L&T Technology Services opens Bengaluru AI lab to target factory automation

L&T Technology Services is shifting focus toward artificial intelligence solutions for factory floors to balance out falling prices in older engineering segments. Chief Executive Amit Chadha announced the strategy on Monday during the inauguration of a new development center in Bengaluru.

Growth Areas

The firm divides its artificial intelligence strategy into three distinct pillars covering core engineering, end products, and factory operations. The newly opened facility operates using software and hardware provided by Siemens and NVIDIA. Clients visiting the center can test virtual factory replicas, simulated plant setups, and automated material transport.

Expansion Plans

The engineering research firm currently runs similar manufacturing intelligence projects with customers in select areas of the United States and two European accounts. Operations will soon expand past traditional discrete manufacturing into process sectors like pharma. Plans are also underway to build an additional industrial technology center in the United States before the current financial year concludes.

Revenue Targets

Proprietary software tools and licenses currently generate one percent of total company earnings. Six chosen business bets brought in half of the firm's total revenue by the close of the last financial year. Leadership expects these core sectors to drive eighty percent of total earnings over the next five years.

Context

Industrial automation firms frequently invest in specialized testing centers to demonstrate emerging operational technologies directly to enterprise buyers. Such physical AI applications often command better financial returns than traditional software development services.