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Larsen & Toubro is also looking to buy out a 26 per cent stake that Nuclear Power Corporation of India has in L&T Special steel and heavy forging. The company plans to shell nearly ₹150 crore for the acquisition.
“We have a forge shop which is used for making nuclear and defence products, we have a 26 per cent stake by NPCI and the nuclear plant is operating with a cumulative loss of nearly ₹3,000 crore. With NPCI forging for their interest, we were not able to diversify. We have requested to sell the shareholdings and had the principal discussion. The board and the government have to make a decision and if they agree then the forge shop will become L&T owned and we will merge it. We will look at manufacturing nuclear products, petrochemical products, defence and steel products,” said SN Subrahmanyan, CEO and MD, L&T.
Earlier in the day while addressing his last AGM, AM Naik stated that the infrastructure segment grew to more than 1,00,000 crore from ₹3,500 crore under his tenure.
Talking about the company’s growth and development of different businesses Naik pointed out that the company is rapidly expanding across segments.
“What we need to do is 10 to 20 times more than what we are currently doing. When I took over the infrastructure business was just ₹3,500 crore. We began to establish our footprint across geographies in 2000,” said AM Naik, Chairman and Managing Director of Larsen & Toubro.
The company’s overseas revenues presently account for nearly one-third of L&T’s total turnovers. L&T is the leading company in the Middle East and Gulf regions for Engineering, Procurement, and Construction (EPC) activities for the last four years.
Hydrogen Business
The company has set up a hydrogen plant in Hazira and has partnered with IOCL to manufacture electrolysers. L&T along with its partners will be investing up to 4 billion USD in the next 3 to 5 years in the business.
“Green power is an evolving business. We have set up a plant, research and development unit and have also done a joint venture. However, green power is very expensive and people will not buy it. We have to wait and see how it works out,” said AM Naik.
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