L&T Strengthens Electronics and High-Tech Manufacturing Drive

Larsen & Toubro is sharply increasing its focus on electronics manufacturing, defence, space, and semiconductors, aiming to build more IP-led, high-value products in India rather than simply assembling parts.

The USD 30 billion engineering giant wants to deepen its advanced manufacturing capabilities to serve not just domestic demand, but global markets too.

Arun Ramchandani, who leads L&T’s Precision Engineering & Systems division and also chairs the Indian Space Association, said the group is committed to creating significant new revenue streams. He believes that industrial electronics, semiconductors, aerospace, and defence all offer opportunities to own intellectual property, not just manufacture. “We need to go beyond pure play manufacturing… these segments enable us to build our own IP … and add value beyond the work we are doing in advanced manufacturing.”

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L&T is targeting its defense business to hit US 1 billion in revenue by FY 26, a milestone that would cement its role as a major private-sector defense manufacturer. This push comes as the company retools its precision engineering arm to serve not only defense needs but also ambitious aerospace programs.

On the semiconductor front, L&T’s strategy is clearly design-first. Instead of becoming a foundry, it plans to use L&T Semiconductor Technologies (LTSCT) to design chips with its own IP. LTSCT has also inked a deal with IISc to build a national 2D Innovation Hub, which will explore futuristic materials for advanced and quantum semiconductors.

Overall, L&T is betting big on vertical integration — designing and building next-gen products in electronics, defence, space, and semiconductors — to emerge as a powerhouse in India’s growing high-tech manufacturing ecosystem.