Unlike other National Spot Exchange Ltd (NSEL) clients with pay-in dues, the offices of Chandigarh-based LOIL Foods Ltd, LOIL Health Foods Ltd and LOIL Continental Foods Ltd are located in the heart of the city; at least the list released by the exchange said so. It also showed these companies together owed Rs 757 crore for their positions in paddy stocks.
Business Standard’s on-the-spot checks revealed the address given by the three companies (SCO 18-19, I floor, sector 9-D, Madhya Marg, Chandigarh-160017) was the corporate office of Lakshmi Energy and Foods Ltd (LEAF). There was no signage displaying the names of the three companies we were looking for.
LOIL, the common term in the three companies stands for Lakshmi Overseas Industries Ltd, promoted by S Balbir Singh Uppal about two decades ago for setting up an integrated paddy, sunflower and vegetable oil seeds processing unit.
“I don’t want to talk about this,” Uppal said.
Aged 64, Uppal hails from Chabhal, a small village in Punjab’s Tarn Taran district. He started his career as a stakeholder in a rice mill in Tarn Taran. Subsequently, he moved to Khamanon village, Fatehgarh Sahib district in Punjab and set up a rice mill there. Under him, the small rice mill expanded to become the largest rice-processing mill in the sub-continent. Sources said this was because of his strong leadership qualities and good contacts in political circles. He is said to be close to both the ruling Shiromani Akali Dal-Bharatiya Janata Party coalition government, as well as the Congress.
In 1994, LOIL acquired Lakshmi Rice Mills, a partnership concern with interests in rice shelling. In 2006, Lakshmi Overseas Industries was renamed Lakshmi Energy & Foods.
Insiders say initially, the company was incorporated under the name Lakshmi Grain Processors Private Ltd. It was converted into a public limited company in 1993 and consequently, the name was changed to Lakshmi Grain Processors (India) Ltd. In 1994, it was registered as Lakshmi Overseas Industries Ltd vide a fresh certificate of incorporation issued by the Register of Companies, Punjab, Himachal Pradesh & Chandigarh at Jalandhar.
Lakshmi Energy’s website says the firm is one of the largest producers of rice in the world. The company’s plant, one of the largest and most modern paddy processing units in the world, is spread across 125 acres along the scenic Chandigarh-Ludhiana national highway at Khamanon (Punjab).
A Lakshmi Energy and Foods Ltd employee said none of the officials of the three defaulting companies were at that office. She added the city office was largely used for meetings. “I don’t know much about the officials concerned; they would be sitting at our administrative office and work at Chandigarh-Ludhiana national highway, Khamanon, Punjab.” When asked about the last meeting at the city office, she said she didn’t have any idea.
According to the Ministry of Corporate Affairs, LOIL Foods Ltd and LOIL Health Foods Ltd were incorporated on December 15 1999, while LOIL Continental Foods Ltd was incorporated on August 6 1999. All these companies were formed with the authorised capital of Rs 1 crore.
Aditya Jain, exports head, Lakshmi Energy and Foods, said he didn’t know anything about the company, adding he had joined it only six months ago.
When asked about the officials of the defaulting companies, the company’s secretary, Ajay K Ratra, said he would revert back, but stopped taking calls after that. LEAF has paddy processing capacity of about one mt a year, complemented by a well spread-out storage capacity of about 3,00,000 mt, which is being expanded by about 10,00,000 mt by building modern warehouses.
The company has its own logistics and handling set-up, including a full-fledged transport division with about 50 wide-bodied trucks. The fleet would be increased to 100 trucks in the near future.
