L&T Group: Know about its Businesses

L&T Group i.e. Larsen & Toubro Limited is one of the largest and most respected companies in India’s private sector. The company holds 80 years of a strong, customer focus approach and a continuous quest for world-class quality. It possesses capabilities across Technology, Engineering, Construction, and Manufacturing, and maintains a leadership in all its major lines of business.

L&T group history and founding members

(A) L&T Group Companies

L&T group businesses

(B) L&T Segment wise Revenue and Profit Contribution

L&T group segment wise revenue for FY21
L&T stock analysis with detail of segment wise profit

*The total revenue & profit shown above includes inter-segment transfers not amounting to significant amounts

Business of L&T

(1) L&T Infrastructure Business

(a) Building & Factories

L&T’s Buildings & Factories (B&F) business is the leader in Engineering, Procurement and Construction (EPC) of airports, hospitals, stadiums, retail spaces; educational institutions; IT parks; office buildings; datacentres; residential buildings; highrise structures; mass housing complexes, cement plants, industrial warehouses, and also other factory structures in India and overseas.

In fact, the business comprises six business units (BUs) – Airports; Health; Public Spaces; IT & Office Space (ITOS); Residential Buildings as well as Factories.

(b) Transportation & Infrastructure

L&T’s Transportation Infrastructure business (TI) is one of the oldest, largest and most reputed EPC contractors in India in the Road, Railway and Airport sectors. It has two Strategic Business Groups (SBGs), namely, Roads, Runways & Elevated Corridors (RREC) and Railways Business Group (RBG).

  1. The RREC’s major business unit, the Roads & Runways BU (R&R) – provides EPC Design & Build Construction services for all types of roads (asphalt and concrete) including all associated structures; cross drainage; toll booths; wayside amenities etc. to NHAI, MoRTH, State Governments and certain private clients.
  2. The Railways SBG (RBG) – consists of the Mainline Business Unit (MLBU) and the Metro Business Unit (MTBU). The MLBU provides EPC construction services for all Mainline Railway Projects; Western & Eastern Dedicated Freight Corridors including Track Laying; Overhead Electrification; Dedicated Railway Linking for Port & Mining facilities.

(c) Heavy Civil Infrastructure

L&T’ s Heavy Civil Infrastructure business is a market leader in Engineering, Procurement, and Construction (EPC) projects in core civil infrastructure segments that are crucial to the economy. Thus, this includes Metros, Nuclear, Special Bridges, Hydel and Tunnels, Ports and Harbours and Defence.

(d) Power Transmission & Distribution

L&T’s Power Transmission and Distribution (PT&D) business vertical is a leading EPC player in the field of power transmission & distribution as well as solar energy. It offers integrated solutions and end-to end services. Ranging from design, manufacture, supply, installation and commissioning of transmission lines; substations; underground cable networks; distribution networks; power quality improvement projects; infrastructure electrification and fibre optic backbone infrastructure, to solar PV plants. Besides being a dominant player in the Indian subcontinent, the business enjoys a significant share and a strong reputation in the Middle East, Africa and ASEAN markets.

(e) Water &Efficient Treatment

The Water & Effluent Treatment business undertakes the construction of water infrastructure for the efficient usage, conservation and treatment of water. The business has proven to be a lead player in the domestic market and has also had successes in international markets.

The business comprises the following verticals:

  1. Water supply & distribution business, which caters to the supply of potable water.
  2. Wastewater business provides infrastructure by building sewer networks as well as sewage treatment plants to collect and treat municipal wastewater for safe disposal of the treated effluent.
  3. Large Water business, which irrigates lakhs of hectares of land in order to enhance the livelihood of millions; pumps and lifts water from rivers to delivery chambers and distributes it using automated outlet management systems.
  4. Smart Water Infrastructure business, develops utility infrastructure in the cities as well as the shortlisted brownfield cities. Moreover, this is under the Smart City Mission.
  5. The International arm has a presence in the UAE, Qatar, Oman, Tanzania and Sri Lanka.

(f) Smart World and Communication

L&T’s Smart World & Communication (SWC) vertical was created in 2016 to address the emerging need for a safe, smart and digital India. As a Master Systems Integrator, SWC operates and retains market leadership in the following segments:

  • Smart Cities & Smart Infrastructure: Smart Cities, e-gov, Smart Energy, Smart Education, etc.
  • Safe Cities: Public Safety, Critical Infra Security, Intelligent Traffic Management, etc.
  • Communication & Telecom Infrastructure

(g) Matallurgical and Material Handling

This business segment offers complete EPC solutions for the metal (ferrous and non-ferrous) sectors across the globe. The business undertakes end-to-end engineering, procurement, manufacture, supply, construction, erection and commissioning. Moreover, this covers the complete spectrum from mineral processing to finished metal products with state of the art Process Plants.

(2) Power Business

L&T has established itself as one of the leading EPC players in the Power Plant business in India. It is known to deliver complete turnkey business solutions from concept to commissioning for the thermal power industry.

The business has emerged as a major player in new technologies such as Flue Gas Desulphurization (FGD) in the thermal power plant industry. It now has a sizeable presence in the FGD business. Moreover the business has developed its own capabilities for executing large and complex power projects.

In addition, the business has a track record of delivering complete power plant solutions with scale to meet India’s growing energy needs. Moreover L&T’s integrated power equipment manufacturing facility at Hazira, Gujarat, is one of the most advanced in the world.

(3) Heavy Engineering Business

L&T Heavy Engineering (HE) is amongst the top 3 global fabricators to supply engineered-to-order critical equipment, piping and systems for core sector industries. Which are Refinery, Petrochemical, Oil & Gas, Gasification, Fertilizer, Thermal & Nuclear Power including critical revamp and also up-gradation projects.

The business is organized into Business Units (BUs) based on the industries served.

  1. The Refinery, Cracker, Oil & Gas and Gasification BU (RCOG) focuses on hydro-processing reactors; high-pressure heat exchangers; gasifiers; pressure vessels; waste heat boiler packages, and such critical equipment for process plants.
  2. The Fertilizer and Petrochemical BU (FP) focuses on products like ammonia converters, urea reactors, urea strippers, methanol converters as well as critical reactors for the fertilizer and petrochemical sector.
  3. The Nuclear BU supplies highly critical equipment like steam generators, reactor components (end shield assembly, end fittings) and pressurizers for the nuclear power sector.
  4. The Modification, Revamp & Upgrade (MRU) unit offers complete solutions for Process Plants through dedicated engineering, procurement, project management and construction services.

(4) Defence Business

L&T has been active in the Defence and strategic sector since the mid-80s, well ahead of the opening up of the sector for private industry participation, by associating with the Defence Research & Development Organisation (DRDO) and Naval indigenisation programmes.

Today as a result, L&T Defence provides design-to-delivery solutions across chosen defence segments with a focus on indigenous design, development and production of Naval (Submarines and Warships) and Land Platforms (Armoured Systems, Howitzers), Weapon Systems, Engineering Systems, Missile & Space Launch Vehicle subsystems, Sensors, Radar Systems and Avionics.

L&T ‘s Defence Business is structured into two business groups: Defence & Aerospace as well as Defence Shipbuilding

Defence & Aerospace

Over the years, the Defence and Aerospace (D&A) business has built a bouquet of a wide range of indigenous products, systems, solutions, platforms and technologies through in-house efforts as well as by teaming up with the DRDO, and participation in the Indian Navy’s indigenisation programme. To date, the D&A strategic business group has indigenously developed more than 250 defence products, and more than 50 of them have been industrialised and delivered in serial production mode.

Defence shipbuilding

L&T’s shipbuilding arm offers total solutions, from concept design to construction for new builds, as well as repair, refits and mid-life upgrades. Its offerings span both defence and commercial vessels. L&T operates two defence shipyards – one at Hazira Manufacturing Complex, and another greenfield mega defence shipyard at Kattupalli, near Chennai.

(5) Electrical and Automation Business

L&T’s Electrical & Automation (E&A) business, is a leading supplier of electrical equipment in India. It is engaged in manufacturing low and medium voltage electrical switchgear products (both standard & customized) and energy meters, and executes projects in the control & automation space.

  1. In the low voltage (LV) segment, E&A has two categories of products – standard switchgear products and customised switchboards / electrical panels – and commands the highest market share in India. These products are also widely accepted in international markets, particularly in South East Asia, the GCC and select African geographies.
  2. The medium voltage (MV) range of switchgear products is manufactured in India and also in Malaysia. Moreover E&A’s group Company ‘Tamco Switchgear’ enjoys a market-leading share in Malaysia and has a strong foothold in the MENA region, the SEA region, and select geographies in Europe and Australia.

Clients of the business span a wide range of sectors including Metro Rail, Airports, Renewable Energy, Solar, Defence, Hospitals, Educational Institutions, Data Centres, Realty, Auto, Food & Beverages, Chemical, Pharma, Textile, Sugar, Automobile and Steel.

(6) Hydrocarbon Business

L&T Hydrocarbon Engineering Limited (LTHE), a wholly-owned subsidiary of L&T, provides integrated ‘design-to-build’ turnkey solutions for the hydrocarbon industry globally. The business executes projects for oil and gas extraction and processing, petroleum refining, chemicals and petrochemicals, fertilizers, cross-country pipelines and terminals. In-house capabilities range from front-end design through detailed engineering, procurement, fabrication, project management, construction and installation up to commissioning services.

LTHE caters to clients across the hydrocarbon value chain through five key business verticals:

  1. Offshore – Lumpsum turnkey EPCIC solutions are offered to the global offshore oil & gas industry encompassing wellhead platforms, process platforms and modules, subsea pipelines, brownfield developments, offshore drilling rigs (upgrade and new-builds), FPSO modules, deep-water subsea manifold & structures, living quarters, transportation & installation services, offshore wind-farm projects as well as decommissioning projects.
  2. Onshore – The business vertical provides EPCC solutions for a wide range of onshore hydrocarbon projects covering upstream oil & gas processing, refining, petrochemicals, fertilizers (ammonia & urea complexes), cryogenic storage tanks and LNG regasification terminals and cross-country pipelines.
  3. Construction Services – This business vertical renders turnkey construction services for refineries, petrochemicals, chemical plants, fertilizers, gas-gathering stations, crude oil & gas terminals as well as underground cavern storage systems for LPG and crosscountry oil & gas pipelines.
  4. Modular Fabrication Services – The vertical specialises in fabrication and supply of modules and static equipment for offshore oil & gas fields, refineries, petrochemical plants and fertilizer complexes.
  5. Advanced Value Engineering & Technology Services (AdVENT) – AdVENT (the erstwhile ‘Engineering Services’ vertical) offers customer-centric solutions for the Hydrocarbon sector and emerging industries, while addressing the specific needs of the changing energy sector.

(7) Development Projects Business

(a) L&T Infrastructure Developments Projects Limited (L&T IDPL)

L&T Infrastructure Development Projects Limited (L&T IDPL) is a pioneer of the Public-Private Partnership (PPP) model of development in India, which involves the development of infrastructure projects by private-sector players in partnership with the Central and State Governments.

Since its inception in 2001, the entity has completed landmark infrastructure projects across key sectors like roads, bridges, transmission lines, ports, airports, water supply, renewable energy and urban infrastructure. Above all It is one of India’s largest road developers, as measured by lane kilometres under concession agreements signed with Union and State Government authorities.

(b) L&T Metro Rail Hyderabad Limited

L&T Metro Rail (Hyderabad) Limited (L&TMRHL) is a Special Purpose Vehicle (SPV) incorporated on 24th August, 2010 to undertake the business to construct, operate and maintain the Metro Rail System including the Transit Oriented Development (TOD), in Hyderabad under the Public Private Partnership model. Moreover, this is on Design, Build, Finance, Operate and Transfer (DBFOT) basis.

(c) L&T Power Development Group

L&T Power Development Limited, is also a wholly-owned subsidiary of L&T, is engaged in developing, operating and maintaining power generation assets.

L&T International Distribution of segments other than services

L&T group businesses bifurcation as per domestic and international businesses

(8) Technology and IT Business

Larsen & Toubro Infotech - Wikipedia

L&T Infotech (LTI) is a global technology consulting and digital solutions company. Helping more than 420 clients succeed in a converging world. With operations in 32 countries. The business further goes that extra mile for its clients and accelerates their digital transformation with its Mosaic platform – enabling their mobile, social, analytics, IoT and cloud journeys.

LT Tech Services IPO – The Make in India Firm – JainMatrix Investments

L&T Technology Services Limited (LTTS) is a leading global pure-play Engineering Research & Development (ER&D) services company. It offers design and development solutions throughout the product development chain and also provides services and solutions in the areas of mechanical and manufacturing engineering, embedded systems, engineering analytics and plant engineering.

Mindtree (Read stock research in detail), a global technology consulting and services company, helps enterprises marry scale with agility to achieve competitive advantage. ‘Born digital’ in 1999 and now an L&T Group Company. Mindtree certainly applies its deep domain knowledge to enterprise client engagements to break down silos, make sense of digital complexity and bring new initiatives to market faster.

L&T group IT businesses analysis - Mindtree, LTTS and L&T infotech
L&T-Nxt Careers | Jobs at L&T-Nxt - Instahyre

L&T-NxT is a part of Larsen & Toubro (L&T). L&T-NxT leverages the Group’s deep domain expertise across diverse industry segments. For Instance Energy & Utilities, Transportation & Logistics, Engineering & Construction, Process & Discrete Manufacturing. Moreover their experience of deploying new-age digital technologies at scale, to deliver differentiated disruptive business outcomes for global customers.

(9) Financial Services Business

L&T Finance Holdings Limited-Maharashtra - Company CSR Profile

L&T Finance Holdings (LTFH) is the holding company for the financial services businesses of the Larsen & Toubro Group. It is also one of India’s most valued and diversified NBFCs, having a strong presence across the Lending & Investment management businesses.

L&T Financial Services (LTFS) offers a diverse set of financial products and services. For instance Covering mutual funds, infra finance, home loans and more.

L&T financial services revenue segmentation for stock analysis

(10) Other Business

L&T ‘s others business comprises:

a. Realty Business
b. L&T Valves Limited
c. Construction Equipment & other

(a) Reality Business

L&T Realty is positioned amongst the top real estate developers in India, therefore with a total portfolio of over 70 Mn sq. ft. across segments like residential, commercial and retail in key metro cities, viz. Mumbai, Bengaluru and Chennai. The business model involves development of large land banks in metro cities, partnership with co-developers and sale/lease of commercial spaces.

(b) L&T Valves Limited

L&T Valves

L&T Valves (LTVL) is a leading manufacturer of industrial valves with a global manufacturing presence. The business leverages six decades of manufacturing excellence to serve key sectors of the economy – such as oil and gas, defence, nuclear & aerospace, power, petrochemicals, chemicals, water and pharmaceuticals – in India and overseas. L&T Valves manufactures a wide range of products, such as Gate, Globe, Check, Ball, Butterfly, Plug and Control valves, as well as automation solutions.

(c) Construction Equipment and Others

The Construction Equipment & Others (CE&O) business manufactures, distributes and also provides after-sales support for construction and mining equipment for diverse industries and applications.

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References:  Annual Reports, Corporate Announcements.

Disclaimer: The report only represents personal opinions and views of the author. No part of the report should be considered as recommendation for buying/selling any stock. Thus, the report & references mentioned are only for the information of the readers about the industry stated.

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