Engineering giant pairs a major push into EV electronics with a ₹100-150 billion NTPC thermal power project to diversify future growth.
Larsen & Toubro (L&T) has unveiled a dual growth strategy by investing ₹50 billion over the next five years to build its automotive electronics business while securing a major thermal power contract from NTPC worth ₹100-150 billion.
The investment will strengthen L&T’s electronic products and systems (EPS) business, which focuses on automotive electronics, power electronics, robotics, strategic electronics, and smart mobility solutions. The company aims to manufacture localised electric vehicle (EV) traction motors, drive control systems, and advanced driver assistance systems (ADAS), capitalising on the growing demand for EVs and software-defined vehicles.
To support the expansion, L&T will establish a 40-acre (161,874sqm) manufacturing facility in Coimbatore, complemented by engineering and research and development (R&D) centres in Bengaluru. The company has already secured its first commercial order to supply 500,000 electric traction motors to an electric two-wheeler manufacturer.
L&T expects the addressable market for its EPS business to grow from $2 billion today to $4.85 billion by 2031 and is targeting a 10-15 per cent market share. The move reflects the company’s broader strategy of expanding into high-margin, intellectual property-led manufacturing while reducing reliance on traditional engineering and construction projects.
Alongside its technology push, L&T Energy CarbonLite Solutions has won the 1,600 MW Lara Stage-III thermal power project from NTPC. Valued between ₹100 billion and ₹150 billion, the order marks L&T’s third ultra-supercritical thermal power project from NTPC in the past two years, strengthening its order book and revenue visibility.
The company has also reported strong order momentum across businesses in recent weeks, including international heavy engineering contracts worth up to ₹50 billion and major metals and minerals projects valued between ₹100 billion and ₹150 billion.
By combining investments in next-generation automotive electronics with large infrastructure projects, L&T is positioning itself for long-term growth through a balanced portfolio of technology-driven manufacturing and core engineering businesses.
