L&T recently won its first international order worth $100 million in a new business – offshore wind. The order has got the engineering major thirsting for more. The company is now smacking its lips for encores.
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Not much has been revealed about the order though. “In 2-3 months, we will be able to give more details,” Subramanian Sarma, Wholetime Director and President-Energy, told businessline recently.
It is understood that L&T is to supply the jacket for offshore structures. Jackets are the steel tubes with legs buried in the sea floor, on which the platforms stand. L&T has long years of experience in supplying jackets and platforms for the oil and gas industry; it wants to leverage that experience for the offshore wind sector.
After securing the $100 million order, L&T has responded to similar tenders. Asked for the total value of those tenders, Sarma said it would be between $500 million and $1 billion.
In an earnings call with investors in July, the company had said the order was from “a very prestigious client” and was a “good start”.
Buoyed by the order, L&T has created an ‘Offshore Wind Business’. According to the company’s annual report for 2023-24, the business would “offer one-stop solutions for HVAC/HVDC substations and wind turbine foundations in both fixed and floating structures across the globe.”
The report further said that the offshore wind business unit “has partnerships with key industry stakeholders, and a robust network of suppliers backed by state-of-the-art fabrication facilities in Oman and India, operating on the principle of ‘Think Global Act Local’.
The business is also partnering with electrical technology companies and collaborating with floating foundation technology providers and other key stakeholders to offer a comprehensive solution.
If further said that the business “is participating in global tenders for key developers,” adding that there is a strong demand for offshore wind from European and US markets.