Key facts
- Larsen & Toubro is employing automation and robotics, referred to as 'digital workers,' to address manpower challenges in its projects.
- The company is using robots for welding, painting, and plastering, aiming to reduce reliance on traditional labor-intensive methods.
- L&T's order book has significantly increased, necessitating scalable solutions beyond traditional workforce growth.
- Labor availability is a growing concern in the construction sector due to workers having more employment choices.
- Automation is also seen as a means to improve safety standards for the large workforce managed by L&T.
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.