Diversified PSU Balmer Lawrie & Co Ltd is eyeing organic growth across all its six strategic business units (SBUs), a top company official said.
"We are looking at organic growth in all SBUs as inorganic growth was not possible as the funds available for buy-outs were limited," Chairman and Managing Director Prabal Basu said.
The company was facing challenges at the Kolkata plant of industrial packaging (IP), owing to lack of demand from the private sector as government orders were restricted only to the MSMEs, and not the PSUs.
Basu told PTI that the net worth of the company was Rs 1,000 crore and only 15 per cent of that could be used for funding acquisitions. "This amount of Rs 150 crore was little for buy-outs," he said.
Almost a debt-free company, Balmer Lawrie was also not too keen on leveraging, Basu said.
"At present, all the SBUs were on growth path. We are shortly going to commission one IP plant (steel drums) at Gujarat at a cost of Rs 25 crore to Rs 30 crore," he said.
Regarding the Kolkata plant, Basu said challenges were being faced due to lack of industrialisation in the state, leading to dearth of private orders. "We are looking for newer product lines at the plant."