"We are exploring Maharastra, Tamil Nadu and Gujarat for the new facility," said Patel.
Both these facilities -- Hazira and a new facility for missile systems -- will attract investment to the tune of around Rs 1,000 crore. Till now the company invested around Rs 7,000-8,000 crore in the defence business.
The company has partnered with European arms manufacturing group MBDA to supply missiles and missile system to the Indian arm force.
Patel said the company was only doing 70 per cent of the missiles, going forward it will build and supply complete missiles.
The major focus for L&T will be shipbuilding for navy and coast guard. Patel said, every year government want 6-8 vessels and the government-run shipyards can only supply 1.5 ships, so private sector has got a huge scope.
The contribution of L&T's defence business to the company's standalone revenue is 4-5 per cent. The company wishes to increase it to 10 per cent by 2021.
Over the next 10 years the Ministry of Defence is looking to procure defence items worth Ra 14-16 lakh crore, of which 50 per cent needs to be catered by private sector.