L&T building up agility, tech, capex for new focus

Mumbai: Larsen & Toubro (L&T) is doubling down on agility, capital discipline and tech-led diversification to future-proof its 85-year-old business empire. Backed by Rs 50,000 crore in cash reserves and virtually no debt, the company has lined up Rs 1.5 lakh crore in strategic capex over the next five years—focused on semiconductors, green hydrogen, data centres and real estate. In an expansive interview, chairman and managing director SN Subrahmanyan, 65, said the $30-billion conglomerate is reshaping its portfolio to ensure long-term relevance and profitability.

At the heart of this is L&T’s operating mantra: “Grow to sell, sell to grow.” Performing businesses are scaled and monetised, while underperformers are exited or wound down. This approach has seen L&T divest from ports, airports, renewables and electricals to unlock capital for new bets.

“Real estate, semiconductors, green energy and data centres are our next growth frontiers,” said Subrahmanyan. The company’s realty arm is on track to develop 100 million sq ft of space, which would place it among India’s top two developers. L&T’s semiconductor design business, launched two years ago, now has 400 engineers and seven global clients.