Balmer Lawrie targets Rs 2000 cr business, capex at Rs 300 cr

Kolkata, Oct 23 (UNI) Balmer Lawrie&Co Ltd today said it will invest around Rs 200-300 crore in expansion and acquisition of existing line of business in the next 3-4 years to reach a target of Rs 2,000 crore turnover and Rs 200 crore profit by 2009-10.

The company was looking at acquisition opportunities in leather chemicals, tourism and logistics sectors, Managing Director S K Mukherjee told reporters here.

The public sector company, having a strong foothold in the ticketing for tourists, was looking at huge potential in outbound tourist from India and targeting at acquisition of companies, which would help it formulate tourist packages and create brand of its own.

The company, expecting Rs two crore from tourism business, had already formulated packages for Singapore-Malaysia and Bangkok area and would unveil a Middle East package soon. The public sector companies are the major customers for Balmer Lawrie's tourism products.

The company, deriving 22 per cent revenue from logistics division, was also aiming at inorganic growth opportunities in air and sea exports segment, Mr Mukherjee said.

In leather chemicals segment, Balmer Lawrie was looking at acquisition of companies, which could add to the finishing line of the products. " We have engaged an agency for finding the companies, which can be acquired and a report is expected by the end of October, " Mr Mukherjee said.

The Managing Director said the company was looking at exiting the loss making tea in the next five years. The company was also evaluating hiving off the speciality container division.

He said the company was setting up a steel barrel plant at Asaoti in Haryana and expanding its container freight station in Chennai at a cost of Rs 24 crore.

The company reported a 47 per cent increase in profit after tax for the first half of the current fiscal at Rs 37.13 crore from Rs 25.27 crore, while the turnover was marginally down from Rs 639 crore to Rs 635 crore.

UNI ABA/TJP/SJC/AKP1706