Indian Defense Industry General News and Updates

How L&T aims to create a multi-billion dollar defence business driven by Modi government plans to modernise military


Larsen & Toubro (L&T) plans to expand its defence business into a multi-billion dollar enterprise, significantly higher than Rs 6,185 crore (approximately $726 million at current exchange rates) in orders from the previous financial year, motivated by governmental initiatives to enhance military capabilities.

The government has established a target of Rs 30,000-crore in defence exports for this fiscal year, with plans to reach Rs 50,000 crore by FY29. Additionally, the government seeks to achieve domestic defence production worth Rs 1.6 lakh crore in FY26, with projections to reach Rs 3 lakh crore by FY29.The company produces various military equipment including warships, patrol vessels, armoured vehicles, artillery guns and missile systems.

In conversation with ET, L&T president and chief financial officer R Shankar Raman indicated the defence sector's substantial growth potential. "It can be as big as you want because it is a question of how much the government is willing," he stated, noting L&T's intention to utilise their shipyard for defence orders and expand facilities when necessary.

L&T Defence Plans


L&T's marine manufacturing capabilities span across various naval vessels, ranging from coast guard and survey vessels to fast boats, ships, fleets, frigates and submarines, encompassing the entire spectrum of maritime defence assets.

The company's CFO highlighted that the government recognises the importance of increased private sector involvement in defence manufacturing to swiftly modernise India's military equipment, particularly considering the limited capacity and substantial backlogs at state-owned defence enterprises.

He expressed satisfaction with the government's growing acknowledgment of private sector participation in defence, noting that this approach addresses both domestic requirements and international opportunities, especially given the current global defence landscape and evolving supply chain dynamics.The company operates an advanced shipyard equipped to construct large warships, conventional submarines and essential components for these platforms, though it specifically excludes explosives and ammunition from its manufacturing scope.Within L&T's precision engineering and systems division, the defence segment secured orders worth Rs 13,326 crore in the previous fiscal year, showing 29% growth, primarily attributed to additional orders for K9 Vajra-T self-propelled howitzers.

The segment achieved revenue of Rs 6,185 crore, marking a 32% increase. L&T's involvement extends to the engineering and construction of INS Arihant, India's pioneering indigenous nuclear-powered ballistic missile submarine. In October, they launched their first multipurpose vessel for the Indian Navy at the Kattupalli Shipyard, Chennai. Currently, they are building three cadet training ships alongside six additional vessels for naval operations.The organisation's strategic focus becomes particularly relevant as global defence supply networks experience considerable pressure from geopolitical tensions, notably the Russia-Ukraine conflict. These circumstances have disrupted vital supply routes, particularly in eastern Europe, impacting the procurement of crucial materials and components."The US' planned tariff imposition is expected to further strain the supply chain.

These actions have increased costs for defence contractors and caused delays in production and maintenance," L&T stated in their latest annual report.The organisation has allocated Rs 200-crore for investments in emerging enterprises to strengthen its technological and defence capabilities. "A lot of IIT-sponsored projects are happening. So, we were willing to invest in such ventures. A lot of startups are in the defence application.

We are examining them as to which would help us," said Shankar Raman.Raman indicated interest in launching systems, radars and traction devices. The company seeks collaboration opportunities with startups specialising in power distribution, load distribution and load management systems.According to Shankar Raman, L&T aims to secure 20% of the nuclear power sector. The government's Nuclear Energy Mission has designated Rs 20,000 crore for research, development and implementation of at least five Bharat Small Modular Reactors.
 

How L&T aims to create a multi-billion dollar defence business driven by Modi government plans to modernise military


Larsen & Toubro (L&T) plans to expand its defence business into a multi-billion dollar enterprise, significantly higher than Rs 6,185 crore (approximately $726 million at current exchange rates) in orders from the previous financial year, motivated by governmental initiatives to enhance military capabilities.

The government has established a target of Rs 30,000-crore in defence exports for this fiscal year, with plans to reach Rs 50,000 crore by FY29. Additionally, the government seeks to achieve domestic defence production worth Rs 1.6 lakh crore in FY26, with projections to reach Rs 3 lakh crore by FY29.The company produces various military equipment including warships, patrol vessels, armoured vehicles, artillery guns and missile systems.

In conversation with ET, L&T president and chief financial officer R Shankar Raman indicated the defence sector's substantial growth potential. "It can be as big as you want because it is a question of how much the government is willing," he stated, noting L&T's intention to utilise their shipyard for defence orders and expand facilities when necessary.

L&T Defence Plans


L&T's marine manufacturing capabilities span across various naval vessels, ranging from coast guard and survey vessels to fast boats, ships, fleets, frigates and submarines, encompassing the entire spectrum of maritime defence assets.

The company's CFO highlighted that the government recognises the importance of increased private sector involvement in defence manufacturing to swiftly modernise India's military equipment, particularly considering the limited capacity and substantial backlogs at state-owned defence enterprises.

He expressed satisfaction with the government's growing acknowledgment of private sector participation in defence, noting that this approach addresses both domestic requirements and international opportunities, especially given the current global defence landscape and evolving supply chain dynamics.The company operates an advanced shipyard equipped to construct large warships, conventional submarines and essential components for these platforms, though it specifically excludes explosives and ammunition from its manufacturing scope.Within L&T's precision engineering and systems division, the defence segment secured orders worth Rs 13,326 crore in the previous fiscal year, showing 29% growth, primarily attributed to additional orders for K9 Vajra-T self-propelled howitzers.

The segment achieved revenue of Rs 6,185 crore, marking a 32% increase. L&T's involvement extends to the engineering and construction of INS Arihant, India's pioneering indigenous nuclear-powered ballistic missile submarine. In October, they launched their first multipurpose vessel for the Indian Navy at the Kattupalli Shipyard, Chennai. Currently, they are building three cadet training ships alongside six additional vessels for naval operations.The organisation's strategic focus becomes particularly relevant as global defence supply networks experience considerable pressure from geopolitical tensions, notably the Russia-Ukraine conflict. These circumstances have disrupted vital supply routes, particularly in eastern Europe, impacting the procurement of crucial materials and components."The US' planned tariff imposition is expected to further strain the supply chain.

These actions have increased costs for defence contractors and caused delays in production and maintenance," L&T stated in their latest annual report.The organisation has allocated Rs 200-crore for investments in emerging enterprises to strengthen its technological and defence capabilities. "A lot of IIT-sponsored projects are happening. So, we were willing to invest in such ventures. A lot of startups are in the defence application.

We are examining them as to which would help us," said Shankar Raman.Raman indicated interest in launching systems, radars and traction devices. The company seeks collaboration opportunities with startups specialising in power distribution, load distribution and load management systems.According to Shankar Raman, L&T aims to secure 20% of the nuclear power sector. The government's Nuclear Energy Mission has designated Rs 20,000 crore for research, development and implementation of at least five Bharat Small Modular Reactors.
These guys should get AMCA production contract imo. They worked on Arihant which is another extremely complex defence project. Of course 5th gen fighters and subs are very different things but they will be aware of the needs and requirements that the defence services demand.
 

Can anyone explain the significance of this facility?
Probably for QKD or Quantum Key Distribution. It is an absolutely secure type of Encryption which can provide absolute security to communications. Interestingly QKD is a part of India's NQM 2023. I did a research presentation on it in Grade 10th on the BB84 protocol.

Some recent breakthroughs in the field by India:

Probably the most significant development:

"Under the terms of the agreement, C-DOT and Synergy Quantum will work collaboratively to engineer quantum communication systems optimized for deployment through unmanned aerial platforms" - From the above article. Mostly QKD has been explored through satelites, but this is expensive, Nevertheless, ISRO is going to launch the Quantess Payload on its TDS-01 sattelite.