L&T defence business to invest Rs 1,000 cr to build tank, missiles system

[MKM]

L&T defence business to invest Rs 1,000 cr to build tank, missiles system
The company will deliver 100 tanks to the Ministry of Defence

Engineering major Larsen &Toubro is planning to invest Rs 1,000 crore to set up tank manufacturing and missile facilities. Maharashtra, Gujarat and Tamil Nadu are on the radar for setting up the facilities.

Speaking to Business Standard at L&T's Kattupali Shipbuilding unit, Jayant D Patil, member of the Board & whole time director (defence business) at Larsen and Toubro said that a full-fledged tank will be rolled out from the company's Hazira facility near Surat, where it manufactures 'tracked' vehicles for the military.

Kattupali Shipbuilding unit is one of the nine facilities for the company's defence business in India. The company will deliver 100 tanks to the Ministry of Defence.

Besides, the company is planning to invest in a new factory to manufacture missile systems.

"We are exploring Maharastra, Tamil Nadu and Gujarat for the new facility," said Patel.

Both these facilities -- Hazira and a new facility for missile systems -- will attract investment to the tune of around Rs 1,000 crore. Till now the company invested around Rs 7,000-8,000 crore in the defence business.

The company has partnered with European arms manufacturing group MBDA to supply missiles and missile system to the Indian arm force.

Patel said the company was only doing 70 per cent of the missiles, going forward it will build and supply complete missiles.

The major focus for L&T will be shipbuilding for navy and coast guard. Patel said, every year government want 6-8 vessels and the government-run shipyards can only supply 1.5 ships, so private sector has got a huge scope.

The contribution of L&T's defence business to the company's standalone revenue is 4-5 per cent. The company wishes to increase it to 10 per cent by 2021.

Over the next 10 years the Ministry of Defence is looking to procure defence items worth Ra 14-16 lakh crore, of which 50 per cent needs to be catered by private sector.




First Published: Fri, October 27 2017. 13:38 IST
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Can anyone tell me about these 100 tanks?

 

[binayak95]

I guess this is typical Indian media's absolute brilliance!! These 100 tanks may well be L&T's bid for the FICV project?
Could be something completely different though. Yeh NDA govt kaaphi cheez plan kiya hai...
Senior members, some light on this, please??

 

[prateikf]

100 are not tanks but K-9 SPH for which the contract has already been signed.

 

[Mikesingh]

I guess this is typical Indian media's absolute brilliance!! These 100 tanks may well be L&T's bid for the FICV project?
Could be something completely different though. Yeh NDA govt kaaphi cheez plan kiya hai...
Senior members, some light on this, please??

L&T has the capability to build a full-fledged battle tank, which will be built at the company’s new tank-building factory at Hazira in Gujarat.

L&T also hopes to get orders for the FICV, for which a decision is likely to be announced by the government soon. In less than a month as Defence Minister, Nirmala Sitharaman has decided to firm up a $12-billion project to procure over 2,300 FICVs for the Army.

Besides the Ordnance Factory Board (OFB), which has been nominated for the project, five private companies are fighting for the deal: L&T, Tata Motors, Reliance, Mahindra, and Tata Power SED-Titagarh Wagons. All these firms had responded to the expression of interest (EoI) way back in 2015.

As to how long this process will take and the first FICV to be rolled out is anybody's guess. I would say approx 5-6 years.