Balmer Lawrie mulls for Rs 700 cr capex to diversify into ethanol production

"This target is achievable and we need to grow at a faster pace. The company's current revenue is Rs 2,400 crore operating across various businesses, he said.

Balmer Lawrie mulls for Rs 700 cr capex to diversify into ethanol production

According to official sources, the diversified PSU Balmer Lawrie & Co is planning a capital expenditure of Rs 700 crore, aiming to achieve a revenue of Rs 6,000 crore by 2030.

It plans to diversify into ethanol production, set up a free trade warehousing zone (FTWZ) in Mumbai, and upgrade facilities, Chairman and Managing Director Adhip Nath Palchaudhuri said.

"The board of the company has approved a capital expenditure of Rs 700 crore, he said.

The Kolkata-headquartered company also plans to enter third-party logistics for companies wanting to store their products, the CMD said.

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Palchaudhuri said Balmer Lawrie will invest Rs 330 crore for producing ethanol using rice and maize as feedstock, and Rs 220 crore for setting up the FTWZ, which is akin to a special economic zone (SEZ).

Another Rs 45 crore will be spent for setting up a third-party logistics hub at Dankuni in West Bengal.

The top official said the company is aiming at a revenue of Rs 6,000 crore by 2030, adding that this is achievable due to its leadership position in certain businesses like industrial packaging, and also the presence of significant headroom for growth in verticals like grease, lubricants, travel and logistics.

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"This target is achievable and we need to grow at a faster pace. The company's current revenue is Rs 2,400 crore operating across various businesses, he said.

The PSU is also in the process of engaging a consultant to prepare a comprehensive growth plan, he said.

Palchaudhuri said the company will explore inorganic opportunities for growth if required.

Balmer Lawrie is not looking at asset monetisation, but increasing its efficiency and utilisation, he added.

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