The Hindu Business Line : Balmer Lawrie plans to buy tour operating co

This is in line with the company's proposed emphasis on the tours and travels business. The Mini Ratna PSU has appointed a consultant, approximately two months back, for the purpose and short-listed a few target companies. "We are presently offering mostly the air-ticketing service through our tours and travels division.

"Since all the airlines have reduced the commission on tickets substantially during the last few years, the profitability of the division has come down accordingly," Mr P.P. Sahoo, Executive Director told Business Line.

While the division has managed to register a growth in profits, so far, by increasing the volume sales, the company is now focussing on entering the tour operating business in a big way to increase the margins.

"We are currently offering a few overseas tour packages. However, we are planning to increase the offering substantially through acquisition of a medium-sized Indian company having existing operations worth approximately Rs 25 crore," he added.

On the nature of the acquisition, Mr Sahoo said that the company is open to both outright buyout of the company and entering into a joint venture with a private partner. It may be mentioned that the company is also scouting for opportunities to acquire a merchant exporter firm - focussing on export of containerised non-perishable commodities - in India.

"Balmer Lawrie has adequate strengths in import of containerised cargo," he said.

As a forward integration of this business, we are looking forward to acquire a company having strong presence in export markets," he said.

The company has already appointed a consultant for the purpose and is hopeful to wrapping up the deal within a year.

Packaging facility

Meanwhile, Balmer Lawrie is shifting its industrial packaging facility manufacturing bitumen drums from the existing location inside the IndianOil refinery premises at Panipat. The drums are supplied to IOC.

"We are shifting the facility to a new location between Panipat and Mathura," Mr Sahoo said.

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