INTRODUCTION

1.1 INDUSTRY PROFILE

Construction industry refers to the industrial branch of manufacturing and trade related to

building, repairing, renovating, and maintaining infrastructures. It is a determinant of the
country's technological and technical advancement, often regulating the growth of the
country's infrastructural development that often directs to the country's advancement in terms
of sustainability assurance.

The construction industry is recognized as a sector with great contribution to the economic

and social development of a country, particularly due to the number of direct and indirect
jobs generated and its influence on several other sectors which produce materials, equipment,
and services in its production process. It is usually one of the first sectors to signal a region’s
financial situation, in times of both exponential growth and economic recession.

Major players
 LARSEN & TOUBRO
 Megha engineering & Infrastructure Limited
 Tata Projects
 KEC International limited
 Shapoorji Pallonji Co. Pvt. Ltd.

Recent Developments

January 2022: The Heavy Civil Infrastructure business of L&T Construction won a
prestigious order from Delhi Metro Rail Corporation Limited (DMRC) to design and
construct the Underground Metro Project of Phase-1 of Patna MRTS. The major scope of
work for the project comprises design & construction of a Twin Tunnel by Shield TBM of
approximately 6 Km, Tunnel by Cut & Cover, an Underground (UG) Ramp at Rajendra
Nagar and six UG Metro Stations located at Rajendra Nagar, Moin Ul Haq Stadium,
University, PMCH, Gandhi Maidan, and Akashvani, along with other associated structures
including architectural finishing, water supply, sanitary installation, and drainage works on
the new ISBT to Patna Station of Corridor-2 of Phase-1 of Patna MRTS. The project passes
through the heart of Patna City and is scheduled to be completed within 42 months.

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December 2021: Indian Hotels Company (IHCL) collaborated with TATA Projects Limited
for the construction of its new Ginger hotel at Santacruz, Mumbai, by an all-woman
engineering team. The 371-room hotel with a built-up area of over 19,000 square meters will
be constructed over a course of 19 months. The building process will incorporate the latest
construction techniques and technologies. Located at a prime location in close proximity to
Mumbai Airport and Western Express Highway, this will be a flagship Ginger hotel and is
being constructed by one of India’s leading construction companies.

Global Construction Estimations Outlook

 Oxford Economics estimate the global construction market was valued at US$10.7
trillion in 2020; US$5.7 trillion of this output was in emerging markets.

 The global construction market is expected to grow by US$4.5 trillion between 2020
and 2030 to reach US$15.2 trillion with US$8.9 trillion in emerging markets in 2030.

 Regional construction growth is expected to be highest in Sub-Saharan Africa

followed by emerging Asia.

 Four countries – China, India, US, and Indonesia – to account for 58.3% of global
growth in construction.

 Residential construction is predicted to drive short-term recovery while infrastructure

spending propels medium-term outlook.

 Urbanisation expected to turbo charge growth in emerging markets. Overall growth of

the world’s population could add another 2.5 billion people to urban areas by 2050
with almost 90% of this happening within Asia and Africa.

 Infrastructure development globally is heavily dependent on public spending. This

means investment relies on the ability of governments to finance spending although
long-term stable and index-linked returns from infrastructure are generally well
matched to the needs of large superannuation funds.

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Labour 

The construction industry remains significantly short of skilled workers. Job openings in the
industry totalled 381,000 in February, according to data from the U.S. Bureau of Labour
Statistics, up about 60,000 from pre-pandemic levels. (Of note, construction job openings
have surpassed hirings only four times since tracking began in 2001, and all four occurred
during the pandemic.) Hope is on the horizon: While the supply of skilled labour entering the
workforce remains a primary concern for contractors, recent data on community college
enrolment shows improvement. From 2019 to 2021, there was a 5% uptick in entrants to the
trade, according to the National Student Clearinghouse, a non-profit that collects data on
higher education. 

Despite the very recent trend in promoting the skilled trades, a large gap in employment in
the construction industry remains, resulting in large part from an exodus of labour that began
during the Great Recession. Even as construction demand has surged during the post-
recession recovery, workers have not rushed back in to fill jobs. Many in the younger
generations are opting for less physically demanding jobs in a market favourable to labour,
leaving the industry without a replacement bench to satisfy continued demand.

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The takeaway

It expects construction demand to continue, with a stronger push toward infrastructure as

funds from the new federal legislation begin to support projects. Contractors planning to take
advantage of these funds should spend time now on preparation, including evaluating
potential opportunities and reviewing current processes to ensure that bids are accurate and
related contracts can be streamlined. In addition, they should review their current technology
to ensure compliance with government contracting rules and regulations. 

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 1.2 COMPANY PROFILE

Larsen & Toubro is an Indian multinational engaged in EPC Projects, Hi-Tech

Manufacturing and Services. It operates in over 50 countries worldwide. A strong, customer-
focused approach and the constant quest for top-class quality have enabled L&T to attain and
sustain leadership in its major lines of business for over eight decades.

It is engaged in core; high impact sectors of the economy and its integrated capabilities span
the entire spectrum of ‘design to delivery’.

CEO: S N Subrahmanyan 

Founded: 7 February 1946, Mumbai

Headquarters: Mumbai

Number of employees: 49,921 (2022)

Revenue: 1.59 lakh crores INR (US$21 billion, 2022)

Founders: Søren Kristian Toubro, Henning Holck-Larsen

Every aspect of L&T's businesses is characterised by professionalism and high standards of

corporate governance. Sustainability is embedded into our long-term strategy for growth.

L&T Construction's Buildings & Factories is a business vertical that is equipped with the
domain knowledge, requisite expertise and wide-ranging experience to undertake
Engineering, Procurement and Construction (EPC) of all types of building and factory
structures through its dedicated Business Units.

L&T Hydrocarbon Engineering

L&T Hydrocarbon Engineering delivers 'design to build' engineering and construction

solutions on a turnkey basis in the oil & gas, petroleum refining, chemicals & petrochemicals
and fertilizer sectors. In-house expertise, experience, and strategic partnerships enable it to
deliver a single point solution for all projects – from front-end design through engineering,
fabrication, project management, construction and installation and commissioning. Modular
fabrication facilities at Hazira (India, west coast), Kattupalli (India, east coast) and Sohar
(Oman) give L&T all-weather delivery capability.

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The Company’s operations are characterized by an overriding emphasis on safety, ontime
delivery, cost competitiveness, high quality standards with focus on best in class IT security
practices. Integrated strengths coupled with an experienced and highly skilled work force, are
key enablers in delivering critical and complex projects.

Transportation Infrastructure

L&T is engaged in the turnkey construction of major infrastructure projects - expressways,

bridges, runways and railway projects. The Company has been a leading player in rail
infrastructure development for more than three decades, and has brought in new technologies
and mechanised construction. L&T is the only private organisation in India qualified to
undertake integrated rail construction projects of the Indian Railways.

Heavy Civil Infrastructure

The Company undertakes heavy civil construction - underground metro rail corridors docks,
container terminals, wharves and berths, jetties, breakwater and shore protection, and
caissons. It has the expertise to design special launching and erection techniques, including
special systems formwork for concrete deck on top of steel and concrete structures.

Comprehensive engineering, procurement and construction services are offered for

hydropower projects. L&T has also played a critical role in the development of technology
for India’s nuclear power sector.

Building & Factories

L&T occupies leadership position in the construction of major airports, IT parks, turnkey
hospitals and residential buildings. Building & Factories Business undertakes projects on a
‘concept to commissioning’ basis. Its technological capabilities encompass tall towers and
eco-friendly ‘green’ buildings. Its track record includes landmark structures such as the
Baha’i temple in New Delhi.

Power Transmission & Distribution

The focus is on sub-stations, industrial electrification, transmission line projects and railway
construction on the domestic front, and power transmission and distribution projects. L&T
has an extensive track record in the Middle East, and is recognised as a major player in the
region.

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Water Projects & Solar Energy

L&T’s Water & Solar business caters to the entire value chain of water and solar EPC. The
water and effluent treatment business covers water intake, transmission, treatment and
distribution including industrial waste water treatment & disposal and ordinary waste water
treatment & reuse segments. The water technology business uses advanced water treatment
technologies for complex treatment projects – largely in the Middle East. L&T’s Solar EPC
business comprises solar photovoltaic (PV), concentrated solar power (CSP).

Metallurgical & Material Handling

This Company undertakes turnkey construction contracts for projects in minerals & metals
sector, and bulk material handling projects. It is a leader in all its areas of operations. It has a
structural steel fabrication unit at Kanchipuram to meet the customised needs of its wide
client base.

Power

L&T offers turnkey solutions for the power sector with a wide capability spectrum covering
supercritical coal and gas-based projects. The supercritical technology that L&T propagates is
‘greener’ than conventional techniques and represents a major advantage for industry. L&T’s
integrated capabilities and in-house expertise encompass virtually every aspect of design,
engineering, manufacture, construction and project management. The Company’s integrated
manufacturing facility at Hazira near Surat is among the most advanced in the world for
manufacturing state-of-the-art equipment for power plants - boilers, steam turbines,
pulverisers, pressure piping, coaxial fans, air-pre-heaters and electrostatic precipitators. The
complex also includes a modern casting and foundry shop.

Heavy Engineering

L&T is acknowledged as one of the top five manufacturing companies in the world in the
heavy engineering space. Operating at the higher end of the technological spectrum, L&T’s
offerings straddle the segments of process plants and the strategic sectors of defence, nuclear
and aerospace. New processes, products and materials have been introduced in
manufacturing. The Company also has the logistics capabilities of fabricating and supplying
over-dimensional equipment to tight delivery schedules. Globally-benchmarked workshops
are located at Powai in Mumbai, Hazira and Baroda in Gujarat, Talegaon in Maharashtra, and
Sohar in Oman.

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Shipbuilding

Two modern shipyards - one on the west coast of India at Hazira, and the other on the east
coast at Kattupalli near Chennai establish L&T as a major shipbuilder. A state-of- the-art
Marine Design Centre is located at Chennai. L&T Shipbuilding focuses on four major
business segments: Building warships, submarines and auxiliary vessels; Building specialized
commercial ships; Repairs and re-fits of submarines as well as naval and commercial ships;
Ship conversions. The Hazira Shipyard has the capability to build sophisticated mid-sized
ships up to 20,000 t deadweight capacity, of 10 metres in length. The mega shipyard at
Kattupalli also includes a container port and an offshore modular fabrication yard. It has a
waterfront of 2.2 km, depth of 10m at berths and channel depths of 16 m.

Electrical & Automation

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. The
product range also includes custom-engineered LV and MV switchboards for industrial
sectors like power, refineries, petrochemical, cement. In the electronic segment are a wide
range of meters and complete control and automation systems for industries.

Information Technology

Larsen & Toubro Infotech, a 100% 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. Leveraging the heritage
and domain expertise of the parent company, its services encompass a broad technology
spectrum, catering to leading international companies across the globe.

Technology Services

L&T Technology Services provides leading-edge engineering solutions to multiple industry

sectors like automotive, aerospace, consumer electronics, consumer packaged goods, marine,
medical devices, off-highway equipment, railways, pharmaceuticals, oil & gas, utilities,
infrastructure and industrial products. With its global headquarters at Vadodara, the Company
operates through dedicated engineering centres in tandem with onsite teams worldwide. Its
client base includes several Fortune 500 companies.

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Machinery & Industrial Products

The Company manufactures, markets and provides service support for industrial products,
industrial machinery as well as construction and mining machinery. This includes a wide
range of industrial valves for critical applications, rubber processing machinery, surface
miners, hydraulic excavators, aggregate crushers and applicationengineered welding alloys
and cutting tools.

Infrastructure Development

L&T Infrastructure Development Projects Limited, a subsidiary, leverages domain expertise

in construction and financial services, and is a major player in Public-Private Projects in
India. L&T IDPL develops projects in various models - Build Own Transfer, Build Own
Operate Transfer, Build Own Operate Share Transfer, and other variants including the
annuity model. Major projects being executed by the Company include Hyderabad Metro
Rail - the largest public-private rail project in the world, and ports at Dhamra and Kattupalli.
Multiple highway projects around the country have established L&T IDPL as the leader in
the space.

Financial Services

L&T Financial Services - a publicly listed subsidiary - is a key player in India’s financial
services sector. Its subsidiaries include L&T Finance Limited, L&T Infrastructure Finance
Company Limited and L&T Asset Management Company Limited. The Company also
provides Insurance related services through L&T General Insurance Company Limited.

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VISION & MISSION

VISION

L&T shall be professionally managed Indian multinational committed to total customer

satisfaction and enhancing shareholder value. L&T shall be an innovative entrepreneurial and
empowered team constantly creating value and attaining global benchmarks. L&T shall foster
a culture of caring trust and continuous learning while meeting expectations of employees,
stakeholders and society.

MISSION

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To achieve excellence in the field of Engineering, Procurement and Construction through
world class practice and standards in quality, Safety and Project Management.

ABOUT

L&T Construction is a division of Larsen & Toubro (L&T) a major Indian technology,

engineering, construction, manufacturing and financial services conglomerate, with global
operations. L&T addresses critical needs in key sectors - Hydrocarbon, Infrastructure, Power,
Process Industries and Defence - for customers in over 30 countries around the world. L&T is
engaged in core high impact sectors of the economy and our integrated capabilities span the
entire spectrum of 'design to deliver'. With over 8 decades of a strong, customer focused
approach and a continuous quest for world-class quality, we have unmatched expertise across
Technology, Engineering, Construction, Infrastructure Projects and Manufacturing.

FOUNDING FATHERS

Larsen & Toubro was founded in 1938 in Bombay (now Mumbai) by two Danish engineers,
Henning Holck-Larsen (1907 – 2003) and Soren Kristian Toubro (1906 – 1982) who landed
on Indian shores representing FL Smidth & Co A/S, Copenhagen, Denmark. The respect,
trust and confidence in each other was so great that initially the business was founded merely
on an oral understanding; no written document was filed, and it was only in end-1940 that
they finally linked their partnership.

Unique Capabilities

Our sustained success of executing critical projects to speed and scale across sectors is thanks
to some strong, inherent capabilities we possess be it our unique capability to design-and-
build or take advantage of our considerable strength in in-house R&D; be it our strong focus
on delivering to the highest standards of safety and quality or yoking a global supply chain or
even extracting the enormous benefits of digitalization to drive operational efficiency. 

Safety

Safety is the result of a well-considered, well-planned and well-executed strategy that

requires discipline, purpose and constant focus but, above all, a mindset that understands and
appreciates the need for safety, diligently follows the prescribed EHS conditions so that
everyone either at sites or offices can remain safe, injury-free and return to their loved ones at
the end of every day or shift. At L&T Construction, we put a premium on Safety reflective of

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the various Safety awards the organization keeps winning and the varied initiatives taken
across our establishments to keep our safety record intact.

 CV KEEPS SITE SAFE 24/7/365

 WISA – THE TICKET TO EFFICIENT WORKMEN ONBOARDING
 SHIELD – A FRESH PERSPECTIVE TO SAFETY
 19 SWORDS OF HONOUR OVER THE LAST TWO YEARS!
 53 ROSPA GOLD AWARDS
 GOLDEN PEACOCK ENVIRONMENT MANAGEMENT AWARD
 5 NATIONAL SAFETY COUNCIL AWARDS
QUALITY
Quality is a key business differentiator to optimize time & cost, meet & exceed stakeholder
expectations. Top-class quality has enabled us to attain and sustain our leadership position in
all major lines of business for over eight decades. Quality is recognized as one of the core
values in our business excellence & sustainability in practice and visible in our Vision,
Quality Policy, Strategic Objectives, and Quality Management Systems that encompass all
organizational processes to deliver the customer requirements as per contract.
QUALITY COUNCIL
IMPROVING EFFECTIVENESS AND EFFICIENCY ON A CONTINUOUS BASIS
QUALITY CERTIFICATIONS
 ISO 9001:2015 Quality Management System (QMS) certification for various
business verticals
 ISO/IEC 17025 General requirements for the competence of testing and
calibration laboratories
 ISO 50001: Energy management systems for Transmission Line Tower Factories
 ISO 9001/TL9000 R6.2/R5.6(V) - Related to OFC projects
 ISO/IEC 27001 - Information Security Management System certification
TIMELY COMPLETED PROJECTS – 2020
We pride in delivering our projects to quality, safety and on time and these our some of our
projects that were impeccably delivered to our customers’ satisfaction:

 Prestige Song of the South, Bangalore

 The National Automotive Test Tracks - High speed tracks, Indore
 Underground cabling project in Bengaluru under model subdivision works, in E-8
subdivision of BESCOM

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  Design, Execution, and completion of brick built 33/11kV Nibras Primary Sub-
station in Abu Dhabi, UAE
 375 MLD Sewage Treatment Plant, Jebel Ali, UAE
 Lift Canal System for Upper Indravati Irrigation Project, Odisha
DIGITALIZATION
IOT, the cloud, geospatial technologies, drones, Building Information Modelling,
Augmented, Virtual and Mixed Realities, Analytics, AI, ML are all helping to improve our
productivity, reduce costs, cut execution time resulting in enhanced efficiencies. That we
have over 50 digital solutions either in production or being widely used by thousands of our
operating staff at hundreds of project sites; that over 11,000 construction equipment are
connected providing real time visibility into their operations; that a plethora of Mobile Apps
have digitalized every process relating to Safety, Quality, Execution et al represent the fact
that we have gone digital!
Design & Build

This unique capability is backed by a multi-disciplinary team of specialized engineers from

India and overseas, sophisticated software & hardware that offer value added integrated
engineering services with detailed design and engineering supporting our comprehensive
EPC services. ‘Srishti’, a first-of-its-kind, 3D studio provides an immersive walk-through of
projects and features like virtual prototyping and analysis by controlling virtual models
including design reviews giving both designers and customers a feel of the actual project
before execution. We can also undertake lump sum turnkey (LSTK) contracts with single-
source responsibility.

Our range of services include:

 Pre-engineering, feasibility studies and detailed project reports

 Complete civil & structural construction services for all types of buildings,
industrial and infrastructure projects
 Complete mechanical system engineering including fabrication and erection of
structural steel works; manufacture, supply, erection, testing and commissioning
of plant & equipment; heavy lift erection; high-pressure piping, fire-fighting,
HVAC and LP/utility piping networks
 Electrical system design, project electrification, automation and control system
including instrumentation for kinds of industrial and telecom projects

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  Design manufacture, supply and installation of EHV switchyards and
transmission lines

IN HOUSE RESEARCH AND DEVELOPMENT

EDRC, our Engineering Development and Research Centres, certified for ISO: 9001 – 2008
for their operations, are located at Chennai and Kolkata with multi-disciplinary teams of
engineers, sophisticated software and hardware offering value-added integrated engineering
services for clients across projects with basic & detailed design and engineering support as
part of the comprehensive EPC services as well as on a stand-alone basis.
Our expertise in Process Engineering cover Piping & Instrumentation diagrams, sizing &
selection of equipment, plant operational philosophy and site-based design verifications.
Mechanical & Utilities: We offer Plant & Equipment layouts, Detailed Engineering
Equipment Drawings, Pipe Stress Analysis & Isometrics, Design of Utility & HVAC Systems
& Design of Bulk Material Handling Systems.
Controls & Information Systems: We offer Instrument Lists & Specifications, Control &
Safety Logic Development, Instrument Installation Drawings & Loop Schematics.
Electricals: Our offerings include Power Distribution System Designs, Load Flow & Short
Circuit Analysis, Equipment Sizing & Layouts, Cable Connecting Schedules, Raceway
Layouts & Earthing & Lightening Protection Design & Layouts.
Civil, Structural & Architecture: On offer are Site Layout & Geo Technical
Recommendations, Structural Analysis, Civil & Structural Design including development of
Design Drawings, Foundation Drawings & Architectural Drawings. 
Robust Global Supply Chain

Our ISO-certified Materials Management function is the most important link in our Supply
Chain Management that supports global operations to meet the needs of all offices and
projects across India and overseas. To manage growing business volumes, procurement
offices have been established in China and UAE. The Resources Support Department fulfils
the requirement for manpower, Plant & Machinery for various projects and helps to identify
and mobilize the right resources for the right job to facilitate timely project completion. We
have a large pool of specialized subcontractors across different fields whose skills are
constantly upgraded through on-site training and on-line management.

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We employ the best of IT for our business needs; we have designed and developed several in-
house, customized software packages over the years that have evolved into the Enterprise
Information Portal (EIP), tailor-made for the construction business. With many systems, EIP
integrates the interests of all stakeholders' viz. employees, vendors and customers on a single
platform and hosts many enterprise applications catering to all phases of business cycles and
needs.

Revolutionizing building construction using 3D Printing technology

INNOVATIVE FULL SPAN LAUNCHING EQUIPMENT FOR THE HSR PROJECT

Corporate Sustainability

L&T was the first company in India in the engineering & construction space to publicly
disclose its sustainability performance. The Company’s annual Sustainability Reports
highlight achievements and objectives across the traditional three ‘Ps’ of Planet, People and
Profits. All our Reports are rated A+ by Global Reporting Initiatives, indicating the highest
level of disclosure. The recognition that the Company has secured from forums around the
world affirm public perception of L&T as an organization that contributes significantly to the
wellbeing of people.

SERVICE SPECTRUM

L&T Construction’s range of services includes:

• Pre-engineering, feasibility studies and detailed project reports.

• Complete civil and structural construction services for all types of buildings, industrial and
infrastructure projects.

• Complete mechanical system engineering including fabrication and erection of structural

steel works; manufacture, supply, erection, testing and commissioning of plant and
equipment; heavy lift erection; high-pressure piping; fire-fighting; HVAC and LP/ utility
piping networks.

• Electrical system design, project electrification, automation and control system including
instrumentation for all type of industrial and telecom projects.

• Design, manufacture, supply and installation of EHV switchyards, transmission lines.

Record of Achievements

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  Technological support in the launch and tracking systems for Mangalyaan – India’s
Mars Mission, and the only mission to successfully enter Martian orbit in its maiden
attempt. Earlier L&T had also contributed to India’s lunar mission.
 Metro projects being executed in Riyadh and Qatar as part of international
consortiums.
 Engaged in building major new airports in Delhi, Mumbai, Bangalore, Hyderabad and
internationally, in Sharjah, Oman.
 Mass Rapid Transit Systems including India’s first monorail in Mumbai, and critical
sections of metro systems in New Delhi, Hyderabad, Bangalore, Chennai, Kolkata,
Kochi, Lucknow.
 Building major infrastructure projects including ports, specialised bridges and
highway projects.
 Building of INS Arihant – India’s first nuclear powered submarine.
 The world's largest coal gasifier made in India and exported to China.
 The world’s biggest EO reactor for a petrochemical complex in the Gulf
 The world’s largest FCC regenerator for a refinery.
 Design & manufacture of a wide range of switchgear products and systems exported
to over 30 countries

ABOUT CORPORATE MUSEUM

Constructed to commemorate the 60th anniversary of L&T Construction, the uniquely shaped
corporate museum – the Henning Holck-Larsen (HHL) Centre – is dedicated to the memory
of one of L&T's founding fathers and Chairman Emeritus, the late Henning Holck-Larsen.
Recently re-designed and re-appointed, the HHL Centre is perhaps the best example of the
digital transformation witnessed across the organization.

In an entirely digital, touch-enabled environment, visitors from across the board can
experience the organization's 8-decade-long history, its width of capabilities, the mega, iconic
infrastructure projects executed, the smartness of its systems & processes, the people behind
this success, the multiple awards won and the sterling role that L&T Construction plays as a
responsible corporate citizen.

The HHL Centre has been awarded the Public Relations Society of India (PRSI) Golden
Jubilee Award by PRSI New Delhi for live interactive and innovative PR initiative.

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The Museum is open on all working days between 09:30 am and 05:30 pm. It is closed on all
Sundays, National holidays and second/fourth Saturdays.

Product and service profile

THINK URBAN INFRASTRUCTURE, THINK BUILDINGS

Several iconic buildings, both in India and overseas - from airports to IT parks, malls to
monuments, high-rises to hospitals, statues, institutional spaces, office buildings, cement
plants, industrial warehouses, places to stay, pray or play bear the signature of excellence of
our Buildings business. With an enviable track record, the business offers expertise across
some well-defined infrastructure segments like Airports, Residential, IT & Office Spaces and
Data centres, Public Spaces and Hospitals 

An enviable track record features 11 international airports including iconic ones at New
Delhi, Mumbai, Bengaluru, and Hyderabad, with cumulative capacity to handle more than
100 million passengers annually over a total built-up area of 1.3 million sq. m. Our Buildings
business was among the first to greet India’s digital dawn, by creating facilities for a cross
section of IT majors to just plug-and-play.

With excellent architectural and structural designs, optimal interior systems, high-strength
concrete and other office automation systems, Our Buildings business has built several
commercial complexes and educational institutions while their expertise in ‘design-and-

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build’ has given expression to several high-end luxury homes, villas and mass housing
complexes. Our Buildings business has offers ‘turnkey solutions’ from ‘concept to
commissioning’ with the help of advanced systems like Building Information Modelling, a
global supply chain and unrivalled project management expertise. The advent of precast
concrete construction has given the business a decisive edge with faster, more controlled,
better-quality construction. Our Buildings business has competitive advantage also stems
from our dedicated engineering data centres, competency cells, advanced formwork systems,
mechanized project execution, a wide network of consultants and vendors, digitized project
control and a talented pool of employees. 

TRANSPORTATION INFRASTRUCUTRE

Economic growth is fuelled by better connectivity and this vertical is in the business of
building Roads, Runways (Airside Infrastructure) & Elevated Corridors (RREC), Railway
Construction, Railways Systems & International Infrastructure to keep the wheels of
economies moving.

TI has built more than

13,000 lane km of
roads and bridges
including
expressways, National
& State highways,
complex interchanges,
toll plazas, elevated
corridors, grade separated concrete and steel structures both in India and overseas especially
in the Middle East and these span the entire spectrum, urban to rural, small to large, simple to
complex.
TI provides the strength for the heaviest aircraft to lift off from by building state-of-the-art
runways incorporating CAT IIIB instrument landing systems and designing and constructing
airside infrastructure for both greenfield and brownfield airports including taxiways, aprons,
service roads, drainage systems, fire and fuel lines, ground lighting and much more. Well-
diversified in terms of its product range and geography of operations, spread across India and
various GCC countries, the business leverages its vast experience in Project Management,
Engineering Design & Construction Management to achieve operational efficiency.

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Engineering Design Centres in Mumbai, Faridabad and Chennai, an Offshore Engineering
Centre in Mumbai, Area Offices in India and GCC countries, a competency development
centre at Kanchipuram and a Construction Skills Training Institute at Ahmedabad to train
workmen together further enhance efficiencies. 

WATER AND EFFLUENT TREATMENT

Water is life. The growing pressure on water resources due to rise in population, economic
growth, climate change, pollution and other challenges have had a major impact on our

social, economic and environmental wellbeing. The need is for comprehensive infrastructural
solutions to address this growing global crisis. Our Water & Effluent Treatment (WET)
business segment provides complete solutions through its concept to commissioning
capability involving design, detailed engineering, procurement, project management and
execution.

WET are leaders in the realm of constructing the entire gamut of vital water infrastructure
covering urban & rural water supply, water treatment plants, industrial water supply and
treatment plants for recycling and re-use, waste water treatment and network, sludge
management, lift irrigation projects, desalination plants, utility infrastructure for developing
greenfield and brownfield areas and uninterrupted optimized water supply with leak
detection.

With our process knowhow and detailed engineering capabilities across all streams of Water
and Wastewater businesses, formidable in-house engineering capabilities coupled with
impeccable project management skills, WET has made its presence felt in India, Sri Lanka,

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the Middle East and Africa. Our track record of having built over 5100 MLD of water
treatment plants; laid over 5,00,000 km of water and wastewater pipeline and pipeline
networks to bring more than 7 lac hectares of land under cultivation is reflective of our
leadership in our business realm.

HEAVY CIVIL INFRASTRUCTURE

Whether the task is to tame a river high in the Himalayas to create power or build restraining
walls in a marine environment, be it digging deep into the heart of a mountain or tunnelling
under bustling cities to build metro rail systems, the Heavy Civil Infrastructure business
vertical does all these and more, operating in some of most hostile conditions and challenging
terrains. Our expertise is in the design, engineering and construction of projects in segments
crucial to the economy like Metros, Nuclear, Hydel, Ports, Special Bridges, Tunnels and
Defence.

As perhaps the foremost builder of Metro

Rail systems, the business has a footprint
covering 4 geographies – India, Saudi
Arabia, Qatar and Bangladesh – and 19
projects that have already been executed
or being currently constructed. The hydro
power business offers ‘Water-to Wire’
range of services on an EPC basis with the expertise to build barrages, various types of dams,
underground tunnels of various geometries, pressure shafts, surge and desilting chambers,
large underground and surface powerhouses and hydro-mechanical components. The business
possesses the expertise to build special bridges using ingenious and cutting-edge techniques,
to construct ports replete with breakwaters, docks, container terminals, shipyards, et al and to
build vital defence installations.

With strong presence in India, the Middle East, Bhutan and Bangladesh, the business has in-
house design strengths and unique construction methodology cells to competently deliver
concept-to-commissioning solutions to meet specific customer requirements. 

POWER TRANSMISSION AND DISTRIBUTION

A leading EPC player in the field of power transmission, distribution and solar energy, PT&D
offers integrated solutions and end-to-end services ranging from design, manufacture, supply,

20
installation and commissioning of Transmission Lines, Substations, Underground Cable
Networks, Distribution Networks, Power Quality Improvement projects, Infrastructure
Electrification, Solar PV plants, Battery Energy Storage Systems and Mini / Micro Grid
projects. The business has set benchmarks in capacity, complexity and speed of execution
and through their dedicated business segments offers integrated solutions for a broad
spectrum of power transmission and distribution projects.

The business constructs all types of power evacuation projects from concept to
commissioning on an EPC basis with key focus areas being Air Insulated Substations (AIS)
of up to 1200 kV and Gas Insulated Substations (GIS) of up to 765 kV. PT&D possess the
capabilities to deliver transmission lines from design, manufacture, supply, construction,
testing to commissioning of EHV power transmission lines and turnkey solutions for the
construction of microwave towers.

PT&D's ambit of operations also include infrastructure and industrial electrification including
optic fibre cabling solutions for backbone access networks and Utility Power Distribution to
improve the quality of power, smart grids, SCADA systems and distribution reform projects.
Besides being a dominant player in the Indian market, the business enjoys a strong reputation
and significant share of markets in the Middle East, Africa and ASEAN.

L&T GEO STRUCTURE

Business related to soil is always challenging, primarily due to large variations in properties
across the depth and breadth of any site. Engineering and Technology play a major role in the
ground engineering business and foundation is a critical for any construction activity - be it
large or small. L&T GeoStructure is a unique, legal, business entity who are experts in
building foundations by focusing, capturing and building business in the ground engineering
segment. In 2012, L&T acquired a huge fleet of sophisticated foundation equipment and L&T

21
GeoStructure was formed to focus, capture and build business across the ground engineering
segment.

The organization has four main vertical businesses - namely: piling, embedded retaining
structures, marine and riverfront development, microtunneling, ground improvement, soil
investigation and anchors. The business executes a range of activities possessing the
capability of providing breakthrough Design-and-Build solutions, with vast and speedy
international networking for the latest trends and technologies. Their gamut of activities
includes execution of bored and driven piles, marine piles, secant piles, sheet piles,
contiguous pile walls, diaphragm walls, cut-off walls, ground improvement, foundation
testing and geotechnical investigation. A strong in-house design team enable them to offer
end-to-end solutions. The engineering and technology team acts as a knowledge provider to
mitigate the risk and as a catalyst to hasten project execution and enter innovative areas to
establish L&T GeoStructure as a pioneer in the ground engineering space.
SMART WORLD COMMUNICATION

Increasingly, the world is seeking smarter, secure, more intelligent solutions and optimized
utilization of resources to enhance the quality of life that has led to the rise of smart cities,
advanced security solutions and communication infrastructure in several advanced
economies. In India, with the Smart City Mission gaining momentum, SWC is well-
positioned as a key Master Systems Integrator (MSI) to manage smart city projects, end-to-
end.

We provide EPC services in the areas of city surveillance, intelligent traffic management
systems, transport & logistics, border security, OFC cabling, communication network
including backbone telecom infrastructure, smart governance, e-education, critical
infrastructure
and smart city
development
that broadly sit
in four buckets:
Smart Security
Solutions, Smart
Communication
Network & Telecom Infrastructure, Smart Infrastructure and Military Communications. The
business offers infrastructure expertise with design, project management, integration, and

22
hardware services, backed by state-of-the-art IT capabilities to manage software and
analytical solutions. The BU also draws on the expertise of other global experts for certain
specific requirements.

The business has ventured into the area of next gen technology by creating solutions in the
areas of Artificial Intelligence, Picture Intelligence, Facial Recognition, Cyber Security and
first-of-their-kind emergency response systems like Hybrid Dial-100 & Early Warning
Dissemination and have created and implemented a gamut of Use Cases based on advanced
analytics to improve the quality of life of citizens.

MINERALS AND METALS

Our Minerals & Metals (MM) business vertical is India's market leader in Engineering,
Procurement & Construction of metallurgical projects with the capability and expertise to
undertake engineering, procurement, manufacture, supply, construction, erection and
commissioning of projects through its dedicated business units spread across the length and
breadth of the country with an international footprint as well.

The Metals and Minerals business is a one-stop solution for the Ferrous and Non-ferrous
sectors. The Ferrous business unit provides Comprehensive Engineering, Procurement and
Construction (EPC) solutions for the iron and steel industry while the Non-ferrous business
unit caters to aluminium, copper, zinc, lead and mineral beneficiation plants.

MENA BU provides complete EPC solutions for Ferrous, Non-ferrous and Materials
Handling sectors across Middle East and North Africa.

23
Products business unit based at Kansbahal, Odisha undertakes design, manufacture and
supply of complete range of crushing systems and equipment, blast-free surface miner
solutions, advanced sand manufacturing solutions, apron feeders, critical machinery and
parts. These comprehensive product offerings are backed by excellent design, engineering,
quality control and logistic expertise. It has a manufacturing facility at Kancheepuram, Tamil
Nadu.

TRANSFORMING RAIL AND URBAN TRANSIT INFRASTRUCTURE ACROSS

GEOGRAPHIES

Through our Railway business, we have established ourselves as a Full Range Master

Integrator offering unique turnkey solutions for all types of projects in the rail and urban
transit sector. We offer the entire works: engineering, procurement, construction
encompassing design, engineering, supply, project planning, quality control and field
execution. With our project management competencies, new technologies and mechanized
construction methods, we have been able to meet the growing demands of the sector and are
at the forefront in building railway infrastructure for mainline and dedicated freight corridors.

Over the past three decades, we have successfully introduced several pioneering techniques
and apart from the Dedicated Freight Corridors and Integrated Transit Systems (the Mumbai
Monorail), our capabilities include complete Civil & Track Works, Electrical & Mechanical
(E&M) Works, dedicated Rail Links / Merry-Go-Round (MGR) Systems, Steel & Concrete
Bridges, Tunnels and Signalling & Telecommunication.

24
 FUNCTIONAL PORTFOLIO
HR Policy

In its HR, L&T complies with national legislation and collective bargaining agreements, the
international agreements of ILO, occupational safety regulations and other obligations. Our
working community upholds equality. We do not tolerate discrimination in any form. Our HR
management is fair and equitable.

Our employees have freedom to organise. We respect and deal openly with trade union
activities and personnel representatives.

The goals of our HR policy are:

 to ensure that employees have the competences required to implement our strategy

 to ensure that personnel headcount, quality and retention are high enough for
productive operations

 maintain the work ability of employees during their entire working lives until the age
of retirement

 spur employees to perform well on the job and motivate them to help us achieve the
company’s objectives

Competence development

25
We take a systematic and long-term approach to developing competence on the basis of our
strategy.

We continuously invest in deepening and maintaining the professional skills of our

employees so that we can provide good service experiences to our customers. We encourage
individuals to develop their professional expertise by learning on the job. We also organise
sufficient orientation for new employees and those changing positions at L&T.

During annual target and performance appraisals, we ensure that our employees have the
competence they require to perform well on the job as well as clear objectives and areas of
responsibility. To support competence development, we draft annual personal or group
objectives with every employee. With salaried employees, we also draft personal
development plans.

We focus on the quality of supervisory work and the development of supervisory expertise,
because we recognise that our supervisors play a key role in the implementation of our HR
policy and the development of the competence of all our employees. It is the task of our
supervisors to ensure that their subordinates know not only their personal goals, but also the
objectives of the company and divisions.

Recruitment and resource planning

In our personnel choices, we focus on competence, service-mindedness, sense of

responsibility and ability to work well with others. We encourage our employees to apply for
job vacancies within our company. When filling vacancies, we give precedence to suitable
applicants who are already in L&T’s employ and fulfil the requirements set for the position.

With resource planning, we ensure that our company has the resources and competence
required to achieve our objectives and perform the tasks required to implement our strategy.

Remuneration

We reward our personnel for good job performance. Remuneration is appropriate and as
transparent as possible. Remuneration aims to encourage good performance and motivate
employees to engage in long-term work to help us achieve our strategic objectives.

In Finland, our salary system is based on job requirements and personal performance, which
are affected by the information and skills required in the position and compliance with our

26
operating principles. Employees have the right to receive constant feedback. Feedback is
encouraged at all levels of the organisation.

Personnel health and wellbeing

All of our employees are entitled to statutory occupational healthcare from the start of their
employment relationship, regardless of its type and duration. In addition to statutory
occupational healthcare, we have arranged general practitioner-level medical care for our
personnel in Finland as an employee benefit.

We support our employees’ work ability and stamina with activities that maintain their
occupational fitness. We apply the following principles to maintain the work ability of
employees during their entire working lives until the age of retirement:

 taking people of different ages into account as an element of maintaining and

managing work ability

 noticing any problems with work ability at an early stage

 discussions about problems between supervisors and their subordinates

 effective, properly targeted rehabilitation and treatment measures in occupational

healthcare

 cooperation to facilitate returning to work sooner.

The L&T sickness fund is a workplace fund that L&T established with its employees in
Finland. The sickness fund supports L&T’s work ability management and supplements
occupational healthcare. The members of the sickness fund are all those salaried and non-
salaried employees of L&T companies in Finland whose primary employer is L&T and
whose employment relationship is neither short-term nor temporary.

We support exercise and leisure-time pursuits through personnel clubs and by offering
employee benefits for fitness centres.

Occupational safety

Our occupational safety activities aim to ensure a safe workplace for all employees. The
means whereby we achieve our occupational safety objectives are described in our
occupational safety management principles.

Work community and atmosphere

27
Each and every L&T employee must do his or her part to ensure that we have a good work
community and atmosphere. We follow shared operating methods with our own employees
and customers. We regularly measure and monitor our workplace atmosphere in order to
develop it continuously.

Implementation of the HR policy

Supervisors are responsible for the practical implementation of the HR policy. All employees
are responsible for acting in accordance with the HR policy.

The personnel department produces, maintains and develops personnel administration

processes and services as well as supports the organisation in the implementation of the HR
policy.

L&T’s HR Director is responsible for the HR policy. The contents are approved by the Group
Executive Board. This policy applies to the entire L&T Group.

L&T’s Group Executive Board approved and ratified this policy on 14 December 2012.

Quality policy

Our quality policy describes the key principles governing our operations. In accordance with
our principles, we operate responsibly and in line with L&T’s values in all of our business
functions. We are com-mitted to the continuous development of our operations and ensuring
responsibility and sustainability in everything we do.

In our operations, we comply with applicable legislation and orders issued by the authorities.
We also observe the ISO 9001 standard and L&T’s Code of Conduct in our operations.

The satisfaction, well-being and professional development of our employees are important to
us. We want to provide an equal, non-discriminatory and safe work environment for our
employees. We take customer needs and expectations into account in our operations. We bear
social responsibility and also require our contractual partners and suppliers to operate
responsibly.

We always aim to ensure sufficient resources in order to keep the quality of our services as
high as possible. In our management, we apply a risk-based approach to serve our customers
as efficiently, reliably, innovatively and safely as possible.

28
Our management is committed to the continuous development of our operations. To ensure
development, we regularly measure customer and employee satisfaction as well as the
effectiveness of our management system. Based on the results of these measurements, we
create corrective measures and monitor their implementation.

This quality policy applies to the entire L&T Group and it is approved by Lassila & Tikanoja
plc’s President and CEO and the Group Executive Board.

FINANCIAL PORTFOLIO

A financial Portfolio is a collection of financial assets held by an individual investor or

business. The portfolio can be thought of like a pie with different slices in different sizes
representing various asset types and classes. The slices work together to achieve the
investor's financial goals.

Investors may manage their own portfolios or entrust them to financial professionals.
Investors may have a single financial portfolio or a variety of them with different purposes
depending on their investment aims.

Responsibilities

 Keep accurate records for all daily transactions.

 Prepare balance sheets.
 Process invoices.
 Record accounts payable and accounts receivable.
 Update internal systems with financial data.
 Prepare monthly, quarterly and annual financial reports.
 Reconcile bank statements.
 Participate in financial audits.

29
 SWOT Analysis of Larsen & Toubro
Strengths of Larsen & Toubro
Your organisation’s strength is something that makes it stand out from the rest. It can be a
competitive advantage that sets it apart from its competitors. Some of the strengths of Larsen
& Toubro are as follows –
Subsidiaries & Joint Ventures: According to 2020 reports, Larsen & Toubro incorporates
118 subsidiaries, 6 associates, 25 joint-venture and 35 joint operations companies,
functioning across basic and heavy engineering, construction, realty, manufacturing of capital
goods, information technology, and financial services.
Technology Cluster: L&T provides services using emerging technologies, embedded
intelligence and engineering through its L&T technology services, L&T Infotech, L&T Smart
World Communication spread across smart cities in India to provide smart engineering
solutions. 
International Markets: L&T honed its focus on global markets from 2010 onwards,
especially ensuring a full range of operations in the Middle East catering to the Gulf and
North Africa holding around one-third to both order inflow and revenue. 
Sustainable Approach: As said in the introduction above, L&T sustains a greener portfolio
while working towards heavy engineering. The company always try to ensure a holistic

30
approach towards environmental impacts by reducing its carbon emission and use of water.
The company also runs several CSR initiatives to present a positive side of the company.
Good Returns on Capital Expenditure: Larsen & Toubro is moderately successful at the
performance of new projects and has developed good returns on capital expenditure by
creating new revenue streams.
Genuine Material Suppliers: It has a powerful base of reliable suppliers of raw material,
thus facilitating the company to survive any supply chain bottlenecks. 
Highly Skilled Workforce: Larsen & Toubro is empowering large resources in the training
and development of its employees, resulting in a workforce that is not only highly competent
but also motivated to achieve a surplus.
Government Projects: As the conglomerate is a public limited company and it gets most of
the projects and support from the government of India which ensures that the organisation’s
profitability is never going to be affected.  

Weaknesses of Larsen & Toubro

Weaknesses are negative factors that can prevent an organisation from achieving its goals and
objectives. Some of these include a poor brand, high levels of debt, inadequate supply chains,
and lack of capital. So here are some of the weaknesses of Larsen & Toubro –
Depends on Domestic Operations: Larsen & Toubro always depends on domestic
operations for the revenue, as it only operates in India so its main dependence on revenue is
domestic operations only. During FY2011 a total of 80% of revenue was from India. The
conglomerate should explore international markets too.
Increasing Debt: L&T debts are increasing rapidly which affects the financial flexibility of
the company. It is reported that L&T is in debt of $11,419.3 million in FY 2013.
Less Investment in New Technologies: As the company embarks on its next phase of
expansion, it needs to invest in new technologies that can help it achieve its goals. Currently,
investment in technology does not meet the ideas that a company has.
Investment in Research & Development: Investment in research and development is below
the rapidly growing players in the industry. Even though Larsen & Toubro is consuming
above the industry average on research and development, it has not been able to compete with
the leading players in the industry regarding innovation.

31
Labour Safety: The company’s labour works in an unsafe environment i.e. construction
sites, real estate projects, road construction where the risk to their life is more. This is the
place where the responsibility of L&T increases in terms of ensuring its labour safety and
sometimes it fails when some unseen events happen with its labour.  

Opportunities for Larsen & Toubro

Opportunity is a type of competitive advantage that can be gained from various external
factors. For instance, if a country lowers its tariffs, a car manufacturer can benefit by
exporting its products to a new market. Opportunities for Larsen & Toubro are as follows –
 New Technology: Larsen & Toubro may now use differential pricing in the new
market thanks to the new technology. It will motivate the company to reinforce its
existing clients via excellent service while also attracting new clients through various
value-oriented offers.
 New Markets: The adoption of new technology criteria and government free trade
agreements has provided Larsen & Toubro with an opportunity to enter a newly
developing market.
 Stable Free Cash Flow: Stable free cash flow gives opportunities to empower
contiguous product segments. With extra cash in the bank, the company can empower
new technologies as well as in new product segments.
 Mergers & Acquisitions: The company sustains a strong financial position and it
should leverage this benefit to increase its mergers and acquisitions both domestically
and internationally. This approach will open new revenue streams for the company.

Threats to Larsen & Toubro

Many factors can affect your business outside its immediate environment. Some of these
include factors such as a shortage of skilled workers or a supply chain issue. The threats
Larsen & Toubro is facing are as follows –
The Land Acquisition: As the Government introduced “the land acquisition bill” the value
of the land would be four times the market value in rural areas & two times in urban areas.
High Competition: Larsen & Toubro’s stable profitability has increased many competitors
in the industry over the last two years which has put downward pressure on not only
profitability but also on overall sales, so this is one of the biggest threats for Larsen &
Toubro. 

32
Increasing Level of Payment: Rising labour pay levels, especially movements such as $15
an hour and increasing prices in China, can lead to serious pressure on the profitability of
Larsen & Toubro.
Competitors Advance Technologies: New technologies developed by competitors or market
disruptors could be a serious threat to the industry in the medium to long term future. This is
because due to the new technologies developed by the competitors they would be able to do
more production, and because of more production, they would be able to supply more as per
the demand. New technologies also help in reducing the cost of production.
The Pressure of Environment Bodies: The company follows heavy construction and
equipment rolling on lands which led to increasing pressure from environmental activists and
several lawsuits on L&T for exploiting the environment.   

PESTEL ANALYSIS

A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the
macro-environmental (external marketing environment) factors that have an impact on an
organization, company, or industry. It examines the Political, Economic, Social,
Technological, Environmental, and Legal factors in the external environment. A PESTEL
analysis is used to identify threats and weaknesses which are used in a SWOT analysis.

POLITICAL

STABLITY

Currently, the geographic area in which Larsen Toubro is actively present is experiencing
some political instability due to internal and external conflicts. Inability to understand and
handle the prevailing political chaos can inhibit the company from achieving its growth
objectives, and management will be reluctant to invest in new capital.

UNCERTAINITY

33
Larsen Toubro should actively scan the political environment to ensure quick adaptation with
changing policies and reset the strategic priorities accordingly.

GOVERNENCE SYSTEM

The current governance system is based on democracy, which makes the business
environment friendly for Larsen Toubro. Larsen Toubro can benefit from the economic
freedom offered by the democratic governance system, which promotes entrepreneurship and
free trade.

PRESURE GROUPS IN GOVERNMENT

Pressure groups can affect the business environment by finding strong allies in the media.
These groups pressurize the organizations by arranging protests and running marketing
campaigns. Larsen Toubro needs to keep an eye on the activities of these pressure groups as
they can influence the government’s policies, which may ultimately affect the overall
business environment. Larsen Toubro should closely collaborate with these groups to win
their trust and should invest in ethical and social activities to develop closer ties with society.

TRANSPARENCY

A transparent governance structure is crucial for promoting a friendly business environment.

Larsen Toubro is currently facing several issues due to corruption and lack of transparency.
This lack of transparency is mainly linked with the prevailing political uncertainty and
instability. 

FISCAL POLICY (TAXATION)

While making the expansion decisions, Larsen Toubro should carefully review the industry-
specific taxation policies. governments in many developing countries are interested in
reducing corporate taxes in an attempt to attract foreign direct investment. Larsen Toubro
should consider these countries, as it will be easier to make profits and invest in the
innovation, new product and research and development activities due to low tax rate.

TRADE POLICIES

The business expansion decision of Larsen Toubro should also consider the prevailing trade
regulations, and management should prefer the regions with free or flexible trade agreements.
The region under consideration is currently reducing the trade restrictions to ease the

34
environment for foreign business players, which increases the attractiveness of this region for
Larsen Toubro, which is seeking international business growth opportunities.

ECONOMIC FACTORS

THE EFFICIENCY OF FINANCIAL MARKETS

High financial market efficiency shares a strong positive relationship with overall economic
growth, making capital accumulation and goods/service production easier. Therefore, Larsen
Toubro needs to choose the countries with highly efficient financial markets so that it could
easily accumulate financial and human capital. By keeping an eye on the financial market
efficiency, Larsen Toubro can successfully stay ahead of the competition.

ECONOMIC GROWTH RATE

Larsen Toubro should review the economic growth rate of the countries while making
international expansion decisions. Countries with high economic growth rates provide more
opportunities to pursue long-term growth objectives. A slow economic growth rate leads
towards more cautious spending by consumers, which can directly affect Larsen Toubro’s
revenue growth.

INFLATION

The rising inflation rate can have a negative impact on the revenue growth of Larsen Toubro
as its decreases the purchasing power of money and discourages consumer spending on goods
and services.

EXCHANGE AND INTEREST RATE

Fluctuations in the exchange rate can affect business profitability. Larsen Toubro should
study the exchange rate fluctuations to make accurate anticipations so that the undesired trade
and business performance consequences could be avoided. High-interest rate means Larsen
Toubro will make high-interest payments, and taken loans will cost more in the long run.

DEMAND AND SUPPLY OF LABOUR

The performance of Larsen Toubro heavily depends on the skills and competencies of its
workforce. The timely availability of skilled workers is crucial for Larsen Toubro to stay
35
ahead of the competition. Larsen Toubro should analyse the labour demand and supply trends
to understand how workers with the required skills set could be successfully recruited. A
rigid labour market with powerful worker unions can cause various problems for Larsen
Toubro. Like, it may pressure the Larsen Toubro to give an unfair wage raise, or may halt the
production process by giving a strike call. Hence, it is important to analyse the labour market
dynamics, anticipate the key trends and adapt the talent management strategies accordingly.

SOCIAL FACTORS

CONSUMER BEHAVIOUR

It is important for Larsen Toubro to carefully analyze their consumption/spending patterns

preferences so that the marketing mix strategies could be adapted accordingly. It is also
important for Larsen Toubro to understand whether the consumption is driven by utilitarian
or hedonic motivations. Another important consumer behaviour variable that can affect the
Larsen Toubro’s performance is the degree of ethnocentrism. Higher ethnocentrism can make
the business environment more challenging for Larsen Toubro while operating in the
international markets.

DEMOGRAPICS

 Larsen Toubro should adapt its marketing strategies to ensure diversity and inclusion. A
positive attitude towards migration also reflects that Larsen Toubro can easily recruit staff
from diversified cultural backgrounds. High workplace diversity is often linked with higher
productivity, better innovation, and improved overall firm performance.

SOCIAL EQUALITY

A hierarchal structure with formal work culture suits Larsen Toubro when entering countries
with high power distance. 

CULTURAL AND SOCIETIAL NORMS

Larsen Toubro must conduct extensive research to gain local consumer knowledge. Being an
international firm from a culturally distant home market, it could be difficult for Larsen
Toubro management to understand the delicate cultural nuances. For this purpose, Larsen
Toubro can develop a business partnership with local market players that could offer in-depth
information about cultural norms and values that influence consumers’ perceptions and
attitudes towards the brand.

36
GENDER

The gender roles in that particular society could also affect the human resource management
strategies of Larsen Toubro, as the company will find it difficult to ensure gender diversity
across all management levels in countries where women are considered primarily responsible
for managing domestic responsibilities.

TECHNOLOGICAL FACTORS

TECHNOLOGICAL INFRASTRUCTURE

Larsen Toubro should prefer countries with well-developed technological infrastructure, as

supportive technological infrastructure makes it easier for a firm to achieve its cost reduction,
innovation, and value creation objectives.

TECHNOLOGICAL INNOVATIONS

Larsen Toubro will be able to understand the new product development rate, product life
cycle length, and innovative features being mostly liked by consumers. 

By investing in the right technological innovations, Larsen Toubro can optimize the user
experience, achieve operational efficiencies, and position itself as an innovative organization.

RESEARCH AND DEVELOPMENT

Larsen Toubro to adopt a long-term horizon, and do not expect a short-term return from its
research and development efforts. They understand how the technology will emerge for the
future period.

ENVIRONMENTAL REGULATIONS

Larsen Toubro should adopt responsible production practices, encourage responsible

consumption practices among its targeted consumers, try to improve its brand image on
sustainability grounds, and ensure full compliance with the international and local
environmental regulations, as inability to do so can draw the serious, reputation damaging
criticism from relevant stakeholders.

THE GROWING USE OF RENEWABLE ENERGY

37
In some world regions, governments offer attractive subsidies on the use of renewable energy
sources. By taking the advantage, Larsen Toubro can incur investment in renewable energy
sources to achieve sustainable business development objectives.

INDUSTRY NORMS OF RECYCLEING, WASTE MANAGEMENT AND

RESOURSE UTILIZATION

In some countries, customers take an active part in the recycling process. Larsen Toubro can
benefit from these sustainability trends and use them as a tool to not only reduce the
environmental costs but also achieve economic objectives in form of reduced production
costs.

WEATER

Weather conditions also shape consumer behaviour, and require Larsen Toubro to integrate
flexibility into its supply chain operations.

LEGAL FACTORS

EMPLOYMENT LAWS

Some countries the penalty will be strict in case of violation of employment laws as entering
in those countries L&T should ensure environment and work safety.

INTELLECTUAL PROPERTY LAWS

Strict compliance with the intellectual property laws makes the business environment safer
for firms like Larsen Toubro, as their patents are protected from imitation, leading towards
sustainable competitive advantage.

CONSUMER PROTECTION LAWS

In the case of online transactions, Larsen Toubro must strictly comply with the data
protection regulations to avoid lawsuits. While entering different countries, Larsen Toubro
management needs to study the laws related to refund, discount, credit terms, quality,
misleading advertisement, and maximum pricing (particularly in the case of basic essential
goods) to ensure consumer privacy.

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 AREA OF LEARNING

This Finance internship made me to gain more experience and also, I implement my
classroom learning to work in a real-world setting

It helps me to develop my professional skills

1st week

On the First week I completed my joining procedure, submitted my required documents with
my HR Manager and I applied for my ID card and completed my join.

39
I learned about the company vision mission, as well as the process how the firm maintain the
finance of its investments and associated transaction using precious financial years Annual
Report.

2nd week

Mr. Sekhar sir assigned me tax audit work for the year 2021 for the consolidate months. I
carried out this work for the entire week.

3rd week

With the help of Mr. Sekhar sir I learnt advance EXCEL

 Basic keys/shortcut keys

 Formula Functions
 Pivot table
 Working with custom analysis
 Learnt how to make statistical analysis in excel
Ms. Power point (How to work with custom slides and templates)

During the work I learnt time management and Data merging

4th week

My mentor (Sekhar sir) discussed current activities of the B&F (Budlings & Factories) and
the current year investment and resource allocation

CONCLUSION

L&T construction has a strong workflow in processing the bills & generating the reports.
They have excellent co-ordination between the headquarters and the construction sites which
result in avoiding wrong payments and helps to save their employees precious time the ERP
software of L&T provides the best real time data monitoring and data analysis experience and
helps to avoid data error.

It was a good experience and I hope the experience gained from this internship will help me
to become familiar with the ever-evolving working culture.

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This gives me a practical exposure in the field of finance.

41