LCC’s Welspun reliance hit 35% as 10 suppliers provided 71%

LCC bought Rs 504.00 crore of construction materials from Welspun Corp Limited in Fiscal 2026, representing 35.21% of total raw-material purchases. LCC’s 10 largest suppliers together provided Rs 1,014.471 crore, or 70.87%, of its Rs 1,431.492 crore Fiscal 2026 raw-material procurement, despite its stated alternative-sourcing process.

How concentrated was LCC’s Fiscal 2026 supplier base?

LCC’s Fiscal 2026 raw-material procurement was concentrated in a group of 10 suppliers that accounted for 70.87% of total purchases. Total raw-material purchases were Rs 1,431.492 crore in Fiscal 2026, compared with Rs 1,411.589 crore in Fiscal 2025 and Rs 1,442.541 crore in Fiscal 2024. The top-10 share fell from 72.73% in Fiscal 2025 but remained above the 68.73% reported in Fiscal 2024.

Welspun Corp Limited was LCC’s largest disclosed supplier in Fiscal 2026, at Rs 504.00 crore. The amount was more than five times the Rs 100.037 crore supplied by Welspun Di Pipes Limited, the second-largest supplier, and was equal to 35.21% of all raw-material purchases. An unnamed Supplier 3 supplied Rs 76.610 crore, or 5.35%; LCC said that supplier had not consented to be named in the offer documents.

The disclosed concentration means LCC’s procurement execution depends materially on the delivery capacity and commercial performance of a relatively small supplier group. LCC specifically says it depends on certain regular suppliers for pipes and fuel, which it identifies as critical to construction and irrigation-related work. A disruption is not established by the figures, but continuity would depend on suppliers meeting material, timing and logistics requirements.

How much did LCC’s reliance on Welspun increase?

LCC’s purchases from Welspun Corp Limited increased in value and as a proportion of procurement across all three reported fiscal years. Purchases rose from Rs 325.830 crore in Fiscal 2024 to Rs 389.135 crore in Fiscal 2025 and Rs 504.000 crore in Fiscal 2026. Welspun Corp Limited’s share consequently increased by 12.62 percentage points from 22.59% in Fiscal 2024 to 35.21% in Fiscal 2026.

The composition of LCC’s supplier base changed even as the overall top-10 concentration eased from Fiscal 2025. The 70.87% top-10 share in Fiscal 2026 was 1.86 percentage points below the Fiscal 2025 level of 72.73%, while Welspun Corp Limited’s own share rose 7.64 percentage points over the same period. That shows a larger role for the largest identified supplier rather than a broad reduction in supplier reliance.

LCC also bought Rs 100.037 crore of materials from Welspun Di Pipes Limited in Fiscal 2026, equal to 6.99% of total raw-material purchases. The Fiscal 2024 disclosure lists Welsun D Pipes Limited at Rs 50.575 crore, or 3.51%, but does not identify that supplier as the same entity as Welspun Di Pipes Limited. The disclosed data therefore supports a direct three-year comparison for Welspun Corp Limited, but not for the pipe supplier.

Can LCC use alternative suppliers for pipes and fuel?

LCC says it can diversify sourcing and buy critical materials from alternate suppliers if regular suppliers cannot meet its requirements. The company identifies supply issues and logistics challenges as circumstances in which it may use alternatives for pipes and fuel. This is a contingency process, rather than evidence that an alternative supplier can be qualified and deliver materials within a particular project timetable.

LCC’s procurement process includes issuing tenders or requests for quotations, known as RFQs, conducting quality checks before procurement and establishing delivery schedules intended to prevent delays. Its project-wise budgets also include provisions for contingencies, inflation and market fluctuations. These mechanisms could support sourcing flexibility, but their practical effectiveness would depend on available vendors meeting the required specifications and delivery schedules.

Client requirements can also affect LCC’s ability to change vendors. LCC states that some project owners may buy and supply materials themselves, or may recommend or compel it to source materials from specified suppliers. In engineering, procurement and construction, or EPC, contracts, the contractor is responsible for design, procurement and construction; in lump-sum contracts, the contractor is exposed to most time and cost-overrun risk under a fixed total price.

How concentrated was LCC’s raw-material buying by geography?

LCC sourced all of its raw materials domestically in Fiscal 2026, Fiscal 2025 and Fiscal 2024, with international purchases reported as nil in each year. Gujarat supplied Rs 728.430 crore, or 50.89%, of Fiscal 2026 purchases, while Madhya Pradesh supplied Rs 541.238 crore, or 37.80%. Together, the two states accounted for 88.69% of Fiscal 2026 procurement.

Gujarat’s role expanded substantially over the period, while Madhya Pradesh’s share declined. Gujarat purchases rose from Rs 150.745 crore, or 10.45%, in Fiscal 2024 to Rs 728.430 crore in Fiscal 2026. Madhya Pradesh purchases declined from Rs 1,098.593 crore, or 76.16%, to Rs 541.238 crore, although it remained LCC’s second-largest procurement state.

Rajasthan became the third-largest procurement state in Fiscal 2026, rising from Rs 25.486 crore in Fiscal 2025 to Rs 118.675 crore. Odisha moved in the opposite direction, falling from Rs 113.590 crore, or 8.05%, in Fiscal 2025 to Rs 13.618 crore, or 0.95%, in Fiscal 2026. LCC’s domestic-only supply chain and its 88.69% reliance on Gujarat and Madhya Pradesh mean that vendor availability and transport conditions in those states are relevant to material continuity.

Conclusion

LCC’s Fiscal 2026 disclosures show supplier concentration at both the individual and group levels: Welspun Corp Limited supplied 35.21% of raw materials, while the top 10 suppliers supplied 70.87%. The company also bought 88.69% of its raw materials from Gujarat and Madhya Pradesh, and all Rs 1,431.492 crore of procurement was domestic.

The next issue to watch is whether LCC’s disclosed use of RFQs, quality checks, delivery schedules and alternate suppliers can maintain pipe and fuel availability when regular vendors face supply or logistics issues. The company’s ability to alter sourcing may also be constrained on contracts where project owners supply materials or specify vendors.