L&T acquires Belgian dredging subsidiary

Engineering and construction major Larsen & Toubro has forayed into dredging business by acquiring a majority stake in International Seaport Dredging, promoted by Belgian multinational, Dredging International NV (DI), for an undisclosed amount.

L&T has acquired 61 per cent stake in DI's Indian venture. Post-deal, DI will hold the balance 39 per cent in the company. This acquisition is in line with the L&T's strategy to strengthen its position in ports and harbours.

Dredging International (DI) is part of the DEME group (Dredging, Environmental & Marine Engineering). DI's core activity is dredging and land reclamation.

At present, DI's trailing suction hopper dredgers and cutter suction dredgers are deepening fairways and reclaiming new land in South America, the Middle East, Australia, Africa and Europe in addition to building ports in India.

While, L&T has already played a major role in construction in several public and private sector ports in the country, including ports at Nhava Sheva, Chennai, Mundra (for Adani), Gangavaram, Hazira (for Shell LNG plant), Seabird Project at Karwar; private jetties for Finolex (Ratnagiri), Reliance (Hazira), Chemplast (Karaikal) and Ballard Pier in Mumbai.

Currently, the public sector Dredging Corporation of India (DCI) is the major player in the segment in the country. In India, the market size for capital and maintenance dredging is estimated at Rs 7-8 billion, which is only 2 per cent of the global market.

Earlier, L&T had forayed into shipbuilding and had won a key contract for construction of four ships valued at over Rs 440 crore from Zadeko Ship Management CV of the Netherlands.

The vessels will be built at a new shipyard that will form part of the company's engineering complex at Hazira, Surat.