Diversified business conglomerate Larsen & Toubro is acquiring 50 per cent stake in L&T-Ramboll Consulting Engineers Ltd (LTR) from its equal equity joint venture partner Ramboll Denmark AS for an undisclosed amount, as per a stock market disclosure.
The acquisition is part of L&T's strategic move to strengthen its design base in infrastructure space. Once the acquisition is completed, LTR will be renamed as 'L&T Infrastructure Engineering Ltd.'
“The acquisition is a significant move to strengthen our EPC offering in the infrastructure sector. With a track of successful projects and international exposure, L&T Infrastructure Engineering will be providing engineering services for major infrastructure projects,” said S N Subrahmanyan, board member and senior executive vice president (Infrastructure and Construction) at L&T.
Chennai-based LTR will continue offering single point 'concept to commissioning' consultancy services for infrastructure projects like airports, roads, bridges, ports and maritime structure, including environment, transport planning and other related services. Currently, LTR has around 250 engineers on board.
LTR was incorporated in 1998 with 50 per cent owned by L&T, while Ramboll Denmark AS and Industrialisation Fund for Developing Countries (IFU), held the remaining 26 per cent and 24 per cent, respectively. Later in 2004, Ramboll Denmark acquired IFU's 24 per cent stake.
Earlier in June, L&T's wholly-owned subsidiary L&T Technology Services acquired 74 per cent stake in Thales Software India Pvt Ltd for an undisclosed amount to grow its avionics business.
In FY14, L&T posted consolidated net revenue of Rs 85,128.4 crore, reporting a growth of 14.26 per cent from Rs 74,498 crore in the previous fiscal.
(Edited by Joby Puthuparampil Johnson)