Larsen & Toubro Limited (L&T) has announced a major overseas order for its Water & Effluent Treatment (WET) Business, in partnership with Lantania, a Spanish company. The contract, signed with ACWA Power, a leading developer in the Middle East, involves the construction of the Ras Mohaisen Desalination Plant in the Kingdom of Saudi Arabia. This project marks a significant milestone for L&T in expanding its global footprint in the water treatment sector, specifically in the Middle East.

Details of the Project

The Ras Mohaisen Desalination Plant will have a capacity of 300,000m³ per day, providing a vital source of drinking water to the Makkah Al-Mukarramah and Al-Baha regions, benefiting approximately one million people. This large-scale project will include:

• Seawater Reverse Osmosis (SWRO) desalination technology.
• Design, procurement, construction, testing, and commissioning of the facility.
• Intake and outfall facilities, along with process units and pumping stations.
• A 600,000 cubic meter potable water storage facility to ensure supply consistency.
• Electrical facilities and advanced automation and instrumentation systems.
• The addition of a Solar PV plant to enhance sustainability.

This project is part of a broader effort to meet the growing demand for water in Saudi Arabia, particularly in the regions around Makkah. The desalination plant will play a pivotal role in addressing water scarcity issues in the country and contributing to its sustainable development goals.

Joint Venture and Project Significance

The contract is awarded as part of a joint venture between L&T and Lantania of Spain, with L&T acting as the lead partner. This project is especially significant as it is the second desalination order that L&T has secured in Saudi Arabia recently, solidifying its position as a leader in water treatment solutions in the Middle East. The project classification, deemed a large order, falls within the category of projects valued between ₹2,500 crores and ₹5,000 crores.

This strategic win underscores L&T’s expanding influence in international markets, particularly in the Middle East and other business-conducive geographies. The company is continuing its efforts to enhance its regional footprint and extend its leadership in the water treatment industry.

L&T’s Continued Global Expansion

Larsen & Toubro Limited (L&T), an Indian multinational enterprise, has established itself as a leader in a wide array of sectors, including engineering, procurement, construction (EPC) projects, and hi-tech manufacturing. The company’s consistent growth is driven by a customer-focused approach, an unwavering commitment to quality, and an expansion strategy targeting high-growth markets. The Ras Mohaisen Desalination Plant project is a prime example of L&T’s strategic vision to lead in global water treatment and effluent treatment projects.

Impact on the Region

Once completed, the Ras Mohaisen Desalination Plant will provide a sustainable and reliable source of drinking water to the Makkah and Al-Baha regions, improving the quality of life for residents and addressing water scarcity in these areas. This initiative reflects the ongoing efforts of both L&T and ACWA Power to contribute to Saudi Arabia’s Vision 2030, a comprehensive plan aiming to enhance the kingdom’s infrastructure and diversify its economy.

Conclusion

With this large-scale order, Larsen & Toubro Limited continues to strengthen its leadership in the water and effluent treatment industry, not just in India, but also in international markets. The partnership with Lantania and ACWA Power demonstrates L&T’s expertise in delivering complex projects, and the Ras Mohaisen Desalination Plant is set to be another testament to the company’s ability to execute on a global scale. This development will bolster L&T’s reputation as a trusted provider of sustainable solutions in the water treatment sector.

The Upcoming IPOs in this week and coming weeks are Paradeep Parivahan, Divine Hira Jewellers.

The Current active IPO are Super Iron Foundry, PDP Shipping & Projects.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.