VVS Laxman is a great player who doesn’t play one-day internationals or Twenty20 internationals. He’s been at Lancashire before and done extremely well and everyone like him.
It also bolsters Lancashire’s batting, which needs a little bit of enbolsterment right now. Hopefully the enbolstery brought by Laxman will spur his fellow batsmen into great feats of bolsteration as well.
This sort of talk presumably formed the basis of the contract talks.