Larsen & Toubro (L&T), one of India's largest private-sector investors in defence and aerospace, is on a big growth trajectory as the engineering and technology major is developing several next generation guns & armoured systems, future infantry combat vehicles, radars & communication systems, missile launchers, bridging systems, future ships and submarines for the Indian defence forces and for exports. Further, L&T is seriously considering entering the commercial aerospace with end-to-end rocket launch vehicles and satellites.
"We have very ambitious targets and we will see our precision engineering and related businesses becoming substantial in size and revenue within the next 4-5 years," Arun T Ramchandani, senior vice president, L&T Precision Engineering & Systems IC tells Fortune India in an exclusive interview.
The ₹2,21,113 crore revenue L&T Group had ₹4,610 crore revenues in FY24 from the precision engineering and systems business, which grew by 41% over the previous financial year.
L&T is close to clinching a repeat order for 100 K-9 Vajra self-propelled howitzer guns. These 155 mm, 52-calibre advanced guns were developed by L&T with technology partnership with South Korean defence major Hanwha Defense, based on its K9 Thunder platform. Manufactured at its Armoured Systems Complex (ASC) at Hazira, L&T had supplied 100 guns to the Army ahead of the schedule in 2021, an order worth ₹4,500 crore.
"This time the repeat contract, which may be higher in value due to inflation and other factors like exchange rates when compared to 2017, has been negotiated with the Ministry of Defence (MOD) and we are awaiting the final approval any time," says Ramchandani.
L&T is also developing air defence guns and towed versions for the army and IAF, in partnership with the DPSU Advance Weapons and Equipment India Limited (AWEIL). In March, L&T got a ₹13,000 crore order for high power radars and Close-in Weapon System (CWS), which includes tracking & surveillance systems radars and air defence guns. In the case of army air defence guns, which will replace all the existing L 70 guns, Bharat Heavy Electricals Limited (BHEL) is its sole competitor and the opportunity is likely to be for over 220 guns, says Ramchandani.
He revealed that L&T has developed its own Futuristic Infantry Combat Vehicle (FICV) platform, Indian army's major programme to replace and upgrade old Russian BMP-II versions, and is currently upgrading it to the latest request for proposal (RFP) requirements. The FICV is the Indian army's largest modernisation programme worth over ₹40,000 crore for a total requirement of 1,700 FICVs. "We have already developed light tank in collaboration with the DRDO (Defence Research and Development Organisation) in a record time of 18 months. We are exploring collaboration with Defence Public Sector Units (DPSUs) and technology companies for FRCVs," he says.
In the case of missile launchers, canisters and electromechanical precision systems for missiles, L&T is one of the biggest players globally, with integration infrastructure to make huge numbers in no time. It already manufactures 50-100 launchers per year for various missiles and is the largest supplier of canisters to Brahmos. Similarly, L&T is also one of the largest combat engineering bridging system manufacturers for the Indian army, in collaboration with DRDO, ranging from 5 metres to 75 metres. L&T is now developing floating bridges, which will have a big export opportunity, says Ramchandani.
L&T is also exploring big opportunities in aerospace and commercial space programmes. "We are seriously looking at developing end-to-end rocket launch vehicles, which is a precision engineering technology, besides satellite and downstream space applications, which is now in nascent stages of development," he revealed. In aerospace, the company is already a supplier of wings for the Tejas Light Combat Aircrafts (LCA)s made by Hindustan Aeronautics Limited (HAL) and has been working with the ISRO on all space missions.
In the case of ships and submarines, L&T has experience building 62 offshore patrol vehicles (OPVs), interceptor boats, floating decks, besides 12 high-speed boats for Vietnam. In October, L&T launched a first-in-class Multi-Purpose Vehicle (MPV) for the Indian navy from its Kattupally yard in Chennai. Besides two MPVs, L&T is also constructing three cadet training ships and six other defence vessels for the Indian Navy on Public-Private-Partnership (PPP) model at the shipyard. Additionally, the repair of the US Naval Ship (USNS) Charles Drew, under a Master Ship Repair Agreement with the US Navy, is also underway, says Ramchandani.
