To make better use of its resources, L&T Defence, the engineering conglomerate Larsen and Toubro's division for defense equipment, will start producing non-military infrastructure and equipment while it awaits to receive larger defense contracts.

The division is said to be named as L&T Precision Engineering and Systems starting April 1.

In the utilization of these assets, the new division is said to start producing advanced non-military equipment at its facilities, intended for defense manufacturing.

The decision on the same was made while the company expressed optimism in winning more contracts in the years to come from both national and international governments.

The defense division of L&T is known for producing weapon delivery and engineering systems, unmanned systems, radar systems, robotics, armored systems, missiles, aerospace systems, avionics, sensors, robotic submarines, and undersea platforms.

Additionally, the company possess a shipbuilding plant at Kattupali, seated 40km north of Chennai, including an armored systems complex at Hazira in Gujarat.

The company presently holds numerous defense contracts abroad, and at its Kattupalli shipyard, it recently secured maintenance contracts for two ships belonging to the Royal Navy of the UK.

According to Jefferies analysts, India's defense spending would rise at the same 7–8 percent CAGR as it has over the past ten years. The Jefferies analysts pointed out that the government's emphasis on indigenization will propel double-digit growth in domestic defense spending.

“Some of the major export destinations for defence products have been Italy, Egypt, UAE, Bhutan, Ethiopia, Saudi Arabia among other countries," as per the Jefferies report.