L&T Hydrocarbon Engineering in consortium with UK-headquartered TechnipFMC has bagged two contracts from HURL for setting up two fertiliser plants of 2,200 TPD ammonia and 3,850 TPD urea.
L&T Hydrocarbon Engineering (LTHE) in consortium with UK-headquartered TechnipFMC providing subsea, onshore, offshore, and surface technologies, has bagged two contracts from Hindustan Urvarak and Rasayan Ltd (HURL). According to L&T’s regulatory filing, the engineering, procurement, construction and commissioning (EPCC) contracts won by the joint venture are for setting up two fertiliser plants of 2,200 TPD ammonia and 3,850 TPD urea at Barauni in Bihar and Sindri in Jharkhand. LTHE’s scope of work, worth above Rs 3,800 crore, consists of two 2,200 TPD ammonia plants. The plants will be based on ammonia technology of Haldor Topsoe, Denmark, and urea technology of Saipem, Italy.
Why is this important
Bagging these two orders from HURL through international competitive bidding process reinforces L&T’s integrated capabilities in executing critical plants for the fertilisers, refinery and petrochemical segments
How will the stock be impacted
Considering L&T’s capabilities in executing huge contracts, bagging of above orders is expected to improve the revenue visibility of Larsen & Toubro (CMP Rs. 1314, M Cap Rs. 1,84,166 Cr, EV/Ebitda 13.7x FY20E).