Introduction to L&T’s latest strategic expansion

Larsen & Toubro L&T one of India’s largest engineering and infrastructure conglomerates has officially announced its entry into the industrial electronics segment. The company has begun manufacturing operations under a new vertical called L&T Electronic Products & Systems LTEPS.

This announcement was made through a press release dated April 24 2026 shared with both the BSE Limited and National Stock Exchange of India NSE as part of regulatory disclosure requirements.

The move marks a significant diversification for L&T into high tech manufacturing and electronics systems strengthening its position in India’s growing advanced manufacturing ecosystem.

New manufacturing base in Coimbatore

The foundation of this new initiative lies in L&T’s manufacturing campus in Coimbatore Tamil Nadu where the company has commissioned its first two production lines.

Key highlights include:

• Manufacturing operations based in Coimbatore
• Business headquarters for LTEPS in Bengaluru
• Initial focus on electronics manufacturing services EMS
• Capability to serve both Indian and global clients

Coimbatore has been strategically selected due to its strong industrial base skilled workforce and growing electronics manufacturing ecosystem.

What is LTEPS and why it matters

The newly created vertical L&T Electronic Products & Systems LTEPS will focus on industrial electronics manufacturing and systems development.

This includes:

• Power electronics systems
• Industrial robotics and automation
• Mobility solutions
• Communication platforms
• Electronics systems design and manufacturing ESDM

LTEPS represents L&T’s entry into a domain that combines engineering electronics and advanced manufacturing.

This is aligned with global demand for smart industrial systems and automation technologies.

Strategic vision under Lakshya 2031

L&T’s move is part of its long-term strategic roadmap called Lakshya 2031 which focuses on:

• Technology leadership
• Expansion into high growth sectors
• Strengthening India’s self reliance in manufacturing
• Building advanced industrial capabilities

The company aims to position itself not just as an infrastructure leader but also as a key player in next generation technology manufacturing.

According to Chairman and Managing Director S N Subrahmanyan this expansion is a step toward strengthening India’s electronics manufacturing ecosystem while expanding L&T’s global footprint.

Manufacturing capabilities and expansion plans

LTEPS is designed as a full scale industrial electronics ecosystem rather than just a production unit.

Its capabilities will include:

• In house research and development R&D
• Technology partnerships with global players
• Advanced testing infrastructure
• Product design and engineering support
• Contract manufacturing services

In the long term L&T plans to expand LTEPS across a 40 acre industrial zone within the Coimbatore campus.

This expansion will cover the entire electronics value chain including:

• Product development
• Design engineering
• Manufacturing and assembly
• Testing and validation
• Supply chain sourcing

Why industrial electronics is a high growth sector

Industrial electronics is one of the fastest growing segments globally due to rising demand for:

• Factory automation
• Smart manufacturing systems
• Electric mobility infrastructure
• Robotics and AI driven production
• Energy efficient industrial solutions

India is increasingly focusing on becoming a global manufacturing hub under initiatives like Make in India and Atmanirbhar Bharat.

L&T’s entry into this segment positions it directly in line with these national priorities.

Management commentary on the new business

L&T Chairman and Managing Director S N Subrahmanyan highlighted the importance of this move stating that:

• The new venture strengthens technological leadership
• It supports India’s self reliance in critical manufacturing
• It expands L&T into innovation driven sectors

This reflects a shift in L&T’s strategy from traditional engineering and construction to deep tech industrial manufacturing.

Impact on L&T’s business portfolio

With this expansion L&T is broadening its business structure across three major pillars:

1. EPC Engineering Procurement and Construction
2. Hi tech manufacturing
3. Technology driven services

The addition of LTEPS strengthens the second pillar significantly.

It also opens new revenue streams in:

• Electronics manufacturing services
• Industrial automation solutions
• Export oriented electronics production

This diversification is expected to reduce dependence on traditional infrastructure cycles.

India’s electronics manufacturing opportunity

India is currently positioning itself as a global hub for electronics manufacturing supported by:

• Government incentives for ESDM sector
• Rising global supply chain diversification
• Strong domestic demand for electronics products

L&T’s entry into industrial electronics adds weight to this ecosystem by bringing:

• Large scale engineering capability
• Strong project execution experience
• Global client access
• Advanced manufacturing infrastructure

This combination strengthens India’s competitiveness in global electronics supply chains.

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