(MENAFN- KNN India)
New Delhi, Nov 1 (KNN)
Larsen & Toubro Ltd (L&T), India's leading private-sector defence manufacturer, announced plans to significantly expand its aerospace operations, capitalising on India's rapidly evolving private space sector.
The move comes as the government continues to open up its traditionally state-controlled space industry to private enterprise.
The recent successes of India's space program, including the Chandrayaan-3 lunar landing and Aditya-L1 solar mission, have created a favourable environment for companies with advanced engineering capabilities to enter the space sector.
"We clearly see an economy growing out there," said AT Ramchandani, senior vice president and head of L&T's Precision Engineering & Systems. "While the exact trajectory remains uncertain, we are committed to leveraging our 50-year relationship with ISRO for manufacturing launch vehicles."
L&T is currently engaged in manufacturing the Polar Satellite Launch Vehicle (PSLV) through a consortium with Hindustan Aeronautics Limited. The first privately built PSLV is scheduled for launch in early 2025, with each rocket estimated to cost approximately 2 billion rupees (USD 23.8 million).
The company has also expressed interest in India's Small Satellite Launch Vehicle (SSLV) program, which aims to provide cost-effective solutions for smaller payloads up to 500 kg.
"The whole idea of SSLV is that you should be able to do about 12 launches in a year, with potential to scale up to a launch every 15 days," Ramchandani explained. At USD 15,000 per kg, the SSLV program promises to be a competitive option in the global launch market.
Industry analysts at Polaris Market Research project the global space launch services market to expand from USD 13.63 billion in 2022 to USD 43.94 billion by 2032. India's commercial space industry alone is expected to reach USD 44 billion within the decade.
While specific investment figures weren't disclosed, Ramchandani emphasized a frugal approach to expansion. "We have adequate land and aerospace manufacturing facilities already in place, along with significant expertise that can be enhanced as needed," he stated.
The company plans to align investments with technology maturation, customer acquisition, and production efficiency.
L&T's Precision Engineering and Systems unit reported impressive growth, with revenue reaching 46.10 billion rupees (USD 548.3 million) in FY2024, marking a 41 per cent increase from the previous year.
The larger conglomerate posted consolidated revenue of 2.21 trillion rupees (USD 26.29 billion) during the same period.
The company's shares responded positively to these developments, closing 6 per cent higher following the announcement of second-quarter results and maintained full-year order forecasts.
(KNN Bureau)
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