A consortium including engineering major Larsen & Toubro has won a contract for the construction of a lubricant plant for Malaysian oil major Petronas. Other partners of the consortium include German engineering company Lurgi and a Malaysian construction firm.
The plant would be set up as part of the existing facilities of Petronas and would be the first of its kind in Malaysia. Total value of the contracts is estimated at $345 million, out of which L&T''s share would be around $198 million.
L&T would be engineering and procurement of one central process unit produced under a license from Exxon Mobil and the control systems in the existing refinery. The ECC division of the company would also be involved in the construction of the plant.
The plant for production of lubricant feedstock is expected to start operation in 2008.
Engineering and capital goods companies L&T have seen significant growth in their order books during the last few years. Strong economic growth in recent years has led to a revival in industrial investments, benefiting companies like L&T.
Indian engineering companies are also expanding their operations in export markets considerably. As Indian engineering companies have design and execution skills comparable to global standards while operating at much lower costs, they stand to win much larger projects in future.
The company reported net profits of Rs259.27 crore or Rs19.39 per share on revenues of Rs3,782.79 crore for the quarter ended December. For the pervious quarter ended September, profits were at Rs143.05 crore or Rs10.83 per share on revenues of