 "L&T to set up Rs 500 crore missile systems plant for armed forces")
India's engineering conglomerate Larsen and Toubro Ltd, which has formed a Joint venture (JV) with Frances MBDA to develop and supply missiles and missile systems to the Indian armed forces, is looking at Tamil Nadu, Maharashtra and Gujarat to set up the plant, a senior official said here on Friday.
He also said the company would be setting up a battle tank plant at Hazira in Gujarat.
"We are looking at Tamil Nadu, Maharashtra and even Gujarat to set up the missile and missile systems plant, which would involve an outlay of around Rs 500 crore. The location of the plant depends on the incentives these state governments would offer," Jayat D. Patil, member of the Board and Whole Time Director (Defence Business) L&T, told reporters.
Patil was here to participate in the launch function of the Offshore Patrol Vessel (OPV) built by L&T Shipbuilding Ltd at the shipyard at Kattupalli near here.
According to Patil, the engineering conglomerate has been supplying a major portion of the missile systems and it was a natural extension for the company to get into manufacturing the entire systems.
L&T and the French major MDBA had earlier in the year announced the 51:49 joint venture for the missile and missile systems business. They also announced the name of the joint venture company as L&T MBDA Missile Systems Ltd.
According to Patil, the missile systems project and the tracked vehicle project would involve an outlay of around Rs 1,000 crore.
Patil said L&T plans to increase the share of revenue from defence business in its standalone turnover to around 10 per cent by 2021 from the current 4-5 per cent.
He said L&T has been in defence related products since 1985, initially doing research and development (R&D) and then got into production when the sector was opened up.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
