Balmer Lawrie & Co Ltd is set to diversify into port infrastructure as part of its proposed restructuring. The decision has been prompted by the Centre's recent emphasis on infrastructure development.
The company has taken up a mid-sized jetty project at Raichak under the Calcutta port to cater to ships between 8,000 and 10,000 tonnes.
C V Chandrasekharan, managing director, Balmer Lawrie, told Business Standard the company would initially limit itself to small projects like jetties and handling stations.
The financing of the projects would, however, depend on the equity and business restructuring the company proposed to undertake after appointing an operating agency.
Balmer Lawrie expects to generate some funds through a public issue which it plans to announce soon. According to Chandrasekharan, the company would scale down government holding, held through IBP Co Ltd, to 51 per cent from the existing 61 per cent through the public issue. The issue would enable it to widen its capital base which, in turn, would generate funds for diversification, he said.
The Balmer Lawrie board meets on October 30 to formally decide on the appointment of Infrastructure Leasing & Financial Services Ltd (IL&FS) as the operating agency for its restructuring. The details of the issue is to be worked out thereafter.
The Rs 50-crore proposed jetty at Calcutta port has a debt equity ratio of 2:1. It is to be situated at Raichak. It has already been cleared by the Calcutta Port Trust and the state and is awaiting the Centre's nod.
Balmer Lawrie is also expanding into the services sector, particularly travel and tourism. This year, it plans to handle some 3,000 outbound tourists.
Forex services have also been expanded to cater to this growing business.
The company is also looking at consolidating its air import cargo business. Last year its cargo operations turnover stood at 75 crore and the company expects to increase this to Rs 100 crore this fiscal, Chandrasekharan informed.
