Business · Companies · 3 hrs ago
L&T considers new manufacturing businesses, from fuel rods to tunnel machines
Larsen and Toubro is exploring at least six new manufacturing businesses as it looks to expand beyond infrastructure projects.
The Mumbai-based company is considering products including nuclear fuel rods, tunnel boring machines, rockets and drones, as well as electric vehicle motors and battery storage systems.
L&T wants to reduce its reliance on project work as it approaches ₹3 trillion in annual revenue and seeks to sustain growth of 12-15%.
Manufacturing and products made up 6% of its revenue in the first half of fiscal year 2027, and the company wants to at least double manufacturing’s contribution.
L&T sees a possible shortage of nuclear fuel rods if private companies enter India’s nuclear energy sector under a new law.
The company is also developing a tunnel boring machine prototype and is considering making rockets as India opens its space sector to private participation.
These ideas are at different stages of evaluation, and L&T has not confirmed that all will become businesses.
Larsen and Toubro is exploring at least half a dozen manufacturing businesses, including nuclear fuel rods, tunnel boring machines, rockets and drones.
The Mumbai-based company is seeking to diversify beyond project execution and sustain growth of 12-15%.
Other possibilities include pod taxis, battery energy storage systems, electric-vehicle traction motors and prefabricated homes.
L&T wants to at least double manufacturing’s contribution to its business, while the new opportunities remain at different stages of evaluation.
- Who
- Larsen and Toubro Ltd (L&T), an engineering and construction company.
- What
- It is evaluating new manufacturing businesses, including nuclear fuel rods, tunnel boring machines, rockets and drones.
- When
- The article was published on 5 November 2026; an L&T executive discussed the company’s portfolio on 28 October.
- Where
- L&T is based in Mumbai, India. The potential businesses are being considered in the context of the Indian market.
- Why
- L&T aims to diversify a business heavily dependent on project execution, sustain growth of 12-15% and increase manufacturing’s contribution.
This story does not have two clearly opposing sides.
L&T president R. Shankar Raman said the company’s portfolio was heavily weighted toward project work.
Mint reported that L&T was exploring new manufacturing businesses, with opportunities at different stages of evaluation.
- Revenue
- L&T is approaching ₹3 trillion in annual revenue.
- Growth target
- The company seeks to sustain growth of 12-15%.
- Manufacturing share
- Manufacturing and products accounted for 6% of ₹1.47 trillion in revenue in the first half of FY27.
- Tunnel boring machines
- L&T is developing a prototype that it may produce for its own projects and for sale to other companies.
- Manufacturing goal
- L&T wants to at least double manufacturing’s contribution to its business.
What people are saying
Our portfolio is very project overweight
If India is going to build more and more networks underground because the overground is populated, then tunnel borers are required, both for us and for the industry. So, if our experiment proves successful, efficiency-wise and cost-wise, we might source our own tunnel borers plus supply to the market