In a conversation with Nitin A. Gokhale, Head of L&T Defence, Arun T Ramchandani stressed that the Indian government must overhaul its procurement process to comply with modern acquisition procedures. He urged the government to speed up the procurement process.
“We go through the development, trial, contracting, and approval cycles, making it unviable for the industry. If it happens quickly, it would be a great enabler to the industry,” he said and added, “I’m bullish about the defence business as I look at the more modern acquisition processes, which will give equal weight to capabilities and technical performance as much as L1. These are some of the things that an evolving, maturing industry needs, and I’m sure the government will support them,” L&T Boss amplified the message during an exclusive series, “On the Shop Floor“.
Export Prospects
Speaking on the export outlook, Ramchandani advocated for government support in promoting Lines of Credit (LoC) and proposed the implementation of feasible LoC schemes to attract potential importers.
“There is a lot of potential to export our systems as countries want more competitive pricing than we can offer compared to the Western and NATO worlds. So, the opportunity exists, and we have been able to make some breakthroughs, but we still have a long way to go. Current buyers are buying through a Line of Credit (LoC), which the Indian government provides. So, we need to push these lines of credit and look at making schemes for funds of credit to buy our equipment,” remarked the top executive of L&T.
Focus Areas
Commenting on the conglomerate’s focus area, Ramchandani said that the company focuses on space and will play a more significant role in future space programs with space launch vehicles and satellites. Notably, L&T Defence’s current order book from the space sector is impressive as it will be the first private sector-led commercial launch of PSLV, which is expected to be undertaken in mid-2024. ISRO has selected the L&T and HAL consortium as the private sector partners for PSLV launches.
“India needs tanks, ships, and submarines – that section will grow, but the focus on the higher-end electronics is another segment that we are investing in besides aerospace,” said Ramchandani.
Regarding L&T’s participation in the Indian Navy’s Project-75 India (P-75I) submarine acquisition program, he noted that the company is fully equipped for the competition, especially considering the strategic partnership between Spain’s Navantia.
“We are participating in the submarine – P75 program bidding alongside the Spanish company Navantia. It’s an exciting prospect, with MDL-TKMS on one side and L&T and Navantia on the other. We are fully prepared for this competition and confident in our abilities. Leveraging our expertise in submarine hull fabrication and outfitting, we are poised to excel,” he said.
Reflecting on the journey, he highlights L&T’s origins rooted in a core R&D foundation, which enabled the development of over 250 products for the armed forces. Presently, approximately 35 of these products are in serial production. Over time, the company expanded its scope to include warship construction, establishing a notable reputation for designing and constructing submarines.
Watch the full episode shot at L&T’s Talegaon complex, click the weblink https://www.youtube.com/watch?v=Acptrup4Fwc
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