To set up greenfield shipyard

Larsen & Toubro is hoping that international operations will constitute 25 per cent of its total revenues in 2006-07 (April-March) compared with 18 per cent now.

The company is planning to set up a greenfield shipyard somewhere along the country's coast, said Director Y Deosthalee.

Deosthalee said the first two months of 2006-07 have been "exceptionally good in terms of order book position".

He was speaking at a media analyst meet here. The company has invested Rs 500 million in Hazira for building ships up to 20,000 dead weight tonnage.

"We are now looking for a shipyard to build larger ships on the east or the west coast," Deosthalee said.

The order book for the first two months includes the Indian Oil cracker project. L&T's share in the contract works out to Rs 9 billion. The project is to be completed in 23 months,

Deosthalee said. The company has planned an increase in manpower by 2,500 persons in 2006-07.

"Our wage bill works out to 7 per cent of our revenues and it is within our limit," he said.

The company expects growth of 30 per cent in order flow in 2006-07 and 20-25 per cent in revenues arising from healthy order backlog.