By Nivedita Bhattacharjee
BENGALURU (Reuters) – Larsen & Toubro, the Indian industrial conglomerate, has announced its strategic focus on aerospace as a key growth area, particularly in the manufacturing of launch vehicles and satellites. This move comes as India seeks to reduce its dependency on imports and encourage greater participation from private enterprises.
As the largest private-sector defense manufacturer in India in terms of revenue, Larsen & Toubro’s Precision Engineering and Systems unit reported a revenue of 46.10 billion rupees ($548.3 million) in the fiscal year 2024, marking a significant 41% increase from the previous year.
Operating from its facility in Coimbatore, located in the southern state of Tamil Nadu, Larsen & Toubro is currently engaged in assembling India’s inaugural privately constructed Polar Satellite Launch Vehicle (PSLV) in collaboration with Hindustan Aeronautics Limited, a crucial element of ISRO’s launch operations. Additionally, the company is involved in the production of equipment for various deep space exploration initiatives undertaken by ISRO.
With the aim of expanding its footprint in the space industry, Larsen & Toubro sees ample opportunities in India’s privatization drive, which has relaxed foreign investment restrictions and paved the way for increased participation of private players in procurement processes.
AT Ramchandani, the senior vice president and head of L&T’s Precision Engineering and Systems division, emphasized the company’s extensive experience in high-tech manufacturing, critical systems, and scaling up production, all of which are directly applicable to the aerospace sector.
Ramchandani highlighted the projected growth of the global launch vehicle market to approximately $160 billion over the next decade, with India aiming to capture a substantial portion of the commercial space sector, which is valued at $13 billion according to a report by DAM Capital.
In alignment with India’s ambition to establish itself as a prominent space power, Larsen & Toubro’s endeavors mirror the government’s vision of leveraging the space industry as a catalyst for economic advancement. The recent policy changes allowing private firms to design, fabricate, and operate launch services are expected to attract international players, akin to the thriving commercial space industry in the United States and Europe.
Anticipated for a mid-year launch after a delay from its initial target in early 2025, the first privately built PSLV booster is a focal point for Larsen & Toubro’s foray into the space domain. Each booster, with multiple units currently in different stages of assembly at the factory, carries an estimated cost of around $30 million.
Ramchandani emphasized the company’s strategic outlook, stating, “Entering into this sector is driven by our aspiration to tap into the global market. The increasing demand for timely and cost-effective launches, particularly with the growth of satellite constellations, presents an opportunity for India to compete by offering reliability,
