Senior L&T officials say revenues from its international business are expected to grow to about 25 per cent in the next 2-3 years. Last year, the revenue contribution from the international business was 12 per cent, and in the current fiscal, it is expected to increase to 17 per cent, officials said.
We hope that the international business will form about 25 per cent of our total revenues in the next 2-3 years, they added. L&T reported a turnover of Rs 8,578.51 crore in 2001-02.
L&T is looking to expediting its efforts to build on its global presence and track record to become an India-based multinational company, with presence in North America, Europe, Japan and India. The company had earlier roped in international consultants The Boston Consulting Group (BCG) to help it chalk out the road map to give the company a global character.
Officials said that the contribution to its turnover in the future is expected to grow on the back of the efforts being put in its international business. Recently, the Engineering & Construction Division has executed for Petronas, Malaysia, a turnkey project of a large reformer and waste heat recovery package for their ammonia/synthesis gas plant. The Engineering & Construction Division is executing a power plant on EPC basis in Sri Lanka and another one in Oman.
It is also hiking its stake in L&T Oman, which is a joint venture with Al Zubair, from 49 per cent to 65 per cent.
L&T managing director and CEO AM Naik had mentioned at the companys second quarter results, that though the domestic investment climate is expected to be sluggish in the medium term, the company is able to steadily increase the overseas order book. The company expects a good growth in E&C revenues for the fiscal year 2002-03. L&T achieved an order booking of Rs 3,367 crore during the half year as against Rs 3,011 crore during the comparable period of the previous year. The engineering and construction segments revenues increased by 34 per cent over last year to record Rs 2,531 crore for the half year under review.
The construction group, ECC, have executed comprehensive construction projects in areas of fertiliser and petrochemicals, airports, townships, hotels, public buildings, bridges, transmission lines, water treatment plants, hydro-electric power stations and irrigation structures in various countries which include Qatar, Yemen, UAE, Sri Lanka, Iraq, Zirku Island, Kuwait, Nepal, Malaysia, Central Asian Republic of Uzbekistan, Mauritius, Abu Dhabi, Oman and Saudi Arabia.