L&T Explores Entry into Electronics Manufacturing Sector

The engineering behemoth Larsen & Toubro (L&T) is considering a foray into the electronics manufacturing services (EMS) sector and has engaged in initial discussions with the Tamil Nadu government regarding approximately 200 acres of land near Chennai, as reported by sources familiar with the situation.

The $17 billion conglomerate, which already possesses affiliated entities in the electronics field, aims to establish itself as an integrated player with comprehensive manufacturing capabilities, drawing inspiration from the strategies employed by the Tata Group.

For example, Tata Electronics has ventured into contract manufacturing and is currently a supplier for Apple. At this point, it is uncertain whether L&T plans to adopt a similar approach or explore an alternative strategy.

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Given its vast experience in large-scale engineering, procurement, and construction (EPC) projects, coupled with its robust presence in strategic electronics through its defence and aerospace divisions, L&T is anticipated to concentrate primarily on components for these industries, according to sources.

One of the individuals familiar with the matter said that L&T might consider utilizing the proposed land not just for its electronics manufacturing services operations, but also to advance its semiconductor ambitions.

“At the time of the discussions, semiconductor manufacturing was not part of the plan,” another person familiar with the matter said.