Engineering Major Larsen & Toubro Reportedly Plans Integrated Electronics Manufacturing Foray

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Larsen & Toubro (L&T), one of India’s leading industrial conglomerates, is planning to diversify its portfolio and enter the electronics manufacturing sector. With a strong presence in engineering, procurement, and construction (EPC), the company is now set to establish its dominance in the rapidly expanding electronics manufacturing services (EMS) industry.

According to industry experts, L&T is willing to enter this market with high-growth potential. This smart entry into a new sector follows rising demands for electronic products and the Make in India initiative, backed by PM Modi.

Strategic Land Acquisition and Integrated Manufacturing Plan

In support of its new venture into the electronics sector, L&T is eyeing land acquisitions and a well-established manufacturing strategy. The company has also started building plants in several locations in India. It is smartly taking advantage of the Indian government’s recent push for manufacturing hubs. Fortunately, these efforts fall in line with the growing need for locally produced electronic products across a wide range of industrial sectors.

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L&T’s approach incorporates not just the assembling process of electronic components but also developing end-to-end solutions within the manufacturing ecosystem. This includes components, final assembly, and testing, which will significantly contribute to the value chain. "The company's strong track record in infrastructure and construction gives it a unique edge when it comes to setting up large-scale manufacturing facilities," an industry analyst said.

Sandeep Kumar, the CEO of L&T Semiconductor, also said, “The vision is to become the first global company in semiconductors operating from India, headquartered here, with a footprint across Europe, Japan, and India.” He further added, “The centre of gravity for all the development and manufacturing would be in India.”

Focus on Industrial and Defence Electronics Segments

L&T’s well-planned focus on industrial and defence electronics is set to differentiate its entry in this competitive market. It is already a major player in India's defence sector, with decades of experience developing advanced equipment for the defence and aerospace industries. Additionally, the company is leveraging its expertise and skill in high-value and precision-oriented industries by entering into the EMS sector.

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The company’s move into defence electronics aligns perfectly with the time when India is trying to be self-reliant. With the government’s push for "Make in India" and an increasing demand for home-made defence products, L&T could smartly benefit from favourable policy measures.