New Delhi: Larsen & Toubro Ltd (L&T) plans to invest ₹1,000 crore to expand and modernise its shipbuilding complex at Katupalli, Tamil Nadu, aiming to achieve its full intended production capacity.
The Katupalli facility, located about 40 km north of Chennai on an 892.11-acre site owned by L&T, currently operates below its sanctioned capacity, constructing 15 new ships and repairing 30 ships annually, compared to approvals for 25 ship constructions and 60 repairs per year, and modular fabrication capacity of 50,000 tons per annum.
This investment will fund the development of additional infrastructure within the existing premises including new shops, fabrication units, paint shops, assembly shops, blasting shops, warehouse sheds, office and residential buildings, a skill development centre, and landscaping/greenbelt areas.
The expansion aims to enable the yard to meet its approved environmental and coastal regulatory clearances for production and service capacity, enhancing modular fabrication and shipbuilding/repair operations to the approved limits.
The modernisation project is expected to commence in October 2025 and finish within three years. L&T’s Katupalli shipyard is a greenfield facility specialised in warship design and construction, equipped with multiple dry and wet berths allowing concurrent shipbuilding and repairs, including modular ship construction.
Notably, the yard had earned a five-star grading for occupational health and safety from the British Safety Council in 2019, underscoring its global standards.
This expansion aligns with L&T’s broader growth, backed by a strong financial position with fresh orders worth ₹89,613 crore in Q4 FY25 and a consolidated order book of ₹5.79 lakh crore as of March 31, 2025, showing a 22% year-on-year increase.
The company’s focus on expanding shipbuilding capacity at Katupalli highlights its strategic intent to strengthen its defence and commercial shipbuilding portfolio and meet growing demand domestically and internationally.
L&T’s ₹1,000 crore investment at Katupalli will significantly upgrade infrastructure to boost production capacity towards its permitted limits, supporting its role as a key player in India’s naval and commercial shipbuilding sector.
