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 user 2005-05-23 at 12:29:00 pm Views: 45
  • #9778

    Done deal: Sharp to buy out
    L&T’s 26% stake in JV

    NEW DELHI:Larsen & Toubro (L&T) is selling out its
    entire equity stake in its joint venture Sharp Business Systems (SBSIL) to
    Sharp. L&T currently holds 26% in the 74:26 JV which is engaged in the
    business of office IT products including fax machines, copiers and printers.
    This completes the sale of L&T’s electronic office equipment business.

    The JV was set-up five years back when L&T converted its electronic
    office equipment division into a separate company in partnership with Sharp as a
    majority shareholder. The equity holding was retained at the same level all this

    According to sources, the Japanese electronics giant Sharp will
    acquire the balance 26% equity which comprises of 23.4 lakh shares of Rs 10
    each. The deal amount stands undisclosed.

    SBSIL, generates sales of Rs
    60 crore in the country and with some aggressive marketing and distribution
    strategy is hoping to clock 20% growth in its topline.

    The company’s product portfolio in India includes
    digital copiers & printers, facsimile machines and multi-media projectors.
    While digital copiers & printers contribute over 50% of the total turnover,
    the facsimile machines contribute 15% and the balance 35% business comes from

    When the JV was formed it absorbed L&T Electronic office
    equipment business including select assets, employees and existing dealer
    network and facilities. The plan also included launching hi-tech digital office
    products apart from providing software based solutions for the industry, small
    and big enterprises and home offices in India.

    The condition being that
    the domestic trading activities of the company shall be confined to bulk imports
    with ex-port and ex-bonded warehouse sales and cash and carry wholesale trading.

    SBSIL markets its products through a chain of more than 200 dealers
    across the country. It is developing IT distribution as a full-fledged channel
    with focus on both metros as well as non-metros