L&T to sell its 11.5% stake in UltraTech

MUMBAI: Larsen & Toubro (L&T) will sell its 11.5% stake in the Aditya Birla group company UltraTech Cement by December. Pegged at around Rs 800 crore at Friday's market price, the sale proceeds will prop up L&T's bottomline in 2009-10.

The company will also realise a further Rs 100 crore of other income from the sale of its ready-mix concrete assets in 2009-10. It had sold that business to Lafarge in 2008 for Rs 1,480 crore, and around Rs 100 crore has been pending from this transaction.

L&T chairman AM Naik told ET that the Birla group enjoys the right of first refusal on its stake in UltraTech. "We can offer it to a third party if they (the Birla group) don't buy." Mr Naik added that the Birlas and L&T had not spoken on this issue. "It's not a complicated matter. We will sell the shares at the right price at the right time," he added. Industry observers feel that the Birla group would almost certainly buy L&T's shareholding. L&T would have to sell its stake by the year-end under the terms of an agreement with Grasim signed in 2003. The agreement had helped end an epic corporate battle, during which Grasim made an open offer for L&T. It ended with L&T selling its cement business to the Birlas.

Larsen & Toubro to form joint venture with EADS Defence & Security

May 06, 2009 (Datamonitor Financial Deals Tracker via COMTEX) -- LTOUF | Quote | Chart | News | PowerRating -- Larsen & Toubro Limited, an India-based technology, engineering, construction, and manufacturing company, has signed an agreement to form a joint venture with EADS Defence & Security Division, a division of European Aeronautic Defence and Space Company NV, for defense electronics in India, based in Talegaon near Pune.

European Aeronautic is a Germany-based company engaged in providing aerospace, defense, and related services. The new company will aim at design, development, manufacturing and related services in the fields of electronic warfare, radar, military avionics and mobile systems (such as modular bridges) for military applications. The joint venture company will develop and manufacture indigenous solutions for military requirements of Indian customers as well as the world market. The joint venture will also provide the armed forces with locally produced high tech equipment and assured life-time support.

L&T Records 24% Growth in Orders During 2008-09

Larsen & Toubro Limited (L&T) (Mumbai), one of India's largest engineering and construction companies, posted a 24% growth in orders for the 2008-09 fiscal year compared to 2007-08. The company won a number of domestic and international orders across sectors worth $10.6 billion in 2008-09, compared with orders worth $8.5 billion in the previous year.

Larsen and Toubro in pact with Russian firm for nuclear plants

New Delhi, April 15 (IANS) Indian diversified conglomerate Larsen and Toubro has signed a pact with a Russian nuclear energy major to design and develop reactors for the Indian market, including four at Kudankulam in Tamil Nadu.Atomstroyexport, with which the pact has been signed, is currently implementing projects that make up 20 percent of the world volume for nuclear facilities, the $7-billion Indian company said in a statement.
“The memorandum of understanding will form the basis of cooperation between the two companies and address the needs for equipment and other services arising from the agreement signed between India and Russia on Dec 5, 2008,” the statement said.
One of the main components of the agreement was for four additional reactors at the Kundankulam site in Tamil Nadu.
Larsen and Toubro, along with its Russian partner, will develop cooperation in the construction of these four power projects, as also look at the possibility of executing projects with Atomstroyexport’s reactors in India and abroad.
Besides building reactors, the pact will cover areas such as supply of equipment, systems, valves, electrical and instrumentation products, as also fabrication of structurals and piping.
Besides Russia and India, Atomstroyexport has its presence in three countries, namely China, Iran and Bulgaria, and is supported by five decades of Russian experience in atomic energy and the construction of nuclear power projects.