This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Larsen & Toubro Limited (L&T) is a major Indian defense contractor and a significant supplier to the Indian military. The company operates a dedicated Defence Engineering business segment that designs, develops, and manufactures specialized military equipment. This includes major weapons platforms such as the K9 Vajra-T self-propelled howitzer, Pinaka multi-barrel rocket launcher systems, and advanced electronic warfare suites. In March 2024, the Indian Ministry of Defence signed a contract with L&T worth Rs 7,668.82 crore (approximately $925 million) for the supply of a Close-in Weapon System (CIWS), a purpose-built air defense artillery system designed to intercept incoming missiles and aircraft. The company is also a prime contractor for naval shipbuilding, constructing frigates, corvettes, and submarines for the Indian Navy.
The Stockholm International Peace Research Institute (SIPRI) identifies L&T as one of the world's largest defense contractors. Its defense business is not incidental; the company actively competes for and wins large-scale capital acquisition proposals from India's Defence Acquisition Council. The scale of these contracts and the nature of the products—artillery systems, rocket launchers, and naval combat vessels—are purpose-built for warfare, meeting the threshold for exclusion under military contracting.
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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