Mumbai: Larsen & Toubro Ltd. (L&T) made a major announcement on Tuesday, December 23, after receiving a large order from state-owned Bharat Petroleum Corporation Ltd. (BPCL). The value of the order is estimated between Rs 5,000 crore and Rs 10,000 crore, which L&T classifies as a 'major order' under its internal guidelines.
Details of the BPCL Project
The order involves the engineering, procurement, construction and commissioning (EPCC) of a new petrochemical unit at BPCL’s Bina refinery in Madhya Pradesh. The project will set up a Linear Low-Density Polyethylene (LLDPE) and High-Density Polyethylene (HDPE) swing unit. The unit will consist of two trains, each with a production capacity of 575 KTPA.
India’s Largest Swing Unit
L&T’s onshore business will execute the project on a lump sum turnkey (LSTK) basis. According to the company, once completed, this will become India’s largest LLDPE and HDPE swing unit. The project highlights L&T’s strong technical capabilities in the downstream hydrocarbon and EPC space.
Key Part of Bina Refinery Expansion
This project is an important part of BPCL’s Bina refinery expansion plan. The expansion aims to build a large petrochemical complex and increase the refinery’s processing capacity from 7.8 million tonnes per annum (MTPA) to 11 MTPA. The move will help BPCL expand its petrochemical footprint and improve value addition.
Company Management’s View
Subramanian Sarma, Deputy Managing Director and President of L&T, said the order will strengthen the company’s balance sheet and further establish L&T’s leadership in the downstream hydrocarbon EPC segment. He added that such projects reinforce the company’s long-term growth strategy.
Strong Order Book Momentum
Recently, L&T also received large orders worth Rs 2,500–Rs 5,000 crore from the Madhya Pradesh State Tourism Development Corporation for its Buildings and Factories business. These wins show consistent order inflow across multiple business segments.
Stock Market Reaction
Following the announcement, L&T shares were trading around Rs 4,085, up nearly 0.3 per cent. The stock has gained about 11.5 percent so far in 2025, reflecting steady investor confidence.
