State-owned Balmer Lawrie and Company Ltd plans to diversify its product portfolio by foraying into the manufacturing of construction chemicals.

Speaking at the company's 94th annual general meeting here on Friday, Mr S.K. Mukherjee, Chairman and Managing Director, said that the company's Performance Chemicals division would focus on strengthening its research and development (R&D) and introduce value-added products to enhance its market share.

The production of construction chemicals would be done at the company's leather chemicals manufacturing unit in Chennai.

“We have added capacity at the existing plant in Chennai and the technology for the processing of construction chemicals will come from a Chinese company called Muhu.

“Eventually we also want to get into a joint venture arrangement with them for marketing the product,” he said while talking to newspersons after the meeting here on Friday.

The leather industry in the country was passing through a tough situation because of inadequate availability and spiralling prices of raw hides and skin.

These constraints could depress the leather chemicals business, he said.

“In the circumstances, the segment has chalked out plans to widen its products range by entering into the business of construction chemicals, which looks promising,” he pointed out.

Tourism packages

Balmer Lawrie also plans to develop dedicated packages for outbound tourism.

It is also in the process of creating an online portal for tourism to boost its tours and travel business.

“The focused packages will be in place by March 2012,” he said. Tours and travel business accounts for about 35 per cent of the company's total turnover at present.

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