Larsen & Toubro Ltd (L&T), India’s engineering and construction powerhouse, has bagged a major contract from Hindustan Zinc Ltd, a subsidiary of the Vedanta Group. The order, valued between Rs 25 billion and Rs 50 billion, falls under L&T’s Minerals & Metals business vertical and marks a significant expansion in its industrial EPC footprint. The contract involves setting up a large-scale fertilizer complex in Rajasthan, reinforcing L&T’s leadership in executing high-value infrastructure projects across India’s minerals and metals sector.
Key Highlights from the Contract Announcement
- L&T’s Minerals & Metals division secured an EPC contract from Hindustan Zinc
- Project scope includes construction of a 5.1 LTPA Di-Ammonium Phosphate (DAP) plant and an 8 LTPA Phosphoric Acid Plant (PAP)
- The facility will be located at Chanderiya, Rajasthan, within Hindustan Zinc’s existing complex
- Estimated contract value ranges between Rs 25 billion and Rs 50 billion
- The project is classified as a ‘Large’ order under L&T’s internal categorization
- Execution will include engineering, procurement, construction, and commissioning
Project Scope and Technical Details
The contract awarded to L&T involves the development of a fully integrated fertilizer manufacturing complex, aimed at supporting India’s agricultural and industrial growth.
- The 8 LTPA Phosphoric Acid Plant will serve as a key input facility for downstream fertilizer production
- The 5.1 LTPA DAP plant will enhance domestic supply of high-grade fertilizers
- L&T will deploy advanced process technologies and modular construction techniques to ensure timely delivery
- The project will be executed within Hindustan Zinc’s existing industrial zone, optimizing logistics and infrastructure
Strategic Importance and Sectoral Impact
This order strengthens L&T’s position in the minerals and metals EPC space and aligns with India’s push for self-reliance in critical industrial inputs.
- The fertilizer complex will reduce India’s dependence on imported phosphatic fertilizers
- It supports Vedanta Group’s backward integration strategy in the agrochemical value chain
- L&T’s execution will contribute to job creation and regional economic development in Rajasthan
- The project is expected to be completed within a 24–30 month timeline, subject to regulatory approvals
L&T’s Minerals & Metals Business Momentum
The Minerals & Metals vertical has been a consistent growth driver for L&T, delivering end-to-end EPC solutions across mining, steel, cement, and chemical sectors.
- Recent wins include alumina refinery and pellet plant contracts from Hindalco and other steel majors
- The division operates manufacturing hubs in Kansbahal and Kanchipuram, supporting custom equipment and modular assemblies
- L&T continues to expand its footprint in the Middle East and Africa, with international orders contributing over 40 percent of segment revenue
- The company’s focus on digital engineering and sustainability is enhancing project efficiency and ESG compliance
Market Reaction and Investor Sentiment
Following the announcement, L&T’s stock showed resilience amid broader market volatility, reflecting investor confidence in its diversified order book.
- Shares traded near Rs 3,780 on the NSE, with intraday gains of 0.8 percent
- Analysts expect the order to contribute meaningfully to Q2 FY26 revenue visibility
- L&T’s total order inflow for FY25 exceeded Rs 3.5 lakh crore, with a healthy mix of domestic and international projects
- The company’s consolidated order book stood at Rs 5.79 lakh crore as of March 2025
Conclusion: Engineering India’s Industrial Future
L&T’s latest win from Hindustan Zinc is more than a contract—it’s a strategic endorsement of its engineering prowess and execution reliability. As India accelerates its industrial and agricultural infrastructure build-out, L&T’s ability to deliver complex, high-value projects will remain central to the country’s growth narrative. With a robust pipeline and expanding global footprint, the company is well-positioned to lead the next wave of industrial transformation.
Sources: Larsen & Toubro official press release, Financial Express, ScanX News
