about Bain. This is one area Bain is working with us. And our target, maybe even though we are not yet ready to actually give you a exact time target, but our target in the foreseeable future would be to come down to 10%.

Sarkis Kapoor — Kapoor Company — Analyst

Right. And sir, when we look at the product profile for the batteries, which we’re using in the medical operators, at those times I think during the COVID times we had higher margin because of the change in the product mix. So, I think so currently the sales to those are not in that percentage. So to which segment will be the batteries attaching getting to because we have a line of different lines of batteries, different product categories are very different and the margins are also very different. So how are things shaping up for the battery segment, especially the ones which are for the higher managed seismic equipment, wherein the battery prices are also higher than the normal battery.

Suvamoy Saha — Managing Director

So it is like this. See the high margins that you saw was a period, it just coincided with COVID at which point of time and maybe due to COVID commodity prices were very low. Oil prices have gone down, all commodity prices. So it has really nothing to do with the — It is just that commodity prices in those days were extremely favorable to manufacturers and they have gone up and then again, looking to be going down. So there is really the company usually has similar margin profile on all its batteries. Of course there are premium batteries which fitch more margin there popular batteries which fitch lower margin, but that is how it is the business is like that. It has nothing to do with really health devices in particular, health devices gives some temporary volume jump.

Sarkis Kapoor — Kapoor Company — Analyst

Thanks. You mentioned INR325 crores as the net debt number. So what are our current year majority?

Suvamoy Saha — Managing Director

Are you think covered. I do not have the exact data on me, but I think it could be somewhere around 50 odd crores, which had been planned and we’ll see too that, there are no issues with regards to that repayment.

Sarkis Kapoor — Kapoor Company — Analyst

Okay. Sir, earlier also when the previous management was also used to guide investors that in our business debt should not be a part of the company’s operation. And therefore now what kind of timelines are you looking to retire debt completely and what are our current working capital requirements, and also on the utilization levels. How are our utilization levels currently shaping up?

Suvamoy Saha — Managing Director

So as you very rightly said, this companies is an FMCG company primarily and it doesn’t require any debt. So the requirement for working capital could be for a 60-day period of payables. Maybe it is net of payables. It would be about 30, 35 days. So it really doesn’t it net cash. So date that you see whether in the form of working capital or in term loan, this is all legacy and due to reasons other than businesses. So in due course of time the company’s profitability will allow us to repay those then we don’t have to hopefully take any further debt. Okay. Mam, I’ll come in the queue. No issues with that. But thank you for the extend opportunity to all of us. Thank you.

Operator

Thank you. Ladies and gentlemen. We’ll be taking the last question that is from the line of Nikhil from SIMPL. Please go ahead.

Nikhil — SIMPL — Analyst

Yes. Thanks for the follow-up. I hope I am audible.

Suvamoy Saha — Managing Director

Yes.

Nikhil — SIMPL — Analyst

Yes, sir. In the beginning of the call, you mentioned that there was, the company has not grown over the last 10 years and battery being our largest business. Would we have seen a loss of market share in the core business over the last 10 years. So what was our market share 10 years back and what is it today. And do you think that the market share Rico can be a source of growth even in the battery, other than the market growth itself.

Suvamoy Saha — Managing Director

Yes, so let me put it this way, we have been holding on to these market share of 50%, a little more than 50% for quite sometime consistently right. Now what has not allowed the company to grow is during this journey, there have been always some — federal business on weaker company did not focus and eventually dropped another perishable business that we maintained a very steady drop with very very modest growth, modest 1% to 2% growth. And in the process, what has happened, we have got ourselves now these areas of opportunity, which we did not see before. So today offers some avenue for growth. I wouldn’t say huge growth, but it does offer some avenues for growth. And so does the other categories, which we are now focusing on.

Sarkis Kapoor — Kapoor Company — Analyst

Okay. And just one follow-up here. If you look at over the last five, six years and this could be intuitive. There is a market research here. If I look at the amount of investment with Duracell has done in terms of branding and advertisement. Have you lost any pricing premium to Duracell or have they gained market share in the overall market. So the market have grown at the 5%, 6% and we’ve grown at 1%, 2% is that the case what we have seen. And Duracell is the largest competitor.

Suvamoy Saha — Managing Director

So what has happened is, you are very correct in assessing that Duracell has consistently done communication over the last five years, I would see over last 10 years. But the market was not amenable to our higher price point products, which typically Duracell sales till two years back, they decided to get into the market with lower-priced products. Right. So actually when they started selling lower priced product people who came under pressure was not Eveready, but it was our other competitors. So actually they had drops in their market share and Eveready sort of stayed the same by and large.

Duracell gave some 5%, 6% market. See price that they were very, very small. They were very peripheral product and very niche, now they tried to get into a wider market and that just coincided with the COVID period also incidentally. Apart from us the other competitors like Panasonic, they had really supply issues many as we can observe from the marketplace. I do not know what they actually deal. So it looked like in that period Duracell took advantage of that. And they seeded these lower priced product incidentally, which is a loss-making product.

Sarkis Kapoor — Kapoor Company — Analyst

Okay, thanks, sir. Thanks for answering all the questions so much detail. Thanks a lot.

Suvamoy Saha — Managing Director

Thank you. Thank you very much.

Operator

Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management forget closing comments.

Suvamoy Saha — Managing Director

So I thank everyone for taking time out to join us on this earnings conference call today. I hope we have adequately answered all your questions. If you still have any more queries, please reach out to our Investor Relations team, and we will be only to happy to address them. We endeavor to interact with all of you every quarter through this forum. Thank you once again and look forward to connecting again in the next quarter. Thank you and God bless.

Operator

[Operator Closing Remarks]