Larsen set to invest Rs 500 cr for sixth unit

Larsen & Toubro (L&T), the engineering and construction major, expects its sixth growth centre to manufacture marine structures requiring an investment of about Rs 500 crore.

A M Naik, chairman and managing director, L&T, said, "We are looking out for a new facility that will manufacture marine structures and have zeroed in on two places in Gujarat, two locations in Andhra Pradesh and one in Tamil Nadu."

At present, the Hazira unit, which manufactures marine structures such as floating production systems (FPS), offshore platforms and rigs, has only a depth of four metres but the required depth will be 12 metres so as to manufacture heavier FPS like 10,000 tonnes, he added.

L&T has four growth centres such as Powai in Maharastra, Chennai in Tamil Nadu, Hazira and Ranoli in Gujarat. Recently, the fifth growth centre was identified as Coimbatore and chalked a 10-year growth plan, where precision tools, valves unit, components units are expected to come.

L&T clocked a turnover of Rs 17,000 crore and expects to grow at 25 to 30 per cent per annum.

About attrition, Naik said the manufacturing and engineering sector faced about 15 per cent of attrition rate. He said students, who pursue engineering courses, finally end up in information technology after finishing their Masters in business administration.

The major reasons for these high rates of attrition have been higher remuneration and opportunities to work overseas in software segment, he added.

Naik said L&T, therefore, makes it essential to produce global opportunities and provide better remuneration to engineers.