A construction company is building India's future toward becoming a 5 trillion economy

A construction company is building India's future toward becoming a 5 trillion economy

And is among the world's top 10 constructors

The crazy part? It even constructed the world’s tallest statue, the Statue of Unity.

Here's why L&T is known as the Builder of 21st Century India:

Larsen & Toubro Ltd- renowned for its engineering excellence, technological innovation, and commitment to delivering high-quality projects— is an Indian Multinational Conglomerate.

Its primary asset involves- the ability to handle large & complex projects,

- offering of end-to-end solutions, and

- work in synergy to provide comprehensive solutions to clients

- in both public and private sector.

The core focus areas of L&T are EPC Projects, Hi-Tech Manufacturing, and Services.

👉 The EPC Projects portfolio includes 2 sectors:

a) Infrastructure: it includes all its construction business, and

b) Energy: comprises the Hydrocarbon, Power & Green Hydrocarbon.

👉 Hi-Tech Manufacturing involves

a) Heavy Engineering, and
b) Defense Engineering businesses.

👉 L&T's services business is catering IT sector, Real Estate, Financial Services, and more.

But in this read, we'll primarily focus on EPC and Infrastructure projects.

Let's start by first understanding what are EPC Projects.

EPC stands for Engineering, Procurement, and Construction.

It's a type of contracting agreement in the construction industry where the EPC contractor is responsible for all activities.

— from designing, procurement, construction, commissioning to delivery.

Now, L&T is one of biggest EPC contractors of the world with seamless track record due to various factors like:

a. extensive resources including large workforce and specialized equipment;

b. strong relationships with clients, government agencies, & industry stakeholders;

c. advanced tech & innovation;

and finally,
d. strong financial standing.

The company earned 47.32% of its total revenue (Rs.1,85,604 Cr.) from its infrastructure projects (Rs.87,823 Cr.) in 2022.

But these are not the only reasons for L&T's rise in construction business.

Increased govt spending on the infrastructure sector over the last decade has helped L&T report

— a consistent growth in 'order inflow' and revenue.

Under Budget 2023-24, capital investment outlay for infrastructure is being increased by 33% to Rs.10 lakh crore (US$ 122 billion),

— which would be 3.3% of GDP and almost 3 times the outlay in 2019-20.

The govt has also launched the National Infrastructure Pipeline (NIP)…

…along with other initiatives such as 'PM Gati Shakti Yojana' & 'Housing for All' schemes to augment the growth of this sector.
And now let's turn our attention to the 6 segments of L&T's construction business.

1. Building & Factories:

L&T has the reputation of building the tallest, largest, and most complex EPC projects

— ranging from airports, hospitals, data centers to office spaces, housing, cement plants, etc.

Some of the major B&F projects commissioned to L&T are:
- AIIMS Hospital at Gorakhpur and Guntur
- Iconic airports of Delhi, Mumbai, and Chennai
- World's largest stadium: Motera Stadium

2. Transportation:

Within this category, L&T is building Roads, Bridges, and Railways.

This business is divided into 2 groups:

A) Railways Business Group (RBG)
B) Roads, Runways & Elevated Corridors (RREC)

L&T has built capabilities in all 3 railway domains including track construction, overhead electrification, and signalling & telecom.

Moreover, it has one one of the largest project portfolios in the roads sector in India.

Some of the major projects sanctioned to L&T are:

- Agra Metro from UP Govt
- Western Dedicated Freight Corridor
- Chennai Peripheral Ring Road Project
- Mumbai Coastal Road Project

3. Heavy Civil Infrastructure:

L&T is a market leader in EPC projects that are crucial to the Indian economy, such as metro rail systems, nuclear and marine structures, and defense infrastructure, etc.Some of the major projects licensed to L&T are:- Mumbai Trans Harbour Link

- High-speed Rail Corridor

- Hyderabad, Chennai, Bhopal Metro Rail projects and mo

4. Power Transmission & Distribution:

This segment offers integrated EPC services and related digital solutions, from Solar PV plants to efficient transmission and last-mile electrification.

Some of the major projects commissioned to L&T are:

- 1250+ km of Transmission Lines completed in Madhya Pradesh, Kerala, etc.
- A large Solar-cum-Energy Storage Project with 57 MW-hr storage capacity, in Gujarat

     5️. Water & Effluent Treatment

This segment specializes in building- wastewater treatment plants for irrigation and industrial effluent treatment.
It caters to various clients such as irrigation departments, municipal corporations, industrial units and more.

      6. Minerals & Metals:

The business undertakes projects covering the complete spectrum from mineral processing to finished metals.
They also provide customized mineral crushing solutions and equipment for varied applications.

In this article, we've barely scratched the surface of L&T's business.

The company is building our country in more ways than we can imagine- it's building power plants, major components of almost all the industries along with major aerospace defense equipment.