In a recent interview with BusinessLine, Larsen & Toubro's Chief Financial Officer, R Shankar Raman, revealed the company's impressive $15-16 billion order book in Saudi Arabia, emphasizing their enthusiasm for future endeavors in the Middle Eastern nation. With Saudi Arabia boasting an annual program expenditure of $250 billion, L&T sees significant potential for growth in this market.
Raman acknowledged Saudi Arabia's substantial economic activity, stating, "That market is one from which you can't take your eye off. We have to focus on that market and build capabilities so that we can take advantage of these opportunities." Currently, approximately 56% of L&T's order book is derived from international markets, primarily Saudi Arabia, with the expectation that overseas orders will account for 45% of their portfolio by the year-end, as domestic tendering gains momentum.
In addition to Saudi Arabia, Qatar and the UAE also offer promising opportunities for the company in the Middle East. Raman expressed optimism about securing orders in Qatar's hydrocarbon sector during the current quarter and the next.
L&T has established itself as a leading engineering, procurement, and construction (EPC) contractor for solar projects in the West Asia region, with ongoing projects valued at $5.5 billion.
When questioned about the potential concentration risk posed by a high exposure to Saudi Arabia, Raman emphasized that their involvement is well-aligned with the annual expenditure in the region, stating, "What we are doing in the context of their annual outlay is not eye-popping." This confidence in their strategy underlines the company's commitment to capitalizing on the abundant opportunities Saudi Arabia offers.
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