The Hindu Business Line : Balmer Lawrie may complete UK tea unit sale next month

Kolkata, Sept. 25 Balmer Lawrie & Co Ltd expects to complete the sale of its tea blending, packaging and warehousing facility in the UK in October. The business is held by its wholly owned subsidiary, Balmer Lawrie, UK.

“We have already invited expression of interest from interested parties. SBI Capital Markets is the appointed advisor for this asset sale. We are hopeful to complete the entire process by October,” the Managing Director, Mr S.K. Mukherjee, told newspersons after the annual general meeting. The tea blending and packaging facilities in the UK are spread over about 24,000 sq ft of space at Bedford in London.

According to Mr Mukherjee, Balmer Lawrie, UK, may invest the sale proceeds in extending grease and lubricant business in South East Asian countries and logistics business abroad.

Eyes acquisition

Meanwhile, the company is preparing grounds for acquisition of an export firm — focussing on export of containerised non-perishable commodities — in India.

“The logistics arm of Balmer Lawrie has adequate strengths in third party import of containerised cargo. As a forward integration of this business, we are looking forward to acquire a company having strong presence in third party exports,” he said.

“We have already appointed a consultant for this acquisition and a few names (of target companies) are also shortlisted. We are hopeful to wrap up the deal within a year,” Mr Mukherjee said.

Interestingly the company is awaiting the Centre’s approval for appointment of (three) independent directors before taking such investment proposals forward.

Though the company was recently awarded a Mini-Ratna status, the absence of independent directors in the board forced Balmer Lawrie to take the approval of Cabinet Committee of Economic Affairs for implementation of any investment proposal. The route being time-consuming is often found unsuitable for acquisitions.

“Once the Government appoints requisite independent directors, the board will be empowered to approve proposals within a specified limit,” he said.

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