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Engineering major Larsen & Toubro has made big investments in defence and shipbuilding business to fuel its ambitions but the fledgling businesses are yet to take off as the government is yet to give significant orders to local private manufacturers.
MV Kotwal, whole-time director and president (heavy engineering) at L&T, told ET that the two businesses may clock revenue of $3 billion by 2020, although the pace of development is slow.
L&T has made heavy investments in defence business. How is the progress so far?
The speed at which things are moving is definitely disappointing but the direction is positive. In partnership with leading global companies, we are participating in two gun programmes -- tracked gun and towed gun. Both the systems are undergoing tests along with other competing systems from Israel and Russia. The orders, once finalised, are expected to be worth a few thousand crores. Under the 'Make' category, there are two programmes, in which we want to participate - Tactical Communication System and Futuristic Infantry Combat Vehicle.
Shipbuilding and defence verticals were expected to be supported by your traditional business. How are things shaping up?
Our traditional heavy fabrication capacity is well loaded. The underutilised facility is the shipyard and the forge shop. We have made big investments on the state-the-art shipyard at Kattupalli which has been designed for construction of warships and submarines. We are keeping the shipyard utilised to some extent by construction of offshore platform supply vessels and anchor handling tugs for Qatar. But the ideal utilisation of the facility would be to manufacture warships and submarines.
We have appealed to the government that there is no need to resort to imports of submarines since we have an established and proven capability to build the
What is the order pipeline?
In the heavy engineering segment, our major focus is on process plant equipment, as well as equipment and systems for nuclear, defence & aerospace sectors.
In the recent past, we have made large investments in expansion of existing facilities in Hazira and Baroda, the new units set up in Talegaon, Vizag, Coimbatore, Bangalore and Oman as well as the new Special Steels and Heavy Forgings facility at Hazira.
In case of the shipbuilding segment, a new stateof-the art shipyard has been set up at Kattupalli near Chennai. Considering all these investments by 2020, we should be looking at total revenues to the order of $3 billion in these two segments. There will be ups and downs in one business or the other, but our diversified portfolio will help.
Read more at:
We are looking at collaborating with defence PSUs: MV Kotwal, L&T - The Economic Times
MV Kotwal, whole-time director and president (heavy engineering) at L&T, told ET that the two businesses may clock revenue of $3 billion by 2020, although the pace of development is slow.
L&T has made heavy investments in defence business. How is the progress so far?
The speed at which things are moving is definitely disappointing but the direction is positive. In partnership with leading global companies, we are participating in two gun programmes -- tracked gun and towed gun. Both the systems are undergoing tests along with other competing systems from Israel and Russia. The orders, once finalised, are expected to be worth a few thousand crores. Under the 'Make' category, there are two programmes, in which we want to participate - Tactical Communication System and Futuristic Infantry Combat Vehicle.
Shipbuilding and defence verticals were expected to be supported by your traditional business. How are things shaping up?
Our traditional heavy fabrication capacity is well loaded. The underutilised facility is the shipyard and the forge shop. We have made big investments on the state-the-art shipyard at Kattupalli which has been designed for construction of warships and submarines. We are keeping the shipyard utilised to some extent by construction of offshore platform supply vessels and anchor handling tugs for Qatar. But the ideal utilisation of the facility would be to manufacture warships and submarines.
We have appealed to the government that there is no need to resort to imports of submarines since we have an established and proven capability to build the
What is the order pipeline?
In the heavy engineering segment, our major focus is on process plant equipment, as well as equipment and systems for nuclear, defence & aerospace sectors.
In the recent past, we have made large investments in expansion of existing facilities in Hazira and Baroda, the new units set up in Talegaon, Vizag, Coimbatore, Bangalore and Oman as well as the new Special Steels and Heavy Forgings facility at Hazira.
In case of the shipbuilding segment, a new stateof-the art shipyard has been set up at Kattupalli near Chennai. Considering all these investments by 2020, we should be looking at total revenues to the order of $3 billion in these two segments. There will be ups and downs in one business or the other, but our diversified portfolio will help.
Read more at:
We are looking at collaborating with defence PSUs: MV Kotwal, L&T - The Economic Times
