Larsen and Toubro to foray into Brazil by 2009

New Delhi, Oct 14 (IANS) 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 told IANS 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.

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."

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.