State-owned Balmer Lawrie & Co Ltd is looking at hiving off its tea blending and packaging plant in Bedford, UK and acquiring a logistics firm to expand its existing logistic services.
KOLKATA: State-owned Balmer Lawrie & Co Ltd is looking at hiving off its tea blending and packaging plant in Bedford, UK and acquiring a logistics firm to expand its existing logistic services.
The Rs 1,300 crore company’s diverse manufacturing portfolio includes industrial packaging, grease and lubricants, leather chemicals and speciality containers.
It also offers services like travel and tours, engineering and technology, logistics and container freight stations, among others.
The company has two other tea blending and packaging units in Kolkata and Coimbatore.Balmer Lawrie has appointed SBI Capital Markets to advise it on the sale of the UK tea packaging unit, which managing director S K Mukherjee said on the sidelines of the company’s annual general meeting, would be complete by next month.
P Radhakrishnan, director, Balmer Lawrie said the company had decided to exit the UK venture as it was not competitive. On the planned acquisition, he said the focus was on acquiring a company with expertise in the export segment and strength in outbound cargo. This would be to supplement the logistics services being offered by the company now, he said.
The company has shortlisted a few targets, said Mukherjee. Meanwhile, the company announced the highest ever dividend of 135% for shareholders.
Mukherjee said Balmer Lawrie had achieved the highest ever profits before and after tax for 2006-07. Total turnover was up 3.8% to Rs 1,300 crore, while profit before tax was up 31% to Rs 106.16 crore from the previous fiscal. Profit after tax was up 50% at Rs 70.22 crore.
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