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L&T expands aerospace focus amid India’s $44 billion space market boom
Industry News- Nov 11,24
The first launch of a privately built PSLV is expected in early 2025, with each rocket costing approximately Rs 2 billion.
Larsen & Toubro Ltd (L&T), India's top private-sector defence manufacturer, is intensifying its aerospace efforts to capture a share of the country’s rapidly growing private space market, according to a senior executive. This follows the government’s recent push to open the traditionally ISRO-led space industry to private players, spurred by the success of landmark missions like Chandrayaan-3 and Aditya-L1.
A T Ramchandani, Senior Vice President and Head-Precision Engineering & Systems, L&T, stated, “We see a growing economy here and will leverage our 50-year relationship with ISRO for manufacturing launch vehicles.” While specific expansion details remain undisclosed, private firms can now design, build, and operate launch services, positioning L&T well for the expanding commercial satellite market.
India’s commercial space sector is projected to reach $44 billion within the decade, with strong government support encouraging private investments. L&T has a long history in building critical components for Indian missiles, Mars and lunar missions, satellites, and artillery, as well as in constructing the Polar Satellite Launch Vehicle (PSLV) through a consortium with Hindustan Aeronautics Limited. The first launch of a privately built PSLV is expected in early 2025, with each rocket costing approximately Rs 2 billion.
L&T is also eyeing the privatisation of India’s Small Satellite Launch Vehicle (SSLV) program, designed for low-cost launches of smaller payloads up to 500 kg. Ramchandani highlighted the SSLV’s potential for 12 launches a year, with the prospect of scaling up to biweekly launches at around $15,000 per kilogram.
While Polaris Market Research projects the global space launch services market to expand to $43.94 billion by 2032 from $13.63 billion in 2022, Ramchandani noted L&T’s focus on efficient and frugal growth. “We have sufficient land and aerospace manufacturing facilities, and expertise that can be scaled as needed,” he said, emphasising that investments will be carefully managed based on technology maturity, customer interest, and production efficiency.
L&T’s Precision Engineering and Systems unit achieved a 41% revenue increase in FY2024, reaching Rs 46.10 billion. The conglomerate reported consolidated revenue of Rs 2.21 trillion for the same period. Following its strong second-quarter results and full-year order forecast, L&T shares rose 6%.
(ET)
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