L&T’s focus to stay on defence, infra

Anil Manibhai Naik, who steered Larsen & Toubro Ltd (L&T) for 18 years, said on Tuesday that the group will continue to look for opportunities in defence and infrastructure to drive growth, besides evaluating options to restructure and monetise some of its businesses.

Naik told shareholders at the company’s 72nd annual general meeting that L&T expects to get orders worth up to ₹30,000 crore from defence in the next three to four years. In anticipation, the company has already set up seven new facilities across cities.

“Our leadership is ready and lastly, the board has also recognised that it (defence) is an important growth area...We have to grow big and we have to become a ₹10,000-15,000 crore company in defence...over the next five seven years,” he said. As part of the strategy to build its defence and aerospace business, the company in May named JD Patil, who headed L&T’s defence business since its inception as whole time director and senior executive vice president for its defence business.

Both L&T and Reliance Defence and Engineering Ltd. (RDEL) have recently made bids worth around ₹25,000 crore to build four Navy ships.

SN Subrahmanyan, the newly appointed MD and CEO who was also present the AGM said the company may win at least two of the major bids. Two of the bids may be opened soon, he said. “We have fairly good chance by fourth quarter one of the contracts could be signed,” he said. The four bids are for landing platform docks, submarine warfare ships, subway vessels and deep sea diving vessels, he said.

Naik said the company has continued to redefine its core areas in keeping pace with market demand and growth opportunities. “Every few years, a new opportunity emerges in the market. So, we started our five year plan way back in 2000 which was called project LAKSHYA. We are in the fourth strategic plan now. We are seeing a lot of opportunity in smart cities, new technologies, in information technology and new technological application in engineering and defence. We want to focus on these areas.”