L&T eyes 20% annual growth in electrical, automation space

Larsen & Toubro (L&T), India’s top engineering and construction company, is expecting 20 per cent annual growth in its electrical and automation (E&A) business over the next five years, according to a top company official.

“The revenue from the business is about Rs 3,850 crore, which we want to increase to about Rs 8,000 crore by then,” said Sharat C Bhargava, senior vice-president of E&A, L&T. The E&A business, one of the nine independent verticals of the $11.7-billion company, has five manufacturing units in India and six abroad. For its growth plans, the company is betting big on the Restructured Accelerated Power Development and Reform Programme (R-APDRP).

“Under the initiative, the government wants to reduce aggregate technical and commercial loss from 30 per cent to 15 per cent. An information technology overlink is created for all states under this project. We are doing it currently for Maharashtra and in the next stage, all states will be coming under it,” he said.

On acquisitions abroad, Bhargava said, “We are always on look out for opportunities abroad.” In April 2008, L&T had acquired medium voltage switchgear company Tamco that has manufacturing facilities in Malaysia, Indonesia and Australia.

Meanwhile, the company secured orders worth Rs 110.31 crore from the West Bengal State Electricity Distribution Company (WBSEDCL) for supplying energy meters. It will supply 12,60000 single-phase energy meters to WBSEDCL between this month and May 2012.

“West Bengal is set to become the only state where only electronic meters are used. Last year also, we had bagged orders worth Rs 25 crore from the state,” he said.

The major markets for L&T in meter business include West Bengal, Maharashtra, Gujarat, Kerala and Karnataka.