Larsen & Toubro Ltd (L&T), a leading construction and engineering company, plans to invest ₹1,000 crore to upgrade and expand its shipbuilding complex at Katupalli, located about 40 km north of Chennai. This move is aimed at helping the facility reach its full intended production capacity, which has not been possible with the current infrastructure.
At 1:22 pm, L&T share price was down 1.80% and was trading at ₹199.69.=
The Katupalli facility had received Environmental and Coastal Regulation Zone clearance in 2009 to produce 50,000 tonnes per year through its Modular Fabrication Facility (MFF). It was also approved to handle the construction of 25 ships and repair of 60 ships annually.
However, at present, the shipyard is only handling 15 new ship constructions and 30 ship repairs per year—much lower than its approved capacity.
According to news reports, the proposed development will take place within the 892.11 acres already owned by L&T. The plan includes setting up:
These additions are expected to help the company achieve its approved shipbuilding and repair targets.
L&T’s investment aligns with its strong financial performance. In Q4FY25, it secured ₹89,613 crore in fresh orders, up 24% YoY, with international orders contributing 70%. For the full year, new orders totaled ₹3,56,631 crore, an 18% rise YoY.
As of March 31, 2025, L&T’s consolidated order book stands at a record ₹5,79,137 crore, up 22% YoY, with 46% of it coming from overseas projects. The company sees strong prospects ahead, identifying ₹7 lakh crore worth of opportunities in India and ₹12 lakh crore abroad for the new fiscal.
Read more: Mazagon Dock vs Garden Reach Shipbuilders: Tracking Growth, Orders and Defence Edge.
With a ₹1,000 crore expansion, a strong ₹5.79 lakh crore order book, and a sharp global focus, L&T continues to strengthen its shipbuilding and infrastructure business. For investors managing long-term holdings through their demat accounts, this development may serve as a key signal of future value creation in one of India’s most reliable industrial giants.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jul 17, 2025, 1:43 PM IST
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