L&T to take relook at cement unit demerger

Our Corporate Bureau

Mumbai, Nov 19: Larsen & Toubro (L&T) will take a fresh look at the cement demerger issue, following Grasim Industries’s move to pick up Reliance Industries’ 10 per cent holding in L&T.

In the absence of L&T CEO and managing director AM Naik, who is abroad, a company official told The Financial Express: "The company will take a fresh look at the cement demerger issue in the light of the recent developments. We will discuss the issue internally and also with our major shareholders."

It is speculated that Grasim’s presence will now be a critical factor while taking a fresh stand on the demerger. The L&T top management is expected to take up this issue immediately after Mr Naik returns on Friday.

Terming it as "pre-mature", a company official, however, declined to comment on the possibility of a separate cement joint venture between L&T and Grasim. Commenting on a move by the AV Birla group to gain management control, the company official said, "L&T has been a professionally managed company and it will continue to remain so."

He also added that there has been no official communication from the AV Birla group on the pattern of board representation they would solicit.

An official spokesperson of L&T said, "Despite several reports of a possible hostile takeover bid, so far as our relationship with Reliance have been very good as they were also our clients .’’