Larsen & Toubro (L&T), India’s largest private-sector defense manufacturer, is diversifying its product portfolio by leveraging its expertise in high-tech manufacturing to cater to broader industrial applications. The company is exploring new product lines, including transmissions for the mobility sector, and is leveraging its state-of-the-art Precision Manufacturing & Systems complex in Coimbatore to drive its goals.
L&T is also investing in startups, seeking strategic acquisitions, and partnerships to integrate cutting-edge technologies into its advanced manufacturing ecosystem. The company is working closely with startups and is open to acquisitions at realistic valuations. Its order book for its high-tech manufacturing segment is approximately Rs 42,000 crore as of December 2024, with a significant portion coming from government contracts.
To expand its global market presence, L&T is adopting the “China+1” strategy, which involves enhancing domestic value addition by creating robust Tier 1 and Tier 2 ecosystems. The company is focusing on bolstering design capabilities, product building expertise, and IP creation to add value to its products. It is also investing in design, R&D, and IP creation, with a focus on reducing component costs and driving down the overall cost of launch vehicles.
L&T is building an AI Center of Excellence to explore various use cases, including product innovation, process optimization, and systems operation, to drive manufacturing efficiency. The company is also collaborating with AI startups to incorporate state-of-the-art solutions that strengthen its competitive edge. With its “Make in India” thrust, L&T is poised to drive sustained revenue growth and expanded domestic market opportunities.