Infrastructure major Larsen & Toubro (L&T) expects its construction and mining equipment business to grow at least 20 percent in the next financial year as the company plans to double sales over the next five years.
In an interview with PTI, Arvind K Garg, Senior Vice President and business head of L&T Construction and Mining Machinery, said, “If you ask me what is the plan for the next financial year, definitely our construction machinery and mining machinery business will grow. at least 20 percent.
Also, “since we have to meet the objectives of increasing or doubling our sales in the next five years, as well as profitability, we will have to invest in our service capabilities.
This financial year, we have also introduced a mini excavator, the Komatsu PC35, which will help fuel growth,” said Garg.
Larsen & Toubro and Komatsu Ltd entered into a joint venture in 1998 to manufacture construction machinery and hydraulic components in India.
From 1998 to 2013, the joint venture was producing hydraulic minerals at its site in Karnataka. After that, it was jointly decided that Komatsu would focus on manufacturing and L&T would focus on distribution and after sales.
Later, L&T bought Komatsu’s stake in the Bengaluru plant, and Komatsu moved production facilities to Chennai.
Currently, Komatsu manufactures hydraulic excavators and several models of dump trucks at its Chennai facility. However, L&T is fully responsible for customer service, pre-sales, after-sales, service, spare parts, and warranty.
“It’s been a great partnership between us… They manufacture, and we sell and handle the aftermarket,” Garg said.
He said the company will grow by at least 15 percent this fiscal year.
“We realized that this is going to be a very special year… With the elections… And there may be some restrictions on government spending for various reasons. We are looking at 15 percent growth and we will achieve that.
“We are a company, now we are starting a plan, called the Lakshya Vision Plan. It will be a five-year plan that will consider where we will be in the next five years,” said Garg.
Almost all of Komatsu’s machines today are biofuel-compatible, meaning all of its machines can run on B20 biodiesel — a mixture of 20 percent ethanol and 80 percent gasoline — he said, adding that “now we’re trying to upgrade to B30 “.
The 30 percent ethanol will lower fuel costs, the company said.
L&T Construction & Mining Machinery — a standing business of Larsen & Toubro — is nearly 80 years old. Started the introduction of hydraulic grabs and vibrating compactors in India.
