L&T defence biz to top $1 bn on govt's localization drive

Co set to lead private defence sector, ranking fourth nationwide after HAL, BEL, Mazagon

- Shouvik Das

Around 95% of L&T's defence revenue comes from India, with ongoing trials for a light tank and an air-defence system

(REUTERS)

Larsen & Toubro Ltd. expects its defence business revenue to reach $1 billion this fiscal year, riding the Centre’s aggressive localization push. The milestone will cement its position as India's biggest private military equipment supplier and the fourth-largest after three state-owned peers.

“Defence is an important sector for L&T, and we have scaled up operations to the level of $1 billion this financial year,” said Arun T Ramchandani, senior vice-president and head of precision engineering and systems at L&T. “In the long run, our goal is to scale up this business further, in order to contribute in a more significant way to the group business.”

“We are seeing 95% of our defence revenue coming from within India itself, and we are working on multiple projects, including trials of a light tank for the Indian Army. We are also working on air defence system trials for the Air Force, and we expect defence to be a key vertical going forward,” he said.