Larsen & Toubro is ramping up its use of robotics, prefabrication, and digital tools. As India’s biggest engineering and construction company, L&T wants to tackle manpower problems and boost execution on massive infrastructure projects.
At the ICICI Securities India Investors Conference 2026, CFO R. Shankar Raman explained how, over the past few years, L&T’s been automating parts of construction you wouldn’t normally expect. Now, robots handle welding, painting, and plastering—stuff that used to need skilled hands. Raman calls these “digital workers,” with programs directing robots to take over jobs once reserved for manual labor.
L&T’s projects have ballooned in size. Five years ago, its order book sat around ₹3.5 lakh crore; now, it’s close to ₹7.5 lakh crore. The workforce also shot up from about 1.5 lakh to 4 lakh, including both direct and indirect employees.
But relying on more people alone isn’t sustainable as projects get bigger and tougher. Labor’s become a major hurdle for construction firms, with workers looking at other jobs and tough work conditions making things harder. Raman noted that seasonal migration, farm cycles, and folks heading home to their villages disrupt the workforce. He estimated L&T might need to engage with about 10 lakh workers just to keep 4 lakh on site at any moment.
That’s why L&T wants less dependence on onsite construction. They’re pushing prefabricated and modular structures—making building more like factory work. Prepare parts in advance, then just assemble them at the site.
Safety is a huge motivator, too. Working with 400,000 people, Raman said, means safety is always top of mind. Automation helps keep workers away from dangerous tasks.
L&T’s experience in the Middle East—in places like Saudi Arabia, Qatar, and the UAE—has shaped its thinking. Handling giant projects and working alongside global engineering firms gave L&T fresh perspective on scaling execution.
All these comments come as L&T prepares for a finance leadership change. Raman steps down as CFO at the end of June 2026; P. Ramakrishnan takes over as CFO and Key Manager from July. Raman stays on as President and Whole-time Director – Finance, pending shareholder approval.
L&T’s push for automation mirrors a bigger trend in India’s construction world: more companies are turning to tech to lift productivity, deal with labor shortages, and improve safety.
For L&T, this shift isn’t just about swapping workers for machines. It’s about rethinking how big projects get done—combining robotics, modular building, digital systems, and smarter processes. As India keeps pouring money into infrastructure, L&T’s move toward automation could set the pace for how the industry faces bigger, more complex projects with fewer hands and higher safety demands.
