Kolkata, Sep 27 (PTI) Balmer Lawrie & Company will engage a consultant to study the feasibility of entering new business areas, such as the production of ethanol and green hydrogen, to expand its revenue streams, a top official of the firm said on Wednesday.
The diversified PSU, under the administrative control of the Ministry of Petroleum and Natural Gas, currently has eight strategic business units with industrial packaging and logistics services being the key revenue generators of the company.
The Kolkata-headquartered company recorded an annual turnover of Rs 2,380 crore in the last financial year.
“We are in the process of engaging a consultant to study the feasibility of entering new areas of businesses like manufacturing of ethanol and green hydrogen and doing third-party logistics (3PL).
“The company has ambitious targets and growth plans. The study will find out whether we have the capability and bandwidth to enter these new lines of businesses”, Balmer Lawrie Chairman and Managing Director Adika Ratna Sekhar told reporters after the company’s AGM here.
The company aims at garnering a revenue of Rs 3,000-4,000 crore in the next two years, and Rs 5,000 crore in the next three to four years, he said, adding that there is a need to increase the revenue streams to meet these targets.
According to him, the study would take almost six months to be completed from the engagement of consultants.
To a query on capital expenditure to be made by the company for entering new business areas, he said Balmer Lawrie has reserves of nearly Rs 1,180 crore.
“If required, loans will be taken,” he added.
The company has warehousing facilities, which are now used for storing purposes, he said.
“We are thinking of providing last-mile delivery in the B2B (business to business) segment targeting the e-commerce firms,” he said.
The company is also looking for land in the metropolis to set up a temperature-controlled warehouse, Sekhar said, adding that such facilities will be set up in Tier II and III cities.
Balmer Lawrie has already signed an MoU with the central warehousing corporation for a similar facility at Vijayawada.
For the grease and lubricants business, the company plans to do contract manufacturing for oil marketing companies (OMCs) to strengthen its retail presence. PTI DC BDC
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.