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Larsen & Toubro has initiated a structured consolidation of its real estate operations by transferring its realty business to its wholly owned subsidiary, L&T Realty Properties Ltd. The move, approved by the board through a slump sale under a scheme of arrangement, aims to streamline all residential and commercial assets under one corporate structure. The company stated that the real estate business requires independent functioning, steady expansion of its land pipeline, and periodic capital infusion. L&T expects the unified structure to support future growth once regulatory clearances are completed.
Larsen & Toubro has moved ahead with a strategic reshaping of its real estate operations by approving the transfer of its realty business to L&T Realty Properties Ltd, its wholly owned subsidiary. The announcement was made at the start of this week and reflects the company's plan to bring all real estate assets and undertakings under one platform. Advertisement
The board cleared the transfer through a slump sale under a formal scheme of arrangement. This step will take effect only after the necessary regulatory approvals are secured. L&T described the move in its statement as an important first phase in aligning all property-related businesses within a unified framework.
The company said its Board of Directors had approved shifting the entire Realty Business Undertaking to L&T Realty Properties Ltd. This decision follows more than a decade of the firm developing real estate through two separate setups: the Realty Business Unit created in 2007 for converting owned land into housing and commercial projects and L&T Realty which was founded in 2011 to handle both internal and joint-venture development opportunities.
S N Subrahmanyan, Chairman and Managing Director of L&T, noted that the realty arm must operate independently and continue to grow its project pipeline through steady land acquisition and partnerships. He explained that this business requires regular capital infusion, making a single, consolidated structure essential for strengthening L&T Realty's position as a unified real estate brand.
The consolidation indicates L&T's intent to simplify operations, strengthen its real estate identity, and support long-term expansion, especially at a time when organised players are increasing their focus on scalable development models.
Source PTI
5th Jun, 2025
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