L&T earmarks Rs 1,200 cr capex for '06-07
Larsen and Toubro Ltd has earmarked a capital expenditure of Rs 1,200 crore for the fiscal as the engineering and construction major feels the infrastructure investment is poised to continue and augurs well for domestic opportunities.
By PTI |
MUMBAI: Larsen and Toubro Ltd has earmarked a capital expenditure of Rs 1,200 crore for the fiscal as the engineering and construction major feels the infrastructure investment is poised to continue and augurs well for domestic opportunities.
"We will invest Rs 1,200 crore in the current financial year for capacity augmentation, expanding the base and procuring plant and machinery in order to meet growing demand in orders," L&T Chairman and Managing Director A M Naik told reporters on the sidelines of the company's 61st Annual General Meeting here.
Maintaining that the Middle East market provides ample opportunity, he said the company was also in the process of setting up a modular fabrication facility in Oman.
"The return from the Middle East market will be higher than that of the domestic market...we expect our Middle East revenue will grow faster than the rate in which the company's total revenue growth," he said.
The company expects to grow at 20-25 per cent in the current fiscal on the back of L&T's order book backlog of Rs 25,000 crore from the domestic market.
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About its Chinese venture, Naik said L&T would set up a wholly-owned subsidiary to manufacture high-end Air Circuit Breakers."We are also actively engaged in setting up of new manufacturing facilities in China for selected machinery and industrial products," Naik said, adding it would be announced in the next two-three months.
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