Opportunities in Core Sector

Opportunities in Core Sector Hansavivek LARSEN AND TOUBRO is going ahead with its 3,200 -tonnes per day cement project in Chandrapur district of Maharashtra, It has obtained mining lease for limestone deposits from the state government. Land for the factory and housing colony is being acquired and orders for most of the imported components and indigenous equipment have been placed. The plant is expected to be commissioned by the end of 1982. The company is promoting a wholly-owned subsidiary in the Emirate of Bahrain with a paid-up capital of about Rs 1 crore to compete effectively with other international construction companies In the Middle East countries, which today constitute the biggest construction market in the world. The laws of Bahrain confer substantial economic and' other advantages to overseas companies who, wish to establish themselves in that country. Engineering Construction Corporation (ECC), wholly-owned subsidiary of the company, has been executing con- Struction contracts in the Middle East since 1971. For operational, and business purposes, it is considered more advantageous to organise a subsidiary as close to that market as possible in order to compete on equal terms with other international construction companies in that area. L and T will also soon be starting its first manufacturing activity abroad, A new company under the name and style 'Larsen and Toubro (Singapore)' has been incorporated in Singapore to undertake manufacture of aluminium foil capsules and roll-on pilfer proof caps from aluminium sheets for the beverage and pharmaceutical industries. Its plant will be in production by mid- 1981. L and T has a shareholding of 74.69 per cent in this company and the balance is held by Development Bank of Singapore.