India lockdown to curb flashlight maker's ability to meet demand

[MUMBAI] Eveready Industries India Ltd may not be able to produce enough flashlights in time for the nation's crucial farming season as the lockdown to combat the coronavirus impedes factories and workers.

Almost 40 per cent of flashlight sales happen between April and July, said Amritanshu Khaitan, managing director of Eveready. That's when crops are harvested and sowed, and one of the most popular uses of the company's products is on farms.

"If we are not able to manufacture just now, then to meet the flashlight demand going forward will be challenging," Mr Khaitan said by phone.

The Kolkata-based firm, whose roots go back more than a century, is India's biggest producer of batteries and claims to hold a majority share of the organized flashlights market. Its shares have risen more than 30 per cent since March 24, when Prime Minister Narendra Modi announced the lockdown, versus an 18 per cent advance in the benchmark index.

As much as 60 per cent of the market in India is unorganized and competes with Chinese goods that sell at cheaper prices, though these also may be missing currently due to the virus-induced slowdown in Chinese trade.

Mr Khaitan said the supply chain is still restricted due to the lockdown and it isn't easy to get approval from local authorities for the company's dealers to travel and service the market. Eveready has yet to receive permissions to operate as India eases some restrictions from Monday and is working with 30 per cent-40 per cent staff where it has been allowed to.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

"We are hopeful of starting a few more factories in the next one week," Mr Khaitan said.

BLOOMBERG