Indian technology, engineering and construction conglomerate Larsen & Toubro Limited (L&T), today inaugurated a new 11,249 square metre Systems Integration Facility at the Jebel Ali Free Zone (JAFZA) in Dubai.
On the back of recently announcing its second quarter result of nearly US$360 million, the US$9.8 billion L&T Group has achieved GCC revenues close to $1 billion in financial year 2009-10 which is expected to grow at more than 40% this financial year, according to a company statement.
The Jebel Ali facility is a significant step for tapping the automation driven business opportunities in oil and gas, power, water and infrastructure space in the GCC region that would contribute to growing L&T’s Electrical and Automation business outside of India, the statement read.
L&T’s president – operations and member of the board, Mr. R. N. Mukhija, unveiled the plaque to declare open the facility in the presence of Indian Ambassador to the UAE, Consul General of India in Dubai, the deputy and chief commercial officer of JAFZA, key customers including ADNOC group of Companies, DEWA, Dolphin Energy Limited, ADWEA, FEWA, SEWA, Oman Gas Co., Emarat Petroleum, ENOC, PHEW, OOT ODFJELL, technology partners, delegates, business associates, company’s senior executives and employees.
Speaking on the occasion Mukhija said: “The Middle East continues to be a focus area for us and we have enhanced our footprint in the GCC region with this new venture. Systems Integration and in-house electrical equipment manufacturing capabilities contribute to offering total integrated solutions in automation, electrical and telecom space into the region. As a professionally managed Indian multinational we are committed to total customer satisfaction.”
L&Y’s Electrical & Automation business has grown at 20% Compound Annual Growth Rate (CAGR) in terms of top line and 17% CAGR in terms of bottom line in the last five years in India with ambitions to grow more than twice of its present size in next five years.
Besides Systems Integration, L&T addresses the building and infrastructure segments in GCC with a range of products and solutions in the electrical space. These are type-tested by international test authorities and approved by ministries and utilities. Towards inorganic growth, L&T took over Malaysian switchgear company, Tamco, in 2007 to offer a comprehensive range of Medium Voltage switchgear in India and international markets. This deal gives an increased impetus to both, technology acquisition and market access. With adequate focus on domestic and international markets, this business is expected to cross $2 billion mark by 2015.
The Head of L&T’s Electrical & Automation Operating Company (EAOC), Mr. S. C. Bhargava, said: “Our expansion plans and creation of centres of excellence are in line with the ongoing and anticipated growth in automation and systems integration business. This facility is yet another step in the progressive globalisation of L&T’s electrical business, and ensures that it has a wide footprint to service some of the fastest growing markets in the Gulf countries, parts of Africa and CIS countries.”
