Page 44 - Balmer Lawrie Sustainability Report 2022_Single Pages

SBU: Logistics Services (LS)
The Indian logistics market is expected to expand at an
annual compounded growth rate of 8% over the next five
years reaching USD 330 billion by 2025. During the year
SBU: LS achieved a record turnover of Rs.458 Crores and
registered a top-line growth of around 24% and moderate
growth in the bottom line of Rs.8 Crores respectively as
compared to the previous year. The growth can be
attributed to the incremental business in nearly all
activities of our Freight Forwarding notably in Ocean
Freight, Air Export and Project Logistics. The Travel vertical is broadly catering to three customer
segments: Government (including Defence), Public
Sector Enterprises (and Autonomous bodies) and Private
SBU: Logistics Infrastructure (LI) Sector Organisations. The first two consist of over 90% of
The logistics sector is considered one of the most the business for the vertical. Balmer Lawrie offers Air
important sectors contributing to the Indian economy. Ticketing and related services such as Hotel Booking,
SBU: LI comprises three main segments viz. Container Forex, Insurance, Transportation etc. Ticketing Services
Freight Stations (CFS) typically set up in the vicinity of contribute over 90% of the business for the vertical.
ports, Warehousing & Distribution (W&D) and Integrated
Check Post (ICP). CFSs are an extended arm of the port SBU: Refinery & Oil Field Services (ROFS)
set up primarily with a view to decongesting ports.
ROFS is engaged in processing Mechanized Oily Sludge
During FY 2021-22, SBU: LI was able to achieve 6% and Hydrocarbon Recovery from Crude Oil Storage
growth in terms of imports, and 35% growth in terms of Tanks and Lagoons. This activity which pertains to the
exports. However, due to cutthroat pricing and prevention of pollution and oil waste recycling through the
competition from the industry and a reduction in the dwell recovery of hydrocarbons is a niche segment in the oil &
time of containers at CFS, the turnover reduced by 20% gas industry.
and profit reduced by 26% in comparison to last year.
Despite the loss of substantial production time due to the
pandemic, SBU: ROFS was able to achieve the targeted
SBU: Travel & Vacations (T&V) equipment utilisation for the year. The operational
The increase in air traffic in FY 2022 came as a performance was more or less at par with our budgeted
much-needed relief for aviation players who incurred estimates mainly due to advance order booking for the
massive losses in FY 2020-21 due to poor demand amid SBU. The new order booking was sluggish due to high
travel restrictions. The industry expects this momentum to competition in the market and the expected profitability of
continue due to a huge pent-up demand, for which most newly booked orders is expected to be lower than
players are ramping up their operations. previous year trends.

44 Sustainability Report 2021-22