L&T cement division demerger to be over by June

L&T cement division demerger to be over by June
Published: 09 April 2004

Larsen & Toubro today said the process of demerging its cement division into a separate company Ultra Tech CemCo would be over by the middle of this year.  "The process of cement division demerger is likely to be over by June, 2004," L&T chairman A M Naik told PTI.  The company, however, would continue to have a residual interest and also have two directors on the demerged entity’s board, he added.  After the final demerger, L&T would have 11.5 per cent holding in CemCo, while Grasim would hold 51 per cent along with the management control.  On the reason behind retaining residual interest in the demerged entity, Naik said the decision was technical in nature.  "The residual interest in CemCo would allow us to bid for the high net worth global construction projects," he said.  L&T decided to hive off its cement division in favour of Kumarmangalam Birla-led Grasim Industries last year.