Photo: Priyanka Parashar/Mint
Photo: Priyanka Parashar/Mint

L&T looks to secure defence orders worth `50,000 crore

L&T is targeting four areas: ships, submarines, communications, and guns and armoured vehicles

Mumbai: India’s largest engineering and construction company, Larsen and Toubro Ltd (L&T), believes that defence can change the fortunes of the company.

L&T, which has interests in businesses ranging from engineering and construction to finance and information technology, is expecting to secure at least 50,000 crore worth of orders in defence across the four areas of ships, submarines, communications, and guns and armoured vehicles.

“We are chasing a market of over 80,000 crore and we are hopeful that we will secure at least 50,000 crore worth of orders," Jayant Patil, senior vice-president (head - defence and aerospace) and member of the board of heavy engineering at L&T, said in an interview.

India has become the world’s fourth largest spender on defence, following a 13.1% increase in its 2016-17 defence budget, according to research firm IHS Inc.

Bharat Mandot, co-founder and chief executive of consultancy StelCore Management Services Pvt. Ltd., said there is a distinctive buzz about the “Make in India" initiative across the globe that has created a huge opportunities in the private sector.

“Moreover, the newly announced Defence Procurement Procedure (DPP) places the highest preference to a newly incorporated procurement class called ‘Buy Indian-IDDM’, with IDDM denoting Indigenous Designed Developed and Manufactured. This category refers to procurement from an Indian vendor, products that are indigenously designed, developed and manufactured with a minimum of 40% local content, or products having 60% indigenous content if not designed and developed within the country," Mandot said.