Balmer Lawrie to revise capital allocation plan; to invest Rs 210 crore in warehouses

Breaking the sluggish growth patterns of PSUs, state-owned Balmer Lawrie is planning to revise its growth strategies. The logistics company is likely to redeploy the huge land bank and cash equivalent of nearly Rs 530 crore into productive activities in fraction.
 
The company commissioned audit major PwC to prepare a long term plan dedicated to come up with a strategic plan for optimised use of capital allocation, besides identifying and planning on segments with strong growth potential.
 
For improving its return ratios, the company will be infusing investment in its logistics operations towards developing two more cold storage chains to tap the growing demand of cold storage space. The warehouses will be equipped with a 3800 tonnes storage capacity each, with their own air conditioned vehicles.
 
Further more, the company will also be investing about Rs 210 crore in about seven climate-controlled warehouses as well as multi modal logistics parks. While the company will also take actions to strengthen its presence in container freight stations.   
 
At present, Balmer Lawrie operates in Kolkata, Mumbai and Chennai with an expansion plan in ports including Paradip, Mundra, Kandla and Dharma port in Odisha.     
  
The company has started devotedly working towards boosting its visibility by strengthening its logistics operations. The company’s move towards replenishing its logistics sector has come at a time when the sector is sought as the biggest beneficiary of GST, with market experts expecting the sector to clutch a massive boost post GST implementation.     
 
The stock closed at Rs 240 on July 14, down by 1.86 per cent on the BSE.