'L&T may list or merge MF arm in Q3 of FY11'

Engineering and construction group Larsen & Toubro today launched its asset management business and said it would look at unlocking its value either through listing or merger with another entity.

"We are looking at value unlocking...We expect the value to be unlocked by the third quarter of FY11," L&T Whole-time Director and Chief Financial Officer Y M Deosthalee told reporters here.

Group subsidiary L&T Finance, which recently acquired DBS Cholamanadalam's AMC and rechristened it L&T Investment Management Ltd has renamed the fund house as L&T Mutual Fund.

"The complement of L&T's brand, established presence in financial services and an experienced team of professionals, will enable the establishment of a successful asset management business," Deosthalee said.

The mutual fund arm would provide a suite of products that would be attractive to both retail investors and corporates, he said.

"Our target is to be among the top ten funds in India. We need to create an image of a stable and strong fund among customers," Deosthalee said.

The company proposes a further investment of Rs 500 crore to be pumped into the business in the next two years.