New Delhi: Diversified PSU Balmer Lawrie & Co has planned a capital expenditure of Rs 700 crore with the aim to achieve a revenue of Rs 6,000 crore by 2030, a company official said on Thursday.
It plans to diversify into ethanol production, set up a free trade warehousing zone (FTWZ) in Mumbai and upgrade facilities, Chairman and Managing Director Adhip Nath Palchaudhuri told reporters.
"The board of the company has approved a capital expenditure of Rs 700 crore,” he said.
The Kolkata-headquartered company also plans to enter third-party logistics for companies wanting to store their products, the CMD said.
Palchaudhuri said Balmer Lawrie will make an investment of Rs 330 crore for producing ethanol using rice and maize as feedstock, and Rs 220 crore for setting up the FTWZ, which is akin to a special economic zone (SEZ).
Another Rs 45 crore will be spent for setting up a third-party logistics hub at Dankuni in West Bengal.
The top official said the company is aiming at a revenue of Rs 6,000 crore by 2030, adding that this is achievable due its leadership position in certain businesses like industrial packaging, and also the presence of significant headroom for growth in verticals like grease, lubricants, travel and logistics.
"This target is achievable and we need to grow at a faster pace. The company's current revenue is Rs 2,400 crore operating across various businesses,” he said.
The PSU is also in the process of engaging a consultant to prepare a comprehensive growth plan, he said.
Palchaudhuri said the company will explore inorganic opportunities for growth if required.
Balmer Lawrie is not looking at asset monetisation, but increasing its efficiency and utilisation, he added.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)