The Railways, Petroleum and Finance ministries are exploring the feasibility of combining Balmer Lawrie & Co. Ltd. with Indian Railway Catering and Tourism Corp. (IRCTC), according to people familiar with the discussions. As reported by NDTV Profit, the Railways, Petroleum and Finance ministries have held discussions on the proposed merger, with the talks remaining exploratory and no final decision taken on the proposed combination. The government is examining whether Balmer Lawrie can be better capitalised and refocused on its core businesses, with the company operating across manufacturing and services, including oil packaging among its key businesses.
A combination could give IRCTC a larger presence in air-ticketing, where Balmer Lawrie already has an established business and books tickets for a large number of public-sector undertakings. According to reports from NDTV Profit, air ticketing accounts for about 25% of Balmer Lawrie's revenue, providing a significant operational base for the proposed merger. IRCTC has been looking to expand its presence in the air-ticketing segment, and a merger with Balmer Lawrie could potentially provide it with a larger base in the business.
Balmer Lawrie operates as a Category-I Miniratna public-sector undertaking under the Ministry of Petroleum and Natural Gas, as reported by NDTV Profit. The proposed merger would involve combining Balmer Lawrie's established air-ticketing operations with IRCTC's existing railway catering and tourism business. The government's exploration of this merger reflects efforts to optimize public sector undertakings and expand their service offerings across multiple transportation segments.
