India’s largest publicly traded engineering company Larsen and Toubro (L&T) wants to become a complete transport infrastructure provider.
After finalizing its plans to become one of India’s major shipbuilders, it now wants to become a major provider of railway engines and wagons pitting it in competition with public sector Bharat Heavy Electricals Ltd, French Alstom and German Siemens which have dominated this sector. Its share closed at Rs1,647.75, down 0.56%, while the broader BSE Sensex fell 1.18%.
The company plans to make a whole range of railway locomotives, high-speed freight trains and electric multiple units that are used to run the suburban trains in cities such as Mumbai and Delhi. India is upgrading and modernizing its railway network at a cost of thousands of crores.
Separately, L&T is also keen to participate in the construction of the two dedicated freight corridors (tracks on which only goods trains will run) connecting Delhi with Mumbai and another one connecting the Capital with Howrah, as proposed by the railway ministry. Investments in these two mega projects are likely to exceed Rs1,000 crore over a three-five-year period, a source close to the development told Mint.
L&T currently executes projects like turnkey electrical and mechanical jobs such as electrification, bridge construction and track-laying for the Indian Railways estimated worth Rs1,000 crore per annum.
“These businesses are currently handled by different units. The company plans to bring all these fragmented business under one focused business unit for further expansion,” the source said. The railway division of L&T will thus become a single point of contact for all business via this transport medium.