L& T eyes $30 billlion from modularization in 5 years

Mumbai: EPC major Larsen & Toubro (L&T) sees the company cornering a 20% or upto $30 billion share of the $150 billion dollar modularization market in the next five years, company executives said on Friday.

“Modularisation is a game changer in the delivery of large and complex energy projects," said Subramanian Sarma, Deputy Managing Director & President, Larsen & Toubro.

He added that by shifting substantial construction, integration, testing and pre-commissioning activities from the project site to a controlled fabrication environment, it enables parallel execution, strengthens safety and quality oversight, improves predictability and reduces complexity at site.


This, Sarma added will allow L&T to tide over the labour shortage issues as well.

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S N Subrahmanyan, Chairman & Managing Director, Larsen & Toubro, said the company is facing shortage of 60,000 labourers as of today.

Modularization refers to a project delivery method where entire process units are prefabricated in controlled off-site factories and then transported for rapid on-site assembly.

On Friday L&T announced that it has completed fabrication and delivery of 110 modules weighing approximately 64,000 metric tonnes,for Project CERES, Australia’s largest urea manufacturing plant with a capacity of 2.3 MTPA. The project is being developed by Perdaman Chemicals & Fertilisers in Karratha, Western Australia, under the Saipem-Clough joint venture.

L&T’s pre-assembled 47 units and 63 Pre-assembled racks, fabricated at the Company’s modular fabrication facility at Kattupalli, near Chennai, India.

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The modules were shipped from India to Karratha across 23 marine shipments in fully tested, pre-commissioned and ready-to-install condition, the company said.

"We continue to explore new modularization ideas and data centers, prefabricated bridges, precast columns and other industrial constructed solutions," said Subrahmanyan, adding that the company has also started a cell for doing small modules.

"We believe we can do it even further and take on even more complex projects. The aim has always been simple, faster execution, higher quality, superior safety and on time delivery through construction that is standardized, industrialized and predictable," he added.

The company added that with modularization coming in there is a very high probability of addressing the risks of cost and time over runs.