The Hindu Business Line : L&T investing Rs 2,500 cr in expansion

The company will set up new factories and expand its operations across the country over the next few years, said Mr A.M. Naik, Chairman & Managing Director.

Orders were growing at 35-40 per cent but execution was only at 19-20 per cent, owing to both paucity of skilled manpower and capacity constraints, he said.

Shipbuilding

L&T hopes to finalise a location for its shipbuilding operations. Currently, this business is operating out of its existing facility at Hazira where only smaller ships can be built. An investment of Rs 2,000 crore would be required for a new shipbuilding facility.

L&T also targets Rs 4,000 crore in revenues from its power in four or five years, from Rs 800 crore to Rs 1,000 crore currently.

Manpower constraints

To address its manpower constraints, especially for skilled workmen such as fitters, welders, masons and the like, the company is embarking on a massive training programme.

It will establish 10 training centres across the country and may tie up with ITIs as well. The company currently has 28,000 employees, 60 per cent of whom are engineers. Along with its subsidiaries (mainly L&T Infotech) L&T will recruit around 10,000 persons this fiscal.

To raise $300 m

L&T plans to raise $300 million by way of either syndicated loan or private placement of debt, said its Chief Financial Officer, Mr Y.M. Deosthalee. The company wants an increased tenure of about 10 years for the loan, he said.

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