Engineering major Larsen & Toubro is in talks to sell its plastics machinery business subsidiary L&T Plastics Machinery Ltd (LTPML) to Toshiba Machine Co. Ltd, according to a company statement.
L&T has signed a share sale & purchase agreement and said the divestment is subject to “final closing conditions.†The firm, however, has not disclosed the financial value of the deal.
The move is in line with L&T’s strategic road map to exit non-core businesses and rationalise its portfolio.
L&T scrip was down 1.66 per cent in a weak Mumbai market on Monday to close at Rs 1397.55 a share on the BSE.
Established in 1938, Toshiba Machine manufactures and markets moulding machinery, machine tools and hydraulic equipment.
LTPML, a wholly owned subsidiary of L&T, started manufacturing injection moulding machines in 1990 in collaboration with Mannesmann Demag Kunstofftechnik, the erstwhile Demag Plastics Group. In the late 90s, the two partners formed an equal-equity joint venture. In March 2009, L&T acquired the equity stake owned by Demag and made it a wholly owned business.
The firm installs moulding machines across various sectors such as automotive and packaging, among others. LTPML recorded sales of Rs 206 crore and PAT of Rs 11 crore in the financial year ended March 2012.
(Edited by Sanghamitra Mandal)
