Engineering main Larsen & Toubro (L&T) is reportedly taking preliminary steps to enter the electronics manufacturing providers (EMS) sector, having held preliminary discussions with the Tamil Nadu authorities relating to the acquisition of roughly 200 acres of land close to Chennai.
In keeping with a report in The Financial Instances, the $17 billion conglomerate, already established in allied electronics fields, seeks to grow to be a totally built-in participant with end-to-end manufacturing capabilities. Whereas it’s but to be decided if L&T will comply with an analogous path to Tata Electronics, sources indicated to the monetary day by day that the corporate will possible leverage its expertise in engineering, procurement, and building, in addition to its present presence in strategic electronics for defence and aerospace.
In keeping with folks aware of the matter, L&T’s focus might be on parts for sectors during which it already has vital capabilities. The potential of utilizing the newly acquired land for each EMS and semiconductor-related actions has not been dominated out, though semiconductor manufacturing was reportedly not a part of the discussions at this stage, the report said.
The corporate’s broader ambitions seem to centre on sectors the place it may possibly construct on its present strengths. L&T already operates subsidiaries comparable to L&T Precision Engineering & Programs, which carry out work in electronics manufacturing, making enlargement into EMS a logical step.
Trade specialists consider that L&T might look to industrial EMS as a big alternative, given its potential for scale and comparatively restricted competitors.
Along with EMS, L&T’s semiconductor ambitions proceed via its chip design enterprise, which, in response to chairman SN Subrahmanyan, employs round 400 engineers, primarily in Bengaluru with others stationed in Austin, Munich, and Tokyo. Subrahmanyan defined that the thought is to design the chip, develop a proof of idea, and showcase it to purchasers, and if profitable, to contract manufacture the chips.
