Larsen & Toubro (L&T), the engineering and construction giant, has some serious plans for its financial wings. Just a day after it launched its asset management company, L&T Mutual Fund, it has made clear that it is going to concentrate more on the engineering and capital goods sectors.

The company has also said that within a period of 12 months, it is would be selling its stakes in the two finance units. The statement was given to a private newspaper, Business Standard on Tuesday. The company had earlier said that it would be listing the two divisions.

The two wings are- L&T Infrastructure Finance and L&T Finance. Both are fully owned by the parent company, L&T Group.

Talking on the sidelines of a conference, Chief Financial Officer of L & T, Y. M. Deosthalee said that the finance wings have to eventually become independent and for that they need to be able to fund themselves. He further added that a decision about listing would be taken by Q3 of FY2011.

Meanwhile, the MF is interested in domestic pharmaceutical and IT companies and wants to stay away from the reality firms.