Eyeing a bigger role in India’s electronics boom, L&T is reportedly exploring a major EMS foray in Tamil Nadu, targeting high-value tech manufacturing beyond smartphones.
Larsen & Toubro (L&T) is exploring a major expansion into the electronics manufacturing services (EMS) sector. According to a report by The Economic Times, the company is in early discussions to secure land near Chennai. The engineering giant has reportedly evaluated acquiring around 200 acres (about 80.93 hectares) in Tamil Nadu to support the project.
The move would mark a shift for the ₹1.7 trillion conglomerate, which is already active in several electronics and technology domains. The proposal aims to build a fully integrated manufacturing ecosystem that provides end-to-end production capabilities.
Industry experts speculate that L&T’s deep expertise in engineering, procurement, construction, defence electronics and aerospace could give it a competitive advantage. The company may prioritise components and systems for high-value sectors such as defence and industrial applications rather than consumer hardware.
This reflects broader industry trends in India, where large business houses are strengthening their presence in the electronics sector. Tata Group’s journey into contract manufacturing for global tech brands, including Apple, is seen as a reference point. However, sources cited in the report said L&T has not yet finalised its operational model.
The report also notes that this initiative could complement L&T’s semiconductor ambitions. Although semiconductor fabrication was not included in preliminary talks, officials quoted by the newspaper described the EMS venture as a potential stepping stone to more advanced manufacturing in future.
Analysts believe L&T is unlikely to venture into smartphone assembly, a highly competitive market already crowded with established players. Instead, the company may target industrial IoT modules, automotive electronics, and equipment used in energy and infrastructure projects, areas that closely align with its existing business portfolio.
L&T has previously highlighted its growing capabilities in chip design. The firm’s semiconductor design team, now around two years old, employs hundreds of engineers in India and overseas. It focuses on analogue chip design in mature process nodes and aims to eventually bring its own chips to market through outsourced fabrication partnerships.
