Engineering giant Larsen & Toubro (L&T) has set up a new subsidiary, L&T Green Energy Kandla Private Limited (LTGEK), to expand its presence in the green hydrogen and derivatives market.
The step-down subsidiary was incorporated under L&T Energy Green Tech Limited, a wholly-owned unit of L&T. The company disclosed in a stock exchange filing that LTGEK has an authorised and subscribed capital of ₹1 lakh, divided into 10,000 equity shares of ₹10 each.
LTGEK is yet to commence operations but will focus on developing green hydrogen and its derivatives, including green ammonia. L&T stated that this move aligns with its broader push towards clean energy solutions.
Since LTGEK is a wholly-owned step-down subsidiary, the investment qualifies as a related party transaction but was carried out at arm’s length, according to L&T’s regulatory filing. No government or regulatory approvals were required for the incorporation.
The move comes as L&T looks to strengthen its position in the renewable energy sector, particularly in green hydrogen, where demand is expected to surge amid global decarbonisation efforts.
L&T’s shares closed at ₹3,259.20, down 4.67% on the BSE ahead of the announcement.