L&T to raise $1-1.5 bn through sale of stake in non-core business; focus on smart cities
12 June 2015
Infrastructure major Larsen & Toubro (L&T) is looking to raise $1-1.5 billion from the sale of stake in its some of its subsidiaries, as the company exits non-core areas and realigns business.
L&T has mandated Citigroup to scout for buyers for certain assets, including L&T EWAC Alloys, and L&T Valves, besides a partial stake sale in L&T Infotech and L&T Finance Holdings, reports quoting company sources said.
L&T is increasingly focusing on three key segments - smart cities, smart communication systems and security solutions. It has also come up with a new unit, Smart World and Communications, to cater to these segments. The new business is expected to grow by $1 billion in next 3 to 4 years.
A report in The Economic Times said the new unit has been formed by pulling out 65 members from L&T's various divisions. It would now tap resources at its various business divisions to offer solutions in the new business model.
L&T is eying a slice of the 100 smart cities the government plans to build across the country. The government envisages investments to the tune of Rs1,00,000 crore in these projects. Even one or two projects would be big business and the company is confident of getting big orders.
The company has already been building smart campuses for IT companies and smart cities can only be an extension of such projects.
L&T is a diversified group engaged in businesses ranging from technology, engineering, construction, manufacturing to financial services.