L&T Targets 20% Growth in Construction and Mining Machinery Business in FY’26

Infrastructure giant Larsen & Toubro (L&T) expects an explosion in the construction and mining machinery to the tune of 20% in the coming fiscal year on the premise that it doubles its five-year-old sales. “At the very least, we predict a growth of 20% in FY’26,” Arvind K Garg, Senior Vice President and Head of L&T’s Construction and Mining Machinery division, noted in an interview. “We plan to double our sales in five years and improve our profitability during the same period.”

He listed increasing service capabilities among other factors critical to company growth, showing optimism for the Komatsu PC35 mini excavator to boost profitable growth. Garg said that the long association with Komatsu Ltd, since 1998, has been crucial for its construction equipment business. Initially, it was an independent venture that produced hydraulic excavators from its Karnataka facility.

In 2013, after the restructuring of operations, Komatsu’s manufacturing was shifted to Chennai and L&T directed its efforts toward distribution, customer interaction, and after-sales services.

“This collaboration has proven highly successful. Komatsu handles manufacturing while we oversee sales and aftermarket support,” Garg explained. Currently, Komatsu produces hydraulic excavators and dump trucks at its Chennai facility, while L&T ensures seamless customer service and maintenance.

L&T is also on track to achieve 15% growth in the current fiscal year, despite potential election-related constraints on government spending. Garg attributed the success to strategic initiatives under the “Lakshya Vision Plan,” a five-year blueprint for sustained growth. Notably, L&T and Komatsu are aligning their equipment with sustainability goals. Most products of Komatsu are certified to run on B20 biodiesel, 20% ethanol and 80% diesel.

B30 will soon be introduced, cutting both the costs of fuel and carbon emissions even further.

L&T, being one of the leading builders and suppliers of construction and mining equipment, has existed for over 80 years. The company has been responsible for several innovations, including hydraulic excavators and vibratory compactors, all in constant efforts that develop India’s infrastructure.