L&T to invest Rs 100cr in Rangsons

Larsen & Toubro (L&T) is set to invest Rs 100 crore in Mysore-based Rangsons Electronics for a 40 per cent stake. Rangsons Electronics is a Rs 70 crore electronic manufacturing solutions provider and one of the preferred suppliers for L&T's electrical & electronics division.

An L&T spokesperson said the company did not comment on market speculation. Rangsons management was not available for comment.

According to sources, the Rs 20,000 crore engineering and construction major is making investment to beef up its presence in the fast-growing EMS market. This division contributes around Rs 2,000 crore to L&T's top line and is engaged in the business of low-voltage switchgear products, electrical systems, energy meters, medical equipments, petroleum dispensing pumps and automation solutions.

Rangsons Electronics is a part of the diversified N R Sons in Mysore. It employs around 700 people in four manufacturing units. In 2006, it increased capacity by around 50 per cent and has grown at a compounded annual rate of 65 per cent in the last five years.

In addition to L&T, Rangsons is also a major supplier to GE. These two account for around 65 per cent for the company's top line.

According to the Rangsons' roadmap, it is targeting to address the entire electronics division of L&T. Rangsons is also focussing on exports as L&T sat up a new manufacturing base for high-end air-circuit breakers in China recently.