While sources say that the final choice for the strategic partnership will, in all probability, be one of these two international cement majors, L&T managing director and chief executive officer AM Naik said: ``The process has just been initiated and a final decision will be taken in the next six months.''

L&T senior vice president (finance) YM Deosthalee, however, did not rule out `talks' with Lafarge or Holder Bank, but added: ``We will look at other possible partners also.''

The strategic partner will reach a level of equal shareholding with L&T through a combination of secondary purchases and infusion of capital in LTCL over a period of time.

Mr Satish Jain, an analyst with ASK Raymond James, points out: ``L&T had no other option, as a strategic partner would not be interested in a minority stake. An equal stake was the best possible option under the circumstances. The parent company will turn lean in the process.''

Mr Naik is, however, expectant of LTCL delivering in the long run. ``Cement demand will pick up, particularly with the major project of the golden quadrilateral getting under way -- connecting the north-south and east-west corridors,'' he added.

``The demerger and consequent formation of LTCL will add to the L&T shareholders' value,'' Mr Naik said.

In the meantime, L&T is looking at a capacity of 16 million tonne by March 2001. Lafarge has commenced its India operations by taking over two marginal players -- Tisco and Raymond -- for Rs 550 crore and Rs 785 crore respectively.

Lafarge will be completing its one year of India operations in November. Holder Bank normally referred to as the `big daddy' of cement industry is still waiting in the wings to commence operations.

Finance portal from L&T stable
Larsen & Toubro (L&T) and BlueStone Capital Partners, LP of USA (Trade.com) have announced the commencement of LTTrade.com, a full-service financial portal. LTTrade.com is an equal stake joint venture which will offer a vast spectrum of global investment oppurtunities including listed equities, bonds, currencies, private placements, venture capital, equity research and proprietary initial public offerings (IPOs) to investors through the medium of the Internet.

The portal, which is already operational, will be the first Indian trading portal on a multi-broker platform. Trade execution on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) will be possible with streaming portfolio and charting tools.

Says L&T managing director and chief executive officer A M Naik: ``L&T has, over the last three-and-a-half years, been moving towards new economy initiatives.'' And about the joint venture he says: ``L&T will incur expenditure on operating and maintenance part of it.''

BlueStone Capital Partners' Kamal Mustafa says the ability to provide inside information will help the investor. Trade.com will provide the global technmology platform to the joint venture.