L&T buys out Komatsu JV in India
22 April 2013
Larsen and Toubro (L&T) has announced it will acquire the 50% stake in Indian construction equipment manufacturing joint venture, L&T-Komatsu (LTK), currently held by it partner Komatsu.
The deal will see L&T manufacture Komatsu-designed excavators and hydraulic components in Bangalore, through its 100% holding in LTK. Komatsu will focus on other products from a factory it owns in Chennai, where it currently builds mining trucks.
Although both companies said they would continue to focus on their various areas of expertise – Komatsu the design and manufacture of construction equipment and L&T the supporting sales, service and distribution work, Komatsu confirmed it “is going to consign the production of hydraulic excavators to LTK for the time being and continue to support quality control at LTK.”
Komatsu and L&T formed their joint venture in 1998 and currently claim a 20% share of the Indian excavator market, which totalled nearly 14,000 units last year, according to specialist consultant Off-Highway Research.
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