Chairman Eyes Partnership Prospects in Engineering, Construction, Fabrication & Manufacture to Achieve 15% Growth

Abu Dhabi, January 9: Mr A.M. Naik, Chairman and Managing Director of Larsen & Toubro Limited (L&T), the USD 2.8 billion international engineering and technology company headquartered in India, said today the Company seeks to build further on its historical association with the Gulf through a slew of projects and business initiatives that should achieve a business growth of 15 per cent in 2005. L&T is presently executing orders valued at about USD 250 million.

Announcing this at a press conference held in Abu Dhabi today, Mr. Naik said "L&T is looking forward to building stable, long-term relationships with the industry in the region. India's dependability as a trading partner of the UAE has a very long history that has withstood the uncertainties of global political developments. The geographic proximity, complementary capabilities and cultural affinity that we share with the UAE will serve to enhance and accelerate the involvement of L&T in the region".

Mr. Naik along with a senior management team from L&T is visiting the UAE from 7th to 9th January, as part of the 60th anniversary celebrations of L&T's Construction Division. Mr. Naik is expected to meet several high-ranking government officials, customers and business leaders. 

L&T has a successful track record in building plant and equipment used in the oil & gas sector, refineries, infrastructure and power projects, and has technology relationships with world leaders that will enable it to execute world class projects in the UAE.

Elaborating on L&T's commitment to the UAE, Mr. Naik said "L&T is scouting for alliances for proposed projects in the UAE that include an engineering centre, and a fabrication facility for large-sized structures and equipment for the oil and gas, fertilizer, refinery, power, petrochemical and other industries. These facilities will be located in the UAE and would accelerate the process of project design and engineering, and would result in reduced transportation costs and time. They would also serve to improve adherence to delivery schedules while enabling the maximum use of local content and resources".

L&T is also exploring the feasibility of setting up a full-fledged assembly/project-execution facility in the region for low-tension switchgear and custom-engineered power and motor control centres, either through a systems integration partner or through its own venture being set up at UAE. "L&T is committed to making the necessary investments to become a full service provider of electrical and control & automation products in the region" Mr. Naik said.

Lauding the UAE as an outstanding example of what can be achieved through visionary leadership, with the country having grown remarkably in the last three decades, Mr. Naik went on to say "The Gulf region is growing rapidly, and given the nature of L&T's main businesses, ie. technology, engineering & construction,  and infrastructure development, we are well placed to contribute significantly to this growth and development".

As a business conglomerate with interests and capabilities in engineering, technology, construction, electrical switchgear, electronics & information technology, L&T has the unique advantage of offering its customers a single window for meeting their requirements and a single point of responsibility. L&T has a successful track record in building plant and equipment used in the oil & gas sector, refineries, infrastructure and power projects, and has technology relationships with world leaders that have enabled it to execute world class projects in the UAE and in the region. L&T's Construction Division has a strong presence in the construction sector and has completed major projects involving transmission lines, sub stations and buildings. Notably, L&T was involved in the project execution of Abu Dhabi International Airport Terminal in the early 80's.

L&T is currently engaged in the construction of a process platform for Bunduq Company in Abu Dhabi, a gas compression facility for GASCO (the Abu Dhabi Gas Industries Limited), an environment-protection facility for Takreer at Ruwais and gas insulated sub-station, package units and transmission lines for ADWEA.  The company is also involved in the construction of four bridges in Palm Jumeraih and high rise buildings in Dubai Marina.  Earlier, L&T had carried out mechanical erection and installation of a crude distillation unit at Zirku Island, built a gas insulated sub station at Al Ain and set up power transmission lines for ADWEA and the Fujairah-Dhaid transmission line for UWEC.

Elsewhere in the Middle East, L&T has joint ventures with local companies in Oman, Saudi and Qatar. L&T is executing a critical section of an oil platform project for Qatar Petroleum.  L&T's Construction Division has built two stadiums in Qatar. In Oman, L&T has supplied equipment to fertilizer projects and L&T (Oman) has built pharmaceutical units, steel billet plant, cement factories, commercial and shopping complexes . In Muscat, L&T (Oman) recently completed a 'road-bridge interchanger' that will contribute greatly to streamlining of traffic in the capital city.

The new 200 MW open cycle power plant with six gas turbines was built by L&T at Salalah in Oman. The package included building of 132 kV substations and the erection of transmission lines. The company has also built power plants and distribution networks in other parts of the world. In Saudi Arabia, L&T (Saudi) has built hospitals, substations and erected transmission line towers for the Fahad International Airport. It is currently executing a 200-bed hospital, cement plant and school building project. It is also executing gas insulated substation and related works for supplying power to Saudi Aramco's Qatif/Abu sa'fa  Field Development Project in Juymah. Recently, L&T completed sulphur recovery units for KNPC refineries in Kuwait.  On-going projects include a technologically challenging 430-metre, six-lane cable stayed bridge in Amman, Jordan and a major hotel in Bahrain. 

Mr Naik was of the view that the Company's wholly owned subsidiary, Larsen & Toubro Infotech (L&T Infotech) can make a significant contribution by providing high-quality services in the IT sector to customers in the UAE.  L&T Infotech provides end-to-end software solutions and services to global customers in the domains of manufacturing, utilities, telecom and financial services. With partners from the UAE, L&T is also exploring opportunities in India and in other countries for the joint development of large projects.  Such ventures, while yielding profits for both partners, would also help to share and build the knowledge and experience of the partners.

-Ends-

For further information:
Henry Karkada
LARSEN & TOUBRO LIMITED                                               
Tel: 22685786 (Direct), 22685656 Ext: 772
Fax: 91-22-22685607/ 8
E-mail: jkp-ccd@lth.ltindia.com

Or  

Brian Carvalho
ASDA'A Public Relations
Tel: 009712 - 6816811
Fax: 009712 - 6816802
E-mail: b.carvalho@asdaa.com

© Press Release 2005