Larsen & Toubro is making efforts to rope in a strategic partner for its Rs 100 crore packaging business.
"The current industry situation is stymieing the company's efforts (to expand further). Hence, the company is making efforts to form a joint venture or divest equity stake in its packaging business to reduce exposure," L&T said in its presentation to financial institutions.
The packaging business is small change for L&T, which reported a turnover of Rs 7,800 crore in 2000-01.
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L&T markets a variety of bottle closures, manufactured at its plant in Powai, Mumbai. The company's product range includes 'Intact' crown caps for soft drinks and beer, 'ProTec' roll-on-pilfer-proof caps for liquor and pharmaceutical products, 'VacuSeal' lug caps for processed foods and 'FreshTop' beverage caps for carbonated drinks.
According to information provided in the annual report for 2000-01, L&T sold glass bottles and jars for an aggregate value of Rs 55.29 crore, crown corks for Rs 18.27 crore and aluminium capsules for Rs 26.14 crore.
The engineering & construction business of the company contributes 59 per cent to its turnover. The cement and electrical business contribute 28 per cent and 9 per cent, respectively. L&T's other businesses account for around 4 per cent of the company's total turnover.