Professional Documents
Culture Documents
Case
space.
Unit: Refinery, cracker, Oil & Gas Equipment Business unit, Hazira, Surat.
I am part of RCOG unit located at Surat on bank of river tapi.
L&T’s business spectrum spans across Engineering, Construction, EPC, Heavy
Engineering, Shipbuilding, Power, Electrical business, Electronics, IT and has got
numerous subsidiaries and joint ventures in the related businesses. Its business
spans from China to North America and have got global presence with many units
located globally to cater to the diversified geographies and customers. L&T is on a
rapid growth path in the recent times with an exploding infrastructure and power
markets in India and abroad
I will discuss L&T’s overall strategy in period 1990 to 2008 under leadership of Mr A.
M. Naik.
Background :
Back in the 1990s L&T was at the cross roads. The stock prices remained
stagnant. The growth was negligible. Businesses spanned in many areas
from salt to leather. The company’s future was uncertain when another
Page 1 of 4
Week 1 : Strategic Management : Application from GE
Case
corporate Reliance came up with an open offer to take over L&T. And the
Birlas had acquired almost 15% stake in L&T at the end of 1990s. L&T’s
order book in the core areas were drying up from the domestic markets.
The situation was almost imminent.
Page 2 of 4
Week 1 : Strategic Management : Application from GE
Case
As can been seen from Financial results, This strategy has been successful to
increase market cap and Profit book of Company in period of 1992 to 1999. Also SBU
culture made each division profit centre so that they have freedom and responsibility
to control revenue as well as cost.
Also by way of demerging to cement business to biral, L&T was successful in avoid
take over treat.
Page 3 of 4
Week 1 : Strategic Management : Application from GE
Case
trained to take up highest leadership positions. Through this route L&T was
able to sustain its culture of organic growth.
- X -
Page 4 of 4