Balmer Lawrie broadens domestic logistics footprint with Rs 500 crore capex plan

Diversified public sector enterprise Balmer Lawrie & Co Ltd is rolling out a capital expenditure programme of nearly Rs 500 crore over the next three years, driven primarily by an aggressive expansion in its rail, third-party logistics (3PL) and travel footprint, Chairman and Managing Director Adhip Nath Palchaudhuri said on the sidelines of the company’s 109th AGM, held in Kolkata on Monday.

Of the total estimated Rs 500 crore outlay, the railway logistics segment will absorb Rs 200-250 crore, while around Rs 100 crore is allocated towards routine operational capex across other existing verticals, including packaging, greases and lubricants, and chemicals.

Palchaudhuri said the company intends to remain diversified as its traditional core philosophy, which offers a natural hedge against unforeseen situations, citing Covid-19 as an example when travel slumped but the logistics division picked up the slack, providing a safety net to its financials. He said the company is expanding its supply chain touchpoints with greater emphasis on domestic logistics operations, including its new rail logistics and third-party logistics businesses.

Balmer Lawrie’s logistics business already provides integrated supply chain solutions through its network of container freight stations, warehouses and specialised cold-chain facilities. The new rail logistics foray, which began with an agreement with GATX India for leasing BFNS 22.9t wagon rakes to transport SAIL’s finished steel products, is expected to be a key growth driver going ahead. The company has also indicated plans to expand into transportation of caustic soda and other bulk chemicals in future, aligned with the National Rail Plan 2030’s target of increasing rail’s modal share in freight to 45%.

The company is also aligning its Travel & Vacations business with the growth in domestic tourism. Its tour packages, retail vacations and MICE (Meetings, Incentives, Conferences and Exhibitions) capabilities have been aligned accordingly, with government travel portal registrations rising 25% and ticketing volumes growing 15% year-on-year. Domestic tourism has remained a major component of the travel sector, with visits rising nearly 52.7% between January and September 2025, according to the company.

Palchaudhuri said Balmer Lawrie was seeking to strengthen its resilience by catering to these areas of domestic economic activity rather than being solely exposed to disruptions in global trade, adding that the approach comes against the backdrop of the Gulf crisis, rising global tariff protectionism and disruptions to established supply chains, which have made uncertainty the “new normal.”