Larsen & Toubro looks to double overseas orders
06 Jul 2011
With a new management structure in place Indian engineering giant, Larsen & Toubro Ltd (L&T), expects to double overseas orders in three years. The company intends to focus its international push primarily in the Gulf region as rising oil prices and economic development spur investment in refineries and infrastructure.
Countries in the Gulf region and the Middle East overall plan to spend almost $1 trillion on construction over five years, Deloitte Corporate Finance Ltd. said in November.
Though L&T has the resources and the expertise to secure orders overseas, they face formidable competitors.
According to senior company officials, overseas contracts should rise to 25 per cent of total orders in the period as the company divides its operations into nine units to improve management focus.
Foreign deals now account for less than 10 per cent of orders, officials said.
Apart from expertise and resources India's lower wages will also help L&T challenge foreign competitors, in particular South Korean challengers.