Larsen & Toubro Ltd (L&T), India’s engineering and infrastructure powerhouse, has unveiled an ambitious $12 billion investment roadmap spanning the next five years. The plan, announced in August 2025, aims to reshape the company’s portfolio across clean energy, real estate, and core engineering services. With one-third of the capital earmarked for green initiatives, L&T is positioning itself at the forefront of India’s energy transition and global sustainability efforts.
The investment strategy reflects a dual focus: scaling up green hydrogen and ammonia production while expanding real estate and construction capabilities. The company’s leadership has emphasized that the move is not just about growth, but about future-proofing operations against evolving global demands.
Key Highlights from the Investment Plan
- Total investment commitment: $12 billion over five years
- $4 billion allocated to green hydrogen and ammonia capacity
- $8 billion to be spent on real estate development and core engineering expansion
- 2–3 million tonnes of green hydrogen and ammonia capacity targeted
- Land acquisition underway for hydrogen facilities in coastal states
Green Energy Push and Hydrogen Ambitions
L&T’s clean energy strategy will be executed through its subsidiary, L&T Energy Green Tech. The company plans to begin manufacturing electrolyzers by December 2025, powered by renewable energy sourced from ReNew Power. The first green hydrogen output will be delivered to Indian Oil Corporation’s Panipat refinery, with future expansion planned across other IOC facilities and L&T’s industrial clients.
- Electrolyzer manufacturing to begin in December 2025
- Initial hydrogen production at Panipat refinery
- Expansion planned to additional refineries and industrial hubs
- Hydrogen vending, fuel cells, and grid-scale batteries under evaluation
To support this scale, L&T has approached coastal states to acquire 500–1,000 acres of land for hydrogen infrastructure. The company is also exploring monetization options for its clean energy business, potentially unlocking value through strategic partnerships or spin-offs.
Realty and Infrastructure Expansion
Beyond energy, L&T is investing heavily in its realty and construction verticals. Nearly 28 million square feet of new facilities are under development, including commercial complexes, residential towers, and industrial parks. The $8 billion allocation will also fund upgrades to L&T’s engineering and construction capabilities, including digitalization, automation, and project execution platforms.
- 28 million square feet of real estate under development
- Investment to double annual capital expenditure average
- Focus on smart buildings, transit-oriented development, and green construction
- Enhanced use of IoT, robotics, and embedded software across projects
Leadership Transition and Strategic Vision
The announcement coincides with a leadership transition at L&T, as CEO S N Subrahmanyan prepares to take over as Group Chairman in October 2025. His vision emphasizes technology-led transformation, sustainability, and global competitiveness. Under his guidance, L&T has already connected over 15,000 assets to a central IoT platform and commissioned over 12 GW of renewable and nuclear energy projects.
- Subrahmanyan to succeed A M Naik as Group Chairman
- Focus on digital connectivity, advanced sensors, and AI integration
- Generative AI cited as a game-changer in project lifecycle management
- Sustainability embedded in all verticals under ‘For A Better World’ initiative
Challenges and Execution Outlook
Despite the scale of ambition, L&T acknowledges that large-scale hydrogen production remains cost-sensitive. High tariffs on renewable energy and electrolyzer costs could slow rollout unless pricing becomes more competitive. Subrahmanyan has stated that investment acceleration will depend on tariff reductions and policy support.
- Cost viability of hydrogen production remains a challenge
- Tariff reductions key to scaling clean energy investments
- Execution timelines to be adjusted based on market conditions
Looking Ahead
L&T’s $12 billion investment blueprint marks a defining moment in its evolution from a traditional engineering firm to a diversified, future-ready conglomerate. With clean energy, smart infrastructure, and digital transformation at its core, the company is poised to play a pivotal role in shaping India’s industrial and environmental landscape over the next decade.
Sources: Business Standard, Moneycontrol, Chemindigest.
