The Hindu Business Line : L&T plans to set up switchgear plant in West Asia

Mr A.M. Naik, Chairman and Managing Director, Larsen and Toubro Ltd, addressing newspersons after laying the foundation stone for `Technology Centre II' at L&T's complex in Chennai on Thursday. - Bijoy Ghosh

Chennai , Aug. 19

LARSEN & Toubro is looking at setting up a switchgear manufacturing plant in West Asia and a tyre-curing press in "some low cost country," its Chairman and Managing Director, Mr A.M. Naik, said at a press conference here today. This would be part of the company's blueprint for the next five years, said.

A five-year strategy blueprint, the second such, was being prepared with the help of an external consultant and would be finalised by March 2005.

At present, L&T makes mechanical and hydraulic tyre-curing presses with accessories at its Chennai plant. It is a leading manufacturer of low voltage switchgear and control gear.

The first five-year action plan, which runs from 2000 to 2005, saw the company getting out of non-core activities. The plan to hive off the cement unit and later sell it off was also part of this plan.

Mr Naik said the next blueprint would look at activities in the company that were working at sub-optimal levels and outline what needed to be done. Every single activity would have to be globally competitive for it to remain within the company.

Answering questions, he said that L&T would continue to expand its overseas presence, opening offices and getting into construction and engineering projects in more countries. Some of these would be in partnership with a local partner, to satisfy local laws, and wherever possible, L&T would get into the markets on its own. It aimed to get 25 per cent of its sales from international operations by March 2009 against 15-16 per cent now.

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