LARSEN &

TOUBRO
Its
All
About
Imagi
neeri
ng

SUBMITTED BY
Group 8
KIRTI M.SIDDAPUR

08PG029

SANA NABI

08PG044

MANDANNA T.M

08PG034

SUDIPTA SAR

08PG055

ROHAN NAIR

08PG043

CONTENTS

1. COMPANY OVERVIEW
2. ORGANIZATION STRUCTURE
3. PRODUCT AND SERVICES
4. CORE COMPETIENCIES
5. MARKETING STRATEGIES
6. PEOPLE AND PROCESSES
7. DISTRIBUTION CHANNELS
8. PRICING STRATEGY

COMPANY OVERVIEW
Larsen & Toubro Limited (L&T) is a technology, engineering, construction and
manufacturing company. It is one of the largest and most respected companies in
India's private sector.
Seven decades of a strong, customer-focused approach and the continuous quest for worldclass quality have enabled it to attain and sustain leadership in all its major lines of business.

L&T has an international presence, with a global spread of offices. A thrust on

international business has seen overseas earnings grow significantly. It continues to
grow its overseas manufacturing footprint, with facilities in China and the Gulf region.
The company's businesses are supported by a wide marketing and distribution
network, and have established a reputation for strong customer support.
L&T believes that progress must be achieved in harmony with the environment. A
commitment to community welfare and environmental protection are an integral part
of the corporate vision.

OPERATING DIVISIONS
Engineering & Construction Projects (E&C)
Heavy Engineering (HED)
Construction
Electrical & Electronics (EBG)
Machinery & Industrial Products (MIPD)
IT & Technology Services

KEY FACTS
Founded: 1938
Number of employees: 35000(2007)
Revenue: US$ 8.50 Billion (2009)

Headquarters: Mumbai, India.

VISION
The L&T vision reflects the collective gaol of the company. It was drafted through a
large scale interactive process which engaged employees at every level, worldwide.

ORGANISATION
STRUCTURE

CORE COMPETENCIES
1 Innovation
2 Planning
3 Technology

TECHNOLOGY
Engineering and construction
In engineering and construction, L&T's technology capabilities include a strategic mix of
in-house strengths and the expertise of its joint venture partners. Engineering Centres at
Mumbai, Vadodara and Delhi carry out process design and simulation, analysis of
computational fluid dynamics, mechanical design, failure analysis and trouble shooting.
L&T has set up an engineering and project management centre in Abu Dhabi, to
undertake oil and gas related projects as well as engineering and consultancy services.

An engineering centre in Sharjah is an extended arm in the Gulf. This is

supplemented through collaborations with key partners: L&T-Valdel for engineering
services in the upstream hydrocarbon sector, L&T-Chiyoda for the mid and
downstream sectors, and L&T Sargent & Lundy for the power sector.
The engineering services provided by L&T's Engineering Design Research Centres at
Chennai and Kolkata include feasibility studies, project reports, system engineering,
architectural, structural and civil design for infrastructure development projects.

L&T-Ramboll Consulting Engineers provides civil engineering and consultancy services for a
wide range of projects in the transportation sector - ports, airports, highways and bridges.

MANUFACTURING
L&T's design & engineering capabilities in manufacturing enable it to set new
benchmarks in terms of scale, sophistication and speed. The Company has
dedicated engineering centres at the manufacturing locations. Two 'Technology
Development Centres' have been set up to develop new products and manufacturing
technologies. L&T also collaborates with the organisations like ISRO to bolster its
capabilities in the strategic sectors of aerospace, defence and nuclear power.
L&T's Electrical & Electronics Division is a pioneer in the design of switchgear and switchboards
that are engineered for tropical conditions. It has built further on this experience, and has
leveraged its R&D strengths to develop a host of new products and features.

In 2008-09, the division filed applications for over 100 patents, improving its previous years
score of 101 patents. Cumulatively, L&T's Electrical & Electronics Division has applied for
and secured 409 patents - a landmark for an Indian company. Patent applications cover
innovations made on a variety of low voltage indigenously developed switchgear products
like the air circuit breakers (ACBs) and moulded case circuit breakers (MCCBs), medical
products, petroleum dispensing pumps, tooling solutions and switchboards.

TECHNOLOGY SERVICES
L&T provides its global clients with the winning edge through the development of optimal
solutions. L&T's e-engineering services leverage the Company's own engineering heritage and
experience. The Embedded Systems unit provides technological assistance across a broad
spectrum - design, maintenance, re-engineering, testing, prototyping and industrial design.

PORTFOLIO OF PRODUCTS & SERIVCES

The following are the portfolio of products and services offered by L&T
1. Engineering & Construction Projects(EPC)
L&Ts engineering and construction track record consists of successful implementation
of turnkey projects in major core and infrastructure sectors of the Indian industry. L&T
has integrated its strengths in process technology, basic and detailed engineering,
equipment fabrication, procurement, project management, erection and construction and
commissioning, to offer single- point responsibility under stringent delivery schedules. It
is the only Indian EPC company pre- qualified for executing large, process-intensive
projects for oil and gas, refinery, petrochemical and fertiliser sectors.

The various sectors for which L&T has done turnkey projects are Oil and Gas, water,
Power, Cement and allied machinery, Engineering services and Railway projects.

2. Heavy Engineering:

L&T is acknowledged as one of the top five fabrication companies in the world, with
engineering and manufacturing capabilities that are among the most sought after in
industry. Operating at the higher end of the technological spectrum, L&T has led the
way in introducing new processes, products and materials in manufacturing. It has
the logistics capabilities of fabricating and supplying over- dimensional equipment to
tight delivery schedules.
The products in this category include hydrocrackers, reactors, heat exchangers,
polymerization reactors etc.
Shipbuilding
Shipbuilding represents a new thrust for L&T in the high technology manufacturing space
and is in line with its strategic growth objectives. L&T is 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 Indias west coast. The focus will
be on construction of commercial vessels, warships for the navy and the coast guard.
Construction
The Engineering Construction & Contracts (ECC) division of L&T is Indias largest
construction organisation. Its leading edge capabilities cover every discipline of construction

civil, mechanical, and electrical and instrumentation. L&T has also expanded its
focus to the Middle East, South East Asia, Russia, CIS, Mauritius, African and
SAARC countries. It also has keen interest in the markets of Indian Ocean rim
countries, Africa and Latin America. Construction includes construction products like
support structures etc. They also provide construction services like Fire Protection,
Building Automation (IBMS), Vertical Transportation, Plumbing and Sanitary,
Surveillance and Security Systems, Telecommunication networks, Electrification,
Kitchen, Laundry, Water and Effluent management, Medical equipment for buildings
Electrical & Electronics
L&T is a major international manufacturer of a wide range of electrical and electronic
products and systems. In the electrical segment, the Company holds leadership position in
low tension switchgear in India, and is rapidly establishing itself in international markets. Its
products are widely sold in markets in Europe and Australia. Recently, L&T set up a new
manufacturing base for high-end air circuit breakers in China. It joined hands with Saudi
Arabias reputed house of Kanoo to offer a range of high-end intelligent electrical systems to
Saudi Arabian market. L&T also manufactures custom- engineered switchboards for
industrial sectors like power, refineries, petrochemical and cement. In the electronic segment,
L&T offers a wide range of meters and provides complete control and automation systems for
industries. Medical equipment and systems manufactured by it include advanced ultrasound
scanners and patient monitoring systems. They also manufacture medical equipments like

ECG machines, electrosurgical diathermies and ultrasound scanners etc.

Information Technology
Larsen & Toubro Infotech Limited, a 100 per cent subsidiary of L&T, offers comprehensive,
end-to-end software solutions and services with a focus on Manufacturing, BFSI and
Communications & Embedded Systems. It provides a cost cutting partnership in the realm of
offshore outsourcing, application integration and package implementation.

Machinery & Industrial Products

L&T manufactures markets and provides service support for critical construction and
mining machinery surface miners, hydraulic excavators, aggregate crushers, loader
backhoes and vibratory compactors.

PRODUCTS

Turnkey Proj

Construction

EPS

Hydrocarbon

Construction Services

Refinery

Power

Infrastructure

Oil & Gas

Cement

Engg. Services

Petrochemicals

Engg.

International Projects

Fertilizers

Petroleum

Coal Gasification
Aero space
Thermal Power
Nuclear Power

EEPS

IT

Switchgear

Information
services
Engg.
Services
Embedded
Services

Electrical Systems
Metering Systems

MVI

FIN
SHIP
SEVICES
BUILDING
Infrastructure
Financing
Equipment
Financing

Medical Equipment
Control
Petroleum Dispenser

The offerings are divided into two parts i) Project Executions

ii) Products
The projects are executed not only in the domestic sector, also in the international
locations. The credentials what it has earned over the last decades has made a distinct
branding for the companies. The latest order of Rs. 6900Cr from Mahagenco has
established the company in the international Power Equipment Business.

The industrial products like the welding products, Valves, Switchgear, Metering
Systems are known for high standard technologies & relaiblity.

PEOPLE & PROCESSES

Company recognises that people are the real source of competitive advantage. It is
through people that ECC delivers total customer satisfaction. These values are reflected
in our Human Resources practices which have earned national recognition several times.
The employee goes through a process of continuous learning, assisted by training
programmes. Apart from on-the-job training and technical training, over 100 programmes
on general management and behavioural topics are conducted each year. Interactive
CD-ROM based programmes have enabled employees learn at their pace.

ECC has always believed in experimentation with and implementation of new ideas.
HR practices such as collaborative performance appraisal, career & succession
planning, team rewards have been institutionalised.
An extensive and rigorous recruitment process ensures quality induction. L&T's
Graduate Engineer Trainee recruitment process covers India's major engineering
colleges and institutions. Programmes, plant visits and comprehensive informationsharing facilitate induction.
Division has an ongoing organization development programme, which is one of the
longest sustaining OD efforts in India.
The basic principles of Human Resources policies include
1 Recruitment based solely on merit by following well-defined and systematic
selection procedures without discrimination
2 Sustain motivated and quality work force through appropriate and fair
performance evaluation, reward and recognition systems
3 Identify training needs within the Organisation and design and implement
those need based training programmes resulting in continuous up gradation of
knowledge, skills and attitudes of the employees
4 Maintain a quality Human Resource Management System to meet the
international standards as per ISO 9001. Plan, design, train, equip and
motivate the department staff to meet this standard of expectation.

WORK CULTURE
Work culture emphasises:
1

Freedom to experiment

Continuous learning and training

1
2
3

Transparency
Quality in all aspects of work
Rewards based on performance and potential

A majority of L&Ts processes are ISO certified and comparable with the best in the world.

The company has an on time/ on budget project completion rate higher than the
average for its industry, which translates to highly predictable construction &
Engineering services delivery for its clients.

MAJOR COMPETITORS

Oil & Gas

Power

Construction

Electrical
Electronics

LG

BHEL

HCC

Schneider

Hyundai

LG

Gammon

Siemens

Samsung

Alstom

Nagarjuna

ABB

NPCC

GE

IVRCL

&

MARKETING STRATGIES
CORPORATE SOCIAL RESPONSIBILITY
HEALTH
L&T's participates in building a healthy community through continuing initiatives in several
areas of healthcare, with a focus on mother & child care and HIV/AIDS awareness. All L&T
locations, including construction sites, have in-house AIDS awareness programs. Five
additional mother & child care centres were set up in 2006-07. In partnership with local
NGOs, these centres benefit children of commercial sex workers, street children and tribal
communities. Through health care centres and regular family camps L&T organizes health
checkups, provides gynaecology and laboratory facilities, carries out free cataract surgeries
and intra ocular lens implants, and helps maintain health data for children. Supply of
equipment and aid for orphanages and physically challenged children, periodic counselling to
combat rampant alcoholism, awareness camps on childcare, reproductive health, sanitation,
dental check-up, provision for safe drinking water, cancer awareness etc. are other
healthcare activities that L&T supports.

EDUCATION
L&T's diverse and sustained programmes in education provide underprivileged
children with learning opportunities through supply of educational materials, teaching
aids, recreational tools and up scaling school infrastructure. L&T also enriches
children's lives through programmes like summer camps, maths coaching, providing
facilities like science laboratories, scholarship to deserving students, etc.
The vocational training institutes of the Larsen and Toubro Public Charitable Trust
provide local communities with skill-based training in Formwork, Masonry, Agro
Mechanics, Electricals, Fabrication, Welding and Housekeeping. Various diploma
courses are also conducted by L&T Institute of Technology for the children of
employees. L&T has developed training modules in local languages in six centres
across India for imparting skills sets in construction. L&T Training Centres provide
courses for improving the standards of electrical engineering practices and for
upgrading knowledge of maintenance, repair and welding.

ENVIRONMENT
conscious of the need to maintain harmony
Global warming: at L&T, we have always been

with the environment. We continuously seek

newer environment-friendly approaches in all

our operations energy conservation, exploring alternative sources like wind and
solar energy, waste water reduction, etc.
The Zero Discharge approach of the Powai Campus saves over 350,000 litres water
every day through water treatment and recycling. More than 13,500 trees have been
planted in different L&T campuses in the last year, and an additional 4,000 saplings
were distributed among local communities.

RESPONSE TO NATURAL CALAMITIES

L&T and its employees have provided relief measures during natural calamities like
earthquake and floods. L&T has assisted in disaster relief through employee and
corporate donations, employee volunteering, supply of construction material, medical
and food supplies. After the floods in Surat (Gujarat-India), L&T played a major role in
road-clearing operations, organising medical camps, and supply of food, water,
clothes and other relief materials.

EMPLOYEE VOLUNTEERING
L&T encourages employees to volunteer for CSR activities, resulting in a self-driven
approach while retaining consistency. L&T employees and the ladies clubs formed by
their families at different locations, serve their communities by investing personal
resources and time.
From taking initiatives in building the next generation of productive citizens,
empowering women, paying regular visits to old age homes and orphanages, to
organising blood donation camps, our employees have always believed in truly
making a difference to the world in which they live.

PARTNERSHIP
ENGINEERING & CONSTRUCTION
i) L&T-Sargent & Lundy Limited
A joint venture with Sargent & Lundy (USA), it offers a complete range of engineering
and design services for the power sector.
ii) Larsen & Toubro (Oman) LLC
A joint venture between L&T International FZE and The Muscat Trading Co. LLC

iii) Bangalore International Airport Limited (BIAL):

A JV of Karnataka State Industrial & Investment Development Corporation (KSIIDC),

Airports Authority of India (AAI), Siemens, L&T and Unique (Zurich Airport) of
Switzerland, to develop an airport at Devanahalli, Bangalore on BOOT basis.

MACHINERY & ENGINEERING

1) L&T-Case Equipment Private Limited
A joint venture of L&T and CNH America LLC (CNH America LLC is a wholly owned
subsidiary of CNH Global N.V., USA, which has manufacturing and marketing
facilities worldwide. It is the world's largest manufacturer of loader backhoes).
2) L&T Komatsu Limited (LTK)
A joint venture of L&T and Komatsu Asia Pacific Pte Ltd., Singapore, a wholly owned
subsidiary of Komatsu Ltd., Japan. LTK manufactures hydraulic excavators and high
pressure hydraulic equipment, such as cylinders, turning joints, radial flow pumps,
axial piston pumps, Cam-lobe radial piston motors, axial piston motors, gear boxes /
drives and systems.
3) Tractor Engineers Limited (TENGL)
A wholly-owned subsidiary of L&T. It designs and manufactures crawler
undercarriage systems for excavators, blast-hole drills, bulldozers, amphibious
dredgers, mobile crushers, etc. Apron feeders, chain conveyors, scraper conveyors,
track modules, and crawler lowers are tailor- made by TENGL for material handling,
and mining applications. TENGL manufactures centrifugal slurry pumps, which have
found wide acceptance in industrial application and oilfield exploration.
4) Audco India Limited (AIL)
A joint venture company with equal equity holding by L&T and Flowserve
Corporation, USA It is a leading manufacturer of industrial valves, with four
independent and specialised manufacturing facilities.

5) L&T-Demag Plastics Machinery Limited

A 50:50 joint venture of L&T and Demag Plastics Group, Germany, it is the market leader in

India, involved in the manufacturing of a range of injection moulding machines for

processing of thermoplastics and thermosets. The joint venture partner, Demag
Plastics Group, Germany is a world leader in the field.
6) EWAC Alloys Limited
A joint venture of L&T and Messer Eutectic Castolin Holding GmbH, Germany. It
manufactures special purpose welding electrodes, brazing rods, welding and
soldering fluxes, powder alloys and delivery systems, flux-cored welding wires, cold
repair compounds and wear plates.

GLOBAL STRATEGY
Railway bridge construction in Western Thailand in 1956. It was later immortalized by the
film The Bridge on the River Kwai. It was obstructed by the companies from Germany &
Japan. So, it concentrated on smaller orders to build its credibility. In 1976, it got the
subcontract for Abu Dhabi International Airport which was the landmark for its credibility.
It was in the mid-90s when the Indian government had initiated the liberalization process that
L&T revisited its options overseas. Due to its prior experience in the UAE, the Middle East
was an obvious choice. To build up a reputation as a quality provider of engineering and
construction services, L&T management decided to follow a policy of Take only what you
can deliver, bidding for contracts only when it was confident of timely completion. Based on
the business policies of the Gulf countries, L&T went for joint ventures wherever required to
secure contracts. In 1994, L&T Oman LLC was established as a joint venture with The Zubair
Corporation, a leading business group of the Sultanate of Oman. In the UAE, L&T registered
as an independent corporation in 1996. In Saudi Arabia, L&T established a joint venture
called L&T Saudi Arabia LLC in 1999. In 2001, L&T incorporated a wholly owned subsidiary
called L&T International FZE at Sharjah to provide project consultancy, equipment lease
services and maintenance of plant and machinery in the Gulf region.
By mid 2006, almost all the Emirates had announced infrastructure plans, the total cost of
which was estimated to be approximately $270 billion over the next ten years. Recognizing
the growth potential, L&Ts management decided to expand its resource base and opened
new offices in Dubai, Sharjah and Ras al Khaima in addition to Abu Dhabi. Some of the
prestigious projects executed by L&T include four bridges at Palm Island, residential
buildings at the Dubai Marina and construction of Raysut Cement Plant, Oman. Exhibit 1
provides a detailed list of projects successfully executed by L&T E&C in the Middle East.

Apart from the Gulf region, L&T E&C also gradually expanded its overseas
operations to Russia, the CIS countries and China. Projects executed include a
hydrogen reformer package for Dalian petrochemicals
in China, turnkey construction of international hotels at Uzbekistan and construction
of residential township at Zernograd, Russia.

GLOBAL PRESENCE

PROMOTIONAL STRATEGIES
For the offerings like Turnkey Projects, Construction Projects, Engineered
Products & Systems, IT, Financial services, Shipbuilding, the company directly
maintain relationship with the customers.
Promotional strategies adopted by the organisation are:
1 Trade Shows

1 Telemarketing
2 Product Brochures
3 Direct selling
The EEPI & MVI categories are dependent on the respective distributors. The
sales reps of the company along with the distributors market those products.

CORPORATE BRANDING CAMPAIGN

IMAGINEERING
L&T launched a corporate Branding campaign where it projected its capabilities
in every category as IMAGINEERING.
As part of corporate brand building plans, L&T has produced a series of TV
commercials on its business verticals. Each commercial shows some of its business
offerings, and highlights the role that plays in everyday lives. The commercials were
telecasted on CNBC- Indias leading business channel till December 26, 2008.

The advertisements focus on two core values of the organization:

1 Innovativeness
2 Customer focus and development focus

FOR ENGINEERS : A benchmark in innovation

FOR A TRAVELLER : Fewer hours travelled, more hours lived
FOR THE RECORD: Asias highest
FOR KONKAN RAILWAY : Accolades
FOR US

: Imagineering as usual

The company gives its message that

1 As how it has achieved the excellence of being Asia highest
2 How it as created a level of performance and innovation through its engineering
3 How it is serving to the needs of its customers & consumers by providing
them with revenues generated plus consumer satisfaction.
4 More over for Konkan Railways, the project achieved is a matter of pride but
5 For L&T it is merely creative & Innovative & Planned design based on what
started with an imagination & now has taken a practical shape.

DISTRIBUTION CHANNELS
Distribution Channels at L&T Various Divisions
It has a global supply network with offices in 10 locations worldwide, including
Houston, London, Milan, Shanghai, and Seoul.

L&T Construction Division:

All the distribution is project based, and the sales are made through direct marketing.
This is a Zero Level Channel Structure and this enables direct control to L&T project
development teams.

L&T Engineering Equipment:

The equipment is dealt through dealers and other channels of delivery where the
equipment sale can be made through dealers e.g., turnkey, valves etc

The sales pitch is made and followed up and detailed later on by the Dealers
present in the Area, The distribution network is based on each geographical area.

L&T Financial Services:

In spite of increased competition from alternate distribution channels, L&T believes that
independent agents continue to represent a major chunk of carriers' business. Hence it is
imperative for carriers to focus on enriching their relationship with Agents. L&Ts suite of
services enables insurance companies to achieve a 'Carrier of choice' status amongst agents.

The Agency Relationship Management Solution, Agency Point includes:

Agency Portal
Mobile Based Agency Management Solution
Agency - Carrier Interface Solution
these services enable insurance carriers to retain its top agents, while
developing an attractive proposition to attract new agents.

1
2
3

L&T EmSys:
The channel of distribution is entirely corporate sales based, and project based, which is
a Zero Level Channel structure. The projects are acquired through Relationships and a
few dealers. The Distribution is entirely dependent on the Customers requirement.

The overseas offices of EmSys are located in USA, Europe and Japan along with a
network of Business Associates in various places.
Larsen & Toubro e-Engineering Solutions
This subsidiary focuses on providing engineering solutions using PLM technology. It
provides engineering services. It operates from off-shore engineering centres at
Vadodara, Chennai and Bangalore with onsite teams to cater to engineering
requirements of global clients, many of them Fortune 500 companies.

Larsen & Toubro Valves Business Group

The marketing network is supported by an experienced team of valve specialists.
The distribution is completely project based, and the teams develop relations
with the customer to meet requirements. It is a leading global supplier of
industrial valves and customized solutions for major Refinery, LNG, GTL,
Petrochemical and Power projects.
Larsen & Toubro InfoTech:
The channel of delivery is again a zero level structure, wherein a project is handled just
like a TCS or an Infosys to achieve maximum control and no Intermediaries.

PRICING STRATEGY
Price management is the disciplined method to understand the various cost
components of transaction and to enforce a process to eliminate unstructured
decision, thereby lead to improve the bottom line growth. Companies today are under
great to increase the value for their shareholder on one hand and to satisfy
continuous demand for the customers on the other hand.

Aggressive pricing (predatory pricing):

In business and economics, predatory pricing is the practice of selling a
product or service at a very low price, intending to drive competitors out of the
market, or create barriers to entry for potential new competitors. If competitors or
potential competitors cannot sustain equal or lower prices without losing money, they
go out of business or choose not to enter the business.
Biggest competitor of L&T is BHEL which takes part in all the bids of construction
deals. L&Ts aggressive pricing strategy not only outbid BHEL but other overseas players
also such as Chinese and Koreans, who are known for low pricing strategies.

Penetration strategy:
L&T acquired TAMCO switch gear in Malaysia. After the acquisition the switch gear
products were sold at a very low price so as to attain a significant market in Malaysia.
Grasim and L&T deal:
LNT and Grasim deal lead to increased consolidation in the cement industry. This deal
leads to increase in consolidation in the cement industry and considerable improvement in the
cement prices. Demand has been growing consistently and on the other there is less increase in
capacity. Demand growth, driven by construction demand such as roads and housing, was over
8-9 per cent per annum over the medium term, lifting cement demand to 125 million

tonnes in FY05 from the 107 million tonnes in FY03. As the giants have consolidated they
enjoyed monopoly to a certain extent and increased the cement prices to some extent.

Multinational players would become marginal players. In fact, the biggest MNC
player in India, Lafarge, had only a 3 per cent market share. Five Indian companies
owned 55 per cent market share and the rest of the market were shared by 44 players of
median capacity of 1.2 million tonnes. Any potential player would have to make several
acquisitions to gain market shares comparable with the top Indian players.

Bid price
A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for a good. It
is usually referred to simply as the "bid."
L&T has been engaged itself in several bids with one of the most successful
being of Rs 300 crore order for construction of the ductile iron spun pipe (DISP) plant
of KIOCL Ltd, earlier known as the Kudremukh Iron Ore Company Ltd, the public
sector undertaking under the ministry of steel and mines. KIOCL plans to set up a
100,000 tonnes per annum DISP plant at Mangalore as part of its diversification. L&T
emerged as the L1 bidder for the project. The KIOCL board shortlisted L&T through a
global bidding route for the proposed project.

Waterfall Strategy
A popular strategy followed by L & T Ltd. Is the price waterfall strategy (also called
Pocket price waterfall). It is the set of prices, price adjustments and cost elements
that defines how list price gets to net price and how net price gets to net margin.
Price waterfall depicts the build up of L & T ltds engineering products prices from a base price
to the list price and then the discounts that are given to the dealers to get to the Invoice price,
the rebates terms, bonuses and other Discounts that affect the Pocket Price, the Pocket margin
based on Cost of Goods sold and the Net margin based on the other fixed costs.

The Price Waterfall Strategy shows the different prices that are included in the pocket
price to get to the dealers price for the L&T Ltd. Engineering and electrical products.