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Kolkata, 26^th September

The 95^th Annual General Meeting of Balmer Lawrie & Co. Ltd. was held at Kolkata on 26^th September.

Below is an extract of the Chairman’s Speech:

Overall Financial Performance

In 2011-12, Balmer Lawrie has achieved its highest ever turnover with net sales crossing Rs. 2450 crores as against Rs 2148 crores in 2010-11. Profit Before Tax increased from Rs 181 crores in 2010-11 to touch Rs 190 crore in 2011-12, marking a growth of more than 5% in PBT.  If you consider Profit After Tax there was a commendable 14% increase in PAT.

Against the backdrop of the impressive financial results, a dividend of Rs 28 per share or 280% was recommended.

The First Quarter: 2012-13 – The Company turned in a good performance recording PBT of Rs. 65.70 crores representing an increase in 2% compared to corresponding period in the previous year and a Turnover of Rs. 713 crores, which was a 12% rise compared to the corresponding period in the previous year.

Performance of Strategic Business Units (SBUs)& Future Outlook

Balmer Lawrie is a widely diversified and multifaceted PSU, having its presence, both, in manufacturing and service sectors.

SBU: Industrial Packaging (SBU:IP) – During the fiscal 2011-12, it was able to maintain dominance in terms of market share. Marketing & distribution wings have been strengthened to step up growth in the future. 2011-12 has set a new mark in terms of volume sales. Performance of SBU:IP has improved after commissioning of its new plant at Chittoor, Andhra Pradesh. The future would witness SBU:IP expanding its product range, nurturing its leading edge technology and technical expertise and moving up the value-chain as a ‘most preferred supplier’.

SBU: Greases & Lubricants (SBU: G&L) – It closed the fiscal with a moderate to good performance, recording its highest ever turnover and posting a reasonably good growth over the previous year. Its products are marketed under the Balmerol brand, which is one of the renowned brands in this sector.

In the current financial year, the focal area would be to manufacture and supply eco-friendly/biodegradable lubricants and value added specialty products for the steel and automobile industry.

SBU: Logistics Services (SBU: LS) – During the year under report, the SBU recorded all round growth in its activities with ocean showing a growth of 36% and air 15%. SBU:LS would aim at enhancing its customer base and offering logistics solution to the private sector. Plans are being chalked out to open new branches in potential locations to have increased presence across the country and facilitate provision of door-to-door customer solutions.During 2011-12 three new branches were opened. It also has plans to enter into long-term contracts / tie-ups with potential customers and shipping lines. Also on the anvil are plans to induct strong associates at suitable locations abroad, having growth potential.

SBU: Logistics Infrastructure (SBU: LI) – At a macro level, Container handling at major Indian ports has grown by 6% in 2011-12. This SBU was the star performer in fiscal 2011-12 recording significant volume growth at all three of its locations (Kolkata, Chennai, Mumbai) and has excelled in performance both in terms of profit and turnover. During the year major capacity expansion has been undertaken at all three CFSs. The future looks promising since the EXIM business in the country is booming.

SBU: Tours & Travel (SBU: T&T) – During 2011-12 the performance in the 3 segments (domestic travel, international travel & tour packages) was generally up to the budget estimates. The SBU has launched its web portal, a 24x7 call centre and has taken up steps to upgrade its technology. The online travel portal has become fully operational and is expected to generate more revenues. Attractive domestic and international tour packages are being uploaded on the portal and marketed to capture a slice of this market.

SBU: Performance Chemicals (SBU: PC) – Sales volume during 2011-12 was lower than the previous year but the turnover remained at the same level. The SBU is poised to enter into the potentially attractive Constructions Chemicals market. The SBU has initiated discussions with Infrastructure Companies, Ready Mix Concrete Plants [RMCs], builders and consulting Civil Engineers. Balmer Lawrie is one of the major exporters of leather chemicals in the country and the export income contributes about 20% of the SBU turnover.

SBU: Tea – Has performed better as compared to the fiscal 2010-11. SBU:Tea has successfully penetrated the retail markets with its new brand s of Tea – Tarang range of tea in anew avatar and has also introduced premium range of Darjeeling Black & Green teas under the trade name of ‘Balmer Lawrie The Tea’. Domestic retail sale of these products has increased.

SBU: Refinery & Oil Field Services (SBU: ROFS)–has attained significant growth compared to the previous year and it is anticipated to further build on this in the coming years. It plans to increase its service portfolio by entering into composite repairing services and hazardous sludge cleaning for non-petroleum industries.

Corporate Social Responsibility

During the fiscal 2011-12, Balmer Lawrie spent around Rs. 256.65 lakh on CSR programmes, exceeding the stipulated benchmark of 2% of the post-tax profits as laid down by the Government.