Gilbarco Inc, a US-based fuel control service provider, said on Tuesday that it would acquire the petroleum dispensing pump business of
L&T, India’s largest engineering and construction firm, as part of a plan to increase its presence in the local metering business.

Although Gilbarco didn’t specify the financial details of the transaction, the value of the deal is estimated to be within Rs 200 crore, said people familiar with the development. An L&T spokesperson declined to comment on the size of the deal.

Both the companies on Tuesday signed an agreement where L&T’s PDP unit — which manufactures and sells LPG equipment, apart from providing fuel system solutions — will become part of Gilbarco Veeder-Root’s organisation, through a new division called Gilbarco Veeder-Root India, L&T said.

L&T has been making fuel dispensers for at least three decades.

Gilbarco Veeder-Root is a wholly-owned subsidiary of Danaher Corporation, which has its operations in India. “The acquisition is a continuation of our successful strategy of building a thorough local presence in the key market,” said Martin Gafinowitz, president of Gilbarco Veeder-Root.

In the new set-up, Sudhanshu Chhabra will become managing director of the Indian arm of Gilbarco, which will continue to operate the acquired facilities in Mumbai and Coimbatore, the statement added. L&T’s move is part of it’s ongoing exercise to get out of non-core businesses.

Last year, L&T sold its loss-making ready-mix concrete business to France’s Lafarge SA for Rs 1,480 crore.

It had also divested its bottle plant and its dairy equipment business

For information,L&T starts gathering Funds why !!!
with regards
rvk41

thanks for info. Rs. 200 crore is nothing for LT. is this the reason for fall in LT?

I think its cleaning its house and getting ready for a new and shining L&T. Hence all non core business units which does not fit within in core profile (that of an engineering concern) is being disposed off. So that it can move quicker as a giant. Sales proceeds on disposal of such units is just not material for the company. Its just like clearing the house which were cluttered with non essential items- Imagine the feel u have in entering such a house after u have disposed off the not required items.

What is the short term future of L&T? I am talking about 1 week. This stock is not moving above 1650 even we had seen great rally in past 2 weeks.

If you go through the past history of L&T and present activities they are cleaning up for big Business. The business is consolidating to expertised field.
I don`t think it will be below 1600 level.
I think one has to wait for another 4 to 6 weeks for the reactions.

yes you are right.. but crores are crores some value atleast...

taraji crore is peanut for LT :)

then how many peanuts are given for CSR

taraji i was auditor of LT at the start of my career, so i feel it is one of best for CSR also :)

thanks for the info...

CSR is majorly a farce and show business in the private sector in this country.

When should we expect the next positive move in Larsen?