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Balmer Lawrie Van Leer Essentials

Discover and get a complete analysis on Balmer Lawrie Van Leer Limited - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, News and get the latest updates on Balmer Lawrie Van Leer Upcoming IPO.

ISIN

INE920D01015

Face Value

₹10.00

Total Share

1,79,74,814

Total Income

₹428.44 Cr

Profit After Tax

₹26.29 Cr

EPS

₹14.63

P/E

18.05

P/B

2.98

Market Capitalisation

₹474.54 Cr

Enterprise Value

₹662.04 Cr

Book Value

₹88.52

Intrinsic Value

₹220.36

Earnings Yield

5.54 %

Sector

Materials

Sub-sector

Plastics Products

Balmer Lawrie Van Leer Growth

Compounded Sales Growth

-2.11%

1 Year
0.35%

4 Year
0.42%

6 Year

Pro Only

Compounded Profit Growth

4.49%

1 Year
9.23%

4 Year
27.99%

6 Year

Pro Only

Return On Equity

16.52%

2021
19.20%

2019
15.11%

2016

Pro Only

About Balmer Lawrie Van Leer

Balmer Lawrie Van Leer Ltd. is engaged in the manufacturing of plastic container products. It is also the largest manufacturer of mild steel barrels and drums in India with a market share of around 60%. The company also provides Valérex 20/25 liter containers, Valérex 200 drums, open head drums, smartpacks, blow moulded containers, and liners. It serves steel drum manufacturers and steel drum users; and chemical, lube oil, and food companies.
It was incorporated under the Companies Act, 1956 where it was originally known as Indian Flange & Manufacturing Company Pvt. Ltd. and was engaged in the manufacture of tri-sure closure systems.
The company commenced operations from 1960 with the manufacturing of closure systems for steel drums under the 'Tri Sure' brand and it has forayed into the manufacturing of plastic containers under the brand name 'Valerex'.
In 1993, with equity participation from Balmer Lawrie & Co. Ltd. (a government of India enterprise) and Greif Inc, USA the company name was changed to Balmer Lawrie Van Leer Ltd. along with expansion of capacity of closure products and addition of new activities such as plastic containers.
The company was delisted from Bombay Stock Exchange in 2008. The company was formerly known as Tri-sure India Pvt. Ltd. and changed its name to Balmer Lawrie Van Leer Ltd. in 1993. Balmer Lawrie Van Leer Ltd. was incorporated in 1962 and is based in Navi Mumbai, India.

Balmer Lawrie Van Leer IPO Details

Company has no plan of listing in this financial year

Balmer Lawrie Van Leer Merger & Acquisition

Acquisition

On 2nd May 2001, Balmer Lawrie Van Leer Ltd. and Greif Inc. entered into an agreement whereby Greif will acquire 40.06% in Balmer Lawrie-Van Leer Ltd. for an undisclosed price.

On 27th October 2015, Balmer Lawrie Van Leer Ltd. agreed to acquire plastic drum unit from Gillanders Arbuthnot and Company Ltd. for INR 53.4 million in cash

Balmer Lawrie Van Leer Subsidiaries

Steel Drum Closure Division, Mumbai
Steel Drum Closure Division, Bangalore
Plastic Container Division, Mumbai
Plastic Container Division, Chennai
Plastic Container Division, Dehradun

Balmer Lawrie Van Leer Business Model

The company manufactures and sells steel drums closures and plastic containers in India and internationally.

Balmer Lawrie Van Leer Revenue Segmentation

Steel Drum Closures
Plastic Containers

Balmer Lawrie Van Leer Product & Services

Products:

Steel Drum Closures
Plastic Containers

Balmer Lawrie Van Leer Assets

Assets as on 31 March 2021

Total Assets:

Particulars	Amount (in Rs. crores)
Plant, Property and Equipment	119.61
Inventories	78.78
Intangible Assets	10.45

Intangible Assets include goodwill and other intagible assets.

Balmer Lawrie Van Leer Industry Overview

Industry Statistics

Plastic Containers

Plastic containers are containers made exclusively or partially of plastic. Plastic containers are ubiquitous either as single-use or reusable/durable plastic cups, plastic bottles, plastic bags, foam food containers, tupperware, plastic tubes, etc.
According to Marketline, the Indian containers and packaging market grew by 7.6% in 2021 to reach a value of $19.2 bn. The compound annual rate of change of the market in period 2017-21 was -1.6%.
The Indian containers and packaging market grew by 6.9% in 2021 to reach a volume of 6.5 million tons. The compound annual rate of change of the market in the period 2017-21 was -2.1%. The plastic segment accounts for 19.7% of the containers and packaging market.
The packaging companies serve a variety of large markets, including food, beverages, healthcare and cosmetics.
The major driving force includes rising use of rigid plastic containers in food and beverages packaging to fuel demand, also plastic based containers are used in the packaging of drugs and medicines.
Competitive Landscape: Some of the key players in this sector include Ester Industries Ltd., FlexiTuff Ventures International Ltd., Jindal Poly Films Ltd. and others.

Steel Drum Closures

Steel drum closures refers to the container used for storing, containing and transporting finished products and materials for industrial operation owing to its reliability, durability and capacity of withstanding high and low temperature extremes.
Rising industrialization, rapid increase in cross-continent trade across end users, including pharmaceutical products, petroleum, food, constructional materials and chemicals, growing demand for strong, long lasting and eco-friendly packaging and shipping solution across the industries are some of the major factors expected to drive the growth of the steel drums market size during the forecast period.
According to IBEF, the Indian chemicals industry is expected to reach $304 bn by 2025 registering a CAGR of 9.3%. This is expected to support the growth of steel drums market in India.
Competitive Landscape: Some of the key players in this sector include Greif Inc., BWAY Corporation, Schutz GmbH & Co., KGaA, Time Technoplast Ltd., Stavig Group, Great Western Containers Inc. and others.

Future Prospects

In 2026, the Indian containers and packaging market is forecast to have a value of $26.7 bn, an increase of 39.1% since 2021. The compound annual growth rate of the market in the period 2021-26 is predicted to be 6.8%.
In 2026, the Indian containers and packaging market is forecast to have a volume of 8.5 mn tons, an increase of 29.9% since 2021. The compound annual growth rate of the market in the period 2021-26 is predicted to be 5.4%.
The plastic bottles market in India is estimated to grow steadily, owing to the continually increasing consumption and industrial applications of plastic made bottles. According to Indian Brand Equity Foundation, the market demand for plastic bottles are anticipated to increase across several products and sectors, including beverage, food and water, pharmaceutical and household sector.

Balmer Lawrie Van Leer Strengths

The company has strong managerial and technical support from promoters with both Balmer Lawrie and Company Ltd. and Greif International Holdings B.V. holding 47.91% stake each in Balmer Lawrie Van Leer Ltd.
The company has established market position in steel drum closures and plastic packaging. It supplies plastic drums to various industries in the domestic market and commands around 15% of the market share.
The company has reputed customer base with long-standing relationships. The company's customer base includes reputed players in the industry.

Balmer Lawrie Van Leer Shortcomings

The company is in industry for blow-molded drums and steel closures which is highly competitive and unorganized as the products as primarily commoditized.
The company's profit margin remains vulnerable to steep fluctuations in the raw material prices, which are dependent on crude oil prices.

Balmer Lawrie Van Leer Opportunities

Growth in modern retailing, high consumer income, and acceleration in e-commerce activities, especially in the emerging economies, are likely to support the growth of the company during the forecast period.

Balmer Lawrie Van Leer Threats

The company has moderate susceptibility to volatility in raw material prices and exposure to forex risk despite natural hedge with 55% imports and 23% exports. The company's margins would remain exposed to any sharp fluctuation in raw material prices, particularly steel, or in case of changes in escalation policy with customers.