L&T to foray into Brazil by 2009 Wednesday, 15 October , 2008, 13:12
Last Updated: Wednesday, 15 October , 2008, 14:27


New Delhi: Larsen and Toubro Ltd (L&T), India's largest engineering
and construction conglomerate, will enter Brazil and South Africa by
early next year.

“We are planning to foray into South Africa and Brazil in all
verticals - oil and gas, cement, paper and everything possible," a top
company official who is also responsible for business development in
Brazil and South Africa said on condition of anonymity.

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"We should be stationed in the country by this year end or early next
year,” he said, even while admitting that the planning was at a
nascent stage, and that the exact way forward was to be crystallised.

“In South Africa, we will tie up with our existing partner Infotech to
start operations initially and later move on with mergers and
acquisitions,” he added.

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When asked why the company had chosen Brazil where not only are
operating costs high but there is also spiralling inflation in the
economy, he said: “Profit margins will touch a new high as we can keep
our prices higher as compared to any other country.”

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The official said the company's bottomlines are already under pressure
due to the liquidity crunch that as pushed up capital costs.

L&T is a Mumbai-based Indian conglomerate, with diverse interests such
as construction, hydraulic equipment, electrical and electronic power
services, fertiliser projects, medical electronics, financial services
and information technology.

Apart from several offices in India, the company has a presence in the
US, Europe, Middle East and Japan.

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