Balmer lines up Rs 400 cr capex for next 3 yrs

Funds to be used to develop Vizag multi-modal logistics hub and temperature controlled warehouses

Diversified mini-ratna Balmer Lawrie today said it has planned a capital expenditure of Rs 400 crore over the next three years.

"We'll have a capex of Rs 400 crore in the next three years on Vizag multi-modal logistics hub and temperature controlled warehouses," Balmer Lawrie Chairman and Managing Director Prabal Basu said here today after the AGM.

This apart, Rs 100 crore would be infused for other expansion and modernisation of ongoing activities.

The Vizag logistics hub would seek an investment of Rs 220 crore and the first and second phase of temperature controlled warehouses would attract investment of Rs 65 and Rs 100 crore.

"In the first phase, warehouses will come up at Mumbai, Hyderabad and Delhi (NCR) and four others in the second phase," Basu said.

He said the state-owned entity had drawn plans to double its turnover to Rs 3,000 crore over the next five years as against in financial year 2015.

Speaking about Transafe, the logistics solution JV, Basu said the company was keen in reviving it as the same hold potential.

"Currently, it is has been refereed to BIFR but revival plan is yet to get approval. It has huge loan book of Rs 120 crore and that needs to be restructured. Banks want one-time settlement," he said.

Balmer was looking for an investor or strategic partner to revive the company in which it holds 50 per cent stake.

In 2010, Transafe Ltd's Managing Director was arrested for alleged accounting fraud.