Stockholm, Sep 11 (DPA) Heavy vehicle and bus maker Scania has signed a distribution deal with Indian group Larsen & Toubro Ltd, the Swedish group said Monday.

Larsen & Toubro is a leading supplier of construction equipment in India and represents Japan-based Komatsu.

"By adding Scania's multi-wheeler construction trucks to its product portfolio, L&T can offer its mining and construction customers a full range of construction equipment," Scania chief executive Leif Ostling said in a statement issued after a meeting with L&T chairman and managing director A.M. Naik in Mumbai.

Citing India's economic growth and expansion of motorways and infrastructure, Ostling said the country would in the long-term "become a significant market also for Scania".

Larsen & Toubro, founded in 1938 by two Danish engineers, reported net income for the 2005-06 fiscal year of 170 million euros ($215 million), Scania said.