L&T Eyes $50-$60 Billion Projects by FY25, Plans Major O2C Investments

Larsen & Toubro (L&T) anticipates $50-$60 billion worth of projects set for execution starting FY25 and plans to make substantial investments in converting oil directly to chemicals (O2C) and petrochemicals. 

The engineering giant is preparing to capitalize on this opportunity independently but is also keen on forming joint ventures with global engineering, procurement, and construction (EPC) majors for larger projects, according to Subramanian Sarma, the company's president of energy and whole-time director, who spoke with Moneycontrol.

Sarma noted that while the pipeline for conventional projects remains robust, green energy projects are gaining momentum. He sees opportunities in blue ammonia and carbon capture projects in the Middle East, with green hydrogen development being more prominent in Europe.

L&T, which has long focused on its asset-light engineering business, is also moving into green hydrogen projects. The company has a multi-faceted strategy for green hydrogen, including electrolyser manufacturing, EPC projects, and manufacturing for both domestic and export markets.

Last week, L&T's renewable arm secured 'mega' orders with a leading developer in the Middle East to build two Gigawatt-scale solar PV plants. According to L&T's project classification, a mega order is valued between ₹10,000 crore and ₹15,000 crore.

L&T also secured an order for a solar-cum-storage plant in India. With these new mega orders from the Middle East, L&T's renewables portfolio is set to reach a cumulative capacity of 22 GWp (Gigawatt Peak), encompassing both solar and wind generation projects that are either commissioned or in development.

SN Subrahmanyan, Chairman & Managing Director of L&T, commented on the mega orders, stating, "The Middle East is far ahead in creating sustainable energy infrastructure and in providing a smart lifestyle. These orders are welcome additions to our green portfolio, as we build the company of the future with next-generation technologies."

This news is developing, and updates will be provided as more information becomes available.