Larsen & Toubro's CFO R Shankar Raman stated the company is increasingly relying on automation and robotics, termed 'digital workers,' to address manpower shortages and execution challenges in its projects. This strategy aims to mitigate issues like labor availability, seasonal migration, and safety concerns, while enabling scalability.
L&T's strategic shift towards 'digital workers' signals a broader trend in the construction industry to address labor shortages and improve efficiency through technology. This approach could lead to more scalable project execution, enhanced safety, and potentially lower costs, impacting the company's competitiveness and the future of construction labor.
Larsen & Toubro (L&T) is significantly increasing its investment in automation and robotics, which the company's Chief Financial Officer R Shankar Raman refers to as 'digital workers,' to overcome challenges in securing and managing manpower for its projects. Raman explained at the ICICI Securities India Investors Conference 2026 that while the company's order book has surged to approximately ₹7.5 lakh crore from ₹3-3.5 lakh crore five years ago, the workforce has grown to 4 lakh from 1.5 lakh, indicating that relying solely on increasing human labor is not a sustainable growth strategy.
The company is focusing on automation to make construction less site-dependent and more akin to factory work, utilizing prefabricated and modular structures that can be assembled on-site. Robots are now being employed for tasks such as welding, painting, and plastering, reducing the need to find skilled labor for these specific trades. Raman highlighted that labor availability has become a critical issue, as workers increasingly prefer less arduous environments and have more employment options than traditional construction site work, especially in harsh weather conditions.
Furthermore, workforce continuity is impacted by seasonal migration and agricultural cycles, leading to a need for a larger pool of workers to maintain a consistent operational force. Raman suggested that L&T might need to engage 10 lakh workers to ensure 4 lakh are actively working at any given time. The company aims to lead the construction industry's transformation through automation, leveraging its engineering capabilities. This shift is also expected to enhance safety standards on construction sites, a major concern given the large workforce managed by L&T.
Raman also noted that L&T's extensive experience in the Middle East, particularly in Saudi Arabia, Qatar, and the UAE, has been instrumental in developing its capacity to handle large-scale projects and refine its execution processes by working alongside global engineering firms.