As per Larsen & Toubro's (L&T) classification, the value of the ‘significant' contract lies between Rs 1,000 crore and Rs 2,500 crore.

Indian Navy had signed a contract with Hindustan Shipyard (HSL) for design and construction of five FSS for the Indian Navy in August 2023.

FSS are specialized naval vessels, which provide logistics and material support to the naval task force at sea. With more than 220 meter in length and approximately 45,000 ton displacement, FSS would be amongst the largest vessels in the Indian Naval Fleet.

In line with GoI’s vision of ‘Aatmanirbhar Bharat’, these first-of-its kind vessels to be built in domestic Yards will be concurrently constructed by both the shipyards to meet the challenging delivery timelines. This collaborative approach in shipbuilding will serve as a cornerstone for achieving strategic national objectives of rapidly enhancing the Indian Naval fleet while driving economic activity and technological advancement in India’s maritime domain.

In little over a decade from the receipt of L&T’s first defence shipbuilding order in March 2010, L&T has in-house designed, constructed and delivered more than 70 defence vessels exemplifying its ‘Make in India’ capabilities, with the remarkable achievement of delivering most of these vessels either ahead or on schedule, it added.

L&T will construct the two fleet support ships at its greenfield shipyard at Kattupalli, near Chennai on the east coast of India. It is India’s most modern shipyard, designed in-house and built to globally benchmark technological practices.

Meanwhile, the EPC major informed that its wholly owned subsidiary, L&T Semiconductor Technologies (LTSCT) has entered into a share purchase agreement on 8 July 2024 for acquisition of 100% stake in SiliConch Systems.

SiliConch Systems specializes in the development, design of semiconductor intellectual property (IP) and integrated circuits (IC). The said acquisition is expected to add IP, engineering skillsets and design expertise to strengthen the Group’s presence in fabless semiconductor business, and thus aligns with the overall growth strategy of LTSCT.

The acquisition of SiliConch is expected to be completed by 15 September 2024, subject to customary closing conditions. The cost of acquisition amounting to Rs 133 crore payable at closing, subject to customary closing adjustments and a deferred amount of Rs 50 crore payable over 4 years, subject to closing adjustments and achievement of certain targets and other conditions.

Larsen & Toubro (L&T) is an Indian multinational engaged in EPC Projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide. A strong, customer focused approach and the constant quest for top class quality has enabled L&T to attain and sustain leadership in its major lines of business for eight decades.

The EPC major's consolidated net profit rose 10.27% to Rs 4,396.12 crore on 14.99% increase in revenue from operations to Rs 67,078.68 crore in Q4 FY24 over Q4 FY23.