Balmer Lawrie & Co. Ltd, a Government of India Enterprise listed on NSE and BSE, has announced a significant strategic decision impacting its business portfolio. On 15 May 2025, the Board of Directors formally approved the closure of its Strategic Business Unit (SBU) dedicated to Refinery and Oil Field Services (ROFS). This decision was disclosed under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

The closure is scheduled to take effect by 30 September 2027. The company cited non-viability of the business due to a shrinking market size and increased competition as the primary reasons behind this decision. This move reflects Balmer Lawrie’s strategic realignment to focus on its core profitable sectors.

The Refinery and Oil Field Services unit, while a part of Balmer Lawrie’s diversified business portfolio, contributed a modest 1.7% of total turnover and only 0.17% to the company’s net worth in the financial year 2023-24. Specifically, the SBU generated ₹ 3,967.94 Lakhs in turnover and had a net worth of ₹ 307.80 Lakhs during the same period. Compared to Balmer Lawrie’s overall turnover of ₹ 2,33,922.70 Lakhs and net worth of ₹ 1,84,790.50 Lakhs, the unit’s share is relatively small.

The company’s decision to shut down the ROFS unit over the next two and a half years provides ample time for a phased closure, ensuring minimal disruption to existing contracts and commitments. It also offers an opportunity for employees and stakeholders to adjust to the changes.

Balmer Lawrie, established in 1867, operates across various sectors including Industrial Packaging, Greases and Lubricants, Chemicals, Travel and Vacations, Logistics, and Refinery and Oil Field Services. This strategic closure will help the company optimize its resources and concentrate on segments with stronger growth potential.

This disclosure was filed with the National Stock Exchange of India Limited and BSE Limited, under company codes BALMLAWRIE and 523319 respectively, confirming the company’s compliance with SEBI’s strict reporting norms.

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