L&T to set up manufacturing facility in Coimbatore

Banking on the presence of a number of small and medium engineering industries and the availability of skilled manpower in the region, the engineering and construction major, Larsen and Toubro (L&T), plans to set up a new manufacturing facility here.

The company has earmarked Rs 500 crore for its 'Coimbatore campus' which would come up on 300 acres, at Malumichampatti village near here.

Addressing a press conference, A M Naik, chairman and managing director of the company, said the centre would focus mainly on light engineering products. It would provide direct employment to around 1,200 people.

"We are planning to outsource our raw materials from these units that may act as a good vendor base for us. This will also lead to indirect employment for about 5,000 people," Naik added.

Elaborating on this, Naik said the Coimbatore campus would house four manufacturing units- for making power control equipment (switchgears), valves, precision engineering and petrol dispensing system. The construction work is expected to be completed by May 2007 and the production would begin from June 2007.

The company will pump in its total investment of Rs 500 crore in a phased manner over the next five years. Of the four manufacturing units, the company is building the facilities for the units for switchgear, valves and precision engineering manufacture, simultaneously.

"The unit for making petrol dispensing system will start in the second stage, since adequate training has to be given to the workers," said Naik. The company already has a tie-up with P S G College of Technology for training students. The company would be holding talks with other technical institutions in the city.

Commenting on the overseas operations, Naik said the company had proposed to set up two new units - one in China and another in Saudi Arabia. The plant in China would manufacture air circuit breakers, switch board, motor and power control gears while the unit in Saudi Arabia would manufacture valves that are used in offshore platform oil rigs, petroleum and refinery industries. "We are looking forward to opening another overseas facility also, probably in the Gulf," Naik added.

The company is also focusing on its dredging business. L&T is looking at the possibility of setting up a ship-building unit either in Andhra Pradesh (Kakinada) or Gujarat. However, a final decision in this regard would be taken in the next three or four months, he said.