Balmer Lawrie to invest up to Rs 500 crore in new projects in 3 years

KOLKATA: Diversified oil PSU Balmer Lawrie today said it planned investments of Rs 500 crore over the next three years in new projects, including a container manufacturing facility at Navi Mumbai.

"In the next two to three years, we are looking at a very large investment to the tune of Rs 300-500 crore into new projects," Balmer Lawrie Chairman and Managing Director Viren Sinha said, adding the proposed Rs 100-crore container manufacturing plant at Navi Mumbai was expected to be commissioned by the end of 2014.

The new facility could increase Balmer Lawrie's output by about 30 per cent from its current capacity of 40 lakh barrels a year from the existing six plants.

"We have started construction at the site. We hope to commission the plant over the next 15 months," he told reporters after the company's 95th annual general meeting here.

Sinha said another Rs 150 crore would be invested in the multi-modal logistic hub at Vishkhapatnam, for which it was awaiting approval of the Shipping Ministry.

"It will be a fully-integrated facility, whereby we will be able to provide all kinds of solutions for logistics. Land is identified for the project. Once we get the approval, we will take it forward," he said.

The project is a joint venture of Balmer Lawrie and the Vizag Port Trust.

The firm is also evaluating the possibility of independently setting up a construction chemicals facility to cater to cement and concrete manufacturers.

At present, Balmer Lawrie produces 200 tonne of construction chemical per month in its two facilities at Kolkata and Chennai.

"The new plant primarily will be in Chennai. Total investment could be around Rs 40 crore," Sinha said.

Besides, he said, the company, which has invested Rs 25 crore in a travel portal, would make substantial investments in its tourism business.