Engineering conglomerate Larsen & Toubro will sell its plastics machinery business to Japan's Toshiba Machine as part of its strategy to exit non-core business and rationalise its portfolio. As per Economic Times, L&T did not disclose the financial consideration for the sale of its subsidiary L&T Plastics Machinery, which manufactures and markets injection moulding machines, and reported a gross revenue of Rs 206 crore and net profit of Rs 11 crore in 2011-12. This unit is a very small part of the Rs 71,000 crore company's business and would have no significant impact on its financials. The deal is likely to be completed by September and would entail the transfer of 250 employees of L&T Plastics Machinery.
As a strategy, L&T has in the past, sold its non-core businesses such as petrol pump vending machines and cement businesses. It has also exited joint ventures such as L&T-CASE Equipment.