The Hindu Business Line : L&T bullish on UAE projects

LARSEN & Toubro Ltd is focussing on major integrated EPC projects in the UAE and other Gulf states after it recently bagged two contracts valued at $55 million (about Rs 250 crore) in Abu Dhabi, according to a senior company official.

Mr K. Venkataramanan, member of the board and President (Operations) of L&T, who was here on Sunday, told Business Line the company recently bagged two major contracts in Abu Dhabi. The first is a $30-million gas compression plant upgrade project at Buhasa for Gasco and the second is a $25-million contract for the sulphur recovery plant of Takreer (Abu Dhabi Oil Refining Company.)

The L&T official was in the UAE capital to review the projects and meet with company officials. "We are quite positive of the prospects for EPC projects in Abu Dhabi and in other Gulf states and are looking to establish a continuous presence in this region through pre-qualifying for major projects in the range of $100 million to $200 million," Mr Venkataramanan said.

L&T is going ahead with actualising its vision to play a significant role as an MNC in the global market, Mr Venkataramanan said. He pointed out that an indication of this development was that 30 per cent of the company's turnover was from exports and overseas operations during the last nine months from April 2003.

By the end of the third quarter of the current fiscal, L&T had orders to the tune of Rs 893 crore, a 75-per cent rise over the same period the previous year. Profits before tax went up 50 per cent to Rs 333 crore.

The company plans to focus on the GCC, Saarc and Far-East countries, he said, with projects as well as export of critical equipment being the target areas.

Projects are underway in Bangladesh, Sri Lanka and Tanzania, he added.

Referring to other major projects in the Gulf region currently underway, the official said in the UAE, L&T is involved in expansion works at a 33-KV sub-station project in Abu Dhabi valued at Rs 127 crore and is also building four trunk bridges at the Palm Jumeirah Island project in Dubai, at Rs 32 crore. The focus on similar smaller and medium size projects in the region will continue, he added.