The Hindu Business Line : L&T in talks with Toshiba to set up jt venture in power

At a glance
L&T to hold majority stake in joint venture
Joint venture to invest $173 m to build plants for steam turbines, power generators

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Mumbai March 6 Larsen & Toubro is in talks with Japan's Toshiba Corporation for setting up a joint venture in India to manufacture power plant equipment.

Confirming the development, an L&T official said the discussions with the Japanese company are at a preliminary stage and the proposal is to set up a facility for making turbines for power plants.

"We are talking to them (Toshiba) but are yet to finalise any details," a senior L&T official said.

News agency reports from Tokyo said that L&T would hold majority stake in the joint venture, which will invest about $173 million to build plants for steam turbines and power generators. The report quoting the Nikkei business daily said the joint venture aims to have an annual turnover of 20 billion yen in five years.

Toshiba, which has been expanding its power business, acquired the US nuclear power plant maker Westinghouse for $5.4 billion last year.

L&T's entry into this critical segment of the power sector follows its recent tie-up with Mitsubshi Heavy Industries, another Japanese major, for manufacture of boilers for power projects. The joint venture — L&T Boilers Ltd — plans to invest Rs 450 crore.

An analyst said L&T appears to be gearing up to take advantage of the huge investments coming up in the country's power sector.

In the boiler segment, there are few Indian players, the major one being Bharat Heavy Electricals Ltd. L&T has been expanding its presence in this segment. L&T shares gained 3.17 per cent to close at Rs 1,427.60 on BSE on Tuesday.

More Stories on : Electrical Goods | New Projects | Larsen & Toubro Ltd

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