BIECCL manufactured unique camouflage sets for warfare, shell cases and food containers during World War II.
Even as employees of Biecco Lawrie Limited (BLL), a 100-year-old company, still hope for its revival, chances of that happening seem dim. Famous for manufacturing unique camouflage sets for warfare, shell cases and food containers during World War II, the 100-year-old British India Electric Construction Company Limited (BIECCL), which was established in 1919 and renamed as Biecco Lawrie Limited (BLL) in 1970, is set to shut down.
The decision to shut down BLL—a vintage enterprise that once used to be the pride of the British—was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) here last week. The CCEA is headed by Prime Minister Narendra Modi.
S.K. Singh, who is a functionary at BLL’s Lucknow branch, told The Sunday Guardian: “The final decision about the closure of the company is yet to come and the employees of BLL are still hopeful that the incumbent government would adopt some measures to revive the company. The employees associated with this company are sad about the developments.”
Biecco, established 100 years ago in 1919 as BIECCL, started manufacturing and repairs of tea processing machines in the country. In 1924, an electrical repair shop was established in Kolkata. In 1932, the company started manufacturing low cost Biecco fans which earned fame for the company.
However, the real fame for BIECCL came during World War II for manufacturing its unique camouflage sets, shell cases and food containers. In 1950, BIECCL started making 11 KV switchboards together with Johnson and Phillips Limited, England.
After Independence, the fate of the company changed. In 1970, the Central government renamed BIECCL as BLL and in 1979, the company was brought under the Ministry of Petroleum and Natural Gas.
A CCEA statement said: “The CCEA chaired by Prime Minister Narendra Modi has approved the proposal for closure of BLL, including giving nod for the Voluntary Retirement Scheme (VRS)/ Voluntary Separation Scheme (VSS) to employees of BLL,”
The BLL, having its registered office and headquarters at Kolkata, West Bengal, is a Schedule ‘C’ Central Public Sector Enterprise (CPSE) with 67.33% and 32.33% equity share held by Oil Industry Development Board (OIDB) and the Government of India respectively.
The remaining 0.44% shares are held by others. The company operates in four business segments: switchgear manufacturing, electrical repair, projects division and lube blending and filling facility.
According to officials in the Ministry of Petroleum and Natural Gas, the Centre took all necessary steps to revive BLL. However, the competitive business environment, huge capital requirement and the constant losses made the government’s efforts at revival to fail. The company became not just unviable, but also resulted in substantial distress for its officials and staff due to an uncertain future.
An official at the Ministry of Petroleum and Natural Gas told The Sunday Guardian: “The last effort to revive Biecco was made in 2011 when its capital restructuring was carried by the Central government. The company has consistently been under financial distress. Biecco has been making losses for the last several years.”
As per the ministry’s data, currently BLL’s accumulated losses had become more than the equity and the net worth had become negative. The net worth of Biecco stood at Rs -78.88 crore at the end of fiscal 2017-18 and the accumulated loss till March this year was at Rs -153.95 crore.