Balmer Lawrie & Co Ltd today said it would set up a lube and grease manufacturing base in Indonesia in a joint venture with a local company.
"We have decided to set up lube and grease manufacturing in Indonesia through a 50:50 joint venture with a local company," Balmer Lawrie Managing Director S K Mukherjee said here today on the sidelines of the AGM.
"The total project cost is USD 5 million, of which USD 2.5 million would be equity. Our total investment would be USD 1.25 million," he said.
The investment would be made through UK-based subsidiary, Balmer Lawrie (UK) Ltd which is currently not into any active business. The capacity of the plant would be 6,000 tonnes of lube and grease which would be marketed under the Balmer Lawrie brand. The local JV partner, PTI-W group distributes Balmer lubes in Indonesia, the company said.
Speaking about the impact of the austerity measures of the Union government, Mukherjee said, "this would definitely have an impact as government business in our travel and tourism department is 50 per cent. The austerity measures will impact revenue." To a question on plans for the tea division Mukherjee said, a roadmap would be finalised by the end of the year.
