Larsen & Toubro has secured an order for the partial construction of two Fleet Support Ships (FSS) for the Indian Navy.
What Happened: On July 9, 2024, the Precision Engineering Systems business vertical of Larsen & Toubro announced that it had secured an order from Hindustan Shipyard Limited (HSL) for the part construction of two Fleet Support Ships. The Indian Navy will be the end user of these vessels, as per the company’s press release.
In August 2023, the Indian Navy had signed a contract with HSL for the design and construction of five FSS. These naval vessels, with a length of over 220 meters and approximately 45,000 Tons displacement, provide logistics and material support to the naval task force at sea. They will be amongst the largest vessels in the Indian Naval Fleet.
See Also: L&T’s Semiconductor Unit To Acquire Bengaluru-Based Company For ₹183 Cr
These first-of-its-kind vessels will be built in domestic shipyards, in line with the Government of India’s vision of “Aatmanirbhar Bharat”, the company said in the press release. The construction will take place at L&T’s greenfield shipyard at Kattupalli, near Chennai on the east coast of India. The order is classified as “significant” by the company, which suggests it can be worth between ₹1,000 crore to ₹2,500 crore.
Earlier on Monday, L&T secured major orders for the construction of 2 gigawatt scale Solar PV (photovoltaic) plants in the Middle East. With these fresh orders, L&T's renewable portfolio is set to touch 22 GWp (Gigawatt Peak) cumulative capacity, encompassing commissioned and ongoing solar and wind generation projects.
On July 1, 2024, L&T’s Energy Hydrocarbon division secured another offshore order from the Oil and Natural Gas Corporation (ONGC) for the eighth phase of the Pipeline Replacement Project. This order involved engineering, procurement, construction, installation, and commissioning of 129-kilometre subsea pipelines and associated modification works across India's west coast offshore fields of the ONGC.
Price Action: L&T’s share price was up 1.18% to trade at ₹3,675 in the early hours of trading on Tuesday.
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