L&T Infrastructure Development Projects (L&TIDPL) currently manages all of the company’s road & bridge, port and real estate projects.
Engineering & construction behemoth Larsen & Toubro will rework the existing structure of its infrastructure development division to have three verticals - infrastructure, power development, and realty, chairman & managing director AM Naik said on Thursday.
He, however, did not give a time line for the same.
“With the increase in the number and maturity of concessions in its fold, the company is in the process of restructuring them into independent verticals like infrastructure, realty and power development,” Naik said in his statement at the company’s annual general meeting.
L&T Infrastructure Development Projects (L&TIDPL) currently manages all of the company’s road & bridge, port and real estate projects.
As per the annual report, of L&TIDPL’s major roads & bridges, seven are operational and four under construction & development. Also listed in the report are two ports, one operational and the other under implementation.
Post-restructuring, observers believe L&T’s Hyderabad Metro Rail Project will also be under the infrastructure vertical in addition to roads and ports.
L&T in August bagged the `12,132 crore project.
L&T’s realty projects fall under L&T Urban Infrastructure (L&TUIL), which is a subsidiary of L&TIDPL. Among the major realty special purpose vehicles (SPVs), five have been commissioned and five yet to be completed.
L&TUIL has both commercial & residential projects and a special economic zone. It has so far developed 3 million sq. ft. of residential space.
In addition to being an engineering, procurement & construction (EPC) player in the power segment, L&T recently got into power generation. Last fiscal, it bagged two power projects, a 1,320 mw thermal plant at Rajpura in Punjab and the 149 mw Sach-Khas hydel project in Himachal Pradesh.
According to the report, L&T is also preparing the detailed project report for a 60 mw hydro plant in Arunachal Pradesh. All these projects are developed by L&T Power Development, while L&T Uttaranchal Hydropower, another subsidiary of L&T’s, is executing a 99 mw project in the state.
Abhinav Bhandari, research analyst with Elara Capital, said the restructuring is part of the third five-year plan underway at the company. The company’s first five-year plan to restructure its businesses started in 2000. He added, “Though there is not going to be any immediate change, the company might look to unlock value in its different verticals after maybe three years.”
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