The shareholders at the 48th Annual General Meeting held in Nakuru also gave a green light for the company to partner with Orbit Chemicals to create a joint 50-50 manufacturing venture.
“This gives us an opportunity to diversify into new products which fits in well with our strategic plan that is anchored on diversification,” Eveready East Africa Managing Director Jackson Mutua said.
Mutua said the equipment have already been written off in the company’s books.
Disposing of the equipment will allow the utilization of the factory land profitably with a feasibility study having already done to identify the best investment options.
On the other hand the joint manufacturing venture will give Eveready a presence in the household manufacturing segment, including production of detergents, which is considered a growth sector in Kenya.
The joint venture would also leverage on Eveready’s distribution network countrywide while Orbit will provide manufacturing expertise.
“The partnership will apply only to the specific products that will be manufactured and does not affect the entire company,” Mutua said.
He said the two moves would ensure sustainable growth for the company, which closed manufacturing in Kenya last year to source for supplies from Energizer Egypt.
The listed firm believes the implementation of the company’s five-year strategy launched in September 2014 will see the firm diversify its business.
The company has already launched a quality range of car batteries for a broad spectrum of usage under the TURBO brand. The batteries are manufactured by Chloride Egypt.
The company’s chairperson Lucy Waithaka said the board had evaluated the strategic decisions and was confidence they will provided sustainable growth for the company.