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 Rs1 lakh, divided into 10,000 equity shares of Rs10 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.