L&T Adamya Autonomous Underwater Vehicles (AUV) at DefExpo 2014 - MOD has initiated procurement of 15 lightweight (man-portable) and 10 heavyweight AUVs from Indian Vendors for Mine Reconnaissance and sea bottom mapping
The company expects significant growth in export orders over the coming years
Engineering and construction major Larsen and Toubro (L&T) expects its defence orders to grow to Rs.50,000 crore in the next three years.
“Over the next decade, we see a potential of nearly Rs.4.5 lakh crore worth opportunities addressable by L&T,” J. D. Patil, senior vice-president and head of Defence and Aerospace, L&T, told reporters here on Wednesday. The areas include warships, submarines, communications, artillery and missile systems.
The ‘Make in India’ initiative and thrust on indigenisation in the defence sector, have opened up new avenues for the company, he said.
L&T’s defence exports are now to the tune of Rs.150 crore, he said. With the government facilitating exports, L&T expects significant growth in export orders over the coming years and the potential was high in the South East Asian region.
“While we see these opportunities, we also see challenges in matching financial packages offered by competing countries and high cost of capital in India. We are talking to the government on these,” Mr. Patil said.
With growth in orders, L&T may invest between Rs.500 crore and Rs.1,000 crore in its defence manufacturing facilities over the next five years, he said. Technology and production capacities are in place to support the indigenisation plans of the Ministry of Defence, he said.
L&T’s Precision Manufacturing and Systems Complex facility in Coimbatore was commissioned in 2009-2010. The campus will get additional facilities in its defence segment. However, these are likely to happen in a few years down the line.
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