Larsen to ramp up capacity

Larsen & Toubro Ltd (L&T) has announced that the Company is all set to ramp up its manufacturing capacity of super-critical boilers and super-critical turbine generators to 4000 mw per annum. The foundation stone for the upgraded facility was laid at Hazira on March 19, 2008 in presence of Mr. A M Naik, Chairman and Managing Director, L&T, and Mr. Ichiro Fukue, Representative Director, Mitsubishi Heavy Industries Ltd.

L&T is the only private sector Company in India to enter the space of super-critical boilers and steam turbine generators. The Company will be manufacturing and marketing these critical components of the large power plant through two separate joint ventures with Mitsubishi Heavy Industries (MHI) of Japan. MHI is a global leader in this business.

L&T holds 51 per cent in both the JVs with MHI holding 49 per cent. The JVs will have an investment of Rs 1500 crore.

The JVs had already started their operations in existing facilities at Hazira last year and have already constructed two new workshops. To further add capacities by 4000 mw, the new dedicated facilities coming up at Hazira marks a significant milestone in India's power sector.

Super-critical boilers and turbines are integral components of energy efficient, coal-based power plants. They will help meet the demand supply gap for power plant equipment as India ramps up its power generation capacity using the super-critical technology.

Manufacturing capability of these products integrates into L&T's existing strengths in the power sector. L&T is currently engaged in total EPC contracts for power projects as well as manufacture of complete condensing and feed heating systems and 'balance or plant' for power projects. With L&T also declaring its intent to enter the generation space as a developer of power projects, the Company has developed capabilities for becoming a single point solution provider for the power sector.

L&T -MHI will have a product configuration catering to super-critical power plants, ranging between 500 mw-1000 mw. The engineering design centre for the boilers is based in Faridabad, near New Delhi, and that for steam turbines in Vadodara, Gujarat. The new fabrication and manufacturing facilities will be extension of present complex and will be state of the art world class set up.

L&T wins Rs 1107 crore order from SAIL's IISCO Steel Plant at Burnpur

Larsen & Toubro Ltd (L&T) has announced that the Company has bagged orders worth Rs 1107 crore from SAIL for the turnkey construction of Coal & Coke Handling Plant and Base Mix Preparation plant at IISCO Steel Plant, Burnpur, in West Bengal, ECC, L&T's construction division will execute this order.

The scope of work for this order include basic and detail engineering; supply, erection of mechanical, electrical and instrumentation works; complete civil & structural works including testing & commissioning of the same.

This turnkey project is to be completed in 26 months.

Mr. K V Rangaswami, President (Construction) and member board of the Company said, "L&T is a leading player in the field of Bulk Material Handling Projects, and has been active in this field for over 27 years, catering to Steel, Power, Port and Cement sector requirements. Further, L&T is well known for its track record of high quality and on-time delivery."

He further added "L&T has already signed a contract for executing the Sinter Plant Package for SAIL at IISCO Burnpur Steel Plant on a turnkey basis. With these orders L&T has emerged as the largest partner in the implementation of 2.5 mtpa modernization project at IISCO Burnpur".

L&T bags more orders from Gulf region

Larsen & Toubro Ltd (L&T) has announced that Larsen & Toubro (L&T) group has bagged orders worth Rs 1057 crores in the Gulf Region. L&T (Oman) LLC, a subsidiary of L&T and one of the leading engineering and construction majors in Oman, has bagged three EPC contracts worth USD 116 million (Rs 457 crore), from Oman Electricity Transmission Company (OETC) for Electrical Grid Stations and associated Transmission System in Oman. It has also received another order to build a USD 48 million (Rs 189 crore) factory complex in Oman.

L&T has also bagged an EPC order valued at Rs 411 crore (USD 105 million/ AED 383.62 million) from the Al Ain Distribution Company (AADC) for the construction of 5 nos electrical substations and associated MV Cabling in the Al Ain city of Abu Dhabi.

According to the terms of the contract, L&T will Design and Build these 33/11 kV primary substations to the specifications of the international consultant PB Power & will be completed within 24 months.

Each substation consists of 33 kV gas insulated switchgear, 11 kV air insulated switchgear, 15/20 MVA 33/11 kV transformers, Substation Control and Monitoring System, Protection and telecommunication system, DC system and auxiliaries. The contract encompasses design and construction of civil buildings with complete set of utilities such as air conditioning, fire protection and lighting systems.

The EPC contracts comprise orders for two Grid Stations valued at US$ 89 million (Rs 351 crore) for strengthening the Transmission System in and around Seeb International Airport Area to meet the increasing load demand for New International Airport and other townships coming up in this Area. The scope involves construction of a new 220/132/33kV substation, 2x500MVA Grid Station and associated 220kV Transmission Line System as well as construction of new 132/33kV 3x50MVA Grid Station and associated 132kV EHV Cable Transmission System.

The contract also includes an order valued at US$ 27 million (Rs 106 crore) for the construction of a new 132/33kV 2x125MVA Grid Station and an associated 132kV Transmission Line System. This involves strengthening the Transmission System in Sohar Industrial Area to meet the growing demand in this industrial hub.

These projects will be executed by the Power Transmission & Distribution Sector of L&T Oman, and are to be completed in 15 months, under the consultancy of M/s Energoprojekt Entel LLC.

At present L&T is already executing 6 Nos 33/11 kV Substations at Al Ain, and this new contract will offer considerable synergies in construction. The order was secured against stiff international competition.

These L&T-built substations inside the Al Ain City will reinforce the region's power distribution network, and will help to meet the increased demands for power in the region.

LTO secured yet another order valued at US$ 48 million (Rs 189 crore) from a reputed business Group of Oman for construction of a workshop including associated buildings and other infrastructure facilities. This is to be completed in 18 months under the supervision of consultants of International repute.

L&T bags largest ever export order for Reactors

Larsen & Toubro Ltd (L&T) has announced that Larsen & Toubro's (L&T) Heavy Engineering Division has been awarded an order to manufacture and supply 22 Hydrocracker & Atmospheric Residue Desulphurisation (ARDS) Reactors for Kuwait National Petroleum Company's prestigious "Clean Fuel Project 2020".

The total value of the order is KWD 117.89 mn, equivalent to USD 421 mn (Rs 1695 cr). This is the largest ever order placed with any single manufacturer in the world for such critical reactors. The order has been won against stiff international competition from Japanese and Italian reactor manufacturers.

These reactors will be manufactured from advanced technology steels containing Chromium, Molybdenum and Vanadium, with thickness up to 300 mm and weights up to 1450 MT.

The reactors for the Clean Fuel Project 2020 have to conform to Chevron process design and specifications. L&T's Heavy Engineering Division is amongst a select group of Companies qualified for manufacture of such critical equipment.

L&T will manufacture these critical reactors in its state-of-the-art facilities at Hazira Works which is one of the biggest integrated manufacturing complexes situated on a water front with easy access to the sea. These reactors are required to be delivered to the refinery in Kuwait by the third quarter of financial year 2010-11.

L&T bags Rs 2000 crore orders for Office & Residential Building in Mumbai

Larsen & Toubro Ltd (L&T) has informed that Larsen & Toubro's (L&T) Construction Division has recently secured orders on Design and Build / Turnkey basis from leading Developers / Owners. Prominent amongst these include Rs 2000 cr order from M/s. Kingston Properties Pvt Ltd for construction of various office & residential buildings in Mumbai, to be developed in a span of 4 years.

Apart from this project the Buildings and Factories (B&F) Business Unit of L&T's Construction Division (ECC) has secured orders for many assignments including Rs 665 cr design & build contract from M/s. Cognizant Technology Ltd for their development centres in Chennai and Kolkatta.

L&T has also bagged a Rs 187 cr, turnkey order from M/s. ITC Hotels Ltd for their Grand Chola Hotel at Chennai. The scope involves construction of 1.52 million sq ft area to house 600 rooms.

The Company has secured a Rs 408 cr contract from M/s. ICICI Bank for construction of their office building at Hyderabad. The scope involves construction of 4.0 million sq ft building area, having basement plus 16 floors.

L&T's ECC division has also secured a Rs 300 cr order from M/s. CSJ Infrastructure Pvt Ltd for construction of 3.00 million sq ft building at Chandigarh for development of malls, office space & hotel.

Incidentally, in the last 9 months of this year, the business unit has so far bagged contracts worth nearly Rs 12000 crore including Mumbai International Airport Ltd (MIAL).

L&T secures orders from Cairn

Larsen & Toubro Ltd (L&T) has announced that the Engineering and Construction Division of the Company has been awarded two major contracts for the Construction of Civil works and the Consolidated Construction Works for the Northern Area Development Project located near Barmer in Rajasthan as Cairn India and its joint venture partners ONGC get ready for first oil production in 2009.

The scope of work covers the development of infrastructure facilities, the construction of 18 well pad structures, detailed engineering and construction of all civil and electromechanical works at the Mangala and Raageshwari Fields, Offsite infrastructure facilities, supply, installation and commissioning of 33 KVA high voltage power line system and the telecom network.

The order was secured by L&T against both domestic and international competition, and the project completion schedule is estimated to be 18 months.

The Mangala processing facility will cover some 400 acres in the Thar desert in Rajasthan. The construction team will have to move approximately six million cubic metres of rock and soil to prepare the site for development.

The main access road to the Mangala site has already been constructed.

Cairn Energy India Pvt Ltd has drilled more than 140 wells and has made more than 20 discoveries to date in Rajasthan. The Government of India has given its approval for the Field Development Plans for the Mangala, Aishwarya, Saraswati and Raageshwari Fields. The initial focus will be to bring Mangala onstream at the earliest opportunity which is currently scheduled for 2009 with the other fields following.

Cairn has a resource base of 3.6 billion barrels of oil equivalent in place. The implementation of the field developmental activities will lead to a step change in oil production levels for the Company when its targeted production level of 150,000 bopd is reached. This project will make a significant contribution to reducing India's current oil supply / demand imbalance.

Announcing the order, Mr. K Venkataramanan, President (Engineering & Construction Projects) & Member Board said, "L&T is proud to be associated with Cairn in being able to leverage our own strengths to boost India's needs of fuel resources. Our technology and dedicated team will be able to deliver the job, on time".

Larsen & Toubro - L&T bags order worth USD 110.37 mn for Muscat Golf Course

Larsen & Toubro Ltd (L&T) has announced that Larsen & Toubro (Oman) LLC has added one more feather to its cap by securing the prestigious project of Muscat Golf Course valued at Rs 433.5 Crores (R.O.42.500 Mn & US$ 110.37 Mn).

The order is for township development encompassing construction of the following:-

• 80 Nos. Luxury villas.
• 25 Nos. of 3 storied apartments.
• Related Building Services.
• HV / LV Installations.
• External Services.
• Roads & Culverts.
• Perimeter Fencing.

The promoters of the project are Muscat Golf Course Project LLC, one of the major developers in Sultanate of Oman. The project site is located near A1 Seeb International Airport.

The project completion period is 21 months & the consultants for the project are M/s. Cowi & Partners LLC and Cost Consultants will be M/s. Majan Engg. Consultants.

Being a high value & prestigious project L&T (Oman) LLC bagged the order amongst stiff competition.

Larsen & Toubro (Oman) LLC is a joint venture of Larsen & Toubro Ltd - India and The Zubair Corporation, which is one of the leading business group in the Sultanate of Oman. Larsen & Toubro (Oman) LLC has been operating in this country since 14 years and making its presence felt in the construction industry of Oman with every passing day.

Larsen and Tourbo gets orders from Oman

Larsen & Toubro Ltd (L&T) has announced that Larsen & Toubro (Oman) LLC, one of the leading Engineering & Construction majors in Oman, has received two EPC Contracts totaling US$ 79.71Mn (Rs 315.20 Cr), from Dhofar Power Company and Muscat Electricity Distribution Company for Electrical Substations & associated works in Oman.

The contract from DPC, valued USD 47.16Mn (Rs 186.50 Cr), is for strengthening various Transmission and Distribution Systems in Dhofar Region, in order to meet the growth in demand and new loads. It involves construction of New Substation, Modernization & expansion of existing network and construction of associated Overhead Lines and cabling works.

Muscat Electricity Distribution Company has placed orders totaling USD 32.55Mn (Rs 128.70 Cr) for Construction of 5 Nos of 33/11.5 kV Primary Substations and associated cabling works at Al Hail North, Azaiba North, Al Mawaleh South, Qurum Heights & Al Amret Area. On completion of these substations, the growth demand and new loads within the Muscat area will be met.

Dhofar Power Company & Muscat Electricity Distribution Company are the major power distribution companies existing in Oman.

These projects will be executed by Power Transmission & Distribution Sector of L&T Oman and are to be completed in a time span of 7-16 months, under the consultancy of M/s Mott MacDonald & Energoprojekt Entel LLC.

Larsen & Toubro (Oman) LLC is a joint venture of Larsen & Toubro FZE and The Zubair Corporation. Larsen & Toubro (Oman) LLC has been operating in this country since last 14 years and making its presence felt in the construction industry of Oman with every passing day.

L&T led JV Bags Rs 275 Crore Tunneling Order for Airport Line of DMRC

Larsen & Toubro Ltd (L&T) has informed that the Company in association with Shanghai Urban Construction (Group) Corporation has secured a Design & Build contract valued at Rs 275 crore from Delhi Metro Railway Corporation Ltd (DMRC). The contract is for the construction of 2.4 km of Underground Twin Tunnel starting from the IGI Airport Station to Dwarka Sector-21 in the Airport Metro Express Line of the Phase II of DMRC Project.

L&T is the lead partner in this 51:49 Joint Venture with Shanghai Urban Construction (Group) Corporation (SUCG), a Shanghai based Company.

To be completed in 120 weeks, the project involves Construction of 1.6km of Bored Twin Tunnel by using Tunnel Boring Machines (TBM) and 0.8km of Tunnel by Cut and Cover Method.

Out of the 6 underground packages already awarded by DMRC in the Central Secretariat-Qutub Minar Corridor of the Phase II projects, L&T and L&T JV have so far bagged 5 contracts at a total value of Rs 925 crore. With this new order, the cumulative value of orders secured touches Rs 1200 crore.

While announcing the award of this contract, Mr. K V Rangaswami, President (Construction) & Member of the Board, L&T said, "The JV is the first of its kind with a Chinese partner. With its past experience in DMRC's phase-1 tunneling projects and ongoing Phase 2 projects, L&T would add value in successful completion of the project along with SUCG's vast experience in tunneling projects in Shanghai".

Larsen & Toubro gets order from SAIL

Larsen & Toubro Ltd has announced that the Company in consortium with Paul Wurth has bagged a Rs 580.74 crore order from SAIL for Up gradation of Blast Furnace No 2 at Bokaro Steel Plant on a turnkey basis. ECC, the Company's Construction Division will execute this order and the Company's portion of this order its valued at Rs 355.02 crore.

Paul Wurth's scope covers basic engineering, supply of proprietary and special equipment as well as technical service while the Company's scope includes detail engineering, supply of indigenous mechanical, electrical equipment and instrumentation works as well as complete site services encompassing civil, structural and erection works.

The turnkey project is to be completed in a stringent schedule of 21 months including shutdown of 150 days.

The Company has core expertise in Rebuilding Blast Furnaces and is reputed for timely execution of similar projects in the past.

The Consortium's continued success in bagging order for rebuilding Blast Furnaces in India during the last 2 years has been increasing and this is a clear evidence of the high level of confidence Core sector customers have placed on L&T's Engineering and Construction capabilities and Paul Worth's Technology in Iron making.

L&T along with Paul Wurth are presently executing the 2.5 MTPA Blast Furnace on turnkey basis at TATA STEEL, Jamshedpur which is nearing completion. At the same time, the consortium is currently executing similar Blast Furnaces for RINL - Vizag Steel Plant and Bhushan Steel Ltd for their Meramandali plant at Angul, Orissa.

Recently L&T also bagged order form Tata Steel Ltd for putting up their Kalinganager Project.

L&T and Mitsubishi Heavy JV

Larsen & Toubro Ltd (L&T) has announced that L&T & Mitsubishi Heavy Industries Ltd ("MHI") have inked a Joint Venture Agreement for setting up a manufacturing facility to supply super-critical Steam Turbine & Generator facility in India. This follows a Technology Licensing and Technical Assistance Agreement for manufacture of super-critical Turbine & Generator, signed between L&T MHI, and Mitsubishi Electric Corporation (Mitsubishi Electric). The product, an integral component of energy efficient coal based power plants, is expected to meet the demand / supply gap for power plant equipment as envisaged in the country's plan for a mega ramp up in power generation capacity using super-critical technology.

The establishment of the Joint Venture (JV) represents further strengthening of already established relationship with MHI. The Company has already a JV with MHI for manufacture of Super Critical Boilers. L&T & Mitsubishi Group has been seeking a foothold in power generation core equipment sector to meet India's rapidly growing power demand while L&T has been looking for an technology partner possessing state of art technologies and willing to invest and work together to serve Indian power demand.

The proposed manufacturing JV, with a capital outlay of around Rs 880 crore, will have a product configuration catering to plant capacities ranging between 500 MW to 1000 MW. The manufacturing operation expected to commence sometime during the later part of FY 2008-09.

Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of around USD 25 billion. MHI's diverse lineup of products and services encompass shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.

Mitsubishi Electric Corporation (Mitsubishi Electric), headquartered in Tokyo, Japan, is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. The Company recorded consolidated group sales of 3,855 billion yen (US$ 32.7billion*) in the fiscal year ended March 31, 2007.

*At an exchange rate of 118 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2007

Supercritical turbine uses higher steam temperatures and pressures than sub-critical pressure power generation, and are more fuel-efficient and environment friendly. Super Critical Technology Coal based Plants reduce coal consumption relative to power output, carbon dioxide (CO2) emissions can be reduced roughly by 2.5%. However, supercritical type generation requires more sophisticated technology in equipment design to withstand the high temperature and pressure levels, and machining of high-strength component materials is a complex task, MHI has vast experience with these systems, having already delivered approximately 70 units in Japan and abroad. Supercritical Turbines are engineered to operate at steam pressures above the critical point of water: 22.12MPa and 374.15°C (705.5°F/647.3K).

L&T JV with GULF

Larsen & Toubro Ltd (L&T) has announced that the Company has entered into a Joint Venture with US based Gulf Interstate Engineering Company (GULF).

The new venture - "L&T - GULF PIPELINE ENGINEERING PVT LTD" will be located in the Company's modern engineering campus at Faridabad in the National Capital Region.

The Company provides comprehensive engineering, procurement, construction and commissioning services for pipeline projects in India and overseas with operating centres across the GCC countries and Malaysia. The Company has also built the world’s longest LPG pipeline in India.

Established in 1953, GULF is one of the world's leading international, project management and engineering, companies for pipelines and associated facilities and is ranked number two, among pipeline design companies worldwide, by Engineering News Record (ENR) 2007. GULF designs large diameter pipelines for extreme conditions and is currently active in the USA, Mexico, South America, Russia and the Middle East.

The Joint Venture engineering company will augment the Company's offering in pipelines, support GULF and provide end-to-end engineering & project management services to the hydrocarbon pipeline industry in India & overseas.

Larsen & Tourbo wins EPC order

Larsen & Toubro Ltd (L&T) has announced that as a crucial step forward in the modernization & expansion of Chhatraprati Shivaji International Airport (CSIA), Mumbai international Airport Pvt Ltd (MIAL), on November 01, 2007 awarded the EPC contract to L&T. According to the contract L&T has bean mandated to build the new integrated passenger terminal to modern and expand the existing facilities, which will also include the airside and landside works on a turnkey basis. The new terminal, catering to both domestic and international passengers, will double the passenger - handing capacity to 40 million passenger per annum.

While the a construction includes taxiways, aprons, aircraft maintenance facilities, utility services and other primary infrastructure support facilities, the landside primarily comprises of a new multi - storey car park and access roads leading up to the terminal.

L&T was chosen for the project after an elaborate evolution and competitive bidding process.

Speaking on the occasion, Mr. A M Naik, Chairman & MD, L&T said, "L&T is happy to be associated with GVK to create the largest airport hub in the business capital of India. This is a step towards creating world - class infrastructure and making India a stronger nation. As a company engaged in building infrastructure for India and meeting the needs of the core sector of economy. L&T’s focus has always been to undertake projects in critical infrastructure sectors like airports, ports, power and oil and gas."

This Engineering, Construction and Procurement (EPC) contract effectively gives shape to the master plan unveiled earlier by MIAL that envisages the design & construction of a new integrated passenger terminal for the up graduation of CSIA."

Larsen & Toubro Q2 Results

Larsen & Toubro Ltd (L&T) has announced the following Unaudited results for the quarter ended September 30, 2007:

The Company has posted a profit after tax of Rs 3480.20 million for the quarter ended September 30, 2007 as compared to Rs 2012.20 million for the quarter ended September 30, 2006. Total Income has increased from Rs 38565.20 million for the quarter ended September 30, 2006 to Rs 55232.70 million for the quarter ended September 30, 2007.

Larsen & Tourbo wins four contracts

Larsen & Toubro Ltd (L&T) has announced that the Company has bagged four contracts valued at Rs 452 crore for projects in Andhra Pradesh.

Rs 226 crore order from NTPC for Simhadri Coal Handling Plant :

Engineering, procurement & Construction (EPC) contract worth Rs 226 crore has been secured from National Thermal Power Corporation (NTPC) for design, engineering, supply and installation of 2 x l600 TPH Coal Handling Plant, for Simhadri Super Thermal Power Project, Stage-II (2x500 MW).

The Bulk Materials Handling Business Unit of L&T's Construction Division bagged this contract against international competitive bidding. The project is to be completed in 39 months.

This project is being executed as a part of NTPC's expansion plan for the Simhadri. STPP, enhancing the installed capacity from 1000 MW to 2000 MW, by adding 2 units of 500 MW each.

L&T's scope of work includes design, engineering, procurement, supply, erection, testing and commissioning two streams of 1600 TPH Coal Handling Plant, including civil, structural, electrical and instrumentation works. This involves construction of 7 km of belt conveyors, supplying 2 stacker reclaimers, 4 crushers, and 4 paddle feeders including associated electromechanical equipment.

Incidentally, L&T constructed the Coal Handling Plant of Simhadri Super Thermal Power Project Stage-1, which was successfully completed and put in to operation in 2002.

Three more contracts worth Rs.226 crore :

L&T's Construction Division, also secured three other contracts worth Rs 226 crore from Public Health & Municipal Engineering Department, Government of Andhra Pradesh. This includes:

A Rs 93 crore order for engineering, procurement and construction of an underground drainage scheme for Nizamabad Township. The project involves laying 470 km of sewer pipelines, sewage treatment plant and pumping system, to be completed in 24 months. This project would benefit Nizamabad residents besides disposal of sewage in an environmentally safe manner.

A Rs 88 crore order for engineering, procurement and construction of water supply improvement scheme to Nellore Town. This involves construction of water treatment plant, reservoirs, pumping stations and laying 88 km of pipelines, with a project completion schedule of 18 months.

Another Rs 45 crore order to provide safe drinking water to Rayadurg in Ananthapur District of Andhra Pradesh town involving construction of water treatment plant, reservoirs, pumping stations, supply and laying of 27 km pipelines on EPC basis with a project completion schedule of 15 months.

These water supply projects would benefit the public at large in getting safe drinking water.

Motilal Oswal - Larsen & Toubro

Motilal Oswal has a NEUTRAL rating on L&T

Guidance is good but current valuations factor most of the positives