Balmer Lawrie managing director S.K. Mukherjee (left) with director P. Radhakrishnan in Calcutta on Monday. Picture by Kishor Roy Chowdhury

Calcutta, Oct. 23: Balmer Lawrie has set a turnover target of Rs 2,000 crore by 2010.

The Calcutta-based diversified public sector company, which has interests spanning from logistics to tourism to tea, is considering acquisitions to reach its goal.

Managing director S.K. Mukherjee said the company was ready to commit Rs 200-300 crore for buyouts.

“We are looking at opportunities in leather chemicals, tourism and logistics,” Mukherjee said.

The company has nine strategic business units at present. About a decade back, manufacturing contributed a lion’s share of the revenue. Now the services sector provides for over 60 per cent of the topline.

In future, the company wants to divest the tea and speciality container division to trim portfolio and increase focus.

Balmer Lawrie has the largest market share in the country in air ticket sales. However, its business comes from public sector companies only.

In future, it wants to expand base among retail non-corporate customers as well by offering compact tour packages.

It is, therefore, on the lookout for a company that gives Balmer Lawrie a brand and certain volume of business.

It has started to offer outbound tours in certain parts of Southeast Asia. However, an acquisition will help ramp up the volume, director P. Radhakrishnan said.

The company has mandated a consultant to identify potential targets in each segment where acquisitions are being considered.

The consultant is expected to get back to the management by this month end with the list.

Mukherjee said while the talks could start this fiscal, the actual acquisition may take place only in 2007-08.

In leather chemical, it is exploring opportunities in the finishing end of the value chain.

Balmer Lawrie now has Mini Ratna II status but it qualifies for an upgrade to Mini Ratna I.

This will empower the company board to make investment decisions worth Rs 300 crore automatically without going to the ministry for approval.

The company has four whole time directors on its board. After it appoints three additional independent directors, Balmer Lawrie will qualify for the Mini Ratna I status.

In the first six months of this year, the company has posted a marginal drop in the topline to Rs 635 crore from Rs 639 crore in the first half of 2005-06.

However, its profit after tax has increased from Rs 25.27 crore to Rs 37.13 crore, reflecting a growth of 47 per cent.

Last year, it had posted a turnover of Rs 1,244.33 crore and a net profit of Rs 46.8 crore.