Larsen & Toubro (L&T), India’s largest construction company, is considering consolidation of its finance subsidiaries to form a finance vertical. The company’s new general insurance business is expected to be a key part of the new vertical.
“A new finance vertical will emerge as one of the four verticals in the group, which will include most finance-related companies that are currently subsidiaries of Larsen & Toubro,” said R Shankar Raman, executive vice president, finance, L&T.
The company is reorganising itself into four distinct verticals. These include the parent company, engineering, infotech and finance. The finance vertical will consist of L&T Finance, L&T Infrastructure Finance and L&T General Insurance.
L&T General Insurance has appointed Joydeep Roy, the chief distribution officer of Tata AIG Life, as its chief executive.
The company is not probably going to start operations before another six months, said YM Deosthalee, chief financial officer, L&T. Roy declined to comment.