L&T to hive off ready-mix concrete unit
Mumbai-based Engineering and construction giant Larsen & Toubro (L&T) may hive off L&T Concrete, a newly-created subsidiary, into a separate company. As per a recent filing with BSE,
By TNN |
MUMBAI: Mumbai-based Engineering and construction giant Larsen & Toubro (L&T) may hive off L&T Concrete, a newly-created subsidiary, into a separate company. As per a recent filing with BSE, L&T is considering transferring the Rs 1,000-crore ready-mix concrete (RMC) business unit to the new subsidiary.
The new entity will be based out of Chennai. The board of directors have recently given their in-principle approval for the new entity. The move aims at giving decision-making freedom, charting out its own marketing strategy and road mapping its future growth. The company expects a 5-fold increase in RMC demand in the next five years.
L&T has 66 ready-mix concrete plants across the country. The company plans to add 10 plants annually with a cost of Rs 50-100 crore. L&T’s RMC business, which is currently having a 25% market share, is growing at an annual rate of 25%.
L&T has got prior experience in the cement sector through L&T Cement, which was sold to the Aditya Birla Group.
The new entity will be based out of Chennai. The board of directors have recently given their in-principle approval for the new entity. The move aims at giving decision-making freedom, charting out its own marketing strategy and road mapping its future growth. The company expects a 5-fold increase in RMC demand in the next five years.
L&T has 66 ready-mix concrete plants across the country. The company plans to add 10 plants annually with a cost of Rs 50-100 crore. L&T’s RMC business, which is currently having a 25% market share, is growing at an annual rate of 25%.
L&T has got prior experience in the cement sector through L&T Cement, which was sold to the Aditya Birla Group.
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