Companies

L&T to unlock value in infra firm, Dhamra port

Our Bureau Mumbai | Updated on August 24, 2012

L&T is in the process of bringing in investors to its infrastructure development company (Infrastructure Development Projects Ltd) and also the Dhamra port in two months.

The Dhamra port is a 50:50 joint venture between L&T and Tata Steel.

“We will do it one or two months” said A. M. Naik, Chairman, L&T.

“This will happen for sure this fiscal and is to ensure that new capital is brought in by unlocking value other than L&T continuing to invest unless absolutely necessary,” he said. He was speaking to reporters after the company’s AGM here on Friday. He declined to quantify the funds that could come in and said it was a question of selling equity and depends on valuations and, importantly, at what price investors are willing to come in.

On selling of non-core businesses, Naik said it was a continuing and constant process.

Responding to questions on investment made in its BTG (boiler, turbine, generator) manufacturing unit, he said as of now there were no tenders, but the situation would not continue for long. L&T saw at least five to six tenders coming up in the next five to six months, among which, one would be from the private sector company which had a preference for L&T.

“We want to utilise our capacity in full and we have enough work till January for turbines and up to July for boilers valued at over Rs 25,000 crore,” he said.

On the current economic scenario, Naik said though orders had come down, L&T continues to grow. The current emphasis is on West Asia where the company clocked $1.5 billion turnover in infrastructure projects last year and hoped to increase it to $2 billon this year. “This will provide us a cushioning effect till things begin to move in India,” he said.

Naik said he had suggested to the government that the project monitoring and implementing committee, which earlier had only government nominees, should also have one each from CII, FICCI and Assocham.

> shanker.s@thehindu.co.in

Published on August 24, 2012

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