L&T to expand cement capacity to 36 million tonnes
Larsen & Toubro (L&T) is planning to hike its cement capacity to 36 million tonnes from the existing 12 million tonnes. The expansion plan, to be competed by 2005, will be executed after the cement division is hived off into a subsidiary. This has been reported by a leading national daily.
L&T is in the midst of a massive restructuring drive that will see it focussing on its core areas of operations - EPC, cement and software. It is looking at financing the capacity expansion by offloading a minority equity stake in the cement subsidiary. The cement division has been valued at Rs 75 bn.
L&T's aggressive plans for expanding cement capacity are in line with the anticipated boom in infrastructure spending over the coming years. This move will help L&T to maintain its market share even as domestic and multinational companies look at grabbing a share of the Indian market. Moreover, the decision to undertake the expansion after the hive-off will ensure that L&T, the parent company, will not be burdened with additional debt.
Larsen & Toubro (L&T) has announced third quarter results of financial year 2016-2017 (3QFY17). The company has reported 1.7% YoY growth in sales while profits have grown 38.9% YoY. Here is our analysis of the results.
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