L&T Forecasts 20% Growth in Construction & Mining Machinery by FY26

Larsen and Toubro (L&T), a major infrastructure company, anticipates a 20% growth in its construction and mining machinery business in the upcoming fiscal year. The company aims to double its sales over the next five years.

Growth Target for Next Fiscal Year

In an interview with PTI, Arvind K Garg, Senior Vice President and Head of L&T's Construction and Mining Machinery business, stated, “If you ask me what the plan for the coming fiscal year is, definitely our construction and mining machinery business will grow at least 20 per cent.”

Garg also mentioned, “as we have to meet the target of growing or doubling our sales in the next five years, along with profitability, we will have to invest in our service capabilities. This financial year, we also launched a mini excavator, the Komatsu PC35, which will help fuel growth.”

The L&T-Komatsu Joint Venture: A Milestone in Indian Manufacturing

Larsen & Toubro (L&T) and Komatsu Ltd formed a joint venture in 1998 to produce construction equipment and hydraulic components in India.

From 1998 to 2013, the joint venture operated a manufacturing facility in Karnataka, producing hydraulic excavators. In 2013, both companies decided that Komatsu would focus on manufacturing, while L&T would handle distribution and after-sales services.

L&T later acquired Komatsu's stake in the Bengaluru plant, while Komatsu moved its manufacturing operations to Chennai.

Currently, Komatsu produces hydraulic excavators and some dump truck models at its Chennai facility. L&T, however, manages all customer interactions, including pre-sales, after-sales service, spare parts, and warranties.

Garg further stated, “It has turned out to be an excellent partnership between us... they manufacture, and we sell and handle the after-market.”

He stated that the company is expected to grow by at least 15 percent in the current financial year.

15% Growth Expected in Current Financial Year

"We recognised that this would be a very special year... with elections... and there could be some restrictions on the government's spending for various reasons. We targeted 15 per cent growth and will achieve that.

"We as a company, are now embarking on an initiative, called the Lakshya Vision Plan. It will be a five-year strategic plan that will envisage where we will be in the next five years.”

He mentioned that nearly all Komatsu machines are now biofuel-compliant, capable of running on B20 biodiesel, which is a 20% mix of ethanol and 80% fuel.

L&T Construction & Mining Machinery, a division of Larsen & Toubro, stated that using 30% ethanol in fuel will further reduce fuel costs. The business, nearly 80 years old, pioneered the introduction of hydraulic excavators and vibratory compactors in India.

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