‘Will be the big foray’: L&T AI chief amid reports of conglomerate’s entry into electronic manufacturing services

Amid reports of L&T entering electronic manufacturing services, the company’s Chief AI Officer, Naveen Kamat, indicated that this was the next big thing for them. L&T has always been looking to diversify its portfolio, said Kamat.

Speaking at the Business Today AI Summit, Kamat said, "We have continuously looked at how we are going to diversify our portfolio, rejig our portfolio. Some time back we started off branching into services. So we have had LTI Mindtree and L&T technology services as our services division within L&T and that’s been a sort of natural evolution. And it kind of makes sense from an overall portfolio perspective in terms of margin expansion and growth.”

“I think that’s a call the company’s always been taking in terms of assessing what are the new technology trends, what are the new opportunities for growth as a conglomerate and I think this is one of the new forays we are thinking about. We have been into L&T semiconductors, and I think L&T electronics will be the big foray that we are going after,” he said without divulging if the company was going solo in its EMS foray or if it was partnering with another company.

According to media reports, L&T is taking steps towards entering the electronic manufacturing services (EMS) sector. The company, which has already established a strong presence in allied electronics fields, aims to develop comprehensive end-to-end manufacturing capabilities.

L&T's approach is expected to target components for sectors where it presently holds significant expertise, stated the reports. While the exact path remains undetermined, industry insiders indicated that the company is considering utilising its recently acquired land for a combination of EMS and semiconductor-linked activities. The conglomerate already operates subsidiaries such as L&T Precision Engineering & Systems, which are active in electronics manufacturing.