L&T makes a splash with floating dock in Tamil Nadu

The utility vessel with specialised functions is ready for the trial phase at the Kattupalli shipyard, where L&T has invested about Rs 5,000 crore. When the vessel moves to Port Blair, the defence order worth Rs 468 crore will charter the growth path for L&T. 

B Kannan, MD-CEO, L&T Shipbuilding, said the delivery of the FDN-2 will happen within three months. This order engages the company in high concurrency as far as design and digital technology is concerned as it has enabled efficient, accurate and effective project management. 

JD Patil, EVP and Whole Time Director (designate), Defence, L&T, said the indigenously built vessel had a strategic relevance as having such a facility in Andaman and Nicobar will enable repairs and refitment at the location itself. This is, therefore, a strategic advantage, he reiterated. The capabilities have not only opened up export opportunities, but also prove that the company need not be confined to manufacturing FDNs alone, he said.

He added that the Vietnam order, one of its first export projects, which led L&T to design and build 12 customised ships validated this thought process. “This consolidates our knowledge and design capabilities as far as ships are concerned, Patil said, noting that following stringent conditions required for warships proved the company’s ability on the quality parameters front. 

Though the orders at hand were not yet fully delivered as it would take about 8 to 10 weeks to complete the handover, he said, 32 of the 54 interceptor boats had been launched and were operational. The FDN-2 also had to be seen as the company making a “statement” as its ability to make a basic hull to everything else gave it a completely different positioning. This enables L&T to engage in far more complex and larger platform projects. 

Kannan said the digital technology made it possible to create three models of ships on which various designs could be tested besides being engaged in digital production. This, enabled the creation of an eco-system for common digital domain, be it procurement or quality control or monitoring project cost. Elaborating on this, Patil said the digital factory layout meant little need to “rework.”  While a dry dock envisaged an investment of Rs 2,000 crore, a floating dock could be done at one-fourth the cost as the order value indicated. 

The officials maintained that the Kattupalli facility will be used to execute only defence orders from the Coast Guard and Indian Navy. Given the size of the facility, which can be matched only by about three yards globally, Patil said currently only one-fifth of the land had been used. Also, considering the investment made into the greenfield unit, L&T had accumulated losses to the tune of Rs 2,500 crore. The breakeven is expected to be achieved by financial year 2020. 

L&T has also been mandated by the Coast Guard to design and build seven Offshore Patrol Vessels (OPVs). Two of these OPVs are slated for launch in the second half of this financial year, on schedule.