Larsen and Toubro Electrical and Automation, the products and solutions business of engineering major Larsen & Toubro, eyes 35 per cent of its revenues from international business by FY16, a senior company official said today.
The company, which grossed revenues of Rs 4,586 crore last year, expects to close the fiscal year 2014 with over Rs 5,000 crore.
"We expect to cross Rs 5,000 crore mark this fiscal out of which 30 per cent will be contributed by international business. We want to increase the contribution of the global sales to nearly 35 per cent by FY16," L&T Senior Vice President (E&A Business) S C Bhargava told reporters.
Last year, out of the total revenues of 4,586 crore, 28 per cent came from international businesses.
E&A has eight manufacturing facilities in the Middle East, Europe, Asia and the Pacific, apart from six facilities in India, Bhargava said.
"The domestic electrical industry has slowed down in past few years. Therefore, as a part of our strategy to expand our global presence, we will continue to enhance our capacities in the international market as and when necessary," he said.
L&T will focus on GCC countries, Middle East and South East Asia, Bhargava said, adding, "We have a capex of around Rs 150 crore every year for growing our business."
The E&A business had much earlier chalked out growth plans through acquisitions that addressed the medium voltage space and the building segment, he said.
The acquisitions of Datar switchgear in 2006, Tamco switchgear in 2007, UK's Servowatch in 2012, Henikwon of Malaysia in 2012 and Kana Control in Kuwait in 2013 have put the company on the high growth path, Bhargava added.
A large part of the company's international businesses was built through strategic acquisitions that were spread over the past seven years, he said.
Its overseas business also includes the 100 per cent owned LTEAFZE in Jebel Ali, Dubai, and the joint venture with the Kanoo Group in KSA.
