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Time of India
7 days ago
- Business
- Time of India
How L&T aims to create a multi-billion dollar defence business driven by Modi government plans to modernise military
The government has established a target of Rs 30,000-crore in defence exports for this fiscal year. (Image of K9 Vajra) Larsen & Toubro (L&T) plans to expand its defence business into a multi-billion dollar enterprise, significantly higher than Rs 6,185 crore (approximately $726 million at current exchange rates) in orders from the previous financial year, motivated by governmental initiatives to enhance military capabilities. The government has established a target of Rs 30,000-crore in defence exports for this fiscal year, with plans to reach Rs 50,000 crore by FY29. Additionally, the government seeks to achieve domestic defence production worth Rs 1.6 lakh crore in FY26, with projections to reach Rs 3 lakh crore by FY29. The company produces various military equipment including warships, patrol vessels, armoured vehicles, artillery guns and missile systems. In conversation with ET, L&T president and chief financial officer R Shankar Raman indicated the defence sector's substantial growth potential. "It can be as big as you want because it is a question of how much the government is willing," he stated, noting L&T's intention to utilise their shipyard for defence orders and expand facilities when necessary. L&T Defence Plans L&T's marine manufacturing capabilities span across various naval vessels, ranging from coast guard and survey vessels to fast boats, ships, fleets, frigates and submarines, encompassing the entire spectrum of maritime defence assets. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo The company's CFO highlighted that the government recognises the importance of increased private sector involvement in defence manufacturing to swiftly modernise India's military equipment, particularly considering the limited capacity and substantial backlogs at state-owned defence enterprises. Also Read | 'Make in India' defence boost: Advanced version of BrahMos missile may be manufactured in Uttar Pradesh; India & Russia begin talks He expressed satisfaction with the government's growing acknowledgment of private sector participation in defence, noting that this approach addresses both domestic requirements and international opportunities, especially given the current global defence landscape and evolving supply chain dynamics. The company operates an advanced shipyard equipped to construct large warships, conventional submarines and essential components for these platforms, though it specifically excludes explosives and ammunition from its manufacturing scope. Within L&T's precision engineering and systems division, the defence segment secured orders worth Rs 13,326 crore in the previous fiscal year, showing 29% growth, primarily attributed to additional orders for K9 Vajra-T self-propelled howitzers. The segment achieved revenue of Rs 6,185 crore, marking a 32% increase. Also Read | Pitch for big defence industrial corridor: Chandrababu Naidu wants HAL to make combat aircraft in Andhra Pradesh L&T's involvement extends to the engineering and construction of INS Arihant, India's pioneering indigenous nuclear-powered ballistic missile submarine. In October, they launched their first multipurpose vessel for the Indian Navy at the Kattupalli Shipyard, Chennai. Currently, they are building three cadet training ships alongside six additional vessels for naval operations. The organisation's strategic focus becomes particularly relevant as global defence supply networks experience considerable pressure from geopolitical tensions, notably the Russia-Ukraine conflict. These circumstances have disrupted vital supply routes, particularly in eastern Europe, impacting the procurement of crucial materials and components. "The US' planned tariff imposition is expected to further strain the supply chain. These actions have increased costs for defence contractors and caused delays in production and maintenance," L&T stated in their latest annual report. The organisation has allocated Rs 200-crore for investments in emerging enterprises to strengthen its technological and defence capabilities. "A lot of IIT-sponsored projects are happening. So, we were willing to invest in such ventures. A lot of startups are in the defence application. We are examining them as to which would help us," said Shankar Raman. Raman indicated interest in launching systems, radars and traction devices. The company seeks collaboration opportunities with startups specialising in power distribution, load distribution and load management systems. According to Shankar Raman, L&T aims to secure 20% of the nuclear power sector. The government's Nuclear Energy Mission has designated Rs 20,000 crore for research, development and implementation of at least five Bharat Small Modular Reactors. Also Read | India's defence exports surge to record high of Rs 23,622 crore in FY25; 34-fold increase from 2013-14 Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
7 days ago
- Business
- Time of India
L&T to Ramp up Defence Play to Billion-dollar Business
Larsen & Toubro (L&T) is aiming to create a multi-billion dollar defence business , a sharp rise from ₹6,185 crore (about $726 million, by current currency values) of orders in the previous fiscal year, enthused by the government's push to upgrade and modernise the military. The engineering conglomerate has a broad presence in the defence sector—manufacturing warships, patrol vessels, armoured vehicles, artillery guns and missile systems, among others. The Narendra Modi government has set an ambitious target of ₹30,000-crore worth defence exports this fiscal year, reaching ₹50,000 crore by FY29. The government is also aiming for domestic defence production of ₹ 1.6 lakh crore in FY26, nearly doubling to ₹3 lakh crore by FY29. R Shankar Raman, L&T president and chief financial officer, told ET the defence sector has the potential to be a multi-billion dollar segment. 'It can be as big as you want because it is a question of how much the government is willing,' he said, adding that it is an intrinsic part of L&T's plan to fill its shipyard yard with defence orders, and expand if needed. 'When you talk about defence or Navy, right from coast guard and survey vessels to fast boats to ships, fleets, frigates and submarines, you can go the whole length,' he said, detailing L&T's marine manufacturing capabilities. Live Events Shankar Raman noted that the government is realising the criticality of having greater private sector participation in defence to rapidly upgrade India's military hardware, especially considering the combined capacity of all state-run defence firms and their order backlogs. 'We are quite glad to hear the government increasingly saying there is a need for the private sector to participate (in defence). The government not only sees it as a domestic requirement but also realises there is an international opportunity, with the kind of defence step-up that is happening and geographies and supply chain getting rearranged,' he said. L&T has a state-of-the-art shipyard capable of building large warships, conventional submarines and critical equipment and systems for these platforms. The business, however, does not manufacture any explosives or ammunition. The company's defence portfolio, which falls under the precision engineering and systems business, secured Rs 13,326 crore worth of orders last fiscal, a 29% growth, mainly due to a repeat order for K9 Vajra-T self-propelled howitzers. The business earned revenue of Rs 6,185 crore last fiscal, a 32% growth. L&T was also associated with the design engineering and construction of the INS Arihant, India's first indigenously-designed and built nuclear-powered ballistic missile submarine. Last October, it launched the first of two multipurpose vessels (MPVs) for the Indian Navy from its Kattupalli Shipyard in Chennai. It is also constructing three cadet training ships and six other vessels for the Navy. The conglomerate's bet gains significance in the midst of global defence supply chains facing severe strain due to geopolitical conflicts such as the Russia-Ukraine war, disrupting critical supply routes, especially in eastern Europe, affecting the availability of essential materials and components. 'The US' planned tariff imposition is expected to further strain the supply chain. These actions have increased costs for defence contractors and caused delays in production and maintenance," L&T said in its latest annual report. The company is also focusing on investing in startups to enhance its technology and defence expertise. It has created a Rs 200-crore corpus for startup investments. 'A lot of IIT-sponsored projects are happening. So, we were willing to invest in such ventures. A lot of startups are in the defence application. We are examining them as to which would help us," said Shankar Raman. He added that L&T could be interested in areas such as launching systems, radars and traction devices. The company is also open to partnering startups in areas of power distribution, load distribution and load management systems. L&T is also targeting a 20% market share in the nuclear power segment, said Shankar Raman. The government has initiated the Nuclear Energy Mission, allocating Rs 20,000 crore towards research and development, and the deployment of at least five Bharat Small Modular Reactors.
Economic Times
7 days ago
- Business
- Economic Times
L&T to ramp up defence play to billion-dollar business
Larsen & Toubro (L&T) is aiming to create a multi-billion dollar defence business, a sharp rise from `6,185 crore (about $726 million, by current currency values) of orders in the previous fiscal year, enthused by the government's push to upgrade and modernise the military. The engineering conglomerate has a broad presence in the defence sector—manufacturing warships, patrol vessels, armoured vehicles, artillery guns and missile systems, among others. The Narendra Modi government has set an ambitious target of `30,000-crore worth defence exports this fiscal year, reaching `50,000 crore by FY29. The government is also aiming for domestic defence production of ` 1.6 lakh crore in FY26, nearly doubling to `3 lakh crore by FY29. R Shankar Raman, L&T president and chief financial officer, told ET the defence sector has the potential to be a multi-billion dollar segment. 'It can be as big as you want because it is a question of how much the government is willing,' he said, adding that it is an intrinsic part of L&T's plan to fill its shipyard yard with defence orders, and expand if needed. 'When you talk about defence or Navy, right from coast guard and survey vessels to fast boats to ships, fleets, frigates and submarines, you can go the whole length,' he said, detailing L&T's marine manufacturing Raman noted that the government is realising the criticality of having greater private sector participation in defence to rapidly upgrade India's military hardware, especially considering the combined capacity of all state-run defence firms and their order backlogs.'We are quite glad to hear the government increasingly saying there is a need for the private sector to participate (in defence). The government not only sees it as a domestic requirement but also realises there is an international opportunity, with the kind of defence step-up that is happening and geographies and supply chain getting rearranged,' he said. L&T has a state-of-the-art shipyard capable of building large warships, conventional submarines and critical equipment and systems for these platforms. The business, however, does not manufacture any explosves or ammunition. The company's defence portfolio, which falls under the precision engineering and systems business, secured Rs 13,326 crore worth of orders last fiscal, a 29% growth, mainly due to a repeat order for K9 Vajra-T selfpropelled howitzers. The business earned revenue of Rs 6,185 crore last fiscal, a 32% growth. L&T was also associated with the design engineering and construction of the INS Arihant, India's first indigenously-designed and built nuclearpowered ballistic missile submarine. Last October, it launched the first of two multipurpose vessels (MPVs) for the Indian Navy from its Kattupalli Shipyard in Chennai. It is also constructing three cadet training ships and six other vessels for the Navy. The conglomerate's bet gains significance in the midst of global defence supply chains facing severe strain due to geopolitical conflicts such as the Russia-Ukraine war, disrupting critical supply routes, especially in eastern Europe, affecting the availability of essential materials and components. 'The US' planned tariff imposition is expected to further strain the supply chain. These actions have increased costs for defence contractors and caused delays in production and maintenance," L&T said in its latest annual report. The company is also focusing on investing in startups to enhance its technology and defence expertise. It has created a Rs 200-crore corpus for startup investments. 'A lot of IITsponsored projects are happening. So, we were willing to invest in such ventures. A lot of startups are in the defence application. We are examining them as to which would help us," said Shankar added that L&T could be interested in areas such as launching systems, radars and traction devices. The company is also open to partnering startups in areas of power distribution, load distribution and load management systems. L&T is also targeting a 20% market share in the nuclear power segment, said Shankar Raman. The government has initiated the Nuclear Energy Mission, allocating Rs 20,000 crore towards research and development, and the deployment of at least five Bharat Small Modular Reactors.
