L&T Cementing International Operations
SUBHADIP SIRCAR & NAMRATA SINGH
Mumbai: L&T is aggressively pushing its international business plans in the midst of its cement demerger proposal.
The tribunal, which heard both the parties, will pronounce its judgement by Friday.
Mr Naik, in his reply dated November 9, 02, justified the last-minute inclusion of this item on the ground that the matter was required to be kept confidential as it was of a price sensitive nature. But, even subsequently, he still did not furnish the required details, Grasim said in its rejoinder.
The attitude of L&T subsequently conclusively establishes that there is no form of control exercised by the appellants (Grasim) directly or otherwise through its directors over L&T, Grasim counsel Goolam Vahanvati, who is also the Maharashtra advocate general, submitted before SAT.
Interestingly, a top L&T official and member of the companys board, told FE that the decision to set up a committee to look into the cement demerger proposal was unanimous, with approvals from the two AV Birla group representatives - Kumar Mangalam Birla and Rajashree Birla.
Mr Birla has also stated in the letter to Mr Naik that an important matter like the cement business restructuring required detailed deliberations, said Mr Vahanvati.
The issue of submission of a term-sheet by Commonwealth Development Corporation (CDC) for acquiring a strategic investors stake in the cement business also cropped up during the board meeting.
Mr Naiks reply to Mr Birlas letter also said the board had decided to recast the cement business as long back as October 2000 and a strategic partner could not be inducted for a variety of reasons.
Subsequently, some financial investors had approached L&T, out of which the CDC proposal is currently being studied by the committee.
The hearing, which began at noon, was subsequently adjourned by an hour and half to enable Sebi counsel Rafiq Dada to study Grasims rejoinder.
The Sebi counsel argued that the primary issue was whether there was a case for investigation in the matter or not.
The hearing was attended by the entire Grasim brass, including Birla Management Corporation director Saurabh Misra, Grasim group executive president and chief financial officer DD Rathi and AV Birla group chief financial officer Sumant Sinha.