Larsen & Toubro has now entered into the domain of industrial electronics manufacturing through the introduction of a new vertical known as L&T Electronic Products & Systems (LTEPS) with the objective of providing services to business-to-business customers.
A new vertical backed by manufacturing in Coimbatore:
The new LTEPS vertical will be headquartered at Bengaluru while its manufacturing base will be located at Coimbatore. Two manufacturing lines have already been set up by the company, which would provide electronics manufacturing services to different industrial customers.
This decision highlights the entry of Larsen & Toubro in a vertical in line with the strategy adopted by the company to establish itself in technologically oriented segments. It was reported that this is an important part of the company’s Lakshya 2031 plan.
Focusing on fast-growing industrial electronics sectors:
LTEPS is set to leverage L&T’s expertise in strategic electronics and extend its reach into industrial electronics. The primary emphasis will be on sectors such as power electronics, mobility solutions, industrial robotics and automation, communication infrastructure, and electronics systems design and manufacturing.
L&T aims to employ a mixed strategy involving internal R&D efforts and collaboration in technology. Moreover, it intends to establish operations spanning 40 acres of a dedicated manufacturing facility in its Coimbatore site to cover a larger electronics value chain.
It appears that L&T will be a part of India’s developing electronics manufacturing sector, especially in sectors related to automation, mobility, and industrial digitalisation.
Response of the market and outlook:
On the news, L&T’s share price was trading 1.9 per cent lower from its opening price intraday, though its stock price has risen 13 per cent in the last one month.
For L&T, the move towards industrial electronics is in line with the general trend among engineering companies of moving into advanced manufacturing and electronics sectors.
