L&T Sets Up Electronics Products Business, Plans ₹5,000 Crore Investment to Strengthen India’s Manufacturing Ecosystem
Larsen & Toubro (L&T) would invest ₹5,000 crore over five years to establish a dedicated Electronic Products & Systems (EPS) division. The move represents one of the company’s most significant diversification efforts into high value industrial electronics, with the goal of enhancing India’s electronics manufacturing ecosystem and supporting the country’s aspiration to become a worldwide technology manufacturing hub.
The new company will design and manufacture electronic products for the industrial and defence markets, with an emphasis on industrial automation, robotics, mobility, power electronics, communication platforms, and Electronics System Design and Manufacturing (ESDM). Unlike consumer electronics, L&T’s approach focuses on B2B applications with strong technical capabilities.
Senior corporate officials plan to invest ₹5,000 crore in expanding production facilities, research and development, advanced laboratories, technology acquisition, and product innovation. The project is expected to create roughly 5,000 direct and indirect job opportunities in the following years.
The electronics business expands on L&T Electronic Products & Systems (LTEPS), a new vertical that began manufacturing operations earlier this year at the company’s Coimbatore site in Tamil Nadu. LTEPS, headquartered in Bengaluru, has already commissioned two manufacturing lines that provide electronics manufacturing services to Indian and international customers. Future growth plans include creating a 40-acre integrated industrial electronics complex that will house R&D, product development, contract manufacturing, sourcing, testing, and validation facilities.
Speaking about the project, L&T Chairman and Managing Director S. N. Subrahmanyan stated that the company’s entry into industrial electronics is consistent with its Lakshya 2031 strategy, which aims to enhance technical leadership and increase India’s self-reliance in vital manufacturing areas. The new firm is planned to boost L&T’s position in high-growth, innovation-driven industries while also contributing to India’s semiconductor and electronics value chain.
L&T’s long-term capital allocation strategy includes investing around ₹43,000-45,000 crore in new companies including green hydrogen, data centers, semiconductors, and industrial electronics over the next five years. The corporation has earmarked ₹5,000 crore for industrial electronics, indicating confidence in the sector’s long-term growth potential.
With the establishment of its dedicated electronics products business, L&T aims to capture opportunities in a market estimated at approximately US$4.85 billion, while reinforcing its transition from a traditional engineering and construction company into a diversified technology and advanced manufacturing enterprise.
Company leaders stated that the electronics division will largely service industrial automation, robotics, and defense applications. The anticipated capital expenditure will mostly support intellectual property acquisition, product development, engineering capabilities, and sophisticated testing infrastructure, rather than semiconductor manufacture or OSAT facilities.
According to industry analysts, the move comes at a time when India’s electronics manufacturing sector is experiencing rapid growth, aided by government initiatives such as the Production Linked Incentive (PLI) schemes, increased localisation efforts, and rising global demand for trusted manufacturing partners. L&T is establishing itself as a major player in India’s rapidly expanding industrial electronics sector by using its skills in engineering, defense electronics, and industrial automation.
