ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Further with Collaborations

Hansavivek LARSEN AND TOUBRO is setting up new companies with foreign collaboration for manufacture of sophisticated engineering equipment. A 'letter of intent' has been received for the manufacture of electronic connectors in partnership with International Telephone and Telegraph of the USA. A new company named 'L and T-Intertel Ltd' with a subscribed capital of Rs 30 lakhs is proposed to be formed. L and T will subscribe 60 per cent of its capital and ITT 40 per cent Another new company with the proposed name 'L and T-McNeil Ltd' will be registered shortly to undertake manufacture of rubber processing machinery including Bag-O-Matic tyre curing presses in collaboration with McNeil Akron of the USA. Of its proposed paid-up capital of Rs 50 lakhs, L and T will hold 60 per cent and the foreign partner the remaining 40 per cent. L and T has also received 'letters of intent' for the manufacture of agricultural tractors and self- propelled harvester combines and is negotiating with Deere of the USA for setting up the project at Ghaziabad in UP where land has already been acquired. Over the next five years, L and T will need additional capital of Rs 3-4 crores, over and above the cash expected to be generated from its own operations, to finance the normal expansion of its own business and the business resulting from the new collaboration schemes. The proposed merger of Canara Bank Ltd with the company will bring in about Rs 3 crores which will not only meet a substantial part of the immediate financial requirements but will also assist it in maintaining a healthy debt/equity ratio.

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