Balmer Lawrie says margins squeezed by base oil prices

Balmer Lawrie & Co. Ltd., a diversified public sector unit in the oil sector, is targeting to achieve a turnover of Rs2,000 crores (US$441.01 million) by 2010. Last year, the company achieved a turnover of Rs7,696 million (US$169.7 million). Balmer Lawrie Chairman and Managing Director S Mukherjee told shareholders at the annual general meeting of the company in September that it is targeting a gross profit of Rs200 crores (US$44.1 million) by 2010. He said that the rise in the price of base oils used for manufacturing lubricating greases was squeezing the margins of the company, while volatility in steel prices was affecting the profitability of the barrel division. (September 21, 2006)