L&T division, Scott Wilson set for accord

Larsen & Toubro's ECC division is close to signing an agreement with international engineering and consultancy major Scott Wilson's Australian arm.

The agreement will see L&T and Scott Wilson bid and execute projects together in countries abroad including China, according to top officials.

A Ramakrishna, deputy managing director, Larsen & Toubro said, L&T and Scott Wilson combine could offer the best in terms of efficiency to clients.

"Scott Wilson is a renowned consultant and we are India's leading construction company. While Indian companies have the project execution capabilities they need a partner with a marketable and bankable name to win large projects abroad. That is where we could as well work with such international partners and execute these projects," Ramakrishna said.

Jim G Forbes, chairman, Scott Wilson Irwin Johnson Pty Ltd, said his firm was in talks with L&T for possible tie-ups.

"We have been discussing the past few days, the possibility of a consortium tie up between L&T and Scott Wilson. We are probing the areas wherein we could pool our strengths," Forbes said.

The ECC division recorded revenues of about Rs 4,338 crore in 2002-03 and grew at about 22 per cent.

The construction division of the company accounts for about 44 per cent of the total revenues of L&T and is now increasingly looking at projects abroad.

"Both our organisations, could look at joint venture projects for the coming Olympics in China. As you know, L&T has been working in Sri Lanka, Bhutan, Nepal, Bangladesh, Malaysia, Vietnam and the Middle East," Ramakrishna said.

A consortium approach and partnering with a global name such as Scott Wilson is also expected to help a company such as L&T get better pricing in global projects.

"Additionally, Scott Wilson because of its global reputation can ensure that large infrastructure projects achieve financial closure fast because of our existing relationships with banking institutions such as Deutsche Bank, ABN Amro, and CSFB," Forbes said.

Earlier, Forbes said his firm has been in India since 1996, doing outsourcing work largely for its US and European businesses from Delhi.

Scott Wilson's turnover from India is expected to be between $10 million and $12 million and it has a staff strength of about 200. The India office offers consultancy services in contracts and engineering design.