Mitsubishi considering stake in L&T Shipbuilding

THE Japanese engineering major, Mitsubishi Heavy Industries, could end up buying a stake in Larsen & Toubro's subsidiary, L&T Shipbuilding, with the brand looking to set up its first shipbuilding base outside Japan.

"Mitsubishi Heavy Industries plans to acquire a stake in L&T Shipbuilding… to secure its first shipbuilding base overseas," Mr Hisashi Hara, Head of Shipbuilding and Ocean Development, Mitsubishi, said while presenting the company's business plan recently.

The L&T subsidiary had signed an agreement with Mitsubishi in December 2012 for technological assistance, ranging from design drawings to quality control.

Mr M. V. Kotwal, President (Heavy Engineering), L&T, said that the company hadn't had any discussions with Mitsubishi on the issue. "We have also heard about the same, but we have not had any discussions. If and when it comes up, we will look into the matter. But so far, we have not had any discussions," he said.

The company was always open to partnerships that would add long-term value to any of its businesses, he added.

Source : Exim News Service - MUMBAI, June 26