L&T to exit plastics machinery business

Larsen & Toubro, on Monday, said it had signed a share sale and purchase agreement (pending final closing conditions) with Toshiba Machine Co., Ltd. (TMC) of Japan to sell its entire stake in L&T Plastics Machinery Ltd (LTPML), as part of its strategic roadmap to exit non-core businesses and rationalise its portfolio.

LTPML, a wholly owned subsidiary of L&T, manufactures and markets injection moulding machines.

L&T started manufacturing injection moulding machines in 1990 in joint venture with Mannesmann Demag Kunstofftechnik, the erstwhile Demag Plastics Group.

In March 31, 2009, L&T acquired the equity formerly owned by Demag to form LTPM.

Its facilities in and around Chennai incorporate some of the most advanced systems for design and research, hydraulics and mechanical construction.

Bags Rs.2,051 cr contracts

Meanwhile, L&T has bagged Rs.1,302-crore order from the Petroleum Development Oman for the Saih Rawl Depletion Compression phase-2 project.

It has also secured Rs.749 crore offshore contract from ONGC.