L038;T to shut switchgear unit in China

report for 2011-12.

Lamp;T had forayed into the switchgear space in China in 2006 with the establishment of the factory at Wuxi in Jiangsu province through Larsen amp; Toubro Wuxi Electric Company Ltd LTW,a wholly-owned subsidiary of Lamp;T International FZE,

Sharjah. LTW mainly used to cater to the Chinese market.

In its FY8217;11 annul report,Lamp;T had said LTW was facing 8220;heavy competition8221; from the low-cost players which was impacting its performance.

LTW was Larsen amp; Toubro8217;s first manufacturing facility in the electrical sector outside India.

LTW8217;s revenue grew to Rs 39 crore in 2010 financial year,from Rs 31 crore in 2009. Lamp;T attributed the 8220;marginal8221; growth to economic slowdown and delay or cancellation of projects. However,revenue dipped to Rs 33 crore for the year

ended December,2011.

LTW manufactures air circuit breakers ACB and moulded case circuit breakers MCCB. The factory is equipped with manufacturing facilities,quality control and testing equipment.

The sale of the circuit breaker business might be in line with Lamp;T8217;s strategy of focusing on the core businesses and sell small businesses to unlock value.