The IT function has made strategic investments in FY24-25, reflecting the company’s focus on operational excellence and preparedness for the future.
(Source: freepik)
The Larsen & Toubro (L&T) Group reported revenues of ₹2.56 lakh crore during FY24-25, registering 16% Y-o-Y growth. At ₹15,037 crore, the group’s profit after tax (PAT) represents a growth of 15% over FY23-24.
L&T is betting big on technology to propel it to the next level of growth. The company recently announced a host of digital initiatives taken at the group level, including those around AI, GenAI, cyber security, and data management. The company believes these technological transformation programmes will pave the way for the next wave of growth for the group.
“Amidst dynamic global shifts, your company is strategically poised to seize emerging opportunities. Its proven capabilities in delivering world-class infrastructure and EPC projects, proactive approach to the energy transition, strengths in hi-tech manufacturing and services, and unwavering focus on technology-led, quality execution uniquely position it to lead in the evolving business landscape,” said S. N. Subrahmanyan, Chairman and Managing Director, L&T in the recently released annual report for FY24-25.
The following outlines the key digital transformation initiatives undertaken by L&T in FY 2024-25, as mentioned in the annual report.
The company has initiated a structured Artificial Intelligence (AI) journey, assembling a team of specialists to harness AI across business functions. To this end, plans are in place to deploy over 100 AI solutions by FY 2025-26, boosting productivity and operational efficiency. This initiative led to the launch of PolyLLM framework based L&T Cognitive Services (L&TCS).
Designed for scalability and impact, L&TCS focuses on improving outcomes in areas such as quality, safety, revenue, time efficiency, inventory management, manpower optimisation and cost reduction — ultimately driving a robust return on investment.
During the year, the company deployed Machine Learning (ML), Natural Language Processing (NLP), Generative Artificial Intelligence (GenAI) and other technologies to enhance the efficiency of various systems and processes in the Engineering, Procurement and Construction (EPC) business.
AI is being leveraged in various processes
Precast Operations
AI has been incorporated in the casting yard’s CCTV cameras to track the cycle time of processes for precast elements and resource utilisation in the yard.
Chatbots for Project Data
AI-powered chatbots provide real-time assistance for project-related queries on commissioning, punch points, logistics, and other areas.
Galvanisation monitoring
AI-based OEE (overall equipment effectiveness) monitoring through video analytics for the galvanisation process in the Transmission Line Tower factory.
NRW Reduction using Digital Twin
AI-driven Digital Twin solution for loss identification in District Metered Areas (DMAs).
By simulation, real-time data can be continuously monitored and analysed, further predicting potential leak points and identifying areas with high probabilities of Non-Revenue Water (NRW) losses.Significant benefits have accrued from the usage of AI.
Reduction in workforce and machinery planning timelines
AI applications have resulted in operational efficiency in machinery and workforce planning processes. The time taken has been reduced to 10 minutes from 2 weeks earlier. AI-driven insights have led to 2% to 3% cost savings, contributing to enhanced operational productivity.
AI-driven Contract Management
AI (Azure OpenAI) interventions in contract management has helped in streamlining contract analysis by rapid identification of crucial clauses and extraction of technical deliverables from extensive documentation.
Cloud based ESG platform
L&T partnered with its subsidiary, L&T Technology Services to develop a cloud-based ESG Analysis and Reporting Tool for Holistic Initiatives (L&T-EARTH) platform. It supports regulatory reporting, decision-making and internal benchmarking in the area of Environment, Sustainability and Governance (ESG) by capturing sustainability metrics (energy, emissions, water, waste) across the company’s operational locations.
L&T-EARTH has been connected with APIs, IoT and other sources of data including the ERP systems for automatic data flow. In addition, L&T has also initiated automation of data capture for water withdrawal and electricity consumption at various locations. This automation is done by installing flow meters and smart meters, and connecting them through IoT gateways to L&T-EARTH.
C-SOC operationalisation
L&T has partnered with PwC to enhance its cybersecurity infrastructure. In FY24-25, the group onboarded all its key businesses on a centralized 24x7 Central Cyber Security Operations Centre (C-SOC), providing a unified view of security incidents and enabling mitigation across the group. The initiative also focused on leveraging hyper-automation and predictive analytics to bolster threat detection and response capabilities. Cybersecurity awareness programmes were also conducted among employees throughout the year.
Future roadmap
In FY 2025-26, the company will focus on scaling-up the ‘L&T One Approach: Enhancing One Identity, One Network, One Data, One Asset and One Unified Portal’ to support growth. To boost cyber resilience, L&T will be investing in quantum resistant encryption and AI-driven threat intelligence.
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