L&T bets Rs 5K cr on a new electronics biz

Larsen & Toubro (L&T) has carved out a new electronic products and systems (EPS) business, in which the engineering firm plans to invest about Rs 5,000 crore over the next five years to expand manufacturing, research and product development, senior executives told media persons on Wednesday.

The investment is expected to create around 5,000 direct and indirect jobs.The company estimates the total addressable market for its portfolio will more than double to $4.85 billion by 2031 from about $2 billion at present.

It seeks to build an intellectual property-led products business spanning mobility, power electronics, robotics and strategic electronics.The EPS business brings together four verticals—mobility, power electronics, robotics and automation, and strategic electronics—and marks L&T's push to diversify beyond engineering, procurement and construction into technology-led industrial products.

Manufacturing will be centred at a 40-acre campus in Coimbatore, supported by engineering and research and development (R&D) centres in Bengaluru and Coimbatore.“We found that the core technology in auto electronics is not in India.

All the tier-1 suppliers are multinational companies bringing technology from outside, and it is not really customised for the Indian market,” said Prashant Jain, managing director, L&T Vyoma and head-electronic products and Systems.

“R&D and IP (intellectual property) are the foundation of this business.

In the short term, we will come with technical collaborations and joint ventures to accelerate, but the goal is to create homegrown IP."Mobility will be one of the key growth pillars for EPS, with L&T developing electric traction motors, motor control units, integrated electric drive systems, advanced driver assistance systems (ADAS) and connected vehicle platforms.The company has already secured its first production programme, winning an order to supply 500,000 electric traction motors for a two-wheeler manufacturer.

Pilot production will begin in August, followed by commercial production from September at its Coimbatore facility, with the platform to be extended to passenger and commercial vehicles.Sudeepth Puthumana, head of the mobility business at L&T Electronic Products & Systems, said the company’s traction motors have achieved 98% localisation by components and about 70% by indigenous value, with a similar localisation strategy being adopted for motor control units.

Besides electric powertrains, L&T is developing integrated “X-in-1” drive systems, level-2 ADAS tailored for Indian traffic conditions and connected vehicle platforms.Puthumana said electric vehicle adoption and upcoming safety regulations are expected to drive demand for these technologies over the next few years, while L&T will initially leverage technology partnerships before progressively building proprietary products for domestic and overseas markets.ENDS ...