L&T to spend Rs 25,000-mn in 2008-09

Kolkata: Larsen and Toubro Ltd plans to make a capital expenditure of Rs 2,500 crore in 2008-09 in order to upgrade its existing facilities and for a shipbuilding yard in Tamil Nadu, Mr J.P. Nayak, Member of the Board and President (Operations), L&T, said here.

The capital required for the upgradation would be mainly from internal accruals. The company also plans to raise Rs 500-700 crore in the latter half of this financial year. “We are a debt-free company so we have adequate headroom to raise money. The money can be raised by any route — debt, equity or a combination of both,” said Mr Nayak, speaking to reporters on the sidelines of a CII seminar, here.

The company is expecting a 30-35 per cent growth in its sales in 2008-09. “We are growing at 30 per cent and we plan to sustain it at these levels. We plan to ramp up our capacities in order to grow at these levels,” he said.

The company’s joint venture with Mitsubishi Heavy Industries Ltd for the turbine and boiler plants would involve a capital of Rs 1,000 crore each and would be operational in the next 12-18 months, he said.

L&T also estimates Rs 3,000 crore worth investment in the eastern region for various projects. “Projects in the East are mainly centred on steel, though aluminium and power also provide good opportunity for growth,” Mr Nayak said.