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Informist, Thursday, Sep 26, 2024

By Avishek Rakshit

KOLKATA – Diversified public sector enterprise Balmer Lawrie & Co Ltd will be spending over 6 bln rupees in the next five years, across multiple projects. The investment is expected to help the company add to its revenue streams to register revenue of 60 bln rupees by 2030, Chairman and Managing Director Adhip Nath Palchaudhuri said today. In the year ended Mar 31, the company's revenue was 24 bln rupees.

The company plans to invest around 3.3 bln rupees to develop a rice and maize feedstock-based ethanol project in Andhra Pradesh. It will also spend another 2.3 bln rupees to set up a Free Trade Warehousing Zone near Jawaharlal Nehru Port Authority at Navi Mumbai, and around 500 mln rupees to set up a third-party logistics hub in Dankuni in West Bengal.

"As of now, these are the three major capex (capital expenditure) components that have been approved by the board. There are other investments which are ongoing which will help increase revenue," Palchaudhuri told the media after the company's 107th annual general meeting.

Palchaudhuri said that the projections of more than doubling the revenue to 60 bln rupees from the current 24 bln rupees is achievable as there is strong demand in most of its business verticals.

The Miniratna company has identified industrial packaging, grease and lubricants, logistics, and travel and vacations business verticals as the primary revenue drivers. "We are also going to appoint a consultant who will chart the future growth path for us," he said.

The top official said that Balmer Lawrie will venture into the third-party logistics vertical where it will handle and ship products from private companies right from the factory to the retailer or the place of delivery.

"In the next 6-9 months, we will expand our third-party logistics capacity. We have already taken 10 acres in Dankuni on 15-years' lease which will operate on hub-and-spoke model. In locations like Guwahati, Siliguri, and Cuttack, warehouses having an area of 25,000 sq ft each are going to come up, and we are also looking for setting up warehouses in tertiary locations," Palchaudhuri said. The hub-and-spoke model refers to a distribution network that uses a central hub to connect outlying points, or spokes, to one another. 

Balmer Lawrie & Co is also installing the requisite software for these warehouses which will track the logistics cycle, primary and secondary distribution cycles, and also alert the company about the shelf life of a product, he said. Today, shares of Balmer Lawrie & Co closed 0.2% lower at 263.5 rupees on the National Stock Exchange.  End

Edited by Aditya Sakorkar

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