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L&T Electrical and Automation (E&A) expects to grow 4-5 percent and cross INR 5,000 crore in revenue this fiscal, even as the industry is witnessing a contraction of 2-3 percent. “The company has managed this performance by expanding product range, focussing on tier II and III cities and replenishing the market in shortest possible time,” S C Bhargava, senior vice-president, E&A business, L&T, told.

“Growth in India waded through 14-15 percent for four consecutive years. But crisis in the power sector for the past 12-14 months, industry has suffered and hence de-growth,” Bhargava added.

L&T’s E&A business comprises two business groups– products and projects. The company produces low and medium voltage switchgear, electrical systems, industrial and building automation systems, energy meters and relays. Last year, the company’s gross revenue stood at INR 4,586 crore. “This year, I don't want to go into the exact numbers, but as a group we expect to cross INR 5,000 crore and within the industry, we have a reasonably high operating margin,” he said.

Bhargava said the market is expected to be flat till September and the company has been adding capacities where necessary. “At all our factories, we have expanded. We are not restricting our capacity for opportunities which will be there in the new markets,” he added. The company is planning to aggressively tap international markets. “This year, we expect the international business to account for about 30 percent of total sales,” said Bhargava. Of the INR 4,586 crore revenue last year, the company’s international businesses share stood at 28 percent.

Source-On Request