Exclusive Insights by Mr. Rajeev Jyoti, Advisor to CMD, Railway Business, Larsen & Toubro Ltd.

Summary

L&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

00:00

🚆 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.

05:01

📈 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.

10:03

🌏 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.

Keywords

💡Consortium

A consortium is a group of companies or organizations that come together to work on a project or venture. In the context of the video, L&T often forms part of such groups, sometimes leading and sometimes partnering, to leverage their capabilities in executing projects both domestically and internationally. The script mentions L&T's participation in consortiums for projects like the Riyadh Metro and DOA Metro, highlighting their collaborative approach to large-scale infrastructure development.

💡Rail System Integrator

A rail system integrator is an entity that has the capability to bring together various components of a rail system, such as tracks, electrification, and signaling, to create a cohesive and functional railway network. The video emphasizes L&T Railways' role as a full-range rail system integrator, showcasing their ability to handle complex projects that require the integration of multiple domains of expertise.

💡Civil Works

Civil works refer to the construction and engineering activities associated with the building of infrastructure, such as roads, bridges, and buildings. While L&T has a vertical within the company that handles civil works, the script clarifies that L&T's focus in the context of railways is predominantly on tracks, not general civil construction.

💡Electrification

Electrification in the context of railways refers to the process of equipping a railway system with the necessary infrastructure to operate electric trains. The script discusses L&T's involvement in electrification projects for both mainline railways and metros, mentioning different types of electrification such as overhead and third rail systems.

💡Signaling and Telecom

Signaling and telecom are critical components of a railway system that ensure safe and efficient train operations through communication and control systems. The video describes how L&T sources systems from OEMs and integrates them into railway projects, emphasizing the importance of these domains in the overall railway infrastructure.

💡Track Types

Different types of tracks are used for various railway applications, such as mainline, metro, semi-high speed, and high-speed railways. The script provides examples of track types like 'poor slab track' for semi-high speed and 'J slab' for high-speed railways, illustrating the diversity of L&T's track-laying capabilities.

💡System Integration

System integration is the process of combining individual components or subsystems into a whole that functions together harmoniously. The video highlights L&T's showcase of their system integration projects, where they handle everything from track construction to signaling and telecom, creating a seamless railway system.

💡EPC Model

The EPC (Engineering, Procurement, and Construction) model is a project delivery approach where a single entity is responsible for designing, procuring materials, and constructing a project. The script discusses the advantages of the EPC model, as it has allowed for faster electrification of railways in India and suggests its application to track construction and other areas.

💡Indigenization

Indigenization refers to the process of making something native or domestic, often in the context of manufacturing or production. The script touches on the topic of indigenization in relation to the railway industry, suggesting that Indian competency can be better for export perspectives if more components and systems are manufactured domestically.

💡Export Opportunities

Export opportunities refer to the potential for a country or company to sell its goods or services in international markets. The video discusses the Indian railway industry's exploration of export opportunities, particularly in areas where there is demand for railway infrastructure and where Indian companies can offer competitive advantages.

💡Global Standards

Global standards are the benchmarks or criteria that are recognized and adhered to worldwide in various industries. The script emphasizes the importance of L&T and other Indian companies meeting global standards in their projects to be considered as preferred partners and to ensure their work is respected and accepted internationally.

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]