48 mins ago
Balmer Lawrie Plans ₹500 Crore Logistics Expansion Over Three Years
Balmer Lawrie is a company that plans to spend about ₹500 crore on growth.
Most of the money will go toward moving goods by train.
The company currently runs three freight rakes and wants to reach about 15.
It may lease some rakes and own others.
It will also spend money on third-party logistics, which means managing deliveries for other businesses.
A logistics operation has begun at Dankuni, with more locations planned.
The company also wants to build about 1 million square feet of logistics capacity within two to three years.
A new travel subsidiary will allow the company to use staffing rules better suited to that business.
Balmer Lawrie plans to invest around ₹500 crore over the next two to three years.
About ₹200-250 crore will support its rail freight business, including potential rake leasing and ownership.
The company aims to increase its freight rakes from three to around 15.
Another ₹50-100 crore is earmarked for third-party logistics, including a hub-and-spoke network.
Balmer Lawrie is creating a wholly owned travel and ticketing subsidiary to provide greater staffing flexibility.
- Who
- Balmer Lawrie, led by chairman and managing director Adhip Nath Palchaudhuri.
- What
- The company announced plans to invest around ₹500 crore in logistics and other capital expenditure and to establish a travel and ticketing subsidiary.
- Where
- The logistics expansion includes Dankuni, Siliguri, Guwahati and Bhubaneswar, with additional projects under consideration in northern, western and southern India.
- When
- The investment is planned over the next two to three years; the announcement was made at the company’s AGM on Monday.
- Why
- Balmer Lawrie wants to expand rail freight and third-party logistics, while the travel subsidiary is intended to provide more suitable recruitment and remuneration policies.
Key facts
- Planned investment
- Around ₹500 crore over the next two to three years
- Rail freight allocation
- Approximately ₹200-250 crore
- Third-party logistics allocation
- Approximately ₹50-100 crore
- Current and target rakes
- Three currently, with a target of around 15
- Logistics capacity target
- Around 1 million square feet over the next two to three years
- Existing logistics location
- Operations have commenced at Dankuni
- Planned logistics spokes
- Siliguri, Guwahati and Bhubaneswar
- Travel subsidiary
- A wholly owned subsidiary is being established for travel and ticketing
Quotes
Adhip Nath Palchaudhuri
Chairman and managing director of Balmer Lawrie
“The same set of policies which govern recruitment, remuneration for industrial packaging, greases and lubricants or logistics, may not be suitable for travel. So we can have different policies as far as people are concerned”
telegraphindia.com
“Our capital expenditure over the next two to three years is expected to be around ₹500 crore, dominated by the railway freight business. We are right now running three rakes and we are hoping to get to around 15 rakes”
telegraphindia.com
Sources
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