L&T to exit its dairy business

Larsen & Toubro (L&T) has decided to sell its 50% stake in the joint venture, L&T Niro & simultaneously transfer the related business of building plants for the dairy industry to its partner Niro A/S Denmark. Niro is a part of GEA the euro 3 billion major based in Germany.

A M Naik, chairman & managing director of L&T said, "In line with out 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. It is heartening that our people will be associated with a committed and respectable institution, similar to ours."

The Indian economy and international markets offer good opportunities in the areas of hydrocarbon, power, infrastructure construction, electricals and electronics and technology services, the Company aims to consolidate its position in these businesses, this divestment is part of the L&T's strategy to focus on larger businesses with high growth opportunities.