L&T exits dairy business, sells JV stake ot Nitro A\S

Larsen & Toubro (L&T) has decided to pull out of the dairy business by offloading its 50 per cent stake in L&T-Nitro to its partner Nitro AS Denmark, a part of the Euro 3 billion GEA group of Germany.

"In line with our desire to focus on core sectors with large opportunities for growth, we accepted a proposal from our JV partners and decided to exit this business. Over the years, we have developed the brand and the people and generated goodwill which will help in capturing future potential for the business," L& T chairman A M Naik was quoted as saying in a press release issued by the company.

He said the divestment was part of L&T's plan to focus on larger businesses with high growth opportunities.

Niels Graugaard, president of GEA Engineering Division said the German company was keen to invest further in India. "

We will ensure the availability of the full range of GEA technologies besides integrating the Indian operations into our global activities.

The company had achieved leadership position for the powder plants and the liquid milk plants. The dairy plant business will be well integrated into GEA's process engineering division and would generate a global market for the Indian operations, the release said. "The Indian economy and international markets offer good opportunities in the areas of hydrocarbon, power, infrastructure construction, electrical and electronics and technology services and L&T aims to consolidate its position in these businesses," Naik said.