Larsen & Toubro to expand electricals and electronics capacity Ahmednagar facility
21 September 2006
Mumbai: Larsen & Toubro Ltd (L&T) has launched a major capacity expansion of the electrical and electronics division at its MIDC Ahmednagar facility. The expansion programme envisages investment of Rs90 crore. Post expansion, the Ahmednagar facility would employ close to 1,300 people.
The expansion programme will be completed by the middle of the financial year 2007-08. It will generate revenues of Rs150 crore in the first year of operation and will give direct employment to more than 100 people and indirect employment to around 300 people. Over a period of 4-5 years, the factory is expected to generate revenues of Rs350 crore and provide employment to around 1,000 people, L&T said in a filing with the BSE.
The 150,000 sq feet factory will support L&T's growing electrical business. L&T, which has already started operation of its modular devices factory, is expecting a nearly 10-fold increase in business from the current 1.5 million units to 10.5 million units within two years. This would generate additional revenues of Rs50 crore in the first year of commissioning, the company said.
"L&T is already on a high growth path. All our initiatives and investments are directed towards making the organisation a true Indian multinational and adding continuous value for meeting shareholders expectations," chairman and managing director of the company A M Naik said after laying the foundation stone of the project..
"L&T's electrical business is growing at 30 per cent and we are committed to maintaining this growth. Our market share in the switchboard business is above 40 per cent. The new factory at Ahmednagar will help us meet the needs of a variety of customers in both, domestic and international market and add flexibility to the business," added R N Mukhija, president-operations and member of the board.
The company has taken major initiatives relating to manufacturing excellence and workmen involvement in quality and productivity enhancement. The tool room capacity has been doubled to 2,400 sq meters area with state-of-the-art CNC machines integrated with CAD/CAM technology.