Larsen & Toubro (L&T) has confirmed the sale of its plastics machinery business as the engineering & construction giant is moving ahead with its strategy to exit non-core businesses.

L&T sold its wholly owned plastic machines business, L&T Plastics Machinery Ltd., to Toshiba Machine Co. of Japan. But, the company refused to disclose the financial details of the sale.

L&T Plastics Machinery, which makes injection moulding machines, posted a net profit of Rs 11 crore and sales of Rs 206 crore in the last fiscal. The division owned 22-25 per cent share of Indian plastic injection moulding machinery.

K Venkataramanan, chief executive & managing director of L&T, said the sale of the plastic business was in line with the company’s strategy to exit from non-core businesses. He also hinted that they could divest more businesses in future.

Speaking on the topic, he said, "We have indicated before that we want to exit non-core businesses and this sale is part of it. We have identified some more businesses for divestment but it's too early to reveal details.”

He defended the move, saying the company didn’t see any point in using resources and deploying senior management on non-core businesses.

The plastic injection moulding market has been estimated at around Rs 1,000 crore to Rs 1,200, crore, in which organised players including L&T Plastics Machinery, Windsor Machines Ltd. and Ferromatik Milacron India Pvt. Ltd. account for 80 per cent market share.