Home >companies >L&T arm wins Rs5,076 crore Kuwait order

Mumbai: Engineering and construction company Larsen and Toubro Ltd (L&T) on Monday said that its subsidiary L&T Hydrocarbon has won a 5,076 crore order from the Kuwait Oil Co. (KOC) to execute an engineer-procure-construct (EPC) contract for a gas and crude gathering centre for KOC.

KOC is a subsidiary of Kuwait Petroleum Corp. (KPC) which is fully owned by the Kuwait government.

The scope of the contract includes project management, detailed engineering, procurement, supply, construction, testing, mechanical completion, pre-commissioning and commissioning assistance including performance testing, the company said in a statement.

“The contract was won by L&T against stiff competition from European and Korean EPC majors. It represents a significant step forward in L&T’s strategic growth plan in the international hydrocarbon sector," the statement said.

L&T has been focusing more on securing international orders to counter the sluggish growth in the domestic market. The company’s international order inflows for fiscal 2014 were at 30,752 crore, and grew more than three times on a year-on-year basis, constituting 33% of the total order inflows.

“To tackle the challenges surrounding such opportunities, the company is building its international organization, which aims at replicating the domestic success story in the Middle East," L&T had said in May.

The announcement was made after market hours.

Shares of L&T gained 1.54% to close at 1,598.65 per share on Monday on the BSE, while the benchmark index, Sensex lost 0.07% to close at 25,006.98 points and the BSE Capital Goods Index gained 1.14% to close at 15,139.74 points.

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