'We have withstood headwinds to expand logistics biz, exports a key focus'

State-owned Balmer Lawrie, with a diversified presence across manufacturing and services including steel barrels, industrial greases and lubricants, corporate travel, and logistics, is aiming to drive growth by expanding its product portfolio and export footprints.

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Backed by a ₹200-crore capital expenditure plan for FY26, the company is targeting increased exports of lubricants to Africa and chemicals to Western markets, chairman and managing director Adhip Nath Palchaudhuri told Arunima Bharadwaj in an interview. Following a 19% sequential rise in consolidated net profit in Q4FY25, Balmer Lawrie is also strengthening its focus on defence logistics and scaling up its integrated logistics operations.

What is your capex target for FY26 with its break-up?

We have a capex plan of ₹200 crore. Some of that is fresh investment but it includes decisions which have been made in the previous years but are going to play out this year. Capex in the manufacturing segment would be ₹120 crore. We are also planning a big capex in IT with a transformation project of ₹90 crore. A large portion will go towards manufacturing and warehousing.

Going forward what will be your key areas of focus and which segments do you see driving the company's growth?

Our manufacturing business, which is industrial packaging, lubricants and chemicals for the leather industry, typically accounts for 60-65% of our revenues and the remaining comes from services which are logistics and travel & vacations. On the contrary, 30% of our profit comes from manufacturing and the remaining from services.