Larsen & Toubro Limited inaugurated a new Systems Integration Facility on a floor space area of 11249 sq. meters at the Jebel Ali Free Zone in Dubai.
The USD 9.8 billion L&T Group has achieved GCC revenues close to USD 1 billion in financial year 2009-10 which is expected to grow at more than 40% this financial year.
The Jebel Ali facility is a significant step for tapping the automation driven business opportunities in oil and gas, power, water and infrastructure space in the GCC region that would contribute to growing L&T’s Electrical and Automation business outside of India. L&T has applied for ‘Green Building Gold Certification’ for this facility to the US Green Building Council and, when approved, will be the first company to receive the ‘Gold Certification’ in the Electrical, Automation and Telecom sectors in JAFZA. Listing in the ‘Green Building’ category confirms that the Systems Integration facility is designed and built for environment compatibility and sustainable future, providing a healthy work environment and reducing operating costs by making it more energy efficient.
Mr RN Mukhija L&T’s president operations & member of the board said that “The Middle East continues to be a focus area for us and we have enhanced our footprint in the GCC region with this new venture. Systems Integration and in house electrical equipment manufacturing capabilities contribute to offering total integrated solutions in automation, electrical and telecom space into the region. As a professionally managed Indian multinational we are committed to total customer satisfaction.”
The Electrical & Automation business has grown at 20% CAGR in terms of top line and 17% CAGR in terms of bottom line in the last five years in India. L&T proposes to grow this business more than twice of its present size in next five years.
Systems Integration, L&T addresses the building and infrastructure segments in GCC with a comprehensive range of products and solutions in the electrical space. These are type-tested by international test authorities and approved by ministries and utilities. Towards inorganic growth, L&T took over Malaysian switchgear company, Tamco, in 2007 to offer a comprehensive range of Medium Voltage switchgear in India and international markets. This deal gives an increased impetus to both, technology acquisition and market access. With adequate focus on domestic and international markets, this business is expected to cross USD 2 billion mark by 2015.
Mr SC Bhargava head of L&T’s electrical & automation operating company said that “Our expansion plans and creation of centers of excellence are in line with the ongoing and anticipated growth in automation and systems integration business. This facility is yet another step in the progressive globalization of L&T’s electrical business, and ensures that it has a wide footprint to service some of the fastest growing markets in the Gulf countries, parts of Africa and CIS countries.”
Besides strengthening its position in the existing market segments like oil & gas, water, cement and metal, L&T’s Systems Integration business also plans to leverage the emerging opportunities in the infrastructure sector such as metro rail, highway traffic management and other projects.
