Larsen and Toubro (L&T) one of the largest engineering companies in India (and one of the top five

private sector companies) posted yet again a growth rate of over 27 percent. Ducts Established Founder Global presence Production

If a particular project fails, it does not lead to a process of recovering the money from L&T. This has been accepted by the financial institutions as well as by the rating agencies, an L&T source is saying.

1. Vision  Excellence and professionalism  Customer delight through service.  Entrepreneurial leadership and creation of an organization that is on the path of continuously learning by fostering teamwork, trust, and care.  Community service and environmental protection. Company strongly drove by its global vision to become an Indian Multinational Program ‘LAKSHYA’ which outlines a strategic plan for 2005-10 will assist in this.

2. Core Competencies Today the core competence of L&T lies in its ability to synthesize, integrate and harmonize its diverse world-class engineering, manufacturing, procurement, construction and fabrication skills around turnkey projects (in core economic sectors) and people. 3. Business Leadership With the Project and Construction business in the country growing at a fast pace and expected to continue to do so with the countries emphasis on infrastructure,

the company has implemented its vision through various approaches. and so on does the CEO personally involve himself. The first company to introduce hydraulic excavators in the country. The ECC construction group has been responsible for construction landmarks both in India and abroad. it still maintains its leadership status in this and in the vibratory compactor segments. "Only through empowerment and decentralized decision making can a highly diversified company like L&T be managed. The company is decentralized for all practical purposes. Decision-making Over the years. Foremost is the emphasis on empowerment. Teamwork and continuous training of employees. . L&T holds a leadership position in India in most of the areas in which it operates. 4.both L&T ECC (Construction group) and L&T's Projects (EPC) businesses are being treated as thrust areas. The Culture of TQM Employees have realized that everybody in every department is a supplier to somebody in the organization if not directly to an outside customer. Only in major decisions involving capacity augmentation. Budgets and allocations are made at the beginning of the year for achieving the targets. business divestment. 5. diversification. L&T has pioneered the manufacture and supply of critical nuclear reactors and space vehicles hardware in the country and so on. It continues to be a leader in the manufacture of Z-Line petrol pumps and its cement is considered to be of high quality.

Tracking of progress against plan. a strong HRD culture pervades the organization’s personnel policies. it has come to be widely regarded as one of the best training institutions of its kind in the country. a polytechnic in Mumbai.      Follow through after initial planning. including quality transactions and market engineering.Employees are being trained in multi-skills. In a short period. and HRD systems are designed to sustain motivation. There is a good demand i n engineering companies for the students passing out from this Institute. besides product engineering. and achieve higher levels of quality and productivity through job involvement. . Sufficient information sharing among stakeholders. 6. Human Resource Management With people being regarded as the 'prime movers'. encourage learning. Quality Training and Development of Human Resources is realized through:  Identifying training needs within the Organization and designing and implementing those need based training programmes to bring about continuous up gradation of knowledge. Inclusion of stakeholders and delegates 7. Contribution to Academics L&T set up L&T Institute of Technology. The following brief highlights ECC's training methodology for the comprehensive development of its 7000-odd employees. skills and employee attitudes. Adequate understanding of the internal resistance to change. particularly for the full-fledged workshops and laboratories that provide a strong practical orientation to theoretical inputs.

Marketing Audit The financial results of L&T for the year 2007-08 are not too encouraging as far as profits are concerned. The company has reported profits of Rs. Environment Up gradation L&T has been showing its commitment towards corporate citizenship. As one goes around the works and offices of L&T. Over three lakh trees were planted in and around the factory in 1993-94 under the programme 'Trees for Life'. L&T has undertaken extensive tree plantation programme to enhance ‘green’ concepts. thereby achieving a slim growth of five percent. 10304 crore. 9. 1010 crore against the previous year’s profit of Rs. 8249 crore to Rs. one experiences a soothing and refreshing ambience because of the rich foliage and delightful floral blooms around these structures. The villagers have been given grafted saplings of fruit-bearing trees and encouraged to plant them. . However. 890 crore. The success of this ongoing effort led to L&T being selected by the Government of Maharashtra for the prestigious Vanashree Award in 1990.8. the turnover has recorded a sharp jump from Rs.

Through protracted investigation and litigation (in which the Reliance Industries Ltd. the company just emerged from a not-so-welcome takeover threat from the powerful Ambanis of Reliance. worksites. Offering suppliers credit (to the tune of Rs. was found to . this multi-dimensional engineering giant is actually the nucleus of a group of companies involved in building complexes. L&T has acquired a commendable reputation for capabilities for executing engineering related projects. engineering. the performance has been commendable considering the slump and intense competition in the cement industry and performance of other competitors during the period.000 crore). The Ambanis were themselves embarking upon massive expansion in chemicals and petrochemicals business. supplying machinery and. and L&T would have provided a real and logical synergy in terms of executing turnkey projects for construction. of course. As the country progressed towards liberalisation. As a company.L&T under DH Ambani (as chairman) 1990-93 – Repeated takeover attempts by RIL During 1991 . and service outlets at different locations all over India and abroad. L&T presently has a shareholder base of nearly 1 million and employee strength of over 24.000. Some important strategic move by L&T: AMBANI BROTHERS AND L&T 1989-90 .93.From another perspective. offices. Over the years. 1.

Takeover attempts by RIL dropped down..have collected forged proxies). manufactures hydraulic excavators and other such components. a joint venture with Komatsu Asia & Pacific Pvt. L&T’S ALLAINCES WITH WORLD’S MANAUFACTURING COMPANIES TOP CONSTRUCTION EQUIPMENT L&T has also entered into alliances with several international companies to strengthen its manufacturing portfolio. • L&T-Case Equipment Pvt. the company started adopting the principles of Total Quality Management (TQM) by becoming customer focused.. it was obvious that a total new mindset and working culture would be required if L&T was to grow and remain competitive. is involved in the manufacture and sale of tractors. "Where does L&T go from where it has reached now?" However. L&T divested its stake in the latter as part of its strategy to exit non-core businesses. However. The big question mark as posed by an article in the Economic and Political Weekly was. Ltd. a joint venture with Deere & Co. It now manufactures a wider range of products besides also being involved in the marketing and servicing of certain products of their international counterparts. In 1993-94. Ltd. L&T is .. USA.. especially its mining and construction equipment. L&T AND SHIPBUILDING: Shipbuilding represents a new thrust for L&T in the high technology manufacturing space and is in line with its strategic growth objectives. reducing the costs and wastage. and adding value at all stages for maximizing customer satisfaction. • L&T Komatsu Ltd. the company somehow remained in the hands of 'professionals'.. a joint venture with CNH America LLC manufacture earthmoving and construction machinery. Singapore. • L&T John Deere Pvt. Ltd.

we have regrouped the Divisions on a fourbusiness sector-model. into a new structure with a functional 4x4 matrix. . The focus will be on construction of commercial vessels. The Division is ranked 67th among the world's 100 top contractors and has an important role to play in achieving L&T's Corporate Vision of becoming an Indian Multinational." ECC is India's largest construction organization and backed by the capabilities of L&T's allied Divisions. from concept to commissioning.developing a shipyard capable of constructing vessels of up to 150 metres in length and displacement of 20000 tonnes at its heavy engineering complex at Hazira near Surat on India’s west coast. A. it offers EPC solutions with a single-source projectexecution responsibility. Mr. explained the restructuring thus: "From the earlier 18 SBUs. Industrial Projects & Utilities and Electrical & Instrumentation. Ramakrishna. warships for the navy and the coast guard. Civil and Transport Infrastructure. L&T RESTRUCTURES ‘ECC’ CONSTRUCTION DIVISION L&T has restructured its Chennai-headquartered Construction Division (Engineering Construction Corporation) by transforming it from the erstwhile complex model having 18 Strategic Business Units (SBUs). The Future of L&T L&T continues to surge ahead in its quest for becoming a global player. It has set itself a target of earning 25 per cent of its revenues from its international operations by 2009-10. L&T's Deputy Managing Director. based on four core-technology fronts: Buildings and factories. It is also actively pursuing business opportunities in China. seven Regional Offices in India and four abroad.

……………………………………………………………………………………………………………………..Middle East and Africa as it sees immense potential in these regions. . It seeks to utilise China as a hub for the sourcing of cost-effective components and materials.