By Etaarifa Contributor
After closing its factory based in Nakuru, Eveready East Africa rolled out a diversification business model in 2014 as part of its five year strategy aimed at capitalizing on its route-to-market competitive advantage.
In furthering this, the company entered into partnerships with a number of organizations, among them, Sayyed Engineers Ltd of Pakistan to manufacture a large range of writing instruments including marker pens, ball pens, fountain pens, pencils and rubbers under the brand ‘Piano’; Chloride Egypt SAE for supply of car battery ‘Turbo’; and Energizer for supply of incandescent and energy saving bulbs under the brand ‘Eveready’.
Eveready, once the largest battery manufacturer in East Africa, shut down its plant in September 2014 citing decline in ‘D’ alkaline battery market due to cheap battery imports and high energy costs which had reduced its capacity utilization to 25 percent.
The factory will be converted into real estate – with Flamingo Properties Kenya Ltd using the 20 acres prime location on which the factory once sat as the flagship investment. Analysts at the Standard Investment Bank think the decisive decision, albeit delayed, will place the company in a much better position to survive, and potentially thrive despite slightly different set of risks.