Larsen & Toubro to sell assets, dilute stake in non-core businesses: Chairman

By: |
Mumbai | Published: September 23, 2015 1:30:12 PM

Industrial group Larsen & Toubro is looking to sell some assets including roads and infrastructure projects and dilute its stake in non-core subsidiaries to revive performance, the group's executive chairman said on Wednesday.

Larsen & ToubroIndustrial group Larsen & Toubro is looking to sell some assets including roads and infrastructure projects and dilute its stake in non-core subsidiaries to revive performance, the group?s executive chairman said on Wednesday. (Reuters)

Industrial group Larsen & Toubro is looking to sell some assets including roads and infrastructure projects and dilute its stake in non-core subsidiaries to revive performance, the group’s executive chairman said on Wednesday.

A.M. Naik said L&T, a sprawling $21 billion group, remained far too complex and needed to improve its return on equity by exiting some infrastructure businesses and selling minority stakes in operations no longer as essential to the company.

“I am trying to reduce the smaller businesses and sell them. If I can do something about heavy asset companies, some of it we could exit or sell, our return on equity will improve,” he told Reuters in an interview in Mumbai.

L&T, which makes anything from metro trains to submarines to parts for nuclear reactors, will also appoint individual unit chief executives and individual boards to encourage independence and boost returns among its more than 70 businesses, Naik said.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition
FinancialExpress_1x1_Imp_Desktop