L&T to put $100-150 m into overseas ventures   Rabin Ghosh - DNA India

MUMBAI: Engineering major Larsen & Toubro plans to invest $100-150 million over the next 12-18 months in building infrastructure overseas in a bid to push revenues from those markets from 17-18% now, chief financial officer Y H Deosthalee said on Friday.

 

A large part of this investment would be earmarked for West Asia, where the company is now enjoying significant traction.

 

“There are several things we are doing to grow our international business. We will invest in joint ventures, set up our fabrication facilities, and at a later stage, have our own manufacturing facilities. A significant portion of our investments would be in the Middle East (West Asia),” Deosthalee told reporters on the sidelines of a Confederation of Indian Industry seminar on corporate governance.

 

Under project Lakshya, L&T is aiming to generate a quarter of its revenues from the overseas market by 2009. West Asia has become a happy hunting ground for the Rs 15,000-crore engineering company. It has found good acceptance in markets like Oman and United Arab Emirates for its engineering and construction business.

 

L&T entered the West Asian market a few years back and in order to win market share, it accepted initial orders at lower margins. Deosthalee said the company is not compromising on margins any more. “With an order book of Rs 30,000 crore, we don’t have to accept any projects that don’t bring margins,” he said.

 

In manufacturing, L&T is scouting for a joint venture partner in China to set up a rubber processing plant.  It would be L&T’s second manufacturing centre in the Middle Kingdom, the first one being a switch gear plant.