State-owned Balmer Lawrie & Co Ltd plans to acquire a domestic company offering tour operating services. Its travel services arm, Balmer Lawrie Tours and Travel, garnered revenues of Rs 1,132 crore during 2012-13, accounting for nearly 44 per cent of the company’s net sales.

“We are in active discussion with a mid-size tour company for the acquisition,” Viren Sinha, Chairman and Managing Director, said at a press meet to announce the company’s performance during the year. “The company we are in talks with runs tour packages to Europe, the Far East and South Africa."

The ticketing business accounts for almost 90 per cent of its total revenues from the travel segment. “We are very strong in ticketing but we do not have much expertise in package tours,” Sinha said.

Balmer Lawrie plans to invest close to Rs 500 crore over next two-to-three years in new projects including the setting up of a logistics hub near Kolkata and Vishakhapatnam and a steel barrel plant in Navi Mumbai. It will soon acquire 55 acres of land for setting up the logistic hub near Kolkata. The estimated investment on the project is close to Rs 150 crore.

The company has also entered into a joint venture with Visakhapatnam Port Trust for developing another logistic hub at an estimated investment of Rs 200 crore.

Q4 net up

Balmer Lawrie posted a 39 per cent rise in net profit to Rs 50 crore for the quarter ended March 31, 2013. Net sales grew 5 per cent to Rs 635 crore. The company’s board has recommended a dividend of Rs 30.80 a share, which corresponds to Rs 17.60 of a fully paid-up share of Rs 10 each on the expanded share capital for 2012-13.

The company’s shares closed at Rs 390.15, up by 0.28 per cent on the BSE on Wednesday.

For the year ended March 31, 2013, net profit grew 18 per cent to Rs 163 crore.

> shobha.roy@thehindu.co.in

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