Larsen & Toubro (L&T) is deploying automation, robotics, and prefabricated construction methods at scale to counter a deepening labour shortage, according to chief financial officer R Shankar Raman.
Order book growth drives automation push
Raman said the company's order book has increased to approximately Rs 7.5 lakh crore from Rs 3-3.5 lakh crore five years ago. Over the same period, the workforce engaged in execution grew from 1.5 lakh direct and indirect workers to about 4 lakh. The following table summarises the growth:
| Metric | Five Years Ago | Current |
|---|---|---|
| Order book (Rs lakh crore) | 3–3.5 | 7.5 |
| Workforce (direct+indirect, lakh) | 1.5 | 4 |
Despite the doubling of the order book, the workforce has not kept pace, prompting L&T to invest in technology. "What we have been doing over the last 3-4 years in particular is to create automation to the level that we did not expect construction industry to engage," Raman said at the ICICI Securities India Investors Conference 2026.
Robots as ‘digital workers’
The company is using robotics for activities such as welding, painting, and plastering. Raman described these technology-enabled systems as 'digital workers'. "Today, we are having welders who are robots controlled by a programme. We don’t need to run around for welding skill in the country. We have painters. We have people who do the plastering. All of that is being done by robots. So, in a way, you can call them digital workers," he said.
L&T is also shifting construction work from sites to factories through prefabricated and modular structures. "Make construction not so much of a site work. Make it a bit of a factory work by having prefabricated structures, modular structures. So, you go to the site and bolt them," Raman explained.
Labour challenges persist
Raman noted that labour availability has become a key challenge for the construction sector. Workers today have more employment choices, including air-conditioned environments like malls. "Today, thanks to the way certain sectors have developed, people have got a little easier option than to go work in 40 degrees and 45 degrees and sit in a camp working for 6 months, 9 months a year. It’s not a preferred option," he said.
Workforce continuity is also affected by seasonal migration, agricultural cycles, and workers returning to their villages. Raman estimated that L&T may have to engage with 10 lakh workers to have 4 lakh workers working at any point in time.
International experience in the Middle East
Raman said L&T’s operations in the Middle East have helped it build capabilities to execute large-scale projects. "Middle East has become our second home. Outside of India, the largest footprints that we have is in those 5-6 countries in the Middle East. And within that, Saudi Arabia, Qatar, and the UAE are the three larger markets for us," he said.
Safety improvements through automation
Automation also improves safety at construction sites, where L&T manages a large workforce. "Safety is our biggest concern when we work with 400,000 people," Raman said. "We hate to lose even one life in a year on account of accident in the site. Forget about lost time injuries. Fatality is something that bothers us very deeply," he added.
Raman expressed his desire for L&T to lead the transformation of the construction industry through automation. "My belief is that this industry has to go through transformation in much faster and deeper way than what it is doing. L&T fortunately has both the order book and the means and the engineering capability within itself to attempt this. It’s my desire, personal desire, that L&T should lead the way," he said.
This shift towards automation has direct implications for international trade in construction equipment and technology. As L&T scales its use of robotics and prefabricated structures, it may increase imports of specialized machinery and components. The company's Middle East footprint also positions it as a key contractor in Gulf markets, where demand for automated construction solutions is rising.
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