Home / Business and Economy / L&T Navigates Mideast Crisis: 95% of Projects Unaffected
L&T Navigates Mideast Crisis: 95% of Projects Unaffected
22 Mar
Summary
- 95% of Larsen & Toubro's projects continue with minimal impact.
- Logistics and supply chain issues pose potential revenue risks.
- No L&T sites attacked; all staff and workers are safe.
Larsen & Toubro (L&T) has experienced minimal direct business disruption from the current Middle East conflict, with approximately 95% of its projects continuing operations. The company's deputy managing director, Subramanian Sarma, indicated that work has only ceased at 5% of its regional projects, with no sites having been attacked and all personnel reported safe. Despite this resilience, L&T has identified logistics and supply chain disruptions as key challenges.
While current revenue is not significantly impacted, Sarma cautioned that prolonged logistical issues, lasting over three months, could lead to revenue deferment. The company is actively exploring alternative sourcing and shipping routes, acknowledging difficulties in material transport from regions like China and Europe. L&T has also halted the deployment of new workers to the Middle East since the conflict began.
Looking ahead, L&T anticipates business opportunities arising from reconstruction efforts and the shift towards alternative energy sources once the conflict subsides. The company views the current geopolitical situation as a short-term aberration, maintaining confidence in the Middle East's long-term business promise, viewing it as a 'second home' that has been 'very rewarding'.
