Diversified public sector company Balmer Lawrie is exploring alternate revenue streams amid shrinking business from Container Freight Services (CFS) and Refineries and Oilfield Services (ROFS).

The new business streams could potentially include third-party logistics services, building warehouses for e-commerce players, making a foray into ethanol and green hydrogen production, special freight train operations and exploring export markets for industrial packaging among others.

Following the annual general meeting of the company on Wednesday, Balmer Lawrie chairman and managing director Adika Ratna Sekhar said that the company is undertaking project studies to identify feasible business diversifications. “In six months we will have a clear strategy on the way forward,” he said.

“Dwelling days at CFS are coming down because of the government's Direct Port Delivery. So our revenue is shrinking in CFS. The capacity in our CFS is not being utilised fully. Therefore the primary thinking is the need to diversify,” Sekhar said. Balmer Lawrie currently operates 3 CFS - Nhava Sheva-Mumbai, Chennai and Calcutta.

“We have plans to enter third party logistics business and we are exploring options to diversify in other areas of logistics to become an integrated logistics solution provider. We are currently in warehousing and the plan is to expand the services besides storing to sorting and last-mile delivery. Subject to feasibility, we may also explore setting up warehouses for e-commerce companies,” he said.

The company has also initiated a discussion with SAIL for special freight train operations whereby steel products from manufacturing plants will be transported by the company to godowns and other points of SAIL. “If this model is successful then we will see how this can be scaled up,” he said.

The company in its annual report has said that the ROFS business which includes recovering hydrocarbons from crude oil storage tanks and lagoons, has also been affected by the entry of new players and preference for MSME vendors concerning booking of new orders.

“Our refinery and oilfield services revenue is coming down. The MSME players are coming in and they are getting preference. Market share is coming down. We have started a project study for ethanol production. If the project report is positive, and we get the board approval and license then we will go with the project. We are also planning into getting to production of green hydrogen,” Sekhar said.

On the industrial packaging side, the company is looking at export opportunities in Africa, Nepal and Bangladesh. In the grease and lubricants business, the company plans to make a re-entry into contract manufacturing in a bid to increase volume. The company is also looking to make a headway into agri chemicals.

“The company has reserves of around Rs 1180 crore. So, we can think about diversification. The objective is to continue growing,” Sekhar said.

Balmer Lawrie had clocked a turnover of Rs 2383 crore in FY23 and plans to take the topline to Rs 3000 crore in the next 2-3 years.