ADARSH INSTITUTE OF MANAGEMENT MARGAO ­ GOA.

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Done by: Prajot Morajkar Roll no: 16

Company profile 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 world-class 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:
y y y y y y y y y Engineering & Construction Projects (E&C). Heavy Engineering (HED). Construction. Power. Electrical & Electronics (EBG). Machinery & Industrial Products (MIPD). IT & Technology Services. Financial Services. Railway Projects.

History:
L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning HolckLarsen and Soren Kristian Toubro. Both of them were strongly committed to developing India's engineering capabilities to meet the demands of industry. The evolution of L&T into the country's largest engineering and construction organization among the most remarkable success stories in Indian industry.

Henning Holck-Larsen

Soren Kristian Toubro

In t Beginning t ey i ted inery rom E rope; rapidly took on engineering and onstruction assignments of increasing sophistication. oday, the company sets global engineering benchmarks in terms of scale and complexity.

Early days:
Henning Holck-Larsen and oren Kristian oubro in their school life ould not have dreamt, as they ere learning about India in history classes; that one day they ould, create history in the same land. In 1938, Both the friends decided to give up the comforts of orking in Europe, and started their own operation in India. ll they had was a dream. nd the courage to dare. he first office that they have started in Mumbai Bombay) was so small that only one of the partners could use the office at a time. In the early years, they represented anish manufacturers of dairy equipment , imports were for a modest retainer. But with the start of the econd World War in restricted, compelling them to start a small work-shop to undertake jobs and provide service facilities. ermany's invasion of enmark in 1940 stopped supplies of anish products. his crisis forced the partners to stand on their own feet and innovate. hey started manufacturing dairy equipment indigenously. hese products proved to be a success, and L&T came to be recognised as a reliable fabricator with high standards. The war-time need to repair and refit ships; that has offered L&T an opportunity, and led to the formation of a new company, µµHilda Ltd¶¶ to handle these operations. L&T also started two repair and fabrication shops by this time Company had begun to expand. s there were, the sudden internment of erman engineers who were to put up a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation - an area where their capability became well respected.

The Journey
In 1944, ECC was incorporated. round then, L&T decided to build a portfolio of foreign collaborations. By 1945, the Company represented British manufacturers of equipment used to manufacture products such as hydrogenated oils, biscuits, soaps and glass. In 1945, L&T signed an agreement with Caterpillar Tractor Company, U , for marketing earthmoving equipment. t the end of the war, large numbers of war-surplus Caterpillar equipment were available at attractive prices, but the finances required were beyond the capacity of the partners. This encourages them to raise additional equity capital, and on 7th February 1946, Larsen & Toubro rivate Limited was born. Independence and the subsequent demand for technology and expertise offered L&T the opportunity to consolidate and expand. ffices were set up in Kolkata Calcutta), Chennai Madras) and New elhi. In 1948, fifty-five acres of undeveloped marsh and jungle was acquired in owai. Today, owai stands as a tribute to the vision of the men who transformed this uninhabitable swamp into a manufacturing landmark.

Public limited company
In ecember 1950, L&T became a Public Company with a paid-up capital of Rs.2 million. The sales turnover in that year was Rs.10.9 million. Prestigious orders executed by the Company during this period included the mul airy at nand and Blast Furnaces at Rourkela teel Plant. With the successful completion of these jobs, L&T emerged as the largest erection contractor in the country. In 1956, a major part of the company's Bombay office moved to ICI House in Ballard Estate. decade later this imposing grey-stone building was purchased by L&T, and renamed as L&T House - it¶s Corporate ffice. The sixties saw a significant change at L&T - . K. Toubro retired from active management in 1962. The sixties were also a decade of rapid growth for the company, and witnessed the formation of many new ventures: UTMAL set up in 1960), Audco India Limited 1961), Eutectic Welding Alloys 1962) and TEN L 1963).

Expanding hori ons
By 1964, L&T had widened its capabilities to include some of the best technologies in the world. In the decade that followed, the company grew rapidly, and by 1973 had become one of the Top25 Indian companies. In 1976, Holck-Larsen was awarded the Magsaysay Award for International Understanding in recognition of his contribution to India's industrial development. He retired as Chairman in 1978. In the decades that followed, the company grew into an engineering major under the guidance of leaders like N. M. esai, U. V. Rao, . . Kulkarni and A. M. Naik. Today, L&T is one of India's biggest and best known industrial organisations with a reputation for technological excellence, high quality of products and services, and strong customer orientation. It is also taking steps to grow its international presence.

ubsidiaries & Associates
L&T group has a number of subsidiaries & associates carrying out its business all over the world.
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L&T FINANCE LIMITE . L&T INTERNATIONAL FZE. L&T URBAN INFRASTRUCTURE LIMITE . L&T INFRASTRUCTURE FINANCE COMPANY LIMITE . L&T CAPITAL COMPANY LIMITE LTCCL).

Awards & Recognitions
Major awards won by L&T in 2010:
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Doubl onours for L&T at NDTV Profit Awards It was a special evening for L&T at the N TV Profit Business Leadership Awards on September 1, 2010. Mr. A.M. Naik, Chairman & Managing irector, L&T, received a Special Award for Business Leader of the Year - Building India. The Award was presented to Mr. Naik by Union Finance Minister, Mr. Pranab Mukherjee. The other honour that came L&T's way was the Leadership Award for Excellence in Infrastructure. This was the fourth occasion when L&T has emerged the winner in the infrastructure category, affirming the Company's leadership position in the industry. L&T wins Social Development Award from Bombay Chamber of Commerce L&T's Corporate Social Initiatives won further laurels with an award from the Bombay Chamber of Commerce and Industry BCCI). The Social evelopment Award - one of BCCI's prestigious annual Civic Awards - recognises and rewards best practices among corporate with a view to securing wider acceptance for such practices across the industry. June 10, 2010) L&T wins Corporate Wellness Award from Confederation of Indian Industry The Confederation of Indian Industry CII) honoured L&T with its prestigious Corporate Wellness Award for µBest Health Practices¶ in the manufacturing sector. The award was presented at the valedictory session of CII¶s National Conference & Annual Session, held in New elhi, on May 12, 2010. L&T bags Business world-FICCI Corporate Social Responsibility Award Appreciating the extensive effort put in by L&T in transforming lives through its Corporate Social Responsibility initiatives, well-known business magazine, Business world, and the Federation of Indian Chambers of Commerce and Industry FICCI) have conferred on it the coveted Business world-FICCI-SE F Corporate Social Responsibility Award. May 11, 2010) L&T is Business Standard µCompany of the Year¶ L&T bagged the Company of the Year award from the leading business daily, Business Standard. Union Home Minister, Mr. P. Chidambaram, presented the award to Mr. A.M. Naik, Chairman & Managing irector, L&T, at a glittering function in Mumbai on March 30, 2010. Mr. A.M. Nai Honoured with OceanTEX Business Leader of the Year Award The Mumbai based CHEMTECH Foundation has awarded L&T's Chairman & Managing irector, Mr. A.M. Naik, its prestigious µOceanTEX Business Leader of the Year¶ Award. March 30, 2010) L&T s Electrical Standard Products wins IMC Ramkrishna Bajaj National Quality Award The Electrical Standard Products ESP) business unit of Electrical & Automation Operating Company of L&T, won the coveted IMC Ramkrishna Bajaj National Quality Award 2009. March 19, 2010). L&T s in-house magazine, The L&T-ite, bags ABCI µMagazine of the Year Award¶

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L&T¶s employee magazine, The L&T-ite, bagged the µMagazine of the Year Award¶ from the Association of Business Communicators of India at the 49th Annual Awards Contest. L&T also bagged a tally of 10 other awards at the competition. This is the highest number of awards won by any of the 86 companies from around the country that participated in the annual contest. (March 19, 2010). Mr. A.M. Naik Wins µCEO of the Year¶ Award from ISTD, Bangalore The New Delhi based Indian Society for Training & Development (ISTD), conferred its prestigious µCEO of the Year¶ Award on Mr. A.M. Naik, L&T s CMD. (February 14, 2010). L T-Komatsu bags Energy Efficiency Conservation Award L&T-Komatsu (LTK) has bagged the prestigious award for being µThe Most Innovative Company in Energy Efficiency & Conservation¶ from the Bangalore Chamber of Industry and Commerce (BCIC). This award recognises LTK¶s commitment to energy conservation in line with the EHS management system followed by the organisation. (February 11, 2010).

Management Profile
The company has a strong heritage of professionalism that places the highest value on merit and integrity. In the 70th year of the existence of L&T, all the directors on our board are conscious of our responsibility in transforming the organisation to make it truly world class, to ensure its continued long term success and growth.
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A. M. Naik

Chairman & Managing Director

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J. P. Nayak

Whole-time Director & President (Machinery & Industrial Products)
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Y. M. Deosthalee

Whole-time Director & Chief Financial Officer
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K. Venkataramanan

Whole-time Director & President (Engineering & Construction Projects) View Profile
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R. N. Mukhija

Whole-time Director & President (Electrical & Electronics)
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K. V. Rangaswami

Whole-time Director & President (Construction)

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V. K. Magapu

Whole-time Director & Senior Executive Vice President (IT & Technology Services)
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M. V. Kotwal

Whole-time Director & Senior Executive Vice President (Heavy Engineering) NON-EXEC TIVE DIRECTORS y y y y y y y y y S. Rajgopal S. N. Talwar M. M. Chitale Thomas Mathew T. N. Mohan Raj Subodh Bhargava Mrs. Bhagyam Ramani A.K. Jain Jagjeet S. Bindra

Business Structure

Segment Analysis
The company¶s business can be primarily divided into the following segments: Engineering & Construction ± Projects (EPC): L&T¶s 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 prequalified for executing large, process-intensive projects for oil and gas, refinery, petrochemical and fertiliser sectors. 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. 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 India¶s 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 India¶s largest construction organisation. Its leading edge capabilities cover every discipline of construction ± civil, mechanical, 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.

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 Arabia¶s 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.

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.

Financial Analysis:
financial report ratio ananlysis current ratio current assets / current liability Returns Return on equity PAT/avg shareholders fund ROTA PBIT/AVERAGE TOTAL ASSETS Profitability PBITDA margine PBITDA/ Total income 2009 23448.02/1784 2.41 = 1.31 2008 16406.78/1377 7.14 = 1.19 2007 11884.66/933 7.26 = 1.27 2006 2005

9535.45/6910. 8795.41/5556. 55 = 1.38 57 = 1.58

2706.20/12459 .69 = 0.28

2173.42/9555. 08 = 0.23

1403.02/5768. 942.39/4640.1 983.85/3369.1 4 = 0.24 7 = 20.31 3 = 0.29

3940.41/3466. 15 = 1.14

3155.47/25529 .80 = 0.12

2004.89/1804 1.12 = 0.11

1313.65/1519 8.63 = 0.09

1286.14/1374 8.26 = 0.10

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