Larsen & Toubro Ltd (L&T) and a subsidiary of the widely diversified, Kuwait-based Bader Al Mulla group have signed an agreement to undertake construction projects in the Gulf region.
A joint venture company to be called Larsen & Toubro Kuwait Construction WLL, registered as a local company in Kuwait, will execute these projects.
The company will focus on construction projects in oil and gas, power and infrastructure, with a primary focus on electro-mechanical construction. The joint venture is expected to enable the two companies to benefit from the construction boom in Kuwait, specifically in the oil refining and infrastructure development sectors.
Bader Al Mulla has a strong business presence in Kuwait and possesses insight into the market''s requirements, trends and prospects. The Company will bring to the joint venture its impressive track record and technical expertise in construction of projects in various sectors, as well as its project management skills.
The joint venture agreement comes close after A M Naik, chairman and managing director, L&T, visited Kuwait with a team of senior executives to forge long-term relationships with industry in the GCC region.
Kuwait has grown remarkably in the last three decades, and the government of Kuwait proposes to invest several billion dollars in the development of the hydrocarbon sector and infrastructure.
In past years, various divisions of L&T have executed major projects in Kuwait. ECC, the construction division of L&T built the Indian embassy building a few years ago, while its heavy engineering division has supplied various units to the oil and gas industry, and recently bagged a $29.3-million order for supplying an ethylene oxide reactor for Kuwait Olefins Company.
Its E&C division has successfully executed two sulphur recovery projects for Kuwait National Petroleum Co (KNPC) for which it also achieved an ''excellent'' grade rating - the highest rating on safety performance given to foreign EPC contractors.