It’s almost as usual for engineering major Larsen & Toubro (L&T) with 95% of its sites in West Asia operational, Subramanian Sarma, deputy managing director & president of the company has confirmed.
While the conflict has posed supply and logistics challenges at its sites, alternative channels like road transport are being explored to resolve the problem, Sarma said, adding that the situation is not critical.
In fact, Sarma expects new opportunities to emerge in the region following a push by countries there for faster project execution and diversification of energy supply routes. “Maybe there will be alternative routes for energy evacuation as every country may build some cross-country pipelines and have evacuation points in Oman, in the Red Sea or even in the Mediterranean. Given that it will be a major supplier, the focus will shift to diversifying evacuation routes. This is good news for us, because it will open up new opportunities,” he said.
Sarma noted that the company’s clients in the region appeared to be urgently looking to commission capacity, while exploring new capacities. L&T expects to cash in on orders as these nations start rebuilding after the war ends.
Logistics Pivots and Site Safety
Speaking to the media, he said L&T has opted to shut down the remaining 5% of the sites as these are in close proximity of military bases. Order inflows from the region accounted for 37% of the construction and engineering firm’s order book in 9MFY26. The war in the region has disrupted supplies to L&T’s sites from China and Europe in the last 2-3 weeks though there has been some resumption of materials supplies over the past few days. Supplies from local vendors, however, have not been disrupted. “Whether in Saudi Arabia or within GCC countries, transportation by road continues, although the process is slower,” Sarma said. Moreover, some materials are being dropped off at ports that are relatively safe.
West Asia, which Sarma calls a “second home” has about 100 sites across the region. L&T is present in Saudi Arabia, UAE, Oman, Kuwait, among others and across verticals such as renewables, transmission and infrastructure.
Green Pivot
Meanwhile, L&T is accelerating its green hydrogen ammonia project with Itochu Corporation of Japan. It plans to set up a first train of 3,00,000 tonnes per annum of green ammonia with $1.5-2 billion investment. The company is also working on an electrolysers project having developed 1.4 megawatt cells.
L&T will utilise electrolysers for the hydrogen projectin alliance with IOCL in Panipat. “We will utilise our own electrolysers. We are also in discussions with international players who are also keen to utilise our electrolysers, he said.In about a year’s time, L&T hopes to have a very definitive agreement for green ammonia offtake. Sarma said he expects good traction in green hydrogen too adding, the company has expanded into the renewables EPC space. Renewable projects for solar and wind has been explored in Uzbekistan and opportunities are being looked at in Indonesia.