LG Balakrishnan Approves Major Strategic Ventures, Including Subsea Manufacturing Joint Venture and Vietnam Subsidiary Formation

LG Balakrishnan Approves Major Strategic Ventures, Including Subsea Manufacturing Joint Venture and Vietnam Subsidiary Formation​

LGB Balakrishnan & Bros Limited has approved several major strategic ventures following a Board meeting held on July 31, 2026. The decisions include establishing a joint venture for precision subsea component manufacturing in Singapore and committing to the incorporation of a wholly-owned subsidiary in Vietnam. Furthermore, the company approved a Memorandum of Agreement (MoA) for a land development project in Mysore, Karnataka.

The Board also reviewed and approved the audited Standalone and Consolidated financial results for the quarter ended June 30, 2026. Statutory auditors confirmed that these standalone financial results were presented in accordance with requirements.

Strategic Expansion Details​

Subsea Component Joint Venture (JVC)
The company granted approval to enter into a Joint Venture Agreement (JVA) with SINGATAC ENGINEERING PTE LTD of Singapore. This venture aims to form SLGB ENERGY SOLUTIONS PRIVATE LIMITED in India, focusing on the precision manufacturing, machining, assembly, testing, and quality assurance of subsea components, modules, connectors, tools, and related equipment for global subsea OEMs and EPC contractors.

In this partnership, LGB Balakrishnan will hold 51% of the paid-up share capital, while SEPL holds the remaining 49%. The initial paid-up share capital of the JVC is set at INR 1,00,000 (One Lakh Only), structured into 1000 thousand Equity Shares with a face value of INR 100/- each.

Key terms and roles for the Joint Venture include:

• Right to Appoint Directors: The JVC Board shall comprise four directors, two nominated by LGB and two by SEPL.
• Role Allocation: SEPL will provide support in engineering and development, while LGB will contribute to managing operations, including procurement and administration.

Wholly Owned Subsidiary (WOS) in Vietnam
LG Balakrishnan & Bros Limited also approved the incorporation of a wholly owned subsidiary company in Vietnam. The entity is tentatively named LGB Private Limited - Vietnam and falls under the Automotive Industry sector.

The proposed investment in this subsidiary, which will engage in manufacturing and assembly of Auto Components and related parts, is set at an aggregate cost not exceeding INR 10 crores. LGB Balakrishnan Limited will hold 100% of the paid-up share capital and control of the proposed company.

Residential Land Development Project
The Board approved a Memorandum of Agreement (MoA) with Brigade Enterprises Limited to develop non-substantial land property owned by the company in Mysore, Karnataka. The project is planned as a Residential Apartment Project under a Joint Development arrangement on a Revenue Sharing Model. The total cost involved in the agreement is estimated at INR 120 Crores.

The revenue sharing terms for the constructed area are structured as follows:

Q2 FY2026 Financial Performance​

The audited financial results for the quarter ended June 30, 2026, show key performance indicators across both standalone and consolidated segments.

Standalone Segment Results (Quarter Ended 30.06.2026)​

For the quarter, LGB reported strong revenue generation across its operating segments:


The company's total income for the quarter was reported at ₹72,258.04 lakhs. The standalone net profit attributable to owners stood at 8,682.13 lakhs.

Consolidated Financial Highlights (Quarter Ended 30.06.2026)​

The consolidated financial results include the performance of subsidiaries such as LGB Steel Private Limited and LGB-USA Inc. For the quarter ended June 30, 2026, the group reported a total segment revenue of ₹79,876.37 lakhs. The consolidated net profit attributable to owners for the same period was 8,605.79 lakhs.

A broader view across the fiscal year ended March 31, 2026, shows that the group's total income reached 3,14,403.77 lakhs.

LGBBROSLTD Stock Price Movement​

Shares of LG Balakrishnan & Bros Limited on Friday slipped by 0.35% to close at ₹1588.40. The company recorded a total traded volume of 27,965 shares in the equity market during the session.