Politics · India Bureau
L&T Eyes Modularisation Push to Tackle Project Execution Hurdles
The engineering and construction major sees a $100-150 billion opportunity in scaling up modularisation over the next five years, as it grapples with labour shortages, escalating costs and challenging project locations.
LSN India ·
Larsen & Toubro (L&T) is accelerating its push into modularisation to overcome persistent headwinds in project execution across its engineering, procurement and construction (EPC) division. The company has identified a substantial market opportunity worth $100-150 billion over a five-year horizon as it seeks to deploy factory-built components at remote and difficult-to-access project sites.
The engineering giant faces mounting challenges in executing mega-projects, including acute shortages of skilled labour, spiralling operational costs and the logistical complexities of working in geographically remote locations. Modularisation—a construction methodology involving the manufacture of standardised building blocks in controlled factory environments followed by on-site assembly—offers a potential solution to these pain points.
By shifting production to off-site facilities, L&T aims to improve quality control, reduce on-site labour requirements and compress project timelines. The approach is particularly suited to India's infrastructure and energy sectors, where large-scale projects often involve complex construction in challenging terrains.
The company's focus on scaling modularisation reflects broader industry trends as EPC majors worldwide adopt factory-based construction methods to enhance productivity and manage cost inflation. For L&T, capturing a significant portion of the identified opportunity could provide a competitive edge and improve project profitability as India ramps up spending on infrastructure and industrial development.