L&T sees $150-billion global modularisation opportunity in 5 years, eyes larger pie

A logo of L&T is pictured at a Larsen & Toubro complex | Photo Credit: Reuters Larsen & Toubro Ltd (L&T) is positioning itself to capture a larger share of the global modular construction market, as rising labour costs and shortages of skilled workers push project developers towards factory-built modules for complex infrastructure and energy projects.The engineering and construction major estimates that the addressable global market for modularisation could be around $150 billion over the next five years, with L&T targeting opportunities worth nearly $20-30 billion.“Modular concepts will be popular going forward,” said Subramanian Sarma, Deputy Managing Director and President, L&T, adding that the company is also exploring greater adoption of modular construction in India while developing hybrid models that combine modular and conventional construction to address transportation challenges.L&T’s focus on modularisation gained momentum after the successful completion of fabrication and delivery of 110 modules weighing about 64,000 metric tonnes for Project CERES, Australia’s largest urea manufacturing facility with a capacity of 2.3 million tonnes per annum (MTPA).The modules were fabricated at L&T’s Modular Fabrication Facility at Kattupalli near Chennai over 30 months and shipped to Australia through 23 voyages. The modules were delivered after being fully tested, pre-commissioned and made ready for installation, reducing construction activities at the project site.Project CERES is being developed by Perdaman Chemicals & Fertilisers at Karratha in Western Australia under the Saipem-Clough Joint Venture. L&T’s scope included fabrication of 47 pre-assembled units and 63 pre-assembled racks.The project was marked by the presence of Roger Cook, Premier of Western Australia, at an event held in Mumbai to celebrate the milestone.L&T Chairman and Managing Director S N Subrahmanyan said the project highlighted India’s growing role in the global project delivery ecosystem, moving beyond manufacturing capabilities towards integrated engineering, technology and execution services.“Delivering modular fabrication of this scale, with an excellent safety record, for Australia demonstrates the depth of India’s industrial ecosystem and its ability to meet demanding international standards,” he said.According to Mr. Sarma, modularisation is transforming the execution of large and complex energy projects. By shifting significant portions of construction, integration, testing and pre-commissioning activities from project sites to controlled factory environments, it enables parallel execution, improves safety and quality oversight, enhances predictability and reduces complexity at project locations, he said.Several complex equipment components integrated into the CERES modules were manufactured at L&T’s advanced manufacturing facility at Hazira, Gujarat, further strengthening the company’s integrated project execution capabilities.L&T said the experience gained from Project CERES extends beyond the fertiliser sector. Modular construction can support projects in sectors such as liquefied natural gas (LNG), gas processing, refining, petrochemicals, chemicals, hydrogen and low-carbon fuels, especially in remote locations where availability of skilled labour and project timelines are key constraints. Published - September 18, 2026 08:31 pm IST