L&T earmarks Rs 1,200 cr capex for FY07

Larsen & Toubro (L&T) has earmarked Rs 1,200 crore for capital expenditure in the current financial year.

This investment will be used for capacity additions in various projects and
plants in Middle East and China, AM Naik, CMD of L&T, said
at the annual general meeting (AGM) held in Mumbai today.

Naik said the company has set a target of 25% growth, riding on the boom in the economy.

"Large investments in hydrocarbon, power and infrastructure sectors in the Middle East will generate good contracting opportunities. To address the
needs of a rapidly expanding GCC market, the company is in the process of setting up a modular fabrication facility in Oman and has entered into a
joint venture in Saudi Arabia for manufacture and marketing of switchboards and other related electrical solutions,"  Naik said.

Besides supplying technology intensive coal gasifier and process plant
equipment to China, the company's China strategy encompasses sourcing of materials and setting up of a wholly-owned subsidiary to manufacture
high-end Air Circuit Breakers. The company is also actively engaged in
setting up new manufacturing facilities in China for selected machinery
and industrial products.

"We are in talks with the GVK-led consortium operating Mumbai Airport and the GMR-led consortium for Delhi airport. We are targeting sub contract works of construction of runways, terminal buildings, attachment roads and other related construction acitivities at the airports," Naik said.

As regards shipbuilding, the company has identified three to four sites and one deep water facility will be finalised soon, Naik said.