MIRA INFORM REPORT

Report Date :

02.11.2006

IDENTIFICATION DETAILS

Name :	BALMER LAWRIE & COMPANY LIMITED
Registered Office :	21, Netaji Subhas Road, Kolkata – 700 001, West Bengal
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	29.07.1972
Com. Reg. No.:	21-4835
CIN No.: [Company Identification No.]	L99999WB1972G014835
TAN No.: [Tax Deduction & Collection Account No.]	CALB00200E
Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufactures industrial packaging, barrels and drums, LPG cylinders, greases and lubricants, leather chemicals, functional additives and marine freight containers.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 9000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	It is an old and well established and reputed company. The company’s major products are steel drums and barrels and Grease and Lubricants. The company’s track are fine. Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for business dealings.

LOCATIONS

Registered Office :	21, Netaji Subhas Road, Kolkata – 700 001, West Bengal, India
Tel. No.:	91-33-22225322 / 5314
Fax No.:	91-33-2248 3768 / 4558 / 2243 4477 / 4478 / 4479
E-Mail :	blcal@cal.vsnl.net.in blcosec@vsnl.net balmer.lawrie@gems.vsnl.net.in
Telex :	021 7435 / 2341 BLCA IN
Website :	http://www.balmerlawrie.com
Other Offices	Located at : Cargo Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kanpur, Karur, Kochi, Kolkata, Lucknow, Mumbai, Pune, Tiruvananthapuram, Tuticorin, Vadodara and Visakhapatnam Grease & Lubricants Chennai, Kolkata, Mumbai and Silvassa Industrial Packaging Chennai, Kolkata, Mathura, Mumbai, Panipat and Silvassa International Business Kolkata and Mumbai Leather Chemicals Chennai and Pondicherry Research & Development Chennai and Kolkata Speciality Containers Coimbatore Tea Packaging and Exports Coimbatore and Kolkata Travel and Tours Ahmedabad, Bangalore, Bhubaneswar, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, Thiruvananthapuram and Vadodara
Branches :	Located at Ranipat, New Delhi, Mathura, Lucknow, Ahmedabad, Baroda, Silvassa, Mumbai, Cochin, Trivendram, Hyderabad, Bangalore, Chennai, Coimbatore, Kolkata, Vizag and Bhubaneswar. Overseas Offices : UK and Russia

DIRECTORS

Name :	Mr. S. K. Mukherjee
Designation :	Managing Director
Name :	Mr. P. Radhkrishnan
Designation :	Whole Time Director
Name :	Mr. A. K. Jain
Designation :	Director [Nominee]
Name :	Mr. V. N. Sharma
Designation :	Whole Time Director
Name :	Mr. K. Subramanyam
Designation :	Director
Name :	Mr. M. Singh
Designation :	Director

KEY EXECUTIVES

Name :	Mr. R. Mukherjee
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Mutual Funds/UTI	974484	5.984
Financial Institutions / Bank	10426	0.064
Central Government / State Government [S]	7485	0.046
Insurance Companies	2161913	13.275
Foreign Institutional Investors	318766	1.957
Bodies Corporate	750866	4.610
Individuals shareholders holding nominal share capital up to Rs. 0.100 million	1456609	8.944
Individuals shareholders holding nominal share capital in excess of Rs. 0.100 million	459591	2.822
NRI - Rep	51585	0.317
NRI – Non-Rep	29656	0.182
Holding Company – Balmer Lawrie Investments Limited	10064700	61.799
TOTAL	16286081	100.00

BUSINESS DETAILS

Line of Business :	Manufactures industrial packaging, barrels and drums, LPG cylinders, greases and lubricants, leather chemicals, functional additives and marine freight containers.
Brand Names :	Balmerol
Exports to :	CIS Countries, Europe, Russia, UAE and UK
Imports from :	China, CIS, Russia, Europe and U.K.

GENERAL INFORMATION

No. of Employees :

1994

Bankers :

ABN AMRO Bank NV, Kolkata, West Bengal Allahabad Bank, Kolkata, West Bengal Standard Chartered Grindlays Bank Limited, Kolkata, West Bengal Bank of Baroda, Kolkata, West Bengal Canara Bank, Kolkata, West Bengal Citibank NA, Kolkata, West Bengal HDFC Bank Limited, Kolkata, West Bengal State Bank India, Kolkata, West Bengal The Hongkong and Shanghai Banking Corporation Limited, Kolkata, West Bengal United Bank of India, Kolkata, West Bengal

Banking Relations :	Satisfactory
Auditors :	M. Choudhary and Company Chartered Accountant auditors branches Ø Chhotalal H. Shah and Company Ø C. S. Hariharan and Company Ø Sri Raviverma and Company
Parent Company :	Balmer Lawrie Investments Limited
Associates :	Proseal Closures Limited
Subsidiaries :	Balmer Lawrie (UK) Limited, UK Balmer Lawrie [Tea] Limited [BLTL]
Memberships :	Confederation of Indian Industry

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
30000000	Equity Shares	Rs. 10/- each	Rs. 300.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
16290000	Equity Shares	Rs. 10/- each	Rs. 162.900 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		162.900	162.900	162.900
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		2095.200	1794.300	1598.400
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		2258.100	1957.200	1761.300
LOAN FUNDS
1] Secured Loans		376.900	804.700	1261.000
2] Unsecured Loans		0.000	9.000	10.900
TOTAL BORROWING		376.900	813.700	1271.900
DEFERRED TAX LIABILITIES		0.000	0.000	0.000
TOTAL		2635.000	2770.900	3033.200
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		1689.100	1763.100	1848.000
Capital work-in-progress		18.400	13.800	16.800
INVESTMENT		471.500	473.700	496.200
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	799.600	791.200	635.200
	Sundry Debtors	1846.700	1504.900	1395.200
	Cash & Bank Balances	156.500	119.700	100.200
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	602.500	570.400	584.000
Total Current Assets		3405.300	2986.200	2714.600
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	2667.400	2469.600	2209.700
	Provisions	360.300	123.300	61.100
Total Current Liabilities		3027.700	2592.900	2270.800
Net Current Assets		377.600	393.300	443.800
MISCELLANEOUS EXPENSES		78.400	127.000	228.400
TOTAL		2635.000	2770.900	3033.200

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	13293.600	10762.000	10059.700
Profit/(Loss) Before Tax	808.500	452.600	255.800
Provision for Taxation	340.500	154.300	70.000
Profit/(Loss) After Tax	468.000	298.300	185.800
Export Value	383.000	N.A.	N.A.
Total Expenditure	12485.100	10309.400	9803.900

QUARTERLY RESULTS

PARTICULARS	30.06.2006 [1^st Qtr.]	30.09.2006 [2^ndQtr.]
Sales Turnover	3114.100	3182.900
Other Income	20.700	35.600
Total Income	3134.800	3218.500
Total Expenditure	2825.500	2896.300
Operating Profit	309.300	322.200
Interest	10.700	7.900
Gross Profit	298.600	314.300
Depreciation	29.600	29.700
Tax	87.200	95.100
Reported PAT	181.800	189.500

Notes

2006-06 Quarter 1

EPS is Basic & Diluted i) Figures have been regrouped / rearranged wherever necessary. (ii) Net Sales/Income from Operations excludes Excise Duty. (iii) The above results including Segment Reporting have been taken on record by the Board of Directors at its meeting held on 31 July 2006. (iv) The above results are subject to limited review by the Statutory Auditors of the Company in terms of Clause 41 of the Listing Agreement. (v) The Annual General Meeting of the Company is scheduled to be held on 21 September 2006. (vi) The Company did not have any investor complaints pending at the beginning and end of the quarter. It had received 3 Investor complaints during the quarter, which have also been resolved during the quarter.

2006-09 Quarter 2

Figures have been regrouped and rearranged wherever necessary. 2. Net Sales/Income from Operations excludes Excise Duty. 3. The above results including Segment Reporting have been taken on record by the Board of Directors at its meeting held on 23^rd October 2006. 4. The above results are subject to limited review by the Statutory Auditors of the company in terms of Clause 41 of the Listing Agreement. 5. The company did not have any investor complaints pending at the beginning and end of the quarter. No Investor complaint was received the company during quarter.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt Equity Ratio	0.28	0.56	0.85
Long Term Debt Equity Ratio	0.28	0.54	0.80
Current Ratio	1.13	1.15	1.17
TURNOVER RATIOS
Fixed Assets	4.73	3.85	3.56
Inventory	16.49	14.78	16.98
Debtors	7.83	7.27	7.35
Interest Cover Ratio	12.71	5.12	2.59
Operating Profit Margin (%)	9.27	6.52	5.46
Profit Before Interest and Tax Margin (%)	8.36	5.34	4.30
Cash Profit Margin (%)	5.33	4.01	3.08
Adjusted Net Profit Margin (%)	4.42	2.83	1.91
Return on Capital Employed (%)	42.14	20.64	14.45
Return on Net Worth (%)	27.52	16.04	10.93

STOCK PRICES

Face Value	Rs.10/- each
High	Rs.423.90/-
Low	Rs.416.00/-

LOCAL AGENCY FURTHER INFORMATION

History :

Balmer Lawrie was established in 1867 as a partnership firm and was converted into a private limited liability company in 1924. It was subsequently converted into a public limited liability company in the year 1936 with its Registered Office at 21, Netaji Subhas Road, Kolkata – 700 001, West Bengal. The company is now a subsidiary of IBP Company Limited and has a subsidiary of its own in UK styled as Balmer Lawrie (UK) Limited.

Its' Company Registration Number is 4835.

Kolkata -based Balmer Lawrie and company manufactures industrial packaging, barrels and drums, LPG cylinders, greases and lubricants, leather chemicals, functional additives and marine freight containers. It also undertakes tea exports and trading, travel, tours, and cargo and engineering services such as turnkey projects, energy-audit and consultancy and freight-container repairs. 

It is the largest manufacturer of steel barrels in India. It has a tie-up with Fuchs Petrolub, Switzerland, to market industrial and automotive lubricants. The company has a joint venture with IOC and NYCO, France, to produce aviation grade synthetic/semi synthetic lubricants and grease for defence services. It has a tie-up with Cochin Refineries for the manufacture of polybutenes. Balmer Lawrie diversified into the manufacture of plastic containers and allied products, leather tanning and production of leather chemicals.  

During 1998-99, the company business of blending and packaging of speciality tea was successfully started with the commissioning of the plant at bedford in May, 1999. Also the plant of Avi-Oil India at Piyala, Faridabad, commenced production of aviation lubricants during the year under review. The plant of AVI-Oil India Ltd, a joint venture company, at Piyala, Faridabad, was commissioned with effect from 1 August, 1999. 

The company had executed the export order for a speciality oil consignment. The company had upgraded the Tea factory at Kolkata to cater to the growing value added business. As the government has decided to disinvest 61.8% of holding in IBP Co Limited (erstwhile holding company of Balmer Lawrie & Company Limited), to facilitate such disinvestment, a new company was formed viz. Balmer Lawrie Investments Limited w.e.f October, 2001.

Overview 

In the year 2005-2006 the company achieved significant milestones by recording all times high turnover, profit before taxes, rate of dividend and earning per share, thus delivering immense shareholder value. 

The salient features of the financial performance for 2005-2006 as compared to previous year are as follows : 

Overall turnover of the company has gone up by 24% and crossed Rs. 12000 millions. 

Profit before tax has increased by 79%. 

Earning per share has increased by 57%. 

SUBSIDIARIES :

Balmer Lawrie (UK) Limited (BLUK) 

BLUK is a wholly owned subsidiary of the company incorporated in the UK. During the year under report there has not been any remarkable improvement in the Marine Freight Container Industry in terms of utilization rates and daily rentals as compared to the preceding year. There is nothing to suggest a significant prospect in the international container leasing industry and therefore it is expected that the same trend may continue in the coming year too. 

Balmer Lawrie (Tea) Limited (BLTL) 

BLTL is a wholly owned subsidiary of BLUK. In the Tea Blending and Packaging Operation, there has been a constant decline in t demand for the traditional teas in the United Kingdom which is attributable to the continuing change in the customer's preference towards complimentary products like specialty teas, coffee and the growing range of soft drinks from mineral water and fruit juices to fizzy drinks. Recent acquisition by the large Indian tea companies in the UK has initiated a process of consolidation in this market. As a result there is severe competitive pressure in the trade. Due to increased competition coupled with cost escalations, there has been considerable adverse impact on the operating results. In view of the changes in the market conditions BLTL has already initiated the process of restructuring its business by way of opting for strategic alliance in addition to its own endeavour to enter into new markets for its products as well as tough measures to reduce its operating costs. Considering the adverse market conditions which prevailed during the year under report, the performance of BLTL is considered satisfactory. 

JOINT VENTURES

AVI-OIL India (Private) Limited (AVI-OIL) 

During 2005-2006 there was an improvement in the sales performance compared to the previous year. 

A notable achievement was the signing of the rate contract with a major Indian customer during the year. The quality of esters manufactured during the trial production at AVI-OIL was evaluated in the NYCO laboratories and certified as suitable for formulating the corresponding finished products. Sale of base esters also commenced in 2005-2006. 

Balmer Lawrie-Van Leer Limited (BLVL) 

During the year under report BLVL achieved a 7% growth in domestic sales and 18% in export sales. The overall growth in sales and other income was 15% over the last year. The growth in sales was mainly on account of volume growth in both steel closures and plastic containers. The constant increase in the price of basic raw materials i.e. steel and polymers coupled with increase in prices of all other inputs including packing and transportation had an adverse impact on the costs. The increase in cost could not be fully passed on to customers in spite of revision in the selling price primarily due to competitive pressures in the market. 

However rigorous monitoring of overheads, operating costs and improved efficiency ensured that the manufacturing overheads remained under control. 

Transafe Services Limited 

Indian Container Leasing Company Limited has been renamed as Transafe Services Limited with effect from 30 March 2006. The erstwhile container leasing activity has now become a Strategic Business Unit (SBU) called Indian Container Leasing Division. The other SBUs are Glacio Cold Chain Logistics, Indo Trailer Logistics and Creative Container Division. 

The total turnover of TSL for the financial year ended 31 March 2006 has recorded a growth of approx. 24% and with the formation of above SBUs and further with Leave and License arrangement entered into with your Company for operation of its Specialty Container Division, Coimbatore, TSL is expected to maintain its momentum of profitable growth. 

Balmer Lawrie (UAE) LLC (BLUAE) 

Balmer Lawrie (UAE) LLC registered a record turnover during the year 2005 despite difficult market condition and intense competition. Pressure on prices continued to remain as stiff resistance was faced from the customers on the price increases sought by BLUAE to offset the raw material price increases. Hence margins were under constant pressure. 

The prospects for growth in volumes, turnover and profitability, in the near future, are extremely challenging in view of prevalence of high and volatile prices in respect of main raw materials viz. steel, tinplate and HDPE, the ever increasing competitive pressure and continuing high inflation in the UAE economy. The high crude oil prices resulting in shortage in the availability and unprecedently high prices of the tube base oils and other petroleum derivatives that go as input material to customer market segments could adversely affect the business of the customers and in turn adversely affect BLUAE. 

However, BLUAE continues to retain its dominant position and share in the market by maintaining customer satisfaction at a high level by fulfilling the customer needs and expectations. BLUAE also strives to maintain high business ethics and dependability as a reliable supplier at all times. BLUAE also continues to upgrade its facilities and expand the product range. 

MEMORANDUM OF UNDERSTANDING (MOU) 

The company, on an annual basis, enters into an MoU with the Government of India at the Ministry of Petroleum and Natural Gas detailing therein various targets on operational, financial and efficiency parameters besides matters like customer satisfaction, quality and human resource development. The targets so agreed upon are evaluated by Department of Public Enterprises, Government of India (DPE) and it is a matter of great pride to report that the company has obtained the highest rating viz. 'excellent' for the financial year 2004-2005. Result of MoU signed for the financial year 2005-2006 is yet to be announced, by DPE. 

INDUSTRIAL PACKAGING [SBU – IP]

Industry Structure and Developments 

The SBU operates in the bulk packaging industry with products such as 200/210 litre capacity Mild Steel (MS) barrels for packing lubricating oils and greases, transformer oil, chemicals, food products etc and 165/200 litre MS drums for packing bitumen. The industry consists of a large number of small and medium sized manufacturers. The steel barrels / drums industry in India is characterized by surplus capacities and low growth rate. 

Prices of Cold Rolled steel (which is the main input for making barrels / drums) somewhat stabilized during the year and consequently the unrelenting pressures on margins, witnessed during the previous years with spiraling steel prices somewhat eased. 

It is estimated that, the market for steel barrels / drums recorded a marginal growth during the year. A new sector opened up during the year in retailing distribution of kerosene oil. The SBU continued to retain its lead position during the year in terms of market share despite increased competition. 

Outlook 

Increase in exports of food products from India should lead to an increased demand for drums in this segment. It is also expected that with the projected growth of GDP of the country, the steel drum market would continue to grow, albeit at a relatively low rate. 

The SBU has planned further rationalisation and consolidation of capacities during the coming year to improve operational efficiencies and reduce costs. 

GREASE AND LUBRICANTS (SBU - G&L) 

Industry structure and developments 

The market for lubricating oils and greases in India is estimated to be about 1.2 millions tons per year valued at around Rs. 70000 millions. 

Lubricants (oils and greases) for use in automobiles account for over 60% of the market. Lubricants for industrial and marine applications account for the rest. The SBU is a major participant in the industrial lubricants segment and also accounts for a large share of the automotive greases. The SBU also markets a comprehensive range of automotive lube oils. 

The industry has a large number of players consisting of national oil companies, multinational oil companies, specialist lubricant companies like Balmer Lawrie and companies operating in niche product segments. Small-scale and unorganized sectors also have significant presence in some territories. Both in lubricating greases and oils, there is surplus production capacity in the country. 

Outlook 

The expected growth in the domestic industrial and agricultural sectors provides growth prospect in demand for lubricants. Demand is expected to increase particularly for speciality lubricants delivering superior performance both in domestic and international market. 

LOGISTICS SERVICES (SBU-LS) 

Industry Structure and Developments 

The Logistics Services SBU of the Company offers a wide array of services for both imports and exports covering, Air Freight Services, Ocean Freight Services, Air & Sea Chartering, Project Cargo Management, Customs House Clearances, Warehousing and Surface Transportation. The industry comprises large multinational companies, large Indian companies and also small operators. 

The recent developments that are likely to influence the business are:- 

* The Government's export-led growth strategy opens up new opportunities for the industry. 

* India's airfreight market is growing at around 16% 

* Mumbai and Delhi airports are ranked amongst the top 50 airports in the world in respect of cargo volume handled. Bangalore airport is also ranked among the fastest growing airport. 

While Indian Industry has generally been experiencing good growth, the spiralling crude oil prices may adversely effect growth in trade and exchange rates. 

Outlook 

The SBU has established a wide network of offices offering a basket of tailor made value added services. The industry is seeing a fair amount of consolidation. With mergers and acquisitions being the trend IATA expects that BRICK (Brazil, Russia, India, China & Korea) countries to be the drivers of EXIM trade in the coming years. The SBU is now positioned for further growth. 

PROJECT AND ENGINEERING CONSULTANCY (SBU- PEC) 

Industry Structure and Developments 

The SBU has been offering its services mainly to the oil and infrastructure sectors. Large EPC firms continue to compete for medium and small projects in the domestic and overseas markets. Fierce competition continues to put pressure on operating margins. 

The steep increases in prices of steel and cement has been a major adverse development for all companies executing fixed price turnkey projects. 

Outlook 

In the short term the SBU expects to retain the recoveries in its turnover but profitability may continue to be weak. The SBU is taking up longer term strategies of building competencies and associations in various growth areas of Hydrocarbon Engineering & Technologies. With this strategy the SBU has since been renamed as 'Engineering & Technology Services.' 

TRAVEL AND TOURS (SBU - T-T)  

Industry Structure and Developments 

Travel facilitation industry have around 1500 IATA approved agents and over 15000 non-IATA agents operating in the country. Of these, only about 20 are large operators with multi-locational presence. The SBU, one of the largest operators in organized sector, operates through twelve branches spread across the country. The SBU primarily caters to government, corporate and institutional clients. 

The fragmented structure of the industry, coupled with financial compulsions of airlines had over the past few years led to a decline in commissions and earnings potential. Some of the other notable developments were: 

* Opening up of skies in India and also Indian airline companies in the private sector making forays in International routes. 

* Projected large additions to fleet by major airlines. 

* Coming together of banks and airlines to offer travel discounts on tickets purchased through credit cards. 
* Entry of 'no frills' airlines whose fares are 30-50% cheaper than other established domestic carriers. A few more 'no frill airlines' joined the fray during the year. 

* Reducing commission on ticket sales. 

* Trend of consolidation through merger & acquisitions. 

Outlook 

The outlook on financial returns to travel facilitation industry continues to be depressed on account of reduction in commissions and direct marketing by airlines. 

However, the overall prospects of travel and tourism are encouraging in view of the overall buoyancy in the economy and the policy proposals to further open up the aviation and tourism sectors. 

CONTAINER FREIGHT STATION (SBU- CFS) 

Industry Structure & Developments 

Since the opening up of the economy to global market forces, India's export / Import trade has gone up substantially resulting in rapid build-up of cargo volumes. This, in turn, has created an unprecedented pressure on the existing port capacities giving rise to the need for expanding existing terminal operations and other cargo handling infrastructure. 'Container Freight Station' (CFS) which operates as an extension of the port greatly helps manage such space constraints in ports. Typically the activities carried out and services rendered at a CFS include – 

* Aggregation of long distance cargo 

* In-transit storage 

* Warehousing 

* Custom house clearance 

* Transportation to and from ports 

Ports, the gateway to India's international trade by sea handle over 90% of the country's foreign trade. Presently, half of the world's traded goods are containerized and this proportion is expected to increase further. India's container traffic is presently around 4.5 million TEUs (twenty feet equivalent units). 

The Company has CFS’s at Kolkata, Navi Mumbai and Chennai. Container traffic in the locations where Balmer Lawrie has its CFS accounts for the majority proportion of the total volume of the containers handled in the Major ports of the Country. 

SPECIALITY CONTAINERS (SBU - SC) 

Industry Structure and Developments 

The current product-mix of the SBU can be broadly categorized as Housing Containers, Insulated Boxes, Containers for Transport Sector (Dry van, swap body etc.) and other Speciality Boxes. The features of the speciality containers have been undergoing many changes with improvements in knowledge of designing custom built boxes and new applications are constantly emerging. Some of the new areas where considerable work has been done by the SBU include (a) Acoustically / Thermally insulated boxes for a variety of applications. (b) Super speciality containers, (c) Refrigerated containers for cold chain applications and (d) Containers specially designed for Armed Forces, Space research etc. The SBU is in discussion with Strategic Partners who can provide increased market reach and also help in inducting new technologies. 

Outlook 

Domestic requirements for speciality containers are expected to grow steadily in the coming years. There are also a few opportunities for export of some of the speciality containers. It can also grow by leveraging its strengths in design and development of speciality containers. 

In order to exploit its full potential, Transafe Services Limited, a joint venture engaged in container leasing activities in India and abroad, has been granted permission to use the manufacturing facilities at Coimbatore on 'Leave & License' basis for the period of one year w. e. f 1^st April 2006. 

The company has been accredited with ISO 9002 Certification.

ISO 14000 certification was achieved in Grease & Lubricants Plant, Kolkata

The company is in trade terms with :

˜ Atlas Paper Industries

˜ Eastern Polycrafts Industries Limited

˜ Essem Drum Manufacturing Company

˜ Ganapati Metchem (Private) Limited

˜ Indian Packaging Company Private Limited

˜ Makali Metals Private Limited

The company also has joint ventures with the following :

˜ AVI-OIL India Private Limited

˜ Balmer Lawrie (UAE) LLC

˜ Balmer Lawrie-Van Leer Limited

˜ Indian Container Leasing Company Limited

˜ Indian Marine Freight Container Manufacturing Limited

The company has collaboration with the following :

˜ Chevron Research & Technology Company, USA

˜ Fuchs Petrolub AG, Germany

˜ Hispano Quimica SA, Spain

˜ Nyco SA, France

˜ Royal Packaging Industries Van Leer BV, The Netherlands

˜ Tectrans Technology GmbH, Germany

˜ Timac BV, The Netherlands

˜ Transamerica Leasing Inc, USA

˜ Vanderbilt Corporation, USA

The company’s fixed assets of important value include land (freehold and leasehold), buildings & sidings, plant & Machinery, electrical installation and equipment, furniture & fittings, typewriters, accounting machines and office equipment, tubewells, tanks and miscellaneous equipment and vehicles.

WEBSITE DETAILS

A vision that Bloomed

Established in 1867 by two Scotsmen, George Stephen Balmer and Alexander Lawrie, the company represents a tradition of stability and resilience. High standards of customer service, innovative outlook and dedicated human resources have enabled the organization to achieve a leadership role in today’s highly competitive markets. Materializing the vision of it’s founders, the company is a diversified multi-activity, multi-technology, multi-location conglomerate with interests in Greases & lubricants, Leather & functional chemicals, Packaging, Turnkey projects, Tea exports, Travel & tourism and Cargo & Logistics.

Mission

"To gain market leadership in all Business segments, make them robust and thereby surpass a turnover of Rs 20000 millions and profits before tax of Rs. 2000 millions by 2010".

"In this journey, foster a century old tradition of deep rooted commitment to business values, employee pride in the organization and advancement of social benefits".

Vision

To be a respectable corporate entity having market leadership with global footprints in the chosen areas of operations, consistently delivering share holder value, with a high degree of environmental and social responsibility.

Corporate History

Balmer Lawrie became a private limited company in 1924 and a public limited company in 1936. In 1972 Balmer Lawrie became a subsidiary of Indo Burma Petroleum Co. Ltd. (presently known as IBP Company Limited) and a government company.  

IBP Company Limited, by a Scheme of Arrangement has transferred their holding of 61.8% to Balmer Lawrie Investments Limited on and from 15th October 2001. Besides public holding of 18%, financial institutions and insurance companies collectively hold about 20% of the capital.

The equity shares of Balmer Lawrie are listed with Madras, Mumbai and National Stock Exchanges.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.45
UK Pound	1	Rs.84.83
Euro	1	Rs.57.12

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	8
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		69

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions