L&T to invest Rs 250 crore in automation facility

Company plans to hire 200-300 additional manpower

L&T to invest Rs 250 crore  in automation facility
 L&T Electrical and Automation — a major vertical of $15-billion Larsen & Toubro (L&T) — aims to invest Rs 250 crore to expand its facilities at Coimbatore (Tamil Nadu) and Ahmednagar (Maharashtra), a top company executive said on Friday.

L&T Electrical and Automation Executive Vice President - Head (Product SBG) Pradeep Kumar Bajaj said, “We are expanding the Coimbatore and Ahmednagar facilities and capacity will be enhanced. We would invest around Rs 250 crore by the next financial year. We will hire 200-300 additional manpower.”

In Coimbatore, the company makes low-voltage switch boards with a capacity of 30,000 panels, per year. With the new investment, the capacity would be ramped up to 40,000 panels. The company sells six crore units of Busbar Turnking Systems per month, which would hit 10 crore, per month. Busbar Turnking Systems is a flexible power distribution pipe. In terms of capacity, it is 1,500 units per month that can go up to 2,500 units per month.

In Ahmednagar, L&T makes 18 million miniature circuit brake units per year, which can be increased by 25-30 per cent.

L&T Electrical and Automation, which began its journey in 1958, today employs 5,600 people. The company saw a turnover of $1 billion, last year, and aims to close this financial year with similar numbers.

On exports, Bajaj said, “Around 25 per cent of our business comes from the export market. We cater to the Middle East, South East Asia, Africa, and Australia among others.”

Other manufacturing facilities are located at Navi Mumbai, Vadodara, Mysuru, Saudi Arabia, the UAE, Kuwait, Malaysia, Indonesia and the UK.

“We manufacture 5 million energy meters, which are used in-house and in industries. Over 70-80 per cent of escoms across India, use our meters,” Bajaj claimed.

The E&A segment recorded customer revenues of Rs 1,291 crore, during the quarter ended December 31, 2015, registering a marginal growth of 1 per cent y-o-y, as industrial demand continued to be sluggish.

Augmenting existing facilities

L&T Electrical and Automation to expand its facilities at Coimbatore (Tamil Nadu) and Ahmednagar (Maharashtra)
In Coimbatore, the company makes low-voltage switch boards
In Ahmednagar, L&T makes 18 million miniature circuit brake units per year
L&T (E and A) which began its journey in 1958, today employs 5,600 people

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