Mumbai, Jan 18 (UNI) Larsen&Turbo (L&T), the USD five billion engineering and technology company, today said that building electricals and system capability were the driving force behind its electrical business growth and announced that it has set itself a target of 60 per cent growth and investment of Rs 200 crore in the sector.
Addressing a press conference here, L&T President-Operations R N Mukhija said the Company is well poised to tap the opportunities created in the growing residential and commercial building segments.
The Company showcased its strengths and preparedness for sustaining robust growth rate of its electrical business at the eighth edition of 'ELECRAMA' - the largest trade fair in the electrical and industrial electronics sector - at Bombay Exhibition Centre here.
Mr Mukhija said that L&T, for the first time, has displayed its new range of switchboards from 3.3 kv to 33 kv, to mark its entry into the medium voltage category. Similarly, a range of products in the building and automation systems are also on display.
He said the Company's switchgear business has been growing at the rate of about 30 per cent. The domestic medium voltage switchgear market is currently growing at 15 per cent per annum. This growth rate is expected to increase in the next five years on account of initiatives like the Electricity Bill of 2003, and power sector reforms.
The national focus on fast tracked ultra mega power generation programme will provide a strong impetus to spur the demand for medium and low voltage switchgear leading to an increase in the growth rate of these products, Mr Mukhija added.
He said that the operating margin of the Company has been improving over the years with the present figure around 14 to 15 per cent. ''The future looks good as there are lot of investments by our clients as well as ourselves,'' he informed.
Mr Mukhija said L&T is in the process of acquiring Malaysian company, Tampco, with an investment of Rs 450 crore, which will offer the Company an access to the fast growing medium voltage switchgear market in Malaysia and Indonesia.
He said the global sales of medium voltage business in 2008-09 will be 140 million dollars after L&T takes complete management control in April 2008. In 2006-07, the global sales of Tampco were 102 million dollars.
L&T's investments in low voltage switchgear market in China and Saudi Arabia is to the tune of Rs 120 crore while expansion of existing system capability entails investment of Rs 200 crore in Coimbatore, Ahmednagar units and improving productivity in Mumbai plant.
Earlier in the day, Energy Minister Dilip Valse Patil inaugurated the eighth 'ELECRAMA', which will remain open till January 22. The trade fair has been organised by the Indian Electrical and Electronics Manufacturers Association (IEEMA).
Mr Valse Patil said, ''The participation and visitor's response from across the world for 'ELECRAMA' has proved that Indian economy is booming and global players are eyeing India as their major market.'' ''Looking at the power scenario in our country today, we are putting all our efforts to overcome the demand and supply gap through government's efforts to produce more energy at the same time inviting public-private participation in power generation,'' he added.
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