L&T Completes Major Australia Modularisation Project
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L&T has completed the fabrication and delivery of 110 modules weighing 64,000 tonnes for Australia’s Project CERES urea plant. The company now aims to expand its modularisation business globally, targeting opportunities across Australia, Canada, Mozambique and the US Gulf Coast.
Larsen & Toubro (L&T) has completed the fabrication and delivery of 110 modules for Project CERES, Australia's largest urea manufacturing facility. The modules weigh around 64,000 tonnes and will form part of the 2.3-million-tonne-per-year plant in Western Australia.
The modules were manufactured at L&T's facility in Kattupalli, near Chennai. They comprised 47 pre-assembled units and 63 pre-assembled racks, which were transported to Karratha through 23 marine shipments.
The project demonstrates how large portions of complex industrial projects can be fabricated, tested and integrated away from the final construction site. L&T said this approach can improve execution predictability while reducing site-level complexity.
L&T shares gained 1.27% on Friday, closing at ₹3,885 on the National Stock Exchange (NSE).
Company Sees Scope For Global Expansion
L&T is now looking to expand its modularisation business across international markets. The company has combined modular fabrication capacity of around 200,000 tonnes across facilities in Kattupalli, Hazira and Oman.
Around half of this capacity could potentially be available for onshore modularisation after accounting for offshore requirements. This would give L&T capacity equivalent to roughly three projects of the scale of Project CERES at the same time.
The company does not expect significant additional capital expenditure to expand the business. L&T's management said existing facilities have relatively low fixed costs, making higher utilisation of current assets a key focus.
L&T estimates the global modularisation opportunity at around $100-150 billion over the next five years. The company is evaluating opportunities in markets including Australia, Canada, Mozambique and the US Gulf Coast.
Modularisation To Address Labour And Execution Challenges
L&T sees modular construction as a way to manage skilled-labour shortages, high labour costs, extreme weather and difficult project locations. Much of the construction and testing work can be completed in a controlled fabrication environment before the modules are transported to the project site.
The company currently operates more than 23 training institutes and trains nearly 46,000 people each year. However, L&T has said the wider construction industry continues to face challenges in securing skilled workers.
L&T also plans to explore modularisation beyond the hydrocarbons sector. Potential applications include steel and thermal power projects, while smaller modules that can be transported by road are being considered for domestic projects.
The successful completion of Project CERES gives L&T a major international reference project as it seeks further modularisation contracts. The company is also in discussions with the government about measures such as increased credit facilities, concessional taxation for exports and other export incentives.
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Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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