State-owned Balmer Lawrie to demerge Travel & Vacations unit

Kolkata: Diversified PSU Balmer Lawrie & Co Ltd has granted in-principle approval to demerge its 'Travel & Vacations' strategic business unit into a wholly-owned subsidiary, a move aimed at giving the division operational agility and positioning it to cross Rs 500 crore in revenue within two to three years, a top official said on Monday.

The Travel & Vacations division currently has a turnover of Rs 390 crore, accounting for around 13 to 14 per cent of Balmer Lawrie's total revenue.

"The board has given in-principle approval for carving out the travel and vacations unit for operational efficiency and to attain high growth in the coming years. However, it is subject to approvals," Chairman and Managing Director Adhip Nath Palchaudhuri said on the sidelines of the 109th AGM.


Addressing market speculation about Indian Railway Catering and Tourism Corporation (IRCTC) potentially acquiring the division, he said such reports remain rumours.

Driven by strong demand across government air ticketing, vacation travel and a rapidly expanding MICE (Meetings, Incentives, Conferences and Exhibitions) segment, the management expects the business to scale past Rs 500 crore over the next two to three years.

Balmer Lawrie continues to hold a dominant position in central government air ticketing, being one of only three authorised travel agents for the central government along with IRCTC and Ashoka Tours & Travels.

Palchaudhuri said the subsidiary structure would ensure all revenue and profit generated by the Travel & Vacations business remains fully consolidated with Balmer Lawrie, while freeing the unit from standard public sector seniority and pay-scale norms to attract specialised digital talent at market-aligned pay.

He said the move would also help accelerate adoption of Artificial Intelligence and modern booking technologies, and allow the company to enter into long-term equity, technology or strategic alliances with private corporates, banks and institutions without going through complex PSU tendering processes.