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Mumbai, Aug 25 (UNI) Divesting itself from some of the non-core businesses, Larsen&Toubro (L&T) is concentrating in a host of new ventures that are the in-things in the industry sector today.

The company has taken slew of initiatives to develop its major growth centres in countries like China and Middle East.

Addressing shareholders during the 61st annual general body meeting (AGM) of the company today, its CMD A M Nayak said the company regularly reviews its business portfolio to ensure focus on businesses that are scaleable and enjoy inherent competitive advantages.

As a part of this review, the company has divested from segments like tractors, food processing equipment, and glass container businesses. The new areas the company has started concentrating include infrastructure, hydrocarbon, power, high-end manufacturing, IT and IT-enabled engineering services and specialised products, he said.

The company is strengthening its domestic resource pool by increasing manufacturing and fabrication capacity at select locations like Coimbatore and Hazira. The other new areas where the company has ventured in recent past are defence, aerospace, shipbuilding and others.

Recently, an amount of Rs 550 crore was raised by L&T Infrastructure Development Projects Ltd (LTIDPL) from a group of private investors for future investments in infrastructure projects on BOT/BOOT basis. After this inclusion the company continues to hold a significant stake of 78.4 per cent in LTIDPL. The LTIDPL is also exploring opportunities in promoting urban infrastructure projects through its subsidiery L&T Urban Infrastructure Ltd jointly in partnership with HDFC and HIREF, he said.

Also, in its bid to achieve the status of global status, the company has started its wing in countries like China and Middle East considering the tremendous business potential in these regions for project-based businesses and manufacturing respectively, he said.

Talking about the company's performance during the financial year 2005-06, Mr Nayak said that the consolidated gross revenues of the group for the fiscal amounted to Rs 16,666 crore, registering a growth of 14 per cent over the previous year.

The board of directors of the company has recommended a dividend of Rs 22 per equity share and also announced a bonus issue in the ratio of 1:1, he said.

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