Larsen and Toubro to pump $6 bn into power businessJune 12th, 2008 - 9:37 pm ICT by IANS
New Delhi, June 12 (IANS) Engineering and construction giant Larsen and Toubro Wednesday said it would invest Rs.250 billion ($6.25 billion) in the power generation business, including nuclear energy, over the next five years. “Power is going to be one of our focus areas in the coming years,” L&T chairman and managing director A.M. Naik told reporters here on the margins of an event to mark 70 years of his company’s operations.
“It’s an area we are looking at in a big way,” he said, while ruling out the equity route to raise funds for the company’s renewed focus on power.
“If we do go for an IPO (initial public offer), if required, I don’t see it happening before March 2011,” Naik said, adding resources will mobilised from internal accruals.
He said while the immediate focus will be on thermal power, the company will also go for nuclear energy eventually - an area that has been on the company’s radar for several years now.
This won’t be the company’s first exposure to the power sector. It already sets up power plants on a turnkey basis, including those using thermal, hydro and nuclear technologies.
Larsen and Toubro had also forged a tie-up with Japan’s Mitsubishi to make steam turbines and generators, for which it had planned a separate venture.
The company closed 2006-07 with a turnover of Rs.210 billion ($5.25 billion) and expects to log Rs.250 billion this financial year.