The government is exploring the feasibility of merging Balmer Lawrie & Co. Ltd. with Indian Railway Catering and Tourism Corp., or IRCTC, as part of a plan that could help the railway company expand its presence in the air-ticketing business, according to people familiar with the discussions.
The Railways, Petroleum and Finance ministries have held discussions on the proposed merger, the people said. The talks remain exploratory and no final decision has been taken.
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. Air ticketing accounts for about 25% of Balmer Lawrie's revenue, the people said.
The government is also examining whether Balmer Lawrie can be better capitalised and refocused on its core businesses, according to the people. The company operates across manufacturing and services, with oil packaging among its key businesses.
Balmer Lawrie is a Category-I Miniratna public-sector undertaking under the Ministry of Petroleum and Natural Gas.
IRCTC has been looking to expand its presence in the air-ticketing segment. A merger with Balmer Lawrie could potentially provide it with a larger base in the business.
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