LTTS bags multi-million dollar deal in Europe

LTTS bags multi-million dollar deal in Europe
Photo Credit: Pixabay
23 Dec, 2019

Vadodara-headquartered IT firm L&T Technology Services (LTTS) has signed a multi-million dollar deal with a global plastics, chemicals and refining manufacturer.

The deal involves its entire suite of engineering, procurement and construction management (EPCM) services for the expansion of the client’s existing site in Germany, the dual-listed (Bombay Stock Exchange and National Stock Exchange) company said in a statement Monday.

LTTS has not revealed the name of the client owing to a confidentiality agreement, the company said in response to a TechCircle query. The deal is spread over 30 months.

“As the leading services provider to the process industry, LTTS carries with its impeccable credentials. With 7 of the top 10 customers in the process industry and a demonstrated track record in end-to-end EPCM and manufacturing expertise, this deal win from an industry leader is a reaffirmation of LTTS' strong position in plant engineering. LTTS has already carried out successful brownfield projects in the USA and we are privileged to extend our engagement with an important customer to the European markets,” Amit Chadha, president of sales and business development at LTTS said.

The expansion project will be implemented at the customer’s brownfield plant. LTTS play a key role in executing the entire project through an EPCM model, from procurement and supply chain management support to safety aspects and efficient design, according to the statement.

A brownfield is an industrial, commercial land with known, suspected pollution including soil contamination due to hazardous waste, In urban planning.

LTTS, a subsidiary of the $18 billion Indian conglomerate Larsen & Toubro operating in over 30 countries, is expected to help the unnamed client in delivering quality products to end-customers and expand reach to meet the growing demands of the chemical and polymers market.

The company, with its total size of 16,700 employees, spanning 17 global design centres, 28 global sales offices and 49 innovation labs, has 416 patents, according to data as of October on its website.

In May, it had reported a 21% increase in its profit to Rs 19.24 crore for the fourth quarter, ended March 2019. With a 27% jump in income to Rs 134.31 crore, transportation and telecom and hi-tech segments emerged as its largest contributors of revenue.

LTTS’ customer base includes 69 Fortune 500 companies and 51 ER&D (Engineering and research and development) companies across industrial products, medical devices, transportation, telecom and the process industries.

Digital engineering impact on ER&D

Digital engineering constitutes of ways, services through which companies modernise the old infrastructures at scale. It covers efforts to evolve the product launch process via emerging technologies like artificial intelligence (AI), machine learning (ML), internet of things (IoT), robotic process automation (RPA), and blockchain.

Digital engineering accounts for nearly one-fourth of the total global ER&D spend, according to a report from research firm Zinnov. With continued focus, the portion of the pie will only double in size and is set to grab about 37% of the overall ER&D spend by 2023 according to Zinnov estimates.