According to Diversified PSU Balmer Lawrie, some of its business units, including industrial packaging (IP) and logistics services (LS), may face significant challenges as a result of global geopolitical developments like the conflict between Ukraine and Russia. The firm’s outlook indicates that the Russia-Ukraine situation is still having a negative impact on the world economy, disrupting supply chains and putting more pressure on inflation.
The most recent annual report from the company, for 2022–2023, stated that steel prices were unstable for IP. However, prices have begun to rise as a result of the government’s intervention by imposing a duty on steel exports. Industrial packaging (IP), logistics (infrastructure, services, and cold chain), travel and vacations, greases and lubricants, chemicals, and refinery and oilfield services (ROFS) are the PSU’s eight business units.
According to the statement, the company is anticipated to grow significantly in the years to come, with the chemical, transformer oil, and lubricants segments acting as the main growth engines. For its IP division, the company also intends to aggressively expand in export markets. It claimed that the existence of numerous unorganized players who have low entry barriers and overhead will continue to be a source of worry for the business unit.The business unit providing logistics services is the other one that will experience difficulties this year as a result of geopolitical unrest.
The freight forwarding activity of the business unit was marginally impacted but for a short-term period, the company said. During the last fiscal, the IP segment generated a revenue of Rs 730.62 crore for Balmer Lawrie, while LS segment revenue was Rs 548.04 crore. The total revenue of the company during the last fiscal was Rs 2383 crore.
