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Plan to sell off Balmer Lawrie's box cargo division

Our Bureau

MUMBAI, March 24

THE Union Minister for Petroleum, Mr. Ram Naik, on Friday said that the Centre may sell off the freight container business of the state-owned Balmer Lawrie and Co Ltd.

The Calcutta-headquartered company, one of the earliest entrants into freight container manufacture in India, was the leading supplier of containers to the Shipping Corporation of India Ltd (SCI) when the latter decided to have an owned-fleet of boxes. T oday, SCI has a 5000 TEU-strong fleet composed of owned and leased boxes.

Similarly, Container Corporation of India Ltd (Concor) purchased a part of its container fleet from Balmer Lawrie. The company has presence in the freight container business through a fully-owned division, a joint venture manufacturing company and a seco nd joint venture engaged in container leasing.

Trans Freight Corporation (TFC), DCM-Hyundai and Nathani Steels were among other major box manufacturers in the domestic market. These manufacturing enterprises were badly hit, following domination of global container sales by the Chinese, who sell at lo w cost. Industry sources said, China currently controls almost 90 per cent of international container manufacture.

Within the Balmer Lawrie fold, its freight container division located in Aroor bore the brunt of this market down-turn. With an installed capacity of 7,200 TEUs per annum, the division has been idling since November 1998 and went into lay-off by July 199 9. This situation continues.

Two months ago, it began offering a special voluntary separation scheme for its employees, composed of three months salary for every completed year of service, one month notice pay and an amount of Rs. 25,000 towards settlement grant. More than two-third s of the workforce have availed this scheme and at present around 100 workers remain at the plant.

It could not be ascertained which of Balmer Lawrie's container interests would be impacted by Mr. Naik's statement. The Minister, however, referred to the sale plan in the context of a meeting he had with the Kerala Industry Minister, Mrs. Susheela Gopal an, in whose State the Aroor plant falls.

``We would rather sell it off,'' the Minister said, as having told Mrs. Gopalan. Mr. Naik's reference is, therefore, a bit unclear on whether he is citing exit from a specific division or a line of business.

Balmer Lawrie has a 50 per cent equity stake in Chennai-based BL Freight Containers Ltd having an installed capacity to manufacture 20,000 TEUs per annum. Foreign collaborators at this once listed company, include Techtran and Japan's Okura.

The Chennai plant is also hit by the dip in fortunes in international markets. The plant had been trying to remain operational working one shift, industry sources said.

Besides these two container manufacturing facilities, Balmer Lawrie has a joint venture company _ Indian Container Leasing Co Ltd _ engaged in the business of leasing freight containers to users. The Indian Railways and Transamerica were among partners h ere, sources said.