Larsen & Toubro Ltd will shortly file with the Bombay Stock Exchange its plans for a trust scheme for its employees to pick up 15 per cent stake of Grasim Industries Ltd.
The scheme detailing the trust structure and financing arrangements (for employees to pick up Grasim stake) would be submitted to BSE in the next two weeks, A M Naik, managing director and chief executive, L&T, told reporters on the sidelines of a CFO summit organised by the Confederation of Indian Industry in Mumbai on Wednesday.
Y M Deosthalee, chief financial officer, L&T, said the scheme would need approval from the board of directors at the next meeting, which was likely to be held in next 8-10 days.
The plans for employees' trust to pickup Grasim stake in L&T was part of a deal through which the cement division was to be demerged into a new company (CemCo). Grasim would take management control in the company through an open offer and buyout L&T stake in CemCo.
On L&T's growth plans, Naik said it would be a blend of organic and inorganic, especially acquisitions in the information technology and process engineering sectors.
"We are looking for infotech companies in insurance, telecom and enterprise resource planning," he added.
"For process engineering, we are interested to acquire a company in the United States, but L&T is not waiting for acquisitions to grow this business and emphasis is also on developing capabilities internally," Naik added.
Earlier speaking at the CFO summit, Naik said CFOs would have to use various options for raising funds to reduce costs and when merger and acquisitions are on rise, they (CFO) had to master legal aspects for restructuring activities.
The finance officers could help change the mindset of the organisation by setting up new performance parameters, Naik said.
Y C Deveshwar, chairman, ITC, said in the current competitive environment, CFOs have to be consumer oriented to ensure sustainable growth of the business.
Similarly, CFOs were expected to act as a custodian of planning and performance management, Deveshwar said.
