Larsen & Toubro Limited (L&T), Ind- ia’s leading techn- ology, engineering and construction conglom- erate, has opened a new Systems Integration Facility at the Jebel Ali Free Zone (Jafza) in Dubai.

The $9.8 billion L&T Group has achieved GCC revenues that are close to $1 billion in financial year 2009-10 and expected to grow at more than 40 per cent this financial year.

The Jebel Ali facility, occupying a floor space of 11,249 sq m, is a significant step for tapping the automation-driven business opportunities in oil and gas, power, water and infrastructure space in the GCC region that will contribute to growing L&T’s electrical and automation business outside of India.

L&T has applied for ‘Green Building - Gold Certification’ for this facility to the US Green Building Council and, when approved,  will be the first company to receive the ‘Gold Certification’ in the electrical, automation and telecom sectors in Jafza.

Middle East, a focus area
R N Mukhija, L&T’s president for operations and member of the board, declared open the facility.

In his remarks, Mukhija said: “The Middle East continues to be a focus area for us and we have enhanced our footprint in the GCC region with this new venture. Systems integration and in-house electrical equipment manufacturing capabilities contribute to offering total integrated solutions in automation, electrical and telecom space into the region. As a professionally managed Indian multinational we are committed to total customer satisfaction.”

Present were the deputy CEO and chief commercial officer of Jafza and key customers including the Adnoc group of companies, Dewa, Dolphin Energy Limited, Adwea, Fewa, Sewa, Oman Gas Co, Emarat Petroleum, Enoc, PHEW and OOT Odfjell as well as the Indian ambassador.

Strong growth
The electrical and automation business has grown at 20 per cent compound annual growth rate (CAGR) in terms of top line and 17 per cent CAGR in terms of bottom line in the last five years in India.  L&T proposes to grow this business more than twice its present size in the next five years. Besides systems integration, L&T addresses the building and infrastructure segments in the GCC region with a comprehensive range of products and solutions in the electrical space. These are type-tested by international test authorities and approved by ministries and utilities.
L&T took over Malaysian switchgear company Tamco in 2007.

The head of L&T’s Electrical & Automation Operating Company (EAOC), SC Bhargava, said, “Our expansion plans and creation of centres of excellence are in line with the ongoing and anticipated growth in automation and systems integration business. This facility is yet another step in the progressive globalisation of L&T’s electrical business, and ensures that it has a wide footprint to service some of the fastest growing markets in the Gulf countries, parts of Africa and in the CIS.”

As well as strengthening its position in the existing market segments like oil and gas, water, cement and metal, L&T’s systems integration business plans to leverage the emerging opportunities in the infrastructure sector such as metro rail, highway traffic management and other projects.