Bizbits

CRBL, CRL set to merge

MUMBAI: The board of directors of Cochin Refineries Ltd CRL has proposed the merger of Cochin Refineries Balmer Lawrie CRBL with CRL at a tentative swap ratio of 1:26 one CRL share of Rs 10 each for every 26 CRBL shares of Rs 10 each held.

The company has said in a notice to the stock exchange that the other financial issues are to be discussed and finalised with other major promoters of CRL, viz Balmer Lawrie Ltd.

Cochin Refinery Balmer Lawrie is a joint venture between the Calcutta-based Balmer Lawrie and the Ernakulam-based Cochin Refineries. The joint venture is being merged into CRL merely five years after its incorporation in 1998. The joint venture, which has an equity base of Rs 10 crore, reserves of Rs 5.2 crore, total debt of Rs 29.75 crore and a gross block of Rs 42.47 crore, has been going through rough times. The principal business of manufacture of 5,000 tonnes per annum of polyisobutylene PIB-32, a major input for production of fuel-efficient 2T oil fortwo and three wheelers, has been dented in recent times by very high LPG feed prices. The business has also been affected by the fact that the government has gone easy on implementing fuel efficiency norms for Indian auto industry. CRBL had developed, in 1996-97, an high performance 2T oil but in the absence of strict fuel emission norms, demand has failed to pick up.