Balmer Lawrie to hive-off tea biz
Diversified PSU Balmer Lawrie and Company Ltd on Monday said it will hive-off its loss-making tea business and specialty container division as part of the company's strategic plan.
By PTI |
KOLKATA: Diversified PSU Balmer Lawrie and Company Ltd on Monday said it will hive-off its loss-making tea business and specialty container division as part of the company's strategic plan.
The tea business had been making losses since its inception, though they have been coming down over the years, its managing director S K Mukherjee told reporters here.
The company is eyeing the tourism sector for growth and has chalked out plans to offer attractive packages to outbound traffic. "We are also looking at acquisitions in this sector," he said. Besides tourism, the company is also keen to foray into the leather chemicals business for inorganic growth.
The travels and ticketing business of the company has been the largest revenue earner among all the strategic business units of Balmer Lawrie, Mukherjee added.
The company hopes to clock revenues to the tune of Rs 2,000 crore and gross profit of Rs 200 crore by 2010, he said. During the first half of 2006-07, Balmer Lawrie earned revenues of Rs 635 crore and net profit of Rs 37.13 crore.
ADVERTISEMENT
The company has envisaged a capital expenditure of Rs 300 crore over the next four years. It would invest Rs 24 crore for expanding its steel barrel plant in Haryana and container freight station at Chennai.The expansion plans would be funded entirely through internal accruals, Mukherjee said adding that commissioning of the projects would enhance the company's turnover and profits.
Various strategic business units of the company are industrial packaging, grease and lubricants, logistics services, project engineering and consultancy, travels and tours, container freight station, leather chemicals, tea and specialty containers.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
