L&T Valves eyes Rs 2,000 crore income by FY'16 on export push

L&T Valves, a wholly-owned subsidiary of engineering major Larsen & Toubro, is eyeing Rs 2,000-crore revenues, mainly driven by exports, by FY2015-16.

 

The company expects to end the current fiscal with Rs 1,200 crore in sales income, out of which around 55% are expected to come from exports, and it wants to increase this to more than 60% over the next two fiscals.

 

The firm, which manufactures valves catering to power and oil & gas sectors, is looking at increasing its exports as it sees rise in the demand from West Asia, Japan, Korea and other markets.

 

"The slowdown in domestic market, especially in power sector, has been continuing for long. At the same time, we see demand from West Asia, Japan, Korea among others, increasing in recent months, and hope to continue this going forward," L&T Valves chief executive N V Venkatasubramanian told PTI here over the weekend.

 

He also attributed his optimism to rising shale gas boom in the US.

 

"The shale gas business in the US is emerging as a potential market for us. We wish to tap this opportunity by increasing our exports in these markets," Venkatasubramanian said.

 

Currently, exports contribute nearly 55% to total sales, he said, adding: "We plan to increase it to over 60%."

 

He further said that to tap the opportunity, the company is planning to expand its manufacturing capacities.

 

Currently, it has three manufacturing facilities in Tamil Nadu at Chennai, Coimbatore and Kancheepuram.

 

"We have large space at Coimbatore and Kancheepuram plants and we are planning to expand both the facilities. We have already started the process and have earmarked a capex of Rs 60 crore for this fiscal, which will go up in future," Venkatasubramanian said.

 

The company currently sells its products through global as well as domestic original equipment manufacturers under project contracts. Besides, it also has dealers for direct sales of its products in the country.

 

L&T had in March bought 50% stake of US-based Flowserve Corp in Audco India to strengthen its core valves business.