Engineering giant Larsen & Toubro (IT) is looking to divest its exposure to road and power concessions and incubate digital and e-commerce businesses as part of its new five-year plan ending 2025-26 (FY26). The base year for the plan is 2020-21 (FY21).
The blueprint, called Lakshya 2026, is intended to help the company exit sub-scale businesses, concentrate on high-technology (tech) manufacturing, construction and green energy projects, and increase its share from information technology (IT) and digital services. The lending operations of the financial services business, meanwhile, will be reorganised, with a focus on retail lending.
“OUR FOCUS WILL BE TO ENSURE SUSTAINABLE GROWTH THROUGH PROFITABLE EXPANSION AND EXECUTION IN THE CURRENT BUSINESS PORTFOLIO AND INCUBATING NEWER BUSINESSES DURING THIS PLAN PERIOD…” SN SUBRAHMANYAN, Chief Executive Officer & Managing Director, L&T
Divestment will include the sale of the Nabha Power project in Punjab, an exit from L&T Infrastructure Development Projects, which includes road concessions and where the company has a 51 per cent stake, and de-risking itself from the Hyderabad Metro venture.
The company is also entering into the manufacture of electrolysers, which is the equipment used to split water into oxygen and hydrogen.
In January, L&T had announced a partnership with Norway’s HydrogenPro to access its electrolyser tech. At the same time, the company is eyeing advanced chemistry cell manufacturing and battery modules, which are storage solutions for electric energy, as part of its new five-year plan.