L&T expects $500m turnover from Qatar

Indian engineering and construction company, Larsen & Toubro, set up shop in Qatar in 2001. Photo: ITP Publishing

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Larsen & Toubro (L&T), India’s $12bn engineering and construction conglomerate, expects to generate $500m turnover from Qatar by 2016, one-eighth of the company's total from the entire Gulf region.

“We are expecting it to be half-a-billion dollars in the next three to four years,” said L&T chairman and managing director A.M. Naik.

The company is expecting an annual turnover of between $150m and $175m from Qatar in view of the possibilities unleashed by its development spending, especially in infrastructure projects such as roads, water and railways.

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L&T, which has taken up projects since the 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 contribute 12% of the group’s turnover and it is expected that L&T would be a $20bn entity by 2016, of which 20% is expected to be generated from the Gulf Cooperation Council 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,” Mr Naik said, adding that L&T has built 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 building 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 sewerage treatment plant for Ashghal which is expected to be completed by the end of this year.

In the power, transmission and distribution sector, the company is building a 220KV, 66km underground cable system at Sailiyah and a 220KV substation and 12 132KV substations for Kahramaa. These projects are expected to be completed by August 2013.

L&T's senior vice president in construction, S.N. Subrahmanyan, said that the company plans to focus on electrical, water and infrastructure projects in view of the requirements of Qatar which will be hosting the 2022 World Cup. The company has built a 25,000 capacity stadium for Al Rayyan Club at Umm-Al-Afaai and a 20,000 capacity stadium for Al-Ittehad Club at Gharaffa.