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| Exchange Disseminated Time | With reference to the news item appearing in a leading financial daily titled "Balmer Lawrie set to buy 50% in travel firm", Balmer Lawrie & Company Ltd has submitted to BSE its clarification.
1. As reported in the Economic Times dated June 17, 2008, the Company is
exploring the possibility or acquiring a tourism Company to grow in the Travel & Tourism Space, which is one of the major revenue earning Strategic Business Units (SBU) of the Company.
2. SBI Capital Markets Ltd has been appointed by the Company to advise
on the modus operandi for possible acquisitions and have done some desk-top valuations. Further progress would depend on results of detailed due diligence to be undertaken in due course after reaching in-principle agreement with the target company. Discussions with the target Company are in progress.
3. If the proposed acquisition in the Travel & Tourism segment rectifies, the equity stake which the Company would aim for in the target company - would be maximum 50 percent.
4. For achieving organic and inorganic growth, the Company has, under its Capital Budget 2008-09, allocated a sum of Rs 100 crores as plan expenditure.
5. The Company has identified a location at Pune for setting up a Travel & Tourism office for expending its business activities.
6. The Company is exploring opportunities for setting up Container Freight Stations in the Southern and Western Coasts, Setting up of Inland Container Depots in the Northern India, especially in and around the National Capital Region is also under evaluation.
7. The company is exploring possibility for setting up Modern warehousing facility at Kolkata to further expand in the Logistics services sector, while
is one of the segments strongly driving profits of the Company.
8. It is true that the Company is aiming for 100 percent capacity expansion of the Container Freight Station located at Chennai and the site work in this
direction is in progress.
9. As regards the proposed Container Freight Station at Tuticorn, the Board of Directors has approved the proposal for which the Company is
for acquisition of land.
10. The retail business of the SBU - Grease & Lubricants has grown by around 30% over the last financial year. The Company has begun marketing its lubricant products in the South-Asian markets like Indonesia.
The above mentioned proposed expansion plans are part of the growth plans - organic & inorganic earlier reported to the Shareholders of the Company under the Management discussion a analysis report in the Annual Report of the Company for the year 2006-0. it has inter alia been mentioned therein that.
QUOTE
SBU - Travel & Tours
The SBU continues to have aggressive growth strategy through addition of new dientele and increasing foot prints in new areas. the SBU also expects to trigger lateral diversification to tours.
The SBU is expected to acquire additional space at all CFSs and took for opportunities in other port areas to expand its activities to reap the benefits of growing economy as the GOI initiated study on perspective plan for port sector vision 2020, states that the volumes of business could grow three hold by 2020.
SBU - Grease & Lubricants.
The Company also expects to grow its export in the medium term
UNQUOTE
The above developments are part of the regular scanning of the business horizon for achieving growth in the existing business lines of the Company which has from time to time been decision through the published Annual Reports. |
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