Larsen & Toubro (L&T) has sold its stake in L&T-CASE Equipment to its joint venture partner CNH Global NV. CNH is a global leader in agricultural and construction equipment business. CNH has acquired full ownership of the company, an unconsolidated joint venture established in 1999 to manufacture and sell construction equipment in India.The new company will take the name Case New Holland Construction Equipment India Private Ltd. L&T said the joint venture employs over 600 people with the production facility at Pithampur in Madhya Pradesh.
The 40-acre plant makes backhoe loaders and vibratory compactors. It has a distribution network of 56 dealers and 144 outlets. Mr J.P. Nayak, Member of L&T Board and President, said, “Our decision to exit the joint venture is part of our ongoing portfolio review and streamlining process.” Declining to furnish the deal value, he said revenues were Rs 600 crore in 2007-08. There was a drop of nearly 40 per cent in the ensuing fiscal due to recession. However, this year it was bound to touch 2007-08 levels.