Larsen & Toubro Ltd (L&T) is expanding its aerospace division, aiming to establish a larger presence in India’s emerging private space sector, according to a report by Reuters. The move aligns with recent government initiatives to allow private firms greater participation in space ventures traditionally led by the Indian Space Research Organisation (ISRO).
AT Ramchandani, senior vice president and head of L&T’s Precision Engineering & Systems, highlighted the company’s long-standing relationship with ISRO, spanning over 50 years, as an advantage in developing launch vehicles. L&T has previously contributed to key components in various Indian aerospace and defense projects, including missile systems, Mars and lunar missions, and satellites.
L&T, in collaboration with Hindustan Aeronautics Limited, is manufacturing the Polar Satellite Launch Vehicle (PSLV) for ISRO. The first launch of the PSLV produced by this private consortium is anticipated in early 2025, with each unit estimated to cost around 2 billion rupees ($23.8 million). In addition, L&T has shown interest in the upcoming privatization of India’s Small Satellite Launch Vehicle (SSLV) program, designed to enable more frequent and cost-effective launches for smaller payloads of up to 500 kg.
Ramchandani noted that the SSLV model could eventually support up to 12 launches annually, with a potential for further expansion to conduct launches every two weeks. At an estimated cost of $15,000 per kg, the SSLV offers a competitive solution for smaller-scale satellite deployments.
India’s private space sector is projected to grow substantially, with the commercial space industry expected to reach a valuation of $44 billion within the decade. Analysts from Polaris Market Research have projected global growth in the space launch services market, which could rise to $43.94 billion by 2032 from $13.63 billion in 2022.
L&T’s aerospace expansion will leverage existing facilities and land resources, focusing on scaling up based on demand and technological progress. Ramchandani emphasized the company’s cautious approach to investment, with plans contingent on customer acquisition and production efficiencies. L&T’s Precision Engineering and Systems unit reported revenues of 46.10 billion rupees ($548.3 million) for FY2024, marking a 41% increase over the previous year.
The company’s stock rose 6% following its second-quarter financial results, in which it reaffirmed its full-year order forecast.