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L&T to invest $111M in new shipyard
By agencies
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Thursday, 04 May 2006, 19:30 IST
MUMBAI: Larsen & Tubro (L&T) Ltd, India's largest construction and engineering firm, aims to invest more than $111 million to build a second shipyard and grab a share of the global demand for vessels, a senior official said.
L&T, which won a $129 million contract in April to build a fuel management facility at Kuwait airport, has been looking to expand its operations in West Asia and to tap new businesses to boost growth.
The second shipyard project is part of this strategy as it sees a growing demand for specialized vessels. Announcing this, the companys Senior Executive Vice-President of L&Ts heavy engineering division said, We are looking at several locations on the east and west coast and investments are not a constraint.
L&T said on Tuesday it had won an order worth $98 million to build four semi-submersible container cargo vessels for Zadeko Ship Management CV of the Netherlands. It was the maiden order for L&T's first shipyard, work for which had started at Hazira in the western state of Gujarat about 18 months ago.
The first vessel would sail out in the first half of 2008, Kotwal said, adding the Hazira shipyard hoped to bag more orders of a similar size in a year's time.
L&T plans to build liquefied natural gas and oil carriers at the second facility, while the Hazira yard would focus on specialized vessels like survey ships, offshore and multi-support vessels.
The company also expects to bid for orders from the Indian Navy, following a decision by the government to lift restrictions on the private sector in defense contracts. "We hope to participate in a bigger way," Kotwal said, referring to Indian Navy orders.