Balmer Lawrie strategy
Diversified public sector firm Balmer Lawrie has set its sights on revenues of around Rs 2,000 crore in 2018 with growth across all three of its businesses - industrial packaging, grease and lubricants, and logistics. The company earned revenues of around Rs 1,800 crore in the last fiscal.
- Published 13.09.18
Calcutta: Diversified public sector firm Balmer Lawrie has set its sights on revenues of around Rs 2,000 crore in 2018 with growth across all three of its businesses - industrial packaging, grease and lubricants, and logistics. The company earned revenues of around Rs 1,800 crore in the last fiscal.
The miniratna company plans to commission its seventh manufacturing plant in industrial packaging at Vadodara to manufacture mild steel drums amid a bullish outlook for the petrochemicals market in the western part of the country. "The plant will probably be commissioned by this month-end or the first half of October. The capacity would be 6 lakh drums per annum.
"There is a growing market in Gujarat for petrochemicals. So the plant has been made. Total spend is around Rs 30-32 crores," said Prabal Basu, chairman and managing director, on the sidelines of the annual general meeting of the company on Wednesday. With the plant commissioned, the overall production capacity of the company would be around 60 lakh drums per annum.
In the logistics business the company is expanding through new warehouses and a multimodal logistics hub in Visakhapatnam is expected to commence operations by the end of 2018.
"We are also looking at a temperature controlled warehouse in Bhubaneshwar," said Basu.
On the logistics services side, airfreight services continue to be dominant business accounting for 64 per cent of the business revenue of the division. But Basu said that the company would explore business opportunities in ocean freight as well.
The company is also yet to rope in a partner for its loss making subsidiary Transsafe Services Ltd. The company was seeking strategic partners for the joint ventures and investment made would be used towards funding one time settlement with banks. It has a debt of around Rs 180 crore.
"We require some minimum investment to get the company back on stream. We are currently in discussion with two investors. "We want them to come with equity stake and we don't just want a loan," said Basu.