Can you brief us about L&T Technology Services?
At L&T Technology Services (LTTS), our primary focus is to offer end-to-end engineering solutions, product development, and digital transformation services. We believe in partnering with our clients throughout the entire product development lifecycle. From conceptualisation to prototyping, validation to testing, and manufacturing support to aftermarket services, our comprehensive engineering services cover it all. We have established a strong market presence across the globe and India, catering to a diverse range of clients across multiple sectors.

As a leading Engineering and R&D services player, our expertise extends to industries such as automotive, aerospace, industrial products, medical devices, telecom, and semiconductors. With our dedicated engineering design centres located strategically across India, USA and Europe, many of them in proximity to customer sites, LTTS ensures seamless delivery of services to its global customers.

Our digital engineering solutions leverage the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), and data analytics to develop smart products, connected systems, and intelligent platforms. In addition, our proficiency extends to plant engineering, where we provide cutting-edge solutions for designing, engineering, and optimising industrial plants and make use of digital twins to improve plant design and operational performance. We understand the intricacies of process engineering, equipment selection, plant layout, and automation, which allow us to deliver superior results to our clients.

Managing the entire product lifecycle is another area of our expertise. Through our robust product lifecycle management (PLM) solutions, we help our clients streamline their processes, enhance product quality, reduce time-to-market, and improve operational efficiency. Embedded systems play a vital role in today's technological landscape, and LTTS is one on the leaders in this domain. We specialise in developing embedded systems and software for various applications, ranging from automotive electronics and medical devices to industrial automation and consumer electronics.

What sets us apart in the market is our relentless focus on domain expertise, technological prowess, and our ability to deliver integrated engineering solutions. We pride ourselves on being at the forefront of innovation, investing significantly in research and development (R&D) to stay ahead of the curve. Our diverse client portfolio includes Fortune 500 companies, with whom we have forged long-standing partnerships based on trust and mutual growth. At LTTS, we are known for our customer-centric approach, customised solutions, global delivery model, and unwavering commitment to quality.

With digitalisation and technology, smart manufacturing operations are increasing. What smart manufacturing features are incorporated by L&T Technology Services?
At LTTS, we recognise the growing importance of smart manufacturing in today's digital era. We have integrated several key features and solutions to enable smarter manufacturing operations for our clients. Here are some of the smart manufacturing features incorporated by L&T Technology Services:

These smart manufacturing features, integrated by L&T Technology Services, empower manufacturers to transform their operations, improve productivity, reduce costs, and achieve greater operational efficiency. We combine our engineering expertise with digital technologies to deliver innovative and customised solutions that align with the specific needs of our clients.

What is the significance of the company’s partnership with Critical Manufacturing? How is it going to help the growth of LTTS?
LTTS’ strategic alliance with Critical Manufacturing will see both companies working with the multi-national engineering group, Danfoss, to implement a comprehensive digital framework that harnesses cutting-edge technologies and next-gen capabilities.

Critical Manufacturing’s innovative and future-ready manufacturing execution systems (MES) are designed from the ground-up to embrace Industry 4.0 technologies and provide a comprehensive pathway to the smart manufacturing of complex and sophisticated products. This MES complements our own industry-leading technology services, and coupled with the company’s combined expertise and understanding of the markets it serves, will enable us to drive superior business outcomes for our manufacturing and industrial clients.

The Critical Manufacturing MES specifically offers rich functionality in sectors such as semiconductors, electronics, medical devices, and discrete manufacturing, which are among LTTS’s focus areas, and will thus help us in effectively driving our global digital transformation initiatives.

What are some significant achievements made by LTTS in the past 2-3 years?
Overall, FY23 was a landmark year for LTTS. We crossed a billion dollars in revenue run rate and Rs 1,000 crore in annual profits – with our highest ever EBITA margin of 18.5 per cent. Our engineers also crossed the 1,000 patent filing mark. Earlier this year, we completed the acquisition of L&T Smart World & Communication (SWC). This will enable us to combine synergies and take offerings in next-generation communications, sustainable spaces, and cybersecurity to global markets. We have already made good progress in creating a pipeline of opportunities leveraging the joint capabilities of LTTS and SWC. We have won three deals internationally thus far across next-generation communications, industrial products and transportation.

In 2022, we strengthened our engagement with the BMW Group with a five-year multi-million deal to provide high-end engineering services for the company’s suite of infotainment consoles, targeted for its family of hybrid vehicles. We also celebrated the completion of 15 years of valued collaboration with Eaton Corp, a testimony of continued customer confidence in our capabilities to ramp up our sustainability-focused initiatives for the benefit of our stakeholders.

What are your growth plans for the coming years?
Across segments, we find that key priorities for customers include innovations leveraging advanced technologies, supply chain resilience and energy transition. These priorities are well-aligned with our own strategic goals, and this helps us to engage in larger deal conversations. In FY24, we endeavour to achieve a USD constant currency revenue growth of over 20 per cent given the demand momentum for engineering services. It is exciting to witness the increasing possibilities brought about by newer technologies and our role as partners to the top ER&D companies globally for their next generation products. Moreover, with digital driving ER&D spends globally, we expect a 2.8x increase in Digital Engineering Spends by 2026, accounting for 59 per cent of the Global ER&D spend in that year.