Defence

Defence & Aerospace

L&T has emerged as a leading Private Sector Company in the Defence sector in India. For over three decades, L&T has focussed on building indigenous products and technologies with DRDO, as well as with in-house R&D teams. The Company is today engaged in design-to-delivery of solutions across chosen Defence segments.

L&T develops and produces naval platforms, artillery systems, air-defence systems, land and naval weapon delivery systems, fire-control solutions, naval equipment and systems, engineering systems for land and marine forces, military bridging systems, communication systems, missile sub-systems, and critical components and tracking systems for space-launch vehicles.

L&T has been committed to ‘Make in India’, and invested in multiple work-centres across the country, dedicated to providing Defence solutions. These include an Assembly & Integration Facility at Talegaon near Pune, Precision Manufacturing Facility at Coimbatore, and Strategic Electronics Centre at Bengaluru, for military communications. Besides these dedicated facilities, specific work-centres are set-up at Hazira (near Surat) for the strategic submarine program, Ranoli (near Vadodara) for Advanced Composites, Powai (Mumbai) for prototype development & testing, and a site at Vishakhapatnam operated under GOCO model for a strategic program.

Business Environment

In line with its ‘Make in India’ and ‘Ease of doing business’ agendas, the Govt has brought about major improvements in policies in the Defence sector. A marked shift towards indigenous procurement is evident from the clearances granted (82% by share and over 3.2 Lakh Cr. by value) by the Defence Acquisition Council in the past two-and-a-half years for Indian companies to participate as the prime bidder. The policy is also progressing towards offering a level playing field for the Private sector through a variety of policy changes.

The MoD has recently released the Strategic Partnership Policy. It is believed that the acquisition of large, complex platforms wherein India would otherwise be import dependent, would follow this model. L&T is likely to be positioned to be selected as a Strategic Partner in one of the key segments.

The Govt. of India has also targeted to build Defence exports with a target of USD 2 billion by 2019. Defence exports are a part of Military diplomacy, and having announced the ‘Look East’ policy, our country’s leadership is engaged in making India an emerging regional superpower. The early signs of providing military aid / export credit financing to friendly nations is in the public domain.

In the Aerospace segment, the Indian Space Research Organization (ISRO) plans to involve Private Sector and Public Sector firms for Industrialising the production of PSLVs, and to this effect, a PSLV Consortium (JV likely in the future) is under consideration by the Govt of India.

While continuing to build indigenous products / systems using in-house capabilities, L&T has also engaged in the co-development mode with few global partners of choice. A dedicated Product & Technology Development Centre develops niche technologies, solutions and systems for internal development projects and for the ’Make’ and ‘Buy & Make Indian’ category programmes. L&T also collaborates with ISRO as technology partners for the development of special purpose test facilities for our space programs.

Outlook

With the simplified DPP 2016 coming into effect from 1st April, 2016, defence procurement is expected to gain traction, and programmes worth about 2 Lakh Cr. for Indian industry are expected to get converted into orders over the next two years. The preference for indigenously designed and developed products will result in opportunities in adjacent domains.

Over the medium-term, significant opportunities are envisaged in programmes for new-build naval (surface as well as underwater) platforms, refit of conventional submarines, artillery and air defence guns, close-in weapons systems, military bridging systems, missile programmes (repeat orders), and sub-systems for space launch vehicles. L&T is prepared for a proactive role in ensuring self-reliance of our nation through a successful ‘Make in India’ initiative.

The Business has drawn up its Strategic Plan with sharp focus up to 2021, and aspires for profitable growth. It continues to invest in intra-organisational excellence initiatives like Six Sigma, Total Pinaka multi-barrel rocket-launcher. L&T works closely with defence research organisations to develop and manufacture weapon and missile systems. Productive Maintenance, Workplace Management Systems and Knowledge Management, to ensure superior quality products and services. People-centric initiatives, competency building, and talent and leadership development remain vital to the growth strategies of the business.

Always a CSR-frontrunner, the business undertakes developmental programmes in areas like global warming, conservation of electricity, fuel and water, and reuse and recycle of materials and resources. Health, Safety and Environment policies and programmes help increase awareness amongst employees, the community and our stakeholders.

L&T’s shipbuilding arm offers total solutions – from design to construction to refit of warships.

L&T has a state-of-the-art shipyard at Kattupalli near Chennai in Tamil Nadu. Its shiplift – designed and manufactured in-house – ensures quick turnaround of vessels. The systems at the Yard conform to several tandards: ISO 9001 QMS, EMS 14001 and OHSAS 18001.

Defence Vessels

In-house design capabilities, production of critical equipment and systems, experience and expertise in warship construction and proven project management skills enable the business to leverage emerging opportunities.

L&T’s Warship Design Centre has designed a range of defence vessels including corvettes, offshore patrol vessels, cadet training ships, survey training vessels, floating docks, fast patrol vessels and interceptor boats, among others.

Business Performance

The yard is executing the following prestigious contracts:

  • Design and construction of seven offshore patrol vessels for the Indian Coast Guard
  • Design and construction of 54 interceptor boats for the Indian Coast Guard, of which it has already delivered 30 of the 54 contracted – many well ahead of schedule.
  • Design and construction of a floating dock for the Indian Navy

On a regular basis, L&T repairs and refits defence vessels of the Indian Navy and Indian Coast Guard.