Diversified PSU Balmer Lawrie has lined up capital expenditure of ₹700 crore, which includes an ethanol facility in Andhra Pradesh, a free trade warehousing zone (FTWZ) in Mumbai and a third party logistics facility on the outskirts of Calcutta.

“The board has approved a capex of almost ₹700 crore. Large investments would be in the ethanol facility that we are hoping to come up in Andhra Pradesh, a FTWZ in JNPA (Jawaharlal Nehru Port Authority) in Mumbai and we have commenced work on the 3PL (third party logistics) facility at Dankuni,” Balmer Lawrie chairman and managing director Adhip Nath Palchaudhuri told shareholders at the company’s AGM on Thursday.

The company is looking to invest around ₹330 crore to set up an ethanol unit with a capacity of 200 kilo litres per day. It could take at least three years to become operational.

It is also looking to acquire 15 acres from JNPA for the FTWZ where goods can be either brought into the country paying duties or exported duty free. The estimated investment is ₹220 crore.

“We are also making investments in terms of upgrading our facilities to become more efficient and also enhancing capacities,” Palchaudhuri said. Balmer Lawrie is expecting a turnover of ₹6,000 crore by 2030. It had closed FY24 with a ₹2,400 crore turnover.

“To achieve ₹6,000 crore by 2030, which is another 5-6 years, we would have to grow at a slightly faster rate than what we are growing at right now,” Palchaudhuri said.

He added that the company has diversified into various segments where it is a dominant player and has headroom to grow business in the others.

Ethanol price

The government is considering increasing ethanol prices, raising minimum selling price of sugar, and reviewing sugar exports for the 2024-25 season, food minister Pralhad Joshi said on Thursday.