New Delhi: Balmer Lawrie & Co Ltd plans to invest nearly ₹500 crore in capital expenditure (capex) over the next three years, with rail logistics expected to receive the largest share of the planned investment.
Chairman and Managing Director Adhip Nath Palchaudhuri said the diversified public sector enterprise is focusing its expansion spending on rail logistics, third-party logistics (3PL) and travel, while also making targeted investments in its existing businesses.
Of the total planned capex, around ₹200-250 crore will be allocated to railway logistics, while approximately ₹50-60 crore will be invested in expanding the company’s 3PL operations. Another ₹100 crore has been earmarked for routine operational capex across its packaging, greases and lubricants, and chemicals businesses.
The company is also investing in cold chain infrastructure, smaller packaging units and new product variants across its packaging and travel businesses.
Rail Logistics to Get ₹200-250 Crore Investment
Railway logistics will account for the largest portion of Balmer Lawrie’s planned capex as the company looks to significantly expand its rail freight operations.
The company currently operates three railway rakes, all on lease, and plans to increase its fleet to around 15 rakes.
For the first time, Balmer Lawrie is also moving towards owning railway rakes. The company has floated tenders for the purchase of three rakes.
Following the acquisition of new rail freight business from NMDC, Balmer Lawrie plans to add seven more rakes during the first phase. The additional capacity will be created through a combination of outright purchases and leasing.
The company said a typical railway rake costs around ₹20-25 crore, making railway assets a major component of the overall capex plan.
Key Rail Logistics Expansion Plans
- Current fleet: 3 railway rakes
- Target fleet: Around 15 rakes
- Planned rail logistics capex: ₹200-250 crore
- Three rakes to be purchased through floated tenders
- Seven additional rakes planned in the first phase
- New rail freight business secured from NMDC
Palchaudhuri said railway logistics has emerged as a strong growth segment for the company, prompting significant investment to expand its capacity.
Read also: Balmer Lawrie Signs MoU with NLC India to Strengthen Digital Travel Booking and Allied Services
Dankuni to Anchor Balmer Lawrie’s 3PL Network
Balmer Lawrie is also expanding its third-party logistics (3PL) business through a hub-and-spoke model.
The company is developing a central hub at Dankuni, with spokes being expanded to locations including Siliguri, Guwahati and Bhubaneswar.
The network is intended to strengthen Balmer Lawrie’s regional logistics presence and complement its existing integrated supply chain operations.
The company’s logistics portfolio already includes:
- Container freight stations
- Warehousing facilities
- Specialised cold chain infrastructure
- Integrated supply chain services
- Third-party logistics solutions
Around ₹50-60 crore has been earmarked for expanding the 3PL business over the next three years.
Company Expands Smaller Packaging and Filling Capacity
Outside logistics, Balmer Lawrie is making selective investments in its greases and lubricants business.
The company is setting up small-filling packaging lines at its regional facilities. New lines in Kolkata are already operational, while similar facilities are planned in southern India.
The initiative is aimed at reducing freight costs and strengthening Balmer Lawrie’s presence in the retail market.
Its industrial packaging business, meanwhile, remains a core operation. The company has a 35-37 percent share of the 210-litre steel drum market.
The expansion programme in this segment is focused on adjacent products, including:
- Smaller steel drums
- Intermediate bulk containers (IBCs)
- Other specialised industrial packaging products
Diversification Remains Key Strategy
Addressing shareholders at the company’s 109th Annual General Meeting (AGM), Palchaudhuri highlighted diversification as an important part of Balmer Lawrie’s strategy amid an increasingly uncertain global economic environment.
He pointed to geopolitical developments, national security concerns, tariff protectionism, the Gulf crisis and disruptions in established supply chains as factors contributing to greater uncertainty in global trade.
According to the company, diversification provides a natural hedge against such external shocks.
The experience during the COVID-19 pandemic was cited as an example. While the travel business was severely affected during the pandemic, the logistics division recorded strong growth and helped cushion the impact on the company’s finances.
Balmer Lawrie is therefore increasing its focus on domestic logistics, including rail freight and 3PL operations, while continuing to maintain its presence across multiple business segments.
Travel Business Targets Domestic Tourism Growth
The company’s Travel and Vacations business is also being aligned with the growth of domestic tourism.
Balmer Lawrie is focusing on tour packages, retail vacations and Meetings, Incentives, Conferences and Exhibitions (MICE) offerings to tap the domestic travel market.
The company said domestic tourism remains an important growth area, with domestic visits increasing by nearly 52.7 percent between January and September 2025.
During 2025-26, registrations on Balmer Lawrie’s exclusive travel portal for central government employees increased by 25 percent, while ticketing volumes grew 15 percent year-on-year.
The company’s vacations, retail and MICE businesses also recorded their highest-ever gross toplines during the year.
Technology and New Business Priorities
As Balmer Lawrie moves towards its 160th year, technology is emerging as another key focus area.
Palchaudhuri said the company’s next phase of growth would be shaped by its long legacy of resilience, alignment with national priorities and greater adoption of technology.
The company is simultaneously investing in new infrastructure, product development and operational capabilities across its diversified business portfolio.
Balmer Lawrie Revenue Stood at ₹2,785 Crore in FY2025-26
Balmer Lawrie reported revenue of ₹2,785 crore in 2025-26. The company had earlier projected that its revenue could potentially double by 2030.
Its chemicals division recorded its highest-ever turnover and profit during FY2025-26.
The industrial packaging business continued technology upgrades across its six manufacturing plants, while the greases and lubricants division continued developing eco-friendly and synthetic lubricant products.
The performance across these businesses, along with investments in logistics and travel, forms part of the company’s broader strategy to diversify revenue sources and build resilience.
Balmer Lawrie’s ₹500 Crore Capex Plan at a Glance
- Overall capex: Nearly ₹500 crore over the next three years
- Rail logistics: ₹200-250 crore
- 3PL expansion: ₹50-60 crore
- Other existing businesses: Around ₹100 crore in routine operational capex
- Railway fleet: Increase from 3 to around 15 rakes
- Rail expansion: Three rakes to be purchased, with seven more planned in the first phase
- 3PL network: Central hub at Dankuni, with spokes including Siliguri, Guwahati and Bhubaneswar
- Packaging: Expansion into smaller drums, IBCs and other adjacent products
- Greases & lubricants: New small-filling lines and product development
- Cold chain: Investment in additional cold chain facilities
- Travel business: New product variants and focus on domestic tourism and MICE services
About Balmer Lawrie & Co Ltd
Balmer Lawrie & Co Ltd is a diversified public sector enterprise with businesses spanning industrial packaging, greases and lubricants, chemicals, logistics, travel and other services. The company operates across multiple sectors and is using diversification, infrastructure expansion and technology adoption to support its long-term growth strategy.
This version keeps the main investment figures prominent while adding the rail, 3PL, packaging, travel and financial-performance details for better SEO coverage and readability.
Read also: Japanese Parliamentary Delegation Visits BEL Bengaluru, Discusses Defence Technology Cooperation
