L&T Electrical set to boost GCC production capacity

L&T Electrical & Automation, part of India’s $14 billion Larsen & Toubro, said on Wednesday that it was on track to bolster its Middle East business in medium and low voltage products and solutions by boosting capacity at its manufacturing plants in Jebel Ali and Dammam.

By Issac John

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Published: Fri 14 Feb 2014, 10:21 PM

Last updated: Tue 7 Apr 2015, 10:15 PM

Over the next five years, E&A expects to generate 35 per cent of its business from the Gulf region. — Reuters

L&T Electrical & Automation (E&A), which now generates 20 per cent of its $850 million overall business from the GCC, will also be expanding its reach beyond the six-nation bloc to markets in Iraq and North Africa, said S.C. Bhargava, Senior Vice President and head of E&A.

Over the next five years, E&A expects to generate 35 per cent of its business from the Gulf region, where medium and low voltage market is estimated to be $1.8-2 billion. E&A accounts for 6-7 per cent of this market, said Bhargava, who was in Dubai to showcase his company’s capabilities in medium and low voltage products, systems and solutions in the electrical and automation space at the three-day Middle East Electricity (MEE) exhibition which is underway at the Dubai International Conference and Exhibition Centre.

Last year, the E&A business grossed revenues of Rs 45.86 billion, of which 28 per cent came from international businesses. This year the company expects overall international business to account for about 30 per cent of total sales, said Bhargava.

E&A’s Jebel Ali integration centre, which provides automation and telecom solutions, will boost capacity in six months with the addition of more workforce, while the low-voltage product manufacturing plant in Dammam will diversify into the production of medium voltage products, said Bhargava.

In the medium voltage segment, E&A at present enjoys 35-45 per cent market share in the UAE and Qatar.

He said his company’s expansion drive is in line with the conglomerate’s aggressive plans to boost overall business in the region. Recently, the group indicated that it was targeting to expand its GCC business from $1.5 billion to $4.5 billion over the next three to four years.

In 2013, L&T group secured two EPC (engineering procurement construction) projects worth about Rs.11 billion in the hydrocarbon segment in the UAE and Qatar.

The UAE contract was from Takreer, an arm of Abu Dhabi National Oil Company, to construct a new aviation fuel terminal at the Abu Dhabi international airport. In Qatar, L&T won an EPC contract from Dolphin Energy for third-party gas interconnecting facilities in Ras Laffan. L&T is already executing another export gas upgrade facilities project for Dolphin Energy.

At the exhibition, E&A positioned itself on the theme of ‘we go the extra mile’ by displaying intelligent, safe and energy efficient solutions that combine the business philosophy of long-term relationship with customers and striving for sustainable growth with lower carbon footprint. The products and solutions address the requirements of industries, buildings and infrastructure sectors, said Bhargava.

“We are focused on expanding our reach in the Middle East region and playing a partner’s role in its modernisation and continuous growth. Our products and solutions are designed and developed to meet the urgent and stringent requirements of energy efficiency, space management, human protection and asset safety,” he said at a briefing on the sidelines of the exhibition. Also present were K. R. Balan, general manager, International Operations, based in Abu Dhabi, and Rajendra Malhotra, vice president, Electrical Systems & Equipment.

Bhargava said L&T has eight manufacturing facilities outside India. Our international business includes LTEAFZE in Jebel Ali and the joint venture with the Kanoo Group in Saudi Arabia. In Kuwait, E&A acquired Kana Controls, an automation solutions provider. “We have strong engineering and execution capability and enjoy local support at the client and project site countries.” A large part of the company’s international businesses was built through strategic acquisitions that were spread over the past seven years, Bhargava said.

E&A has put on display at MEE some of its new products, systems and solutions that include Medium Voltage Gas and Air insulated switchgear with high degree of safety, advanced technical reliability, compact space requirements, low maintenance costs and instinctive user management. In the Low Voltage category, its T-ERA range of switchgear & Motor Control Centers offer the perfect balance of cost-effectiveness, compactness, reliability and safety. It is targeted to attract customers from the industries, water, buildings and infrastructure sectors.

— issacjohn@khaleejtimes.com

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