Larsen & Toubro (L&T), India’s leading engineering and infrastructure conglomerate, is sharpening its focus on defence, digital infrastructure, and power as part of its diversified growth strategy.
Data Centres and Cloud Services
L&T has already invested about ₹2,200 crore in data centres, with 32 MW capacity operational, including a 30 MW facility in Kanchipuram, Tamil Nadu—one of the largest in the country. The company plans to expand capacity to nearly 100 MW, capitalizing on the surge in demand for third-party data storage and Cloud services driven by players such as Amazon, Google, and Microsoft.
In addition, L&T has entered the GPU-powered Cloud services market through its investment in Indian startup E2E, which partners with NVIDIA. The company operates GPU-based Cloud floors in Chennai, a business that is currently small but expected to scale rapidly with India’s growing AI and Cloud adoption.
Global Capability Centres (GCCs)
Another growth avenue for L&T is building and co-developing Global Capability Centres (GCCs) for multinational corporations. As more global firms shift towards in-house GCCs in India instead of traditional IT outsourcing, L&T expects to tap this trend for long-term growth.
Defence and Aerospace Push
Defence remains a cornerstone of L&T’s portfolio. The company recently rebranded its defence unit as “precision engineering”, reflecting work across four verticals:
- Land systems (bridges, K9 Vajra artillery guns)
- Naval systems (submarines, patrol and warfare ships)
- Space programmes
- Research and indigenisation
The K9 Vajra has been a standout success, with 100 units delivered and another 100 in progress. L&T also manufactures submarine parts and naval ships, though competition from state-owned shipyards continues to pose challenges.
Power and Nuclear Segment
In the power sector, L&T had earlier considered exiting thermal power, but surging electricity demand has renewed interest. The company has secured projects with the Adani Group and others, making the segment viable again. Its Nabha plant in Punjab operates at over 90% load factor, among the most efficient in India. However, L&T may consider divesting it if the right buyer emerges.
On the nuclear front, opportunities remain limited due to liability laws, which restrict plant development to the state-owned Nuclear Power Corporation of India Ltd (NPCIL).
Strategic Outlook
By simultaneously strengthening its foothold in defence, data-driven businesses, and energy, L&T is positioning itself to benefit from India’s rising infrastructure needs, digital transformation, and national security priorities.
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