Larsen & Toubro (L&T) expects the $150 billion global industrial modularisation market to create opportunities worth around $30 billion over the next five years. According to the company, rising labour costs and a shortage of skilled workers are encouraging project developers to shift from conventional on-site construction towards factory-built modules. As a result, industrial modularisation is gaining momentum as companies look for faster and more efficient project execution. L&T is also working to expand modular construction in India. At the same time, the company is developing a hybrid construction model that combines modular and conventional methods to address transportation limitations.
L&T Completes Major Australia Modularisation Project
L&T has completed its first major modularisation project for Australia, marking a significant step in its global modular construction business. The company fabricated and shipped modules from its Kattupalli facility in Tamil Nadu to Karratha in Western Australia for Project CERES. The project involved the fabrication and delivery of 110 modules weighing around 64,000 tons. Project CERES is being developed by Perdaman Chemicals & Fertilisers under the Saipem-Clough joint venture. Once operational, the facility will have a urea production capacity of 2.3 million tonnes per annum (MTPA). The project is expected to go live in June next year.
Strengthening India’s Role in Global Project Delivery
L&T Chairman and Managing Director SN Subrahmanyan said the Australia project demonstrates how the company is helping elevate India’s role in the global project-delivery ecosystem. He noted that India is increasingly moving beyond its traditional role as a manufacturing base to provide integrated engineering, technology and project-execution capabilities. L&T is exploring modularisation opportunities across data centres, prefabricated bridges, precast columns and other industrialised construction solutions. The company has also established a dedicated cell focused on small modular construction.
Industry 4.0 Drives Modular Manufacturing
To strengthen its modularisation capabilities, L&T has invested in advanced cutting, bending, boring and welding equipment. The company has also adopted several Industry 4.0 technologies across its fabrication operations. Furthermore, L&T plans to progressively convert some of its fabrication facilities into “dark factories”, where highly automated production requires minimal human intervention. Its heavy engineering facility already uses technologies such as robotic welding, automated painting systems and 3D printing. As the business expands, L&T also plans to strengthen quality and safety standards across its wider ecosystem, including suppliers and project partners.
Hybrid Construction to Address Transport Challenges
Modular construction offers significant advantages for waterfront projects because large modules can be transported by sea. However, road transportation can limit module sizes for inland projects. Therefore, L&T is evaluating smaller modules that can be transported more easily and assembled at project sites. According to Subramanian Sarma, Deputy Managing Director & President, L&T, this approach could support a hybrid construction model combining factory-built modules with conventional site construction. The Australia project also highlighted the importance of workforce mobilisation and retention. L&T’s modularisation operations can require thousands of workers at different stages, even as the wider construction industry faces a shortage of skilled labour.
L&T Expands Fabrication Capacity
L&T has nearly 200,000 tons of fabrication capacity across its facilities in Oman, Hazira and Kattupalli, among other locations. After accounting for offshore requirements, approximately 100,000 tonnes of capacity could potentially be available for onshore modular projects. This capacity could allow L&T to execute multiple large-scale projects simultaneously. However, logistics remains an important consideration. Sarma said the company is facing higher transportation costs and delays in the movement of metals, particularly from eastern markets, because of disruptions along shipping routes. L&T is using alternative routes where necessary, while discussing the resulting cost implications with customers.
L&T Builds Global Modularisation Capabilities
With investments in automation, advanced fabrication technologies and hybrid construction models, L&T is expanding its capabilities in industrial modularisation. As reported by thehindubusinessline.com, the company expects the growing demand for factory-built construction solutions to create new opportunities across energy, chemicals, infrastructure, data centres and other industrial sectors.
