 |
| Naik (centre), along with other top officials, outlines the growth strategy of L&T for Qatar and the wider Gulf region yesterday |
Larsen & Toubro (L&T), India’s $12bn engineering and construction conglomerate, is eyeing $500mn turnover from Qatar by 2016, one-eighth of the total from the entire Gulf region.
“We are expecting it (turnover) to be a half-a-billion dollar in the next three to four years (in Qatar),” L&T chairman and managing director A M Naik told reporters in Doha yesterday.
The “highly liquid” company is expecting $150-$175mn (turnover) every year from Qatar in view of the potentialities unleashed by its development spending, especially in infrastructure projects such as roads, water and railways.
L&T, which has taken up projects since 1970s, decided to have a permanent office in Qatar in 2001 due to the growing demand, supported by the country’s energy earnings.
At present, the Gulf markets contributed 10%-12% of the group’s turnover (from projects) and it is expected that L&T would be a $20bn entity by 2016, of which 20% ($4bn) is expected to be generated from the Gulf Cooperation Council (GCC) region. This is apart from the multi-million dollar equipment deals it has with many of the Gulf countries.
“The company is poised to contribute significantly to the growth and development of the Gulf region,” the L&T official said, adding that in the Middle East, it had a successful track record of building plant and equipment for the oil and gas sector, refineries, infrastructure and power projects.
In Qatar, L&T is currently engaged in several projects. It is executing a 26km pipeline, substations and allied works for Qatar Petroleum in Ras Laffan, which is expected to be completed by April this year.
It is also constructing a 192MLD sewerage treatment plant for Ashgal and expected to be completed by the end of this year.
In the power, transmission and distribution sector, the company is building a 220KV, 66km under-ground cable system at Sailiyah and a 220KV substation and 12 132KV substations for Kahramaa. These projects are expected to be completed by August 2013.
Naik said the company did not foresee any need to raise capital either by equity or debt but it may spend another $100mn-$150mn in the region depending on the projects.
S N Subrahmanyan, L&T whole-time director and senior vice president (construction), said the company would be focusing more on electrical, water and infrastructure projects in view of the requirements of Qatar which will be hosting the 2022 World Cup.
L&T had constructed 25,000 capacity stadium for Al Rayyan Club at Umm-Al-Afaai and a 20,000 capacity stadium for Al-Ittehad Club at Gharaffa.
L&T Qatar, which employs 200 staff and 1,300 workmen as of now, is expected to triple its headcount by 2016.