Balmer Lawrie earmarks Rs 300cr for growth

Diversified PSU Balmer Lawrie & Co. has set aside Rs 300 crore for organic and inorganic growth as per the strategic plan prepared by the firm for 2012.

The company was working towards implementation of the strategic plan, S K Mukerjee, MD, Balmer Lawrie told PTI.

He said the company was looking for inorganic growth in the business divisions of construction chemicals, leather chemicals, tourism and logistics.

The firm was scanning targets in these areas, Mukherjee said, adding that nothing specific had been identified.

Meanwhile, the company's tea blending unit in the UK has been put on the block, he said, adding that Duncan Macneill group has emerged as the highest bidder for the unit. The complete sale process was expected to be over by January 2008.

Mukherjee said the bidder would now start the due diligence for the UK unit.

Balmer Lawrie has a blending and packing unit at Bedford and a free-hold property of 19,000 sq ft.

Mukherjee said the proceeds of the UK unit sale would be preserved there for utilisation in other investments.

The company had earlier decided to sell the UK unit since it was perennially making losses.

Balmer Lawrie UK was involved in blending and packing tea sourced from countries like India, Sri Lanka and Kenya.

Regarding organic growth, Mukherjee said the company's container freight station and inland container depots were the two targeted areas.

The MD said all the investments would be funded from debt and internal accruals.