LARSEN And TOUBRO

(Industry Analysis)

Shipra Tiwari

2013MBA-027

Indian Institute Of Information Technology And Management, Gwalior

CONTENTS

• Introduction• Company Profile• History• Vision• Organization Structure• Product Line• Nation Network• Global Presence• Industrial Analysis• Conclusion

WHY LARSEN AND TOUBRO?????

Introduction

• Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing company.

• One of the largest and most respected companies in India's private sector.

• An Indian multinational conglomerate

• Considered to be the "bellwether of India's engineering sector.

Company Profile

• It was founded in Mumbai in 1938 by two Danish engineers, Henning Holck Larsen and Soren Kristin Toubro.

• Headquarter is in: L&T House, Ballard Estate,Mumbai, Maharashtra, India

• Area served :India, Middle East, East Asia and South East Asia

• Traded as: NSE BSE

BSE SENSEX Constituent

• Revenue :US$ 14 billion

Contd…

• Operating income: US$ 1.488 billion.

• Net income: US$ 907 million.

• Total assets: US$ 22.84 billion

• Total equity: US$ 5.978 billion

• Employees :45,117

LOGO

• Designed by a Danish engineer - Otto Hansen in the early 40's when L&T began its foray into manufacturing.

• It has come to be associated with the values that the Company stands for - quality, trust and reliability.

• Tagline: “ITS ALL ABOUT IMAGINEERING”

• 1938-1940 1944-1946 1964-73 to 2013

(Up to the Second world war) (Till the Company was Born) (Becoming the leaders)

• 1946-1956: L&T became a Public Limited Company

HISTORY

Early Days JourneyExpanding Horizons

Quick Facts

• Divisions: Technology, engineering, construction, manufacturing

• Type: Public

• Industry: Conglomerate

• Subsidiaries: L&T Infrastructure Finance Company

L&T MHI,

L&T Infotech

L & T Mutual Fund

L&T Finance Holdings

• Website: www.larsentoubro.com

Organization Structure

• K. Venkataramanan

(CEO & MD)

• A. M. Naik

(Executive Chairman)

• R. Shankar Raman

(Chief Financial Officer)

Service Line• Hydrocarbon

• Heavy Engineering

• L&T Construction

• Power

• Electrical and Automation

• Machinery and industrial Products

• Information Technology

• Financial Services

• Shipbuilding

Service Length

N

Global Presence

Industrial Analysis

• L&T – A winner till date, but is it efficient??

• One of India's leading engineering companies .•Provides EPC solutions to all major engineering Verticals•10 Year X-ray: Green•Long term future projects: GreenShort Term Future : Orange•To be a Winner in future, L&T needs to get rid of its operational efficiencies.•Yes, L&T is an investment Worth company but only at right time.

CURRENT FINANCIALS

Net sales: Rs 37013 Cr.Net profit: Rs 3315 Cr.Net Profit Margin: 9%

What does L&T’s past say??

Performance

• L&T registered a top line growth but a fall in profits mainly due to:

a) Subdued performance from its E&C department

B) A higher interest and depreciation cost

Future Opportunities

• Witnessing an increase in order inflows since the past few years.

• Expecting a healthy order book of Rs 100239 Cr.

• Begged 2 projects worth Rs 1200 Cr. from ONGC to set up additional processing units.

• Planning capacity expansions and improvement in

manufacturing facilities at Hazira and coimbatore.

Weakness• Since the last two years, it has a huge amount

of cash locked up.

• Company is almost operating at the cost of the suppliers-e.g.- L&T Shipbuilding.

• Operational efficiencies

• Strong Hierarchal process.

• Company is facing execution issues or even quality problem.

Conclusion

• L&T is one of the leading player in Indian industry.

• Poised for good growth in future considering the got focus and spending on infrastructure, power and its strategic plans.

• But it needs to work on a plan to manage its operational efficiencies.

WE BUILD THE NATION WHERE YOU LIVE!!!!

CONQUERING THE WORLD!!!!