L&T to ramp up electronics, space, defence and semiconductor manufacturing

The engineering major is investing in precision manufacturing, electronics, and semiconductors as it targets deeper IP-led growth

Larsen & Toubro (L&T), the $30 billion engineering-to-construction conglomerate, is ramping up its ambitions in the advanced manufacturing industry, with special focus on making products in India in the electronics, space, defence, and semiconductor segments, which can cater to local as well as global markets.

 

In an interaction, Arun Ramchandani, senior vice president and head of L&T Precision Engineering and Systems — who is also the chairman of the Indian Space Association — said that the conglomerate’s integrated strategy was to deepen manufacturing capabilities, with defence on the way to become a $1 billion revenue contributor by the end of 2025-26 (FY26).

 

"We need to go beyond pure play manufacturing. We realise that industrial electronics, semiconductors, aerospace, and defence, all of these segments enable us to build our own IP (intellectual property) and products, and add value beyond the work we are doing in advanced manufacturing," he said on the sidelines of the India International Space Conclave, outlining the long-term road map of the group.

 

Precision Engineering and Systems is part of the advanced manufacturing segment within the group. To be sure, majority of the group's business and revenue comes from EPC (engineering, procurement, and construction) projects and services, operating across multiple global geographies.

 

The group's plans align with India's larger ambition to attract manufacturing from China, which assumes greater significance as tariff uncertainty persists from markets like the US, even as talks for trade agreements are ongoing.

 

"We do feel that there is an opportunity to scale up precision manufacturing in India because beyond China, I can see demand for manufacturing growing here. So, we need to invest in manufacturing, and we are doing so in our Precision Manufacturing & Systems Complex in Coimbatore," the senior executive added.

 

In the defence segment, L&T’s current work includes building tanks, ships, and submarines while also investing in next-generation technologies. On Wednesday, the Indian Army signed a contract for the procurement of BvS10 Sindhu vehicles from the company where L&T will indigenously produce the all-terrain vehicle at its Armoured Systems Complex in Hazira with technical and design support from BAE Systems Hägglunds. The contract also includes a comprehensive integrated logistics support package for initial deployment, maintenance, and life-cycle sustainment.

 

On the space front, the group manufactures launch vehicle components, and is entering into partnerships that could eventually see it graduate to full-fledged product manufacturing.