The Hindu Business Line : Balmer Lawrie sells UK tea warehouse to Duncan MacNeil

Kolkata, Dec. 24 Balmer Lawrie (UK) Ltd — a wholly owned subsidiary of Balmer Lawrie & Co Ltd — sold its tea blending, packaging and warehousing facility at Bedford in London to Duncan MacNeil Group of UK, controlled by the Jajodia’s of Assam Co.

According to sources, the sale was completed on December 14 at an undisclosed price.

Confirming the sale, a senior Balmer Lawrie official told Business Line that Duncan MacNeil was the top bidder for the property spread over an area of about 24,000 sq ft. The announcement in this regard was expected to be made shortly. SBI Caps was the advisor for Balmer Lawrie on this asset sale.

According to sources, the company has decided to invest part of the sale proceeds in setting up a greenfield grease manufacturing and lube blending plant at a total investment of less than Rs 20 crore in Indonesia.

Jt venture plans

The investment will be made through Balmer Lawrie (UK) in joint venture with a local partner, which is now collaborating with the former in selling grease and lubricants in the South East Asian country.

While the joint venture strategies are now under discussion, sources say that as per the local laws, Balmer Lawrie may have to part with 50 per cent stake to the Indonesian partner.

It may be mentioned that the public sector undertaking had planned to set foot in Indonesia in 2003-04. However, the plan was delayed due to frequent changes in government policies especially with regard to disinvestments.

Logistics foray

Indonesia apart, Balmer Lawrie had plans to invest part of the sale proceeds (from UK) in logistics business in the sub-continent.

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