An Eveready official described the decision as 'unprecedented' as plea for imposing restrictions has been denied because of profitable nature of the Indian businesses
Eveready Industries is set to appeal against Directorate General of Anti-Dumping & Allied Duties's decision of not taking actions against cheap Chinese imports.
An Eveready official described the decision as 'unprecedented' as plea for imposing restrictions has been denied because of profitable nature of the Indian businesses.
"The open note that the directorate has put up clearly shows evidence of dumping taking place from China. However, they rejected our application on the ground that companies in the industry are making profit. This is absolutely unprecedented. The industry is now referring appeal against that rejection," Suvamoy Saha, Eveready finance director has told analysts.
The Directorate General of Anti-Dumping and Allied Duties in October 2015 initiated the probe into alleged dumping of batteries by China and Vietnam following representation by the association.
The initial observation by the government triggered enthusiasm among the battery players, notably Eveready, which dominates the dry-cell batteries with more than 50% market share.
Initiating investigation into the alleged dumping of AA Dry Cell Batteries originating in or exported from China and Vietnam, the Directorate General observed that there was "sufficient evidence of dumping" and "injury to the domestic industry and causal link between the alleged dumping and injury' exist to justify initiation of an anti-dumping investigation."
Final observation has now surely surprised battery makers.
"We have to see which way it goes. The appeal would get disposed off in the course of the next six months," Saha said.
If the DGADAD continues with its decision not to impose duties, it would hurt the battery makers as AA size account for 70% of the dry cell battery market.
The directorate found that the allegations by the industry that it suffered irreparable harm was not supported by underlying facts.
Investigating imports from April 2014 to March 2015, it found that the domestic industry was not negatively impacted.
The only positive factor is that the government has cleared a proposal of making domestic quality standards mandatory for imports to prevent cheap quality products flooding the market.
"The standards have been approved and made mandatory but would come in the public domain in another three-four months," Saha said.
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Initiating investigation into the alleged dumping of AA Dry Cell Batteries originating in or exported from China and Vietnam, the Directorate General observed that there was "sufficient evidence of dumping" and "injury to the domestic industry and causal link between the alleged dumping and injury' exist to justify initiation of an anti-dumping investigation."
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