Diversified public sector undertaking Balmer Lawrie & Co expects to operationalise its entire third-party logistics service by the end of the current financial year, positioning it as a major growth driver for its logistics business.
As part of this third-party logistics (3PL) initiative, the company is developing its main hub at Dankuni, in West Bengal, while Siliguri, Guwahati and Bhubaneswar will serve as the three spokes of the project.
“We have already started work in one part of the Dankuni hub. Around 50,000 sq ft of the nearly 1.5 lakh sq ft facility is operational. We have started taking loads. There is a fair bit of business coming our way right now, given the Durga Puja volumes,” Balmer Lawrie & Co Chairman and Managing Director Adhip Nath Palchaudhuri said.
The first few customers for the Kolkata-headquartered company’s 3PL initiative are from the consumer durables, appliances and garments segments. “A big volume uptick happens in Kolkata and the rest of the eastern region around Durga Puja festivities. Even though the Dankuni facility is not fully functional, we have started making it available to our customers to benefit from the festival season,” Palchaudhuri said.
The company appears set to operationalise the entire Dankuni hub by August-end. The warehouse has been acquired on a 15-year lease, on a model known as build-to-suit.
When ready in three to six months, each of the three spokes will be spread across 25,000 sq ft.
The success of the model hinges on offering a good network, the CMD said.
“We are trying to offer customers a supply chain solution. Value-added services will also be on offer. Our technology software will help customers as well,” he added.
The 3PL service will involve two types of transportation — primary and long-haul.
At the Dankuni hub, a cold chain facility is also coming up. Expected to be ready by March 2026, it will cater to companies in the dairy, food and vegetables, meat and fish, and quick service restaurant segments.
The logistics business, which has been the second largest revenue contributor for the company, is expected to become the largest this fiscal. For FY25, the company’s revenue stood at ₹2,494.49 crore on a standalone basis.