Diversified PSU Balmer Lawrie & Co is planning to exit from domestic tea operations, a company official said.
"We are not trying to grow in tea," Balmer Lawrie managing director SK Mukherjee said, adding that the tea business in the country was 'lukewarm'.
Earlier, the PSU had hived off its London tea operations to Duncan McNeill group.
Mukherjee said that exit from domestic tea business would happen by the end of the current financial year. Before that, it would have to be approved by the board, he said.
Presently, Balmer Lawrie is involved in blending and packaging of tea bought from auctions and private sources.
He said that packaged and bulk tea were sent to countries like the UK and Japan.
Mukherjee said that the annual revenue generated from this activity was around Rs five crore.
To a query, he said that the form of exit, whether to sell the business or to close it, was yet to be decided.
The company had also withdrawn its 'Indian Summer' brand which was retailed in the country.
Asked about the strategy adopted by the company to face the challenges of the slowdown, Mukherjee said that Balmer Lawrie was now on a consolidation mode.
"We are streamlining our activities for gaining efficiency in operations," he said.
Mukherjee said that the focus business areas were logistics services, logistics infrastructure, travel & tours, industrial packaging, grease and lubricants.
He said that while key profit driver was the logistics business, the main revenue driver was the travels and tours.
Asked about the impact of economic slowdown on the company's business, he said that manufacturing activity was hit more than services.
Mukherjee said that the company would draw up a new capital expenditure plan for the next five in the current fiscal.
The company had made an approximate capital expenditure of Rs 200 crore for the last five years.
