Larsen & Toubro Ltd (L&T) has informed BSE regarding a Press Release dated May 15, 2008 titled “L&T sells its Ready Mix Concrete Business to Lafarge India”

Press Release:

“Larsen &Toubro Ltd (L&T), India’s leading Engineering, Technology and Construction Company and Lafarge India have entered into a definitive agreement for sale of L&T’s Ready Mix Concrete (RMC) business to Lafarge for an enterprise value of Rs 1480 Crs.

The RMC Business Unit of L&T manufactures and supplies ready mix concrete to all segments of users under the brand name of ‘L&T Concrete’. L&T was one of the first entrants into the RMC business in India and has steadily grown this business over the last 10 years. L&T Concrete enjoys a leadership position with a current market share of about 25%. It operates 66 highly efficient RMC plants across the country covering all metros and major Tier I and Tier II cities and has a production capacity of around 4.5 million cubic meters per annum.

The exit is in line with L&T’s strategy of focusing on core businesses and exiting others. The customer profile and service requirements of RMC business are very different from L&T’s Engineering & Construction business. L&T had earlier exited its cement business through a demerger and sale to Grasim in the year 2004.

The sale has been effected through a transfer of the business along with all assets, liabilities and employees connected with the RMC business.”