Engineering and construction major Larsen and Toubro (L&T) dropped 1% on Monday as PTI reported that competition has forced the company to shut down its switchgear unit in China.
The report says, "L&T has decided to shut down its switchgear unit in China due to low growth and stringent competition from local low-cost producers."
"As the growth and profitability of the business has been low as compared to the plan, it has been decided to close the business. Accordingly, the plans to exit the business is awaiting Chinese government clearance," L&T said in its annual report for 2011-12.
At 10:02 hours IST, the share was trading at Rs 1,409.60, down 0.82% with volumes of 28,551 equity shares.
Other news
The Financial Express reported that L&T will invest Rs 500 crore in realty development project with Omkar Realtors. The Economic Times reported that Zuari Cement will make a lump sum payment to L&T, over an arbitration claiming Rs 188.5 crore.
DNA reported that Visa Power encashed bank guarantee worth Rs 250 crore given by L&T.
On Friday, the share declined 0.82% to close at Rs 1,421.20.
Market capitalisation of the company currently stands at Rs 86,522.75 crore.
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