The company might raise Rs 500-700 crore (Rs 5-7 billion) through debt, equity or a debt-equity mix in the second half of the financial year, said J P Nayak, member of the board and president (machinery and industrial products), L&T, on the sidelines of a seminar organised by Confederation of Indian Industries, in Kolkata on Friday.

"The expenditure will go towards augmenting the existing facilities and ship-building units. There will be an expansion in our existing growth centres," Nayak said.  For ship-building, the company has earmarked about Rs 3,000 crore (Rs 30 billion) for the next few years. Last year, the company had a turnover of around Rs 30,000 crore (Rs 300 billion), and this financial year it is looking at a 30 per cent growth in sales.

According to Nayak, the L&T and Japan's Mitsubishi Heavy Industries joint venture in Gujarat for manufacturing boilers and turbines would be functional about 18 months after the commencement of the construction work.