BALMER LAWRIE & Co. Ltd.

PRESENTED BY : ALTAMASH AHMADROLL NO. 42

PGDM 2014-2016

Balmer Lawrie• Founded by two Scotsmen, George Stephen Balmer and

Alexander Lawrie, in 1867 in Kolkata, India, Balmer Lawrie & Co. Ltd. started as a Partnership Firm on 1 February 1867.

• Stock price: BALMLAWRIE (NSE) Rs. 655.00 +8.35 (+1.29%)

• Headquarters: Kolkata, India

• Owners: Government of India

• Balmer Lawrie is a Mini-Ratna I Public Sector Enterprise under the Ministry of Petroleum and Natural Gas, Govt. of India, with a turnover of Rs. 2944 crores and a profit of Rs. 210 crores.

• Along with its six Joint Ventures in India and abroad and a wholly owned subsidiary in the UK, today it is a much-respected transnational diversified conglomerate with presence in both manufacturing and service sectors.

• Balmer Lawrie is a market leader in Steel Barrels, Industrial Greases & Specialty Lubricants, Corporate Travel and Logistics.

• In its 148 years of existence, Balmer Lawrie has been successfully responding to the demands of an ever changing environment, leveraging every change as an opportunity to innovate and emerge a leader in industry.

Industrial Packaging Greases & Lubricants

Leather Chemicals

PRODUCTS

Travel & Vacations Logistics Services

Logistics Infrastructure

SERVICES

Refinery & Oil Field Services

VARIOUS ACTIVITIES -Distinctive value proposition

Users Major clients are :

Indian Railways

Ship-building industry

Oil exploration companies

Heavy-engineering industries Ports

Cement plants

Integrated steel plants

Secondary steel mills

Mining complexes

WHAT CUSTOMERS ?

Marketing Channels

Institutional Retail

Fuel Stations Bazaar

Distributor

AuthorizedServiceStation

Retailer/Dealer

ExclusiveLube

Shops

Garages/Workshops

e-Choupal Fleets

OEM Export

Channels

WHICH NEEDS ?1. INDUSTRIAL PACKAGING

INDIA'S LARGEST MANUFACTURER OF MS DRUMS Balmer Lawrie is India's leading manufacturer of MS drums holding the largest market share in the country The company has a distributed manufacturing base with factories in Taloja - Navi mumbai, Asaoti, Kolkata, Chennai, Chittoor & Silvassa.

PRODUCT RANGE Balmer Lawrie's drums are manufactured in a range of various thickness configurations to suit different type of products (solid and liquid), type of filling (cold and hot), stack ability (conical and cylindrical) etc.

Product range in the Industrial packing segment consists of : Plain Steel Drums (Tight Head & Open Head) Lacquer Lined Drums (Tight Head & Open Head) Composite Drums Galvanized Drums Asepton Drums Conical Drums

It operates in the Semi Bulk packaging industry and offer products such as the 200/210 liter capacity MS Barrels for packaging of :

Lubricating Oils & Greases

Additives

Transformer Oil

Chemicals & Agro Chemicals

Food & Fruit Products

Bitumen

Bitumen emulsion.

2. GREASES & LUBRICANTS• Balmer Lawrie takes immense pride in itself for being the largest grease

producer in India and one of the ten largest grease manufacturers in Asia. Ever since its humble beginning in 1934 at Sewree in Mumbai and in 1937 at Kolkata, it has striven to attain excellence through quality, performance and innovation. Over the years it has endeavored to live up to the rich heritage and unidirectional focus of growth and sustenance of quality by keeping its strong work force constantly motivated. Today Balmer Lawrie has Manufacturing Plants at Chennai, Kolkata, Silvassa and a state-of-the-art Applications Research Laboratory at Kolkata.

BALMEROL range of greases includes : Multipurpose greases Extreme pressure greases Molybdenum greases Long Life greases High temperature greases Eco friendly/Bio degradable greases

BALMEROL range of oils include : Synthetic cold rolling oils Rust preventive oils Hydraulic oils Industrial gear oils Automotive gear oils Fil bearing oils Compressor oils High demulsibility oils Automotive crank case oils Auto transmission oils Compounded oils Fire resistant Hydraulic Fluids

BALMEROL also manufactures : Wax base wire rope compounds Gear compounds with solvents Gear compounds Bituminous compounds with rope Eco friendly gear lubricants

3. LEATHER CHEMICALS• Balmer Lawrie entered the Leather Chemicals industry in the mid 80s

initiating production in Chennai, based on scaling up of a technology developed jointly with CLRI (Central Leather Research Institute), Chennai. Since then, Balmer Lawrie has achieved many milestones, foremost amongst which is becoming the market leaders of Synthetic Fat Liquors. The company markets Syntanes to the Leather Tanneries across the country under the Brand name of "Balmol".

• While BL has its manufacturing plant and Product Development Center in Chennai, it has Technical Service Centers spread all over India in cities such as Kolkata, Kanpur, Ranipet, Ambur etc.

• BL businesses are built on indigenous technology which is steadily upgraded with modern advancements. The plants are ISO 9001, 14001 and OHSAS 18001 certified.

4. TRAVEL & VACATIONS

• As one of the largest travel & tour operator in the country Balmer Lawrie Travel & Vacations provides end-to-end domestic and international travel, ticketing, tourism and MICE related services to its clients. It is one of the oldest IATA accredited travel agencies of India.

• Operating from more than 88 locations across 19 cities in the country Balmer Lawrie works round the clock to provide reliable and cost effective travel solutions to its customers.

• Clients include major Central Government Ministries, Public Sector Undertakings, Autonomous Bodies and Corporate houses. Majority of our offices are ISO certified.

5. LOGISTICS SERVICES

• Balmer Lawrie LS offers complete logistics solutions for all types of cargo and is a reputed IATA accredited facility. Services include handling both inbound and outbound cargo including normal over dimensional perishable, temperature sensitive and dangerous consignments.

Balmer Lawrie has managed to secure the no. 1 position in India's ocean cargo operators. With over 40 well reputed associates around the world, it provides round the clock information regarding position and transit of goods ensuring cost effectiveness and assured delivery time.

Logistics Services provides the following services : International freight forwarding by ocean, air and multi-modal Air Chartering and Vessel Chartering Warehousing and distribution Custom House Agency at all major ports/airports Project Logistics Management Door to Door delivery

Some major USPs of Logistics Services includes:

Regular Consolidation services from all major international airports to India

Specialization in handling aerospace refinery & oilfield equipment for over 20 years

Chartering of all types of Aircrafts with transit/over flying permit

Association with experienced IATA agents in more than 40 Countries

Provision of door to door services including Customs clearance activity at all airports/seaports with dedicated & trained person

Specialization in handling high value time sensitive cargo

Handling of sensitive defence equipment, satellites for the defence forces etc.

6. LOGISTICS INFRASTRUCTURE

• Balmer Lawrie has three state of the art Container Freight Stations at Kolkata, Mumbai and Chennai that form part of its SBU: Logistics Infrastructure. Warehousing and distribution facilities at Kolkata and Coimbatore are testimony to its ability of being able to successfully handle a whole range of cargo promptly and safely. Entirely equipped for secure handling and on time delivery of cargo, whether it is over dimensional, perishable, temperature sensitive or standard cargo.

Offers the following services to its customers : Transportation of containers to/from Ports Full Container Load (FCL) delivery Destuffing, storage and delivery Handling Over Dimensional and Out of Gauge containers Handling and monitoring Reefer Containers Consolidation and de-consolidation of Less Container Load (LCL) Handling of cargo for exports Covered warehousing facility for storage of EXIM cargo Handling and storing Break Bulk Cargo General & Bonded Warehousing (covered & open) Tracking of Containers using RFID and SMS facility

All its CFSs are accredited with ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 accreditation.

7. REFINERY & OIL FIELD SERVICES

• The Refinery & Oil Field Services (ROFS), an integral part of the Engineering & Technology Services portfolio of the Company relates to services provided in the high technology oil & gas related areas. In this domain the focus is on providing environment friendly services centered around prevention & recovery of hydrocarbon wastes. This activity assumes greater significance with the all round concern on twin aspects of environment & safety.

Present Activities of SBU• Crude oil sludge cleaning & Hydrocarbon Recovery In-situ mechanized tank bottom sludge cleaning Lagoon/ pit sludge cleaning

• Other Services Composite Repair of pipelines & Tankages

DIFFERENT ACTIVITIES AND TRADE-OFF’S FOR EACH SBU’S

1. Industrial PackagingDuring 2013-14, the SBU continued to hold its position as market leader in India despite intense competition from various ends. The Company is India’s largest manufacturer of steel drums in the segment of Rigid Industrial Packaging. Off-take of steel drums was generally better during 2013-14 compared to 2012-13, which has resulted in the highest-ever sales volumes during 2013-14. This was accomplished despite the shrinkage of themarket in the wake of directive to Government Companies to procure MS Drums only from Small & Medium Enterprises. However, profitability remained thin and margin was under pressure.

TRADE – OFF STRATEGY ADOPTED :It is important for the SBU to innovate and push an aggressive new value-added productdevelopment strategy to tap into emerging markets, besides scaling up capacity and making processes cost efficient.

2. Greases & LubricantsIn 2013-14, the SBU recorded an all-time high sales volume, registering a volume growth of 8% and turnover growth of 11% over the previous year. This was achieved despite various constraints holding up growth of the manufacturing sector, although the bottom-line was affected due to adverse market conditions.

TRADE – OFF STRATEGY ADOPTED :The SBU developed an aggressive sales strategy for the next 2-3 years and is investing into talent and technology to ensure seamless execution in order to increase market share.

3. Performance ChemicalsPerformance Chemicals is involved in manufacturing and marketing of Leather Chemicals– in particular, Fatliquor and Syntans and has relatively recently entered the Construction Chemicals market. It also aims to make a foray into the Finishing Chemicals segment. In the Financial Year 2013-14, the SBU achieved overall turnover growth of 14% over the preceding year and overall growth in volume by 7%. The SBUachieved a commendable 43% growth in volume for overseas business in 2013-14 and achieved highest-ever export volume, which is a significant achievement.

TRADE – OFF STRATEGY ADOPTED :

The continuous escalation of raw material prices and other input costs have relentlessly squeezed the margins in the business which needs to be controlled. The applicability of REACH norms on products used in leather processing along with the tightening of pollution control norms in relation to the tannery /effluents are other major concern areas for the SBU.

4. Logistics ServicesLogistics Services offers a cluster of services, viz., import consolidation by air andocean, customs clearance at sea ports, handling of project cargo through multi-modal transportation, chartering of aircrafts & vessels, etc. Air Cargohandling and provision of related support services like customs clearance and chartering continued to form the core revenue generator of the SBU in the financial year 2013-14. However, top line growth was flat compared to the previous yearpredominantly because of slow down of the Indian economy. Nevertheless, better product mix including increased handling of air charter services Chairman’s speech 9crystallized into a growth of 15% in contribution over the previous year. The SBU registered a volume growth to the tune of around 44% in the ocean freight cargo segment.

TRADE – OFF STRATEGY ADOPTED :

It is now focusing on verticals such as Third Party Logistics and Project Logistics. The SBU plans to invest substantial amount in technology up-gradation of its existing system to inculcate Operational Excellence and make it one of the best in the industry.

5. Logistics Infrastructure

The SBU operates three state-of-the-art Container Freight Stations located at Nhava Sheva (Navi Mumbai), Chennai and Kolkata. Warehousing & Distribution has been a traditional activity of the Company and SBU: Logistics Infrastructure operates such warehousing facilities at Kolkata and Coimbatore. SBU: Logistics Infrastructure – together with SBU: Logistics Services, which has considerable synergy -- continues to be the money spinner and the bottom-line driver for your Company. However, during 2013-14, the CFSbusiness witnessed sharp decline in volume, revenues and earnings compared to the previous year on account of severe competition especially from Shipping Company-owned-CFSs, reduction 10 Chairman’s speech in volume available to CFS operators and loss of business from the shipping companies which have traditionally supported the Company.

Warehousing is an integral part of logistics value chain. Warehousing activity turned in a decent performance and exceeded the previous year’s bottom-line.

TRADE – OFF STRATEGY ADOPTED :

6. Tours & Travel

Tours & Travel offers to its customers, domestic and international travel & ticketing and tourism services. Extensive network of offices, 24x7 call centre, an online portal and experienced manpower are the strengths of the SBU. The adverse financial conditions of the Travel & Tourism sector continue to pose a threat to the SBU. Despite the adverse environment, the SBU has continued to provide sizeable turnover which is higher than that of the previous year though marginally lower than the budget. Domestic travel accounted for 60% of the turnover while international travel was around 21%. The revenue generated from tours touched 8% of the turnover.

TRADE – OFF STRATEGY ADOPTED :

In February 2014, your Company acquired the premier holidays brand “Vacations Exotica”. With this acquisition, Company has become one of the top five Leisure Travel companies in India. With the acquisition of the Vacations Exotica, the Company can now offer holiday packages along with corporate travel management services to its portfolio of corporate and government clients which number approximately 7,50,000.

7. Refinery & Oilfield Services

Refinery & Oilfield Services is engaged in the activity of Mechanized Oil Tank SludgeCleaning & Hydrocarbon Recovery Services. This SBU continues to be a pioneer and leader in this nascent market. While the market for Composite repair is still evolving, the same is expected to accelerate progressively with the increasedawareness of users. In 2013-14, the SBU maintained its turnover pertaining to oily sludge processing in Refineries and oil installations. However, overall growth could not be achieved on account of non-availability of work in the power sector.

TRADE – OFF STRATEGY ADOPTED :

In the near term, the SBU proposes to widen its service portfolio to cover processing of hazardous sludge in other industries.

FIT ACROSS VALUE CHAIN

TRANSPORTATION FILLING

SUPPLY OF DRUMS

WAREHOUSEFACILITIES

Balmer Lawrie's drums

200/210 liter capacity MS Barrels

Lubricating Oils & Greases Additives Transformer Oil Chemicals & Agro

Chemicals Food & Fruit Products Bitumen Bitumen emulsion.

Transportation of containers to/from Ports Full Container Load (FCL) delivery Destuffing, storage and delivery Handling and monitoring Reefer Containers Handling of cargo for exports Handling and storing Break Bulk Cargo General & Bonded Warehousing (covered & open) Tracking of Containers using RFID and SMS facility Covered warehousing facility for storage of EXIM cargo

International freight forwarding by ocean, air and multi-modal

Custom House Agency at all major ports/airports Air Chartering and Vessel Chartering Warehousing and distribution Project Logistics Management Door to Door delivery

THANK YOU !!!!!!!