Larsen & Toubro (L&T), a prominent Indian industrial conglomerate, is betting on aerospace as a significant growth engine, particularly in the areas of launch vehicle and satellite manufacturing. This move aligns with India's strategy to reduce its reliance on imports and enhance private sector involvement in the space industry.

L&T, recognised as the largest private defence manufacturer in India by revenue, has extensive experience in high-tech manufacturing and critical systems, which are directly applicable to aerospace.

The company is currently assembling India's first privately constructed Polar Satellite Launch Vehicle (PSLV) at its facility in Coimbatore, Tamil Nadu, in collaboration with Hindustan Aeronautics Limited, and is also developing equipment for ISRO's deep space exploration missions.

India's government has relaxed foreign investment restrictions and allocated a larger portion of procurement budgets to private entities, creating opportunities for companies like L&T to expand their space operations.

The country aims to establish itself as a leading space power, with Prime Minister Modi's administration advocating for the industry to drive further economic growth. The government hopes that liberalised regulations will attract international players, mirroring the commercial space boom seen in the U.S. and Europe.

The inaugural launch of a privately produced PSLV booster, initially scheduled for early 2025, is now expected to take place by mid-year, with each booster priced at approximately $30 million.

L&T's ambitions are part of India's broader goal to achieve a $44 billion valuation for its commercial space industry. The company sees significant potential in the global market, particularly in meeting the growing demand for timely and cost-effective launches as satellite constellations expand.

Additionally, L&T and Hindustan Aeronautics are among companies vetted to potentially bid on the privatisation of India's Small Satellite Launch Vehicle (SSLV) program, which aims to provide cost-effective launch solutions for smaller payloads.

Reuters