NEW DELHI, MAY 5: Larsen & Toubro (L&T) has deferred the sale of their shipping business due to the crisis in south-east Asian markets."Market today is bad because of the south-east Asian problem. So we are waiting. Bids (for the sale) have been suspended," said S D Kulkarni, managing director of the Rs 5,300 crore engineering and construction giant.L&T had decided to sell off the shipping division last year as part of their restructuring programme aimed at concentrating on core competence.Kulkarni, however, said the company had not dropped the idea of selling the shipping division. "We have not disbanded the idea but it may not be today, it might be little later," he added.
"I do not know how long it will take (to sell the division). May be until market improves. But nothing for the moment as the markets have changed totally," Kulkarni said.
L&T, which received bids from various companies, including some from abroad for the shipping division, was to take a decision on the buyer by the beginning of thecurrent financial year.
L&T is also planning to hive off its hard-disk drives, electronic testing equipment and computer peripherals business. Kulkarni said the only reason for the proposed sale was that these divisions did not form part of the core business of the company. He said the strategy to be adopted in the coming days would be to hive off divisions in non-related areas and concentrate on core business.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
