L&T Gears Up to Expand Aerospace Division Amid India’s Growing Private Space Industry
India’s largest private defence manufacturer, Larsen & Toubro Ltd (L&T), is planning to boost its aerospace division to expand its presence in India’s private space sector. This strategy aligns with recent government efforts to open the space industry, traditionally dominated by the Indian Space Research Organisation (ISRO), to private companies. The successful Chandrayaan-3 moon landing and Aditya-L1 solar mission have ignited fresh opportunities for companies with advanced engineering expertise.
Leveraging Decades of Space Industry Expertise
L&T, which has collaborated with ISRO for over 50 years, aims to enhance its capabilities in manufacturing launch vehicles. AT Ramchandani, Senior Vice President and Head of L&T’s Precision Engineering & Systems, stated, “We clearly see an economy growing out there… we are going to leverage our 50 years of relationship with ISRO for manufacturing launch vehicles.” While specific expansion details remain undisclosed, the company’s established experience in building critical components for ISRO’s missions places it in a strong position as demand for commercial satellite launches grows.
The government’s push for private involvement is backed by a projection that India’s commercial space industry could reach $44 billion within the next decade. This estimate is encouraging firms like L&T to increase investment, especially as private companies are now permitted to design, build, and operate launch services.
Key Projects and Cost-Effective Launch Solutions
In collaboration with Hindustan Aeronautics Limited (HAL), L&T is currently manufacturing the Polar Satellite Launch Vehicle (PSLV), a primary launch vehicle for ISRO’s satellite missions. The first privately built PSLV is expected to launch by early 2025, with each rocket priced at about 2 billion rupees (approximately $23.8 million).
India’s plans to privatise its Small Satellite Launch Vehicle (SSLV) program also appeal to L&T. This program aims to provide an affordable launch solution for smaller payloads of up to 500 kg, with each SSLV launch costing roughly $15,000 per kg. Ramchandani notes that SSLV is designed for up to 12 annual launches, with potential for further scale-up. “The whole idea of SSLV is that you should be able to do about 12 launches in a year. Beyond this, potential exists for scaling up to a launch in every 15 days,” he explained.
Scaling Up with a Focus on Cost Efficiency
L&T aims to scale its aerospace division with a frugal investment approach. Ramchandani highlighted the company’s existing land and aerospace manufacturing facilities, which provide a strong base for expansion. “We have adequate land and aerospace manufacturing facilities already in place,” he said. Investment in new capabilities will hinge on the technology’s development, customer demand, and production efficiency.
L&T’s Precision Engineering and Systems (PES) unit saw a 41% revenue increase, reaching 46.10 billion rupees ($548.3 million) for FY2024. The conglomerate’s total revenue reached 2.21 trillion rupees ($26.29 billion) during this period, with shares closing 6% higher after strong second-quarter results.
Summary
L&T’s strategy to ramp up its aerospace division positions it well in India’s evolving space sector. With deep-rooted experience and government backing for private-sector participation, the company is set to play a major role in India’s ambitious space ambitions.