Larsen & Toubro (L&T), one of the leading infrastructure companies in India, informed the Bombay Stock Exchange that it has sold its foundry unit at Coimbatore to Bradken Ltd for Rs 163 crore. The sale was completed on March 4, 2016 though the business transfer agreement had been signed on November 2014.
Bradken Ltd is an Australian-listed entity whose Indian subsidiary has acquired the foundry. Bradken is currently present in manufacturing and supplies capital and consumable products to the mining and manufacturing industry.
The sale was part of its strategic plan to exit its non-core business. It was a positive step for the company because it received a consideration of Rs 163 crore against the sale of the foundry unit, which had revenues of Rs 122 crore in fiscal 2014-15.
However, the company mentioned that, it continues to maintain its foundries at Kansbahal, Odisha and L&T Special Steels & Heavy Forgings, Hazira, Gujarat.