L&T sells off plastics arm to Toshiba Machine

Engineering and construction major Larsen & Toubro has signed a share sale and purchase agreement with Japan's Toshiba Machine Co to sell its entire stake in L&T Plastics Machinery Ltd, a wholly owned arm of L&T.
L&T Plastics Machinery makes injection moulding machines. Toshiba Machine Co also manufactures injection moulding machines and other machinery with plants in Japan and China.

The plastic business had revenues of Rs200 crore and net profit of Rs11 crore in the last fiscal (2011-12).

L&T said the move to divest its stake in the plastics machinery business is in line with its strategic road-map to exit non-core businesses and rationalise its portfolio. Toshiba Machine is acquiring the business as a part of its strategy to expand globally with a focus on developing countries, it added.

Earlier today, L&T said it has won an order worth Rs1,302 crore ($235 million) from Petroleum Development Oman LLC. The order involves engineering, procurement and construction of the oil and gas explorer's Saih Rawl (gas field) 'depletion compression phase 2' project, it said. 

L&T had an order book of Rs1.53 lakh crore at end of the June quarter.