Exclusive Insights by Mr. Rajeev Jyoti, Advisor to CMD, Railway Business, Larsen & Toubro Ltd.
Summary
TLDRL&T Railways showcases its full-range rail system integration capabilities at the IR event, emphasizing its expertise in track, electrification, and signaling & telecom. The company highlights its involvement in both domestic and international projects, including metros and mainlines, and advocates for larger, integrated project packages to ensure quality and efficiency. L&T also discusses the potential for India's railway industry to export its competencies, focusing on the importance of quality, cost-effectiveness, and meeting international standards.
Takeaways
- 🚄 L&T has extensive experience in rail infrastructure projects, including metros and mainlines, both domestically and internationally.
- 🤝 L&T often participates in consortiums for projects, sometimes leading and sometimes partnering, leveraging their capabilities in various domains.
- 🌐 L&T Railways positions itself as a full-range rail system integrator, emphasizing its ability to handle projects from civil and track work to electrification and signaling & telecom.
- 🛤️ The company specializes in various types of track systems, including those for mainline, metro, semi-high speed, high-speed, and specific applications like blasted track and slab track.
- 🔌 L&T undertakes electrification projects for both mainline railways and metros, covering different voltage standards and electrification methods.
- 🚦 Signaling and telecom are integral to L&T's offerings, with systems sourced from KY OEMs and tailored application engineering to fit specific railway needs.
- 🏗️ L&T showcases its ability to execute integrated projects, such as 'track to train', where it handles everything from infrastructure to rolling stock, except for the trains themselves.
- 🌟 The company highlights showcasing new and marquee projects that are either within or outside Indian geography, emphasizing its international presence and capabilities.
- 📈 L&T advocates for larger and more integrated project packages to attract participation from larger companies and ensure effective system integration.
- 💡 The script suggests that the Indian railway industry should focus on exporting its competencies to markets that lack local manufacturing capabilities and are open to international partnerships.
- 🚀 L&T is recognized as a preferred partner in global railway projects, indicating a successful track record and the potential for other Indian companies to follow a similar path.
Q & A
What type of projects has L&T undertaken in Riyad and DOA Metro?
-L&T has undertaken projects in Riyad Metro and DOA Metro as part of consortiums, sometimes leading and sometimes partnering, leveraging their capabilities in civil and track projects, electrification, and signaling and telecom.
What is the primary message of L&T Railways' showcase at the IR event?
-The primary message is that L&T Railways is a full-range rail system integrator, specializing in three main domains: civil and track, electrification, and signaling and telecom, with an emphasis on system integration and project execution.
What are the different types of tracks mentioned in the script and for what purposes are they used?
-The types of tracks mentioned are poor slab track for semi-high speed, J slab track for high-speed, plin track for metros, and blasted track for mainline, each serving different speed and operational requirements.
What is the significance of L&T's involvement in both domestic and international projects?
-L&T's involvement signifies their capability to execute projects of global standards, which enhances their reputation as a preferred partner in the international market and allows them to leverage their expertise abroad.
How does L&T approach the integration of different railway systems?
-L&T integrates different railway systems by combining civil with electrical, signaling, telecom, and rolling stock, emphasizing the need for strong engineering to ensure the system works effectively.
What is the advantage of structuring packages in larger ways for railway projects?
-Larger packages attract participation from large companies like L&T, ensuring a higher level of expertise and financial credibility, and reduce the need for extensive interface management.
What is the EPC model mentioned in the script, and how has it impacted the electrification projects in India?
-The EPC (Engineering, Procurement, and Construction) model has streamlined the electrification process in India, allowing for a significant increase in the distance of electrified railway lines in recent years.
How does L&T view the potential for exporting Indian railway competency?
-L&T sees potential in exporting Indian competency, particularly in component and subsystem manufacturing, as well as engineering services, to countries without strong manufacturing capabilities or where Indian multinationals have a presence.
What challenges does the Indian railway industry face when considering exporting to global markets?
-Challenges include meeting international quality standards, competition from established local industries, and the need for cost-effectiveness and specialized engineering capabilities.
What is the importance of having a global standard for projects executed by Indian companies?
-Having global standards ensures that projects are of high quality and are acceptable internationally, leading to recognition and preferred partnership status in the global market.
How does L&T's experience in the Middle East, particularly in Riyadh and DOA Metro, reflect its capabilities?
-L&T's successful projects in the Middle East demonstrate its ability to deliver complex railway projects, showcasing its expertise in consortium leadership and partnership, and its adaptability to international projects.
Outlines
🚆 L&T's Global Railway Projects and System Integration
L&T has been involved in various railway projects globally, including the Riyadh Metro and DOA Metro, often as part of consortiums where they take on leadership or partnership roles. The company emphasizes its capability as a full-range rail system integrator, focusing on three main domains: track, electrification, and signaling & telecom. L&T showcases its expertise in different types of track systems, electrification projects for both mainline and metro railways, and the integration of signaling and telecom systems. The company also highlights its ability to undertake composite projects, such as the 'track to train' model, and its equipment manufacturing capabilities, which are critical for safety and ridership.
📈 Structuring Packages for Large-Scale Railway Projects
The speaker discusses the advantages of structuring larger and more integrated railway packages, suggesting that smaller packages may deter large companies like L&T from participating. They advocate for larger package sizes, around 300-400 crores or more, to attract such companies and promote the integration of civil, electrical, signaling, and telecom engineering. The speaker also warns against fragmenting projects into small packages that could lead to incomplete projects due to the lack of financial or technical credibility of smaller contractors. They propose that the EPC model, which has been successful in electrification projects, could be applied to track construction and other areas to leverage the strengths of Indian engineers and construction companies.
🌏 Export Opportunities and Global Market Potential for Indian Railway Industry
The speaker explores the potential for the Indian railway industry to export its competencies, emphasizing the need for a gradual approach, starting with component and subsystem levels. They acknowledge the cost competitiveness of Indian manufacturing and the presence of multinational companies in India that can serve as export hubs. The speaker also discusses the export of engineering services and hardware, citing examples such as the export of metro trains from India to Australia. They caution against the challenges of exporting to established markets with their own manufacturing capabilities and standards, suggesting that India should focus on exporting to regions lacking such capabilities or showing preference for Indian products. The speaker concludes by stressing the importance of quality, cost-effectiveness, and international standards for Indian companies to be considered as preferred global partners.
Mindmap
Keywords
💡Consortium
💡Rail System Integrator
💡Civil Works
💡Electrification
💡Signaling and Telecom
💡Track Types
💡System Integration
💡EPC Model
💡Indigenization
💡Export Opportunities
💡Global Standards
Highlights
L&T has experience in international projects, including the Riyadh Metro and DOA Metro, often as part of consortiums.
L&T Railways positions itself as a full-range rail system integrator.
The company operates in three main domains: civil and track, electrification, and signaling and telecom.
L&T specializes in various types of track systems for Mainline, Metro, semi-high speed, and high-speed railways.
Electrification projects include Mainline, Freight Corridor, and Metro systems with different voltage standards.
L&T integrates signaling and telecom systems sourced from KY OEMs with application engineering.
The company showcases integrated projects such as 'track to train', including construction and operation.
L&T emphasizes the importance of not breaking packages into small sizes that deter large companies from participating.
Advocates for larger, composite projects to reduce interface management and increase system effectiveness.
L&T promotes the EPC model for its efficiency in electrification projects, suggesting a similar approach for track construction.
The company discusses the potential for Indian competency in exporting, especially in component and subsystem manufacturing.
Multinational companies based in India can leverage their Indian operations for global exports.
L&T has manufactured specialized equipment for high-speed track projects, showcasing its capabilities.
The company is looking beyond India for projects and has a presence in Middle Eastern markets.
L&T believes in the step-by-step approach to global market participation, starting with local expertise.
The importance of cost competitiveness, delivery, and international quality standards for global market acceptance.
L&T's strategy to be a preferred partner in global railway projects through its expertise and capabilities.
Transcripts
L&T has done projects in Riyad for Riyad
Metro we have done projects in DOA Metro
and so on and these are essentially part
of consortiums so we we form part of
consortiums many times we are leaders in
Consortium many times we are Partners in
Consortium and this model will continue
because we have the capability we are
doing things here so we can use that to
leverage and participate
[Music]
abroad could you please tell us a little
bit about uh your showcase at the IR
this time and what is the message as
well as the display you are showcasing
at this event I think L&T Railways is uh
a full range uh rail system integrator I
think that's a top line of our message
and then when I say that we are into
three main domains one is uh civil and
track predominantly track we are not
doing uh Civil Works we have another
vertical within lnt who does that we are
we are targeting the Tracks number two
is electrification and number three is
signaling and Telecom and then we do all
the things together which is a composite
project and that becomes an integration
project so that's what we are showcasing
here uh when I said track we are doing
track for Mainline we doing track for
Metro and the different types of
track there's a track which is for semi
high
speed which which is called uh poor slab
track then there's a track for highspeed
which is called J slab then you have
track for metros which is called plin
track and you have track for Mainline
which is called blasted track so we do
all kinds of track and which is very
critical High skilled requirement for
good ridership and uh good safety and so
on so that's one domain second domain is
electrification again we do
electrification for Mainline which is
like you saw
Freight Corridor you have seen pictures
here where we had we had done the entire
Western Freight Corridor and nearly over
50 60% of Eastern fight Corridor we also
doing other electrification projects
within Indian railways but on the other
side we Al also doing electrification
projects for metros again in metros you
have different types of electrification
you have overhead electrification which
is 25 KV and you have DC traction DC
electrification and you also now have
beginning to see a third rail
electrification for projects like Agra
Metro which we are doing so we showcase
that also here and then third uh equally
important is signaling and Telecom uh so
signaling and Telecom we uh we uh Source
our systems from uh KY oems and then we
integrate that we do engineering of that
application engineering of that
similarly we do Telecom Works where uh
we evolve the Telecom schemes and
systems and and then then we operate
either directly ourselves or through our
system integrators and then there are
projects which combine all the three
functions in uh Railways and metros many
times they split packages so somebody
will say I only want a track somebody
will say I only want electrification so
we bid for packages we bid for
integrated projects so like we have done
an integrated project in morus which is
what I call track to train so we we made
the track we made the bridges we made
the stations we did signaling Telecom
air Fair collection we also bought
trains and integrated that so we do from
track to train similar we doing uh
projects in Dhaka where we are doing
everything except trains and uh leaving
aside the yex ETC so I think that's what
we are showcasing here apart from the
overall system integration we also
showcased projects which are very uh new
very Marky both within the Indian
geography and outside the Indian
geography I said I as said Dhaka and so
on so we are we have also reflected with
them that we are also looking Beyond
India so I think that's another message
which we are showcasing by showing the
kind of project that we are
doing so I think uh we are uh we have
touched on various projects and we also
projects which are recent we not shown
projects with 10 year olds the projects
which are now coming to conclusion but
also projects which are giving a
specific message like we have
a a poster here which is showing high
speed I'm making I'm making a track for
highp Speed and there we have showcased
lnt is also doing Yu on that they have
very high degree of specialized
equipment which L&T has manufactured
because lnt also has equipment
manufacturing capability so we have
showcased that so I think we have
showcased specific special projects and
also given overall flavor of the lnt
vision how we go in from India to
outside geographies I think that's
broadly the message as far as uh this
stall is
concerned thank you so much um the other
question uh which we would like to get
your Insight is uh in your opening
remarks you had mentioned about uh
structuring the packages uh in larger
ways so that companies like lnt can step
in what are the advantages you feel the
railway gains by structuring packages uh
in a way where the complete uh package
can be given to a single company rather
than breaking it into smaller uh
points I think we are deeply conscious
of the fact that the railway wants
competition and we are we are not
worried on that all we are saying is if
you break packages into uh either
financially low value which could be 100
crores or 150 crores then many large
companies like us will not participate
in that we surely look at uh a package
size which is about 300 400 crores or
more so there are two possibilities one
is you create larger packages larger
package sizes to uh excite in companies
like lnt to participate but also we are
saying you should look at composite
projects integrated projects because in
Railways being a very specialized domain
as you would have heard uh in various
forums you need to have very strong
engineering to be able to integrate
civil with electrical with signaling and
Telecom and and Rolling Stock so if you
are not able to integrate that then the
whole system will may not work
effectively so we are saying two things
one is don't make it so small that
larger companies uh which a large number
of larger companies are not interested
and number two try and make it composite
so that your own engineering and
interface management is reduced to the
minimum and you are having people who
understand railways uh uh they should
not people should not treat Railways
contractors like labor contractors so
you need to have people who know who
understand engineering of Railways who
are able to do application engineering
of Railways who also have the methods
and and uh project management
capabilities so if you make packages
which are economic to run that's what we
suggest many times people are not doing
that the breaking it into very small
packages and therefore cont actors who
may not have the financial credibility
or the or the other skill credibility or
engineering capability they enter and
they leave the project half done so I
think that creates a problem for the
entire uh entire project so that's what
we are we have been propagating that uh
it's not in the Paradigm of what the way
Railways work and therefore it will take
time to change the Paradigm I mentioned
in my talk on the the EPC model EPC
model has changed the paradigm and
that's the result how electrification
was done so fast in the last 5 6 7even
years and you must be tracking that we
were doing less than 1,000 kilm we done
over 6,000 km in the last few years so
the change in pattern was essentially
because what we advocated was an EPC
model we are saying use similar models
for track construction and more
importantly use further combine uh
multiple packages to get the best out of
indan Indian engineers and Indian
Construction Company
thank you so much and uh lastly um you
mentioned about the macius Metro as well
as uh your presence in Daka and I'm I'm
sure in the Middle East as well you've
been engaging in Metro projects the
Indian rail industry is also looking to
export opportunities and there is a talk
about also indigenization of the pl
scheme and so on could you share some
insights as a market leader of what the
a the railway industry can do to make
make Indian competency better for export
uh perspective be it for Rolling Stock
and even civil packages and you're
already doing something on the Civil
side but how can the Indian industry
look at Global Market as their you know
potential market and design in India and
Supply from India for Global
projects I think when you when you say
Railway industry you have uh different
categories of that some which who make
the full systems for example a Rolling
Stock manufacturer who makes and Designs
a full system that's one level of uh
development the second level of
development is a subsystem level or
component level as I call it so I think
component level we already doing things
where uh our medium Industries can do
these uh these products and sell uh sell
outside to measor oems in a cost
competitive manner I think we have
benefit of cost and uh in many items
whether it's forging or casting we have
cost competitiveness so we could take
advantage of that number two we also
have when you say Indian industry let it
also be clear that many multinationals
who have who have a facility in India
they also Indian companies so they could
well have a compettion center in uh
abroad but they are full-fledged Indian
companies and therefore they have uh
they have they are very well equipped to
look at whatever they're doing out of
India to exporting it abroad Engineering
Services is a classic example where lot
of Indian Resources are being used in
India for projects abroad so similarly
for Hardware since which is what people
most understand in the hardware also if
you have if the Indian industry was done
well uh and within a multinational group
they could also very well explor explore
uh within the group which is also
happening if you see many companies uh I
have worked in Bombardier and I set up
the Metro Factory so the Bogies of the
Metro which we made are being exported
outside India in fact the whole Metro
trains were exported to Australia from
India so you will have to find this
balance uh I'm not saying that you're
making India if you say uh the new
trains that have being done are are
going to be exportable abroad because
people also look at different standards
and different uh you know credibility
levels and experience levels so while
it's good to do things but I think we
need to start learning to walk in India
before we start running abroad I think
that's critical as far as manufacturing
is concerned you have enough
manufacturing going on but it will be
component level subsystem
level the multinationals could use their
sources from here in a selective manner
let's also remember that uh people don't
open their market so easy so you can't
have a situation where uh alom in India
will start exporting to Europe so they
will also look at it from a cost
economic standpoint they're not going to
shut their factories because they have a
factory number two in Railways since the
volume of the product is very large so
you also have huge Transportation costs
so sometimes it makes logical sense to
manufacture in the local place uh
exporting of metros from India to
Australia was an exception because
austral there was no Australian
manufacturing which was available there
so for them it was an option that they
could use the Indian facility and Export
it there but if you were to tell me that
can we export to Berlin from here or
Switzerland from here I will say that's
a long long cry those Industries must
shut down there and those are Industries
which are over hundreds of years old
they're not going to shut down and they
also have different standards of
acceptability and so on so let's take a
step at a time I think uh there is good
possibility of India uh for example
exporting to Middle East or to some of
the areas who do not have the the
manufacturing capability to they will
either import from Europe or somewhere
else they may have their preferences
today for from Europe but if India
Indian quality or Indian uh Indian the
the outfits of Indian multinationals are
doing as well and which is they have to
do as well that can be used as a source
to export to countries who do not have
the real manufacturing capability
engineering of course is uh something
which anyways currently is being used
you have large engineering centers in
many of these companies so that Eng in
center and project management centers
are being used anyway and so that's one
element second is projects like people
like us who do projects so people like
us who do projects are any way are
participating actively lnt has done
projects in Riyad for Riyad Metro we
have done projects in DOA Metro and so
on and these are essentially part of
consortiums so we we form part of
consortiums many times we are leaders in
Consortium many times we are Partners in
Consortium and and this model will
continue because we have the capability
we are doing things here so we can use
that to leverage and participate abroad
so I think it's a it's a it's a way the
the world Economics
work the same way I think it will be
applying to India you need to be uh uh
very aggressive on costs you need to be
able to deliver and you need to have
quality which is acceptable at
International level so I think all these
are parameters which if it happens I
think uh one could move forward and
that's the direction some of us are
taking to see that the projects that we
execute are of global standards and
therefore are acceptable to people and
they respect us and we are taken as a
preferred partner lnt today is take as
considered as a preferred partner to
many people so when there's a raway
project many of many uh Global players
approach us to be partners in them and I
think that's a good development which
could also happen with many other
companies
[Music]
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