The selloff process in Balmer Lawrie will start afresh with the divestment ministry accepting the petroleum ministry's contention that the valuation of the company will go up if its different units are demerged and sold separately.
"We will move a fresh proposal at the Cabinet Committee on Divestment for a demerger of the eight separate businesses of Balmer Lawrie on the lines of India Tourism Development Corporation hotels," a senior divestment ministry official said.
The government had received expressions of interest from 16 prospective bidders and the due diligence process had begun.
The divestment ministry had stuck to its stand of selling the entire company, which is engaged in diverse businesses ranging from lubricants to manufacturing plastic drums to selling tickets, as a single entity to simplify the transaction.
As an olive branch during the height of the deadlock on the divestment of downstream petroleum companies Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd, Petroleum and Natural Gas Minister Ram Naik had offered to let the divestment ministry sell Balmer Lawrie in one go.
Interestingly, in deciding not to press for a reconsideration at the Cabinet Committee on Divestment level, Naik had gone against the advice of the finance ministry to split the eight separate business divisions.
The petroleum ministry had earlier moved a note suggesting that the core and non-core businesses of the company be sold separately.
The companies that had submitted expressions of interest for the 61.8 per cent equity in Balmer Lawrie include Aban Lloyd, Fedder Lloyd, Maharashtra Seamless and the Kolkata-based financial re-engineering company Srei Capital Markets.
The divestment ministry will now draft a fresh note for the consideration of the Cabinet Committee on Divestment.
With unanimity on the mode of divestment of Balmer Lawrie, the process was expected to speed up, the official said, adding that the government was likely to invite fresh expressions of interest for the company.
© 2025