L&T’s Heavy Engineering business custom-designs, fabricates and integrates engineered-to-order critical equipment and systems for core sector industries like fertiliser, refinery, petrochemical, chemical, oil & gas, thermal & nuclear power, as well as for aerospace, and defence applications. It has a track record of executing large, complex projects. Its strengths include in-house design & engineering, state-of-the-art fabrication facilities, R&D centres, experienced project teams and a safe work culture. The business is structured into two major verticals:
Operating at the upper end of the technology spectrum, this business manufactures and supplies custom-designed and engineered equipment and systems to critical process industries, viz., fertiliser, refinery, petrochemical, chemical, oil & gas, thermal and nuclear power. The track record covers large and complex projects that have set global benchmarks – including the world’s largest ethylene oxide reactor, the biggest coke drum, etc. All the equipment is manufactured under stringent schedules and conform to high quality and safety standards.
Hazira Manufacturing Complex, Surat: This heavy manufacturing facility has mega construction capabilities and captive ‘Load-on’ and ‘RO-RO’ jetties. Its track record includes the execution of the single largest order for supply of reactors by a single facility. This facility has delivered some of the most complex equipment for Indian nuclear power plants, including PHWR steam generators, end shields and fast breeder reactor vessels.
Powai, Mumbai: L&T’s nodal complex has a track record of manufacturing heat-transfer equipment that has set industry benchmarks.
Vadodara Heavy Engineering Works: This specialised facility manufactures equipment and internal assemblies for process plant industries, using exotic materials like titanium, among others.
Sohar, Oman: Set up as a joint venture in Oman, this heavy fabrication facility manufactures a range of equipment for the hydrocarbon and power sectors.
L&T Heavy Engineering’s manufacturing teams are backed by production engineering and manufacturing technology development centres at each location.
Its Process and Product Development Centres in Mumbai undertake R&D for the Process Plant and Nuclear Equipment business.
Major orders secured include critical equipment with high-end technology and metallurgy for the refinery, petrochemical, fertiliser and power plant sectors. Most of these orders were from international clients.
Malaysia: The world’s biggest multiwall ammonia converter
China: The world’s largest coal gasifier
Abu Dhabi: A set of 23 solid Ti heat exchangers, involving drilling of tubesheets over 300 mm thick to tolerances and finish more stringent than TEMA’s global standards
Saudi Arabia: A complex bi-metallic urea stripper
USA: First company in India to export nuclear spent fuel equipment to USA
France: Delivered first segments of ITER fusion reactor cryostat at Cadarache, France
L&T’s Defence and Aerospace vertical designs, develops and produces naval platforms, artillery systems, land and naval weapon systems, fire-control systems, naval equipment and systems, engineering systems for land and marine forces, military bridging systems, communication systems, missile sub-systems and rocket motors for space-launch vehicles.
Strategic Systems Complex, Talegaon, Pune: This is a state-of-the-art manufacturing facility for fabrication, modular assembly, integration and testing of serially produced weapon systems, sensors and military engineering systems.
Precision Machining and Systems Complex, Coimbatore: This precision manufacturing facility produces sub-systems and assemblies for missiles and space vehicles.
Strategic Electronics Centre, Bengaluru: This is a design, engineering and manufacturing facility for defence electronics systems for military communications, avionics, electronic warfare and special sensors.
Hazira Manufacturing Complex, near Surat: This dedicated facility manufactures pressure hulls for strategic programmes.
Vadodara Heavy Engineering Works: Advanced composites products for defence and aerospace are manufactured here.
Powai Campus, Mumbai: This houses the prototype development and testing facility, Product & Technology Development Centre and Strategic Submarine Design Centre.
Visakhapatnam: This facility for building strategic submarines operates under the GOCO model.
Government purchases in the strategic segment follow the Defence Procurement Procedure (DPP). To achieve self-reliance and boost defence exports in the medium and long term, the Government has put in place several initiatives in FY 15-16 to attract investments from foreign and Indian companies and create a level playing field for Indian private sector defence companies. Based on structured and detailed consultations with all stakeholders, a simplified and rational DPP 2016 was released in March 2016 to address the requirements of users, the MoD and industry.
In FY16, the continuing linkage to earlier procedures and the resultant slower pace of decision-making led to the deferment of several repeat orders. Significant progress was achieved in newer on-going programmes, orders for which are likely to be concluded soon.
L&T collaborates with national laboratories such as DRDO and ISRO as technology partners for indigenous technology development for defence and space launch programmes. L&T partners Defence Public Sector Undertakings such as BEL, BDL, MDSL and GRSE, for the production of various systems and critical sub-systems.
A dedicated Product & Technology Development Centre develops niche products and solutions for internal development projects and the ’Make’ and ‘Buy & Make Indian’ category programmes.
The business collaborated with foreign OEMs to develop artillery gun systems customised for the Indian Army as per RFP specifications. Focused on productivity improvement and efficient execution, and aided by healthy collections, the Net Working Capital has reduced, and continues to be at near-zero levels.
A track-record spanning three decades with emphasis on indigenous technology development distinctly positions L&T as a market leader and in the forefront in the defence and aerospace sectors. With the simplified DPP 2016 coming into effect from 1st April, 2016, defence procurement is expected to gain traction, and programmes worth ~2L Cr for Indian industry are expected to get converted into orders.
The preference for indigenously designed and developed products will result in opportunities in newer domains.
Over the next 2 to 3 years, significant opportunities are envisaged in programmes for new-build naval 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 is drawing up its Strategic Plan for 2017-2021, focusing on profitable growth. It continues to invest in intraorganisational excellence initiatives like Six Sigma, Total Productive Maintenance, Workplace Management Systems and Knowledge Management to ensure superior quality products and services. People-centric initiatives, competency build-up, 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.
This joint venture of L&T and Nuclear Power Corporation of India Limited has a fully-integrated manufacturing facility at Hazira, near Surat, to produce ingots and finished forgings for critical equipment in the nuclear power and hydrocarbon industries, rotors in the power industry, rolls in steel plants and other heavy forgings for general engineering applications. With an annual capacity of 40000 MT of finished forgings, the JV is a major strategic step towards an economical and sustainable alternative to the import of heavy forgings.
Since its inception in 2012, this facility has produced most of the critical heavy forgings required for an Indian 700 MW PHWR nuclear power plant. It also produced the heavy stainless steel forgings for the ITER project. It supplies shells, tube sheets and other heavy forgings for refineries, petrochemicals and fertilizer plants and forgings for the oil & gas sector. Alloy steel and carbon steel ingots are supplied to Indian forge-masters.
This joint venture of The Zubair Corporation and L&T, at Sohar in the Sultanate of Oman, is a pioneering facility to manufacture critical high-technology equipment for refineries, petrochemicals, fertiliser projects and other process industries. With a focus on the GCC countries and a worldwide customer base, it has executed complex projects using a spectrum of critical metallurgies. It supplements L&T’s India-based fabrication facilities and assists L&T in revamping and upgrade of refinery projects in the region.
This wholly-owned subsidiary of L&T undertakes technology development and manufactures avionics Line Replacement Units (LRUs) for military applications. It focuses on embedded solutions, controls and signal processing and manufacture of defence avionics LRUs. It is certified by the Centre for Military Airworthiness and Certification (CEMILAC) of the MoD. It has obtained AS9100 Rev C, ISO 9001 and IS0 27001 certifications. It is a key player in the design, development and engineering of integrated life support systems for the indigenously-built LCA Tejas. It has developed the technology to position and control a high-precision gimbal platform for directed energy weapons applications.