History The company was founded in Mumbai in 1938 by two Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro. The first office was reportedly so small that only one of the partners could use it at a time. The company started off as a representative of Danish manufacturers of dairy equipment. However, with the start of the Second World War in 1939 and the resulting restriction on imports, the partners started a small workshop to undertake jobs and provide service facilities. Germany's invasion of Denmark in 1940 stopped supplies of Danish products. This crisis forced the partners to start manufacturing dairy equipment indigenously. These products proved to be a success, and L&T came to be recognised as a reliable manufacturer with high standards. The war-time need to repair and refit ships offered L&T an opportunity, and led to the formation of a new company, Hilda Ltd., to handle these operations. L&T also started two repair and fabrication shops signalling the expansion of the company. The sudden internment of German engineers in India (due to suspicions caused by the War), who were to put up a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation. In 1944, ECC was incorporated by the partners; the company at this time was focused on construction projects (Presently, ECC is the construction division of L&T). Around 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, the company signed an agreement with Caterpillar Tractor Company, USA, for marketing earth moving equipment. At 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 prompted them to raise additional equity capital, and on 7th February 1946, Larsen & Toubro Private Limited was born. Larsen & Toubro Limited (L&T) is a vertically integrated engineering and construction conglomerate with additional interests in manufacturing, services and Information Technology. L&T is one of the largest companies in India's private sector and has an international presence, with a global spread of offices. In fact it can be aptly called as an Indian multinational. Nearly 18 per cent of L&T' total revenue comes from overseas earnings.
Transcript
History
The company was founded in Mumbai in 1938 by two Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro. The first office was reportedly so small that only one of the partners could use it at a time. The company started off as a representative of Danish manufacturers of dairy equipment. However, with the start of the Second World War in 1939 and the resulting restriction on imports, the partners started a small workshop to undertake jobs and provide service facilities.Germany's invasion of Denmark in 1940 stopped supplies of Danish products. This crisis forced the partners to start manufacturing dairy equipment indigenously. These products proved to be a success, and L&T came to be recognised as a reliable manufacturer with high standards. The war-time need to repair and refit ships offered L&T an opportunity, and led to the formation of a new company, Hilda Ltd., to handle these operations. L&T also started two repair and fabrication shops signalling the expansion of the company. The sudden internment of German engineers in India (due to suspicions caused by the War), who were to put up a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation.In 1944, ECC was incorporated by the partners; the company at this time was focused on construction projects (Presently, ECC is the construction division of L&T). Around 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, the company signed an agreement with Caterpillar Tractor Company, USA, for marketing earth moving equipment. At 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 prompted them to raise additional equity capital, and on 7th February 1946, Larsen & Toubro Private Limited was born.
Larsen & Toubro Limited (L&T) is a vertically integrated engineering and construction conglomerate with additional interests in manufacturing, services and Information Technology. L&T is one of the largest companies in India's private sector and has an international presence, with a global spread of offices. In fact it can be aptly called as an Indian multinational. Nearly 18 per cent of L&T' total revenue comes from overseas earnings.
The various business groups of L&T are:Engineering & Construction - Projects: L&T has an enviable track record of successful implementation of turnkey projects in major core and infrastructure sectors. L&T's core competencies in engineering include highly qualified and experienced personnel from various disciplines, state-of-the-art 2-D and 3-D CAD facilities with sophisticated plant design systems and basic engineering capabilities. L&T is the only Indian EPC company pre-qualified for executing large, process-intensive projects for oil & gas, refinery, petrochemical and fertiliser sectors.
Heavy Engineering: L&T has been among Indian corporate sector in introducing new processes, products and materials in manufacturing. It is acknowledged as one of the top five fabrication companies in the world and has globally-benchmarked workshops are located in Mumbai, Hazira, Baroda and Kansbahal.
Construction: ECC, the Engineering Construction & Contracts Division of L&T, is India's largest construction organization. It is credited with building some of India's famous landmarks such as exquisite buildings, tallest structures, largest industrial projects, longest flyovers, highest viaducts, longest pipelines etc.
Electrical & Electronics: L&T is a major international manufacturer of a wide range of electrical and electronic products and systems. In the electrical segment, L&T is India's largest manufacturer of low tension switchgear. In the electronic segment, L&T offers a wide range of meters and provides complete control and automation systems for diverse industries.
Information Technology: L&T InfoTech Limited, a 100 per cent subsidiary of L&T, caters to leading international companies across the globe and offers comprehensive, end to end software solutions and services with a focus on Manufacturing, BFSI and Communications & Embedded Systems.
Machinery & Industrial Products: L&T manufactures markets and provides service support for critical construction and mining machinery such as surface miners, hydraulic excavators, aggregate crushers, loader backhoes and vibratory compactors.
VISION AND MISSION
“The L&T vision reflects the collective goal of the company. It was drafted through a large scale interactive process which engaged employees at every level, worldwide.”
PROFILE COMPANY
L&T (ECC) company profile
Larsen & Toubro Limited (L&T) is India's largest engineering and construction conglomerate with additional interests in electrical, electronics and IT. A strong customer-focus approach and constant quest for top-class quality have enabled L&T to attain and sustain leadership over 6 decades.
EPC project business constitutes a critical part of the L&T's engineering core. L&T has integrated its strengths in basic and detailed engineering, process technology, project management, procurement, fabrication and erection, construction and commissioning, to offer single point responsibility under stringent delivery schedules. Strategic alliances with world leaders enable L&T to access technical know-how and execute process intensive, large scale turnkey projects to maintain its leadership position.
L&T's international presence is on the rise, with a global spread of over 30 offices and joint ventures with world leaders. Its large technology base and pool of experienced personnel enable it to offer integrated services in world markets.
L&T enjoys a brand image in India and several countries offshore. With factories and offices located all over the country and abroad, L&T operations are supplemented by a comprehensive distribution network and nationwide ramifications for customer service and delight!
L&TLarsen & Toubro Limited - an engineering and construction major - is among the largest and most reputed companies in India's private sector.
ECC ECC - The Construction division of Larsen & Toubro Limited - is India's largest construction organization. Many of the country's prized landmarks - its exquisite buildings, tallest structures, largest industrial projects, longest flyover, highest viaducts - have been built by ECC. Leading-edge capabilities cover every discipline of construction: civil, mechanical, electrical and instrumentation.
As a division of L&T, ECC has the resources to execute projects of large magnitude and technological complexity in any part of the world.
The business of ECC Division is organized in six business sectors which will primarily be responsible for Technology Development, Business Development, International Tendering and work as Investment Centers.
L&T Machinery & Industrial ProductsL&T manufactures markets and provides service support for critical construction and mining machinery – surface miners, hydraulic excavators, aggregate crushers, loader backhoes and vibratory compactors; supplies a wide range of rubber processing machinery and injection molding machines; and manufactures and markets industrial valves and allied products and a range of sophisticated application-engineered welding alloys.
This division provides solutions to:
Construction & Mining Equipment
Material Handling
Crushing Systems & Equipment
Hydraulic Equipment
Valves
Rubber Processing Machinery
Plastics Processing Machinery
Paper Machinery
Welding Products
Castings
Wind-mill Components
Cutting Tools
Subsidiaries & Joint Ventures
L&T - Komatsu Limited
Having its registered office at Mumbai, India and focusing on construction equipment and mining equipment, L&T-Komatsu Limited[22] is a joint venture of Larsen and Toubro, India’s leading engineering, construction and technology major and Komatsu Asia Pacific Pte Limited, Singapore, a wholly owned subsidiary of Komatsu Limited, Japan. Komatsu is the world’s second largest manufacturer of hydraulic excavators and has manufacturing and marketing facilities worldwide.[23]
The plant was started in the year 1975 by L&T to manufacture Hydraulic Excavators for the first time in India. Later it became a joint venture. L&T-Komatsu Limited’s manufacturing facility – The Bangalore Works – comprises Machinery Works and Hydraulics Works. Machinery Works has a modern manufacturing facility with ISO 9001:2008 accreditation for design, manufacture and servicing of earthmoving equipment. Hydraulics Works, with a precision machine shop, manufactures the complete range of high pressure hydraulic components and systems, and is ISO 9001:2000 certified for design, development, manufacturing and servicing of hydraulic pumps, motors, cylinders, turning joints, hose assemblies, valve blocks, hydraulic systems and power drives as well as allied gear boxes.
[edit] L&T Finance
Larsen & Toubro financial services Financial Services is a subsidiary which was incorporated as a Non Banking Finance company in November 1994.[24]
The subsidiary has a spectrum of financial products and services for corporate, construction equipments etc. L&T Finance was able to withstand the market dynamics and adapt as per that. This is a new division after the company declared its restructuring[25]
L & T Mutual Fund is the mutual fund company of the L & T group. This company provides Mutual Fund schemes for investors in India.
[edit] Larsen & Toubro Infrastructure FinanceMain article: Larsen and Toubro Infrastructure Finance Company Limited
Larsen and Toubro Infrastructure Finance Company Limited was set up as a 100% subsidiary of L&T. It commenced its business in January 2007 upon obtaining Non-Banking Financial Company (NBFC) license from the Reserve Bank of India (RBI).
As of 31 March 2008, L&T Infrastructure Finance has approved financing of more than a billion USD to select projects in the infrastructure sector.
L&T Infrastructure Finance has received the status of "Infrastructure Finance Company" from the Reserve Bank of India within the overall classification of "Non-Banking Financial Company".
] L&T – Integrated Engineering Services (IES)
L&T Integrated Engineering Services (L&T IES), a business unit of L&T, offers a combination of mechanical, electrical and electronic design (mechatronics/embedded systems), civil and architectural services. L&T IES has its design and delivery locations in Vadodara, Chennai, Bangalore, Mysore and Mumbai in India.
L&T IES services also encompass architectural, civil, structural design and building utility systems design. Practices include both product and plant engineering services in the automotive, trucks and off-highway vehicles, industrial products, off-shore and marine, oil and gas and consumer goods sectors. Emerging areas include aerospace, railways and power and consumer electronics.
L&T Valves
L&T’s Valves Business Group markets valves manufactured by L&T's Valve Manufacturing Unit and L&T's joint ventures, Audco India Limited, India and Larsen & Toubro (Jiangsu) Valve Company Limited, China, as well as allied products from major international manufacturers.
L&T's Valve Manufacturing Unit in Coimbatore manufactures industrial valves specifically for the Power Industry.
L&T sells value-added flow control solutions to oil and gas, refining, petrochemical, chemical and power industries.
L&T is a leading global supplier of industrial valves and customized solutions for major Refinery, LNG, GTL, Petrochemical and Power projects.
L&T Valves Business Group has offices in the USA, India and China, and strategic alliances with leading integrated valve distributors and agents in the major markets.
Joint ventures
L&T Kobe - It is a Joint Venture between L&T and Kobe Steel of Japan for the manufacturing of Internal mixers and twin screw rollerhead extruders for the tyre and rubber industry. This JV will strengthen and widen the portfolio of L&T's Rubber Processing Machinery business.[26]L&T and CASSIDIAN- It is the 74:26 Joint Venture between L&T and Cassidian, new name of EADS Defence & Security aiming at manufacturing, design, engineering, distribution and marketing in the fields od electronic warfare, radars, avionics and mobile systems (like Bridges) for military application . This JV is based in Talegaon, near Pune and in Bengaluru.[27]L&T T&D SA Pty Ltd.- A joint venture (JV) with Befula Investments Pty Ltd, (trading as Rossi Engineering with office in Durban) in South Africa,[28] to capitalise on the power transmission and distribution opportunities in South Africa.L&T Special steels & Heavy Forging Pvt. Ltd.- A joint venture (JV) with Nuclear Power Corporation of India Limited (NPCIL), for establishment of super heavy forging nuclear equipment manufacturing facility at Surat-Hazira.Larsen & Toubro Heavy Engineering LLC, Sohar, Oman - A joint venture (JV) with Zubair Corporation, Oman, it is a heavy engineering fabrication facility.L&T-SapuraCrest JV - A JV with SapuraCrest Petroleum Berhad, Malaysia for providing services to offshore construction industry worldwide. The joint venture will own and operate the [LTS 3000 http://www.lntsapuracrest.com], a Heavy Lift cum Pipelay Vessel.L&T-Valdel Engineering Limited - A JV started with Bangalore-based Valdel Engineers & Constructors Pvt. Ltd. It offers upstream engineering services to the oil and gas sector. The entity formerly known as John Brown Engineering was
established in the year 1991 at Bangalore as a Joint Venture between John Brown Engineers & Constructors, UK, Global Leader in providing Engineering Services for Oil & Gas Industry and MSR Group its Indian Promoter for providing Integrated & Quality Engineering Services to meet the growing needs of Oil & Gas Sector in India. Subsequently in the year 1996 Kvaerner ASA, Norway acquired assets of John Brown. Later in the year 1999 MSR Group acquired entire stake. L&T made the decision to acquire equities in Valdel in tune with its vision of business focus in Hydrocarbon Sector.L&T-Chiyoda Limited - A JV with Chiyoda Corporation of Japan, it offers international-grade engineering services to the hydrocarbon processing industries that include refineries, petrochemicals, oil and gas processing, LPG and LNG terminals, fertilisers, chemicals, etc.L&T-Sargent & Lundy Limited - A JV with Sargent & Lundy (USA), it offers a range of engineering and design services for the power sector.HPL Cogeneration Limited - Provides power to Haldia Petrochemicals Limited.L&T International FZE - A wholly owned subsidiary of L&T, incorporated in 2001 at The Hamriyah Free Zone, Sharjah, United Arab Emirates. It is the investment arm of L&T for all international joint ventures and provides resources for international projects.Larsen & Toubro (Oman) LLC - A JV between L&T International FZE and The Muscat Trading Co. LLC. This ISO 9001 company offers products and services in the construction field, with specialization in turnkey projects.Larsen & Toubro Electromech LLC (formerly Zubair Kilpatrick LLC) - A JV company of Larsen & Toubro International FZE and The Zubair Corporation in the Sultanate of Oman. LTEM is engaged in construction and service sector through four business units, namely: MEP works (Building Services), Electrical and Instrumentation works for Oil and Gas sector, Maintenance and Construction works in E&I sector and Facility Management for large assets.L&T and Eastern Contracting LLC Joint Venture - Building a residential property (295 ‘grandeur’ villas of Ground + 1 configuration, conforming to 11 different types of Mediterranean, Spanish and European styles of architecture) in Dubai Sports City for Victory Heights Golf Residential and Development LLC.Larsen & Toubro Readymix Concrete Industries LLC - A JV between L&T International FZE and Mr.Shukri Saleh Yahya Al Braik, a UAE National. Incorporated in 2006, the plant in Dubai offers all grades of concrete including specialized concrete such as HPC, SCC and colored concrete.Larsen & Toubro Saudi Arabia LLC - A JV between L&T International FZE and Engineer Khaled Hizam Al-Nabet, a Saudi National. It offers turnkey solutions in specialized fields of oil and gas, petrochemicals, fertilizers and chemicals, infrastructure, buildings, factories, power transmission and distribution and telecommunication projects.Larsen & Toubro Qatar LLC - A JV between L&T International FZE and AL Jazeera International Trading WLL. It offers turnkey solutions in specialized fields of buildings and factories, roads, bridges, airports, transmission lines, industrial electrification, petroleum and petrochemical projects, fertilizer plants, pipelines, water, sewerage and drainage system.Larsen & Toubro Kuwait Construction WLL - A new venture of L&T and Kuwait-based Bader Al Mulla group focusing on construction projects in oil and gas, power and infrastructure, with primary focus on electro-mechanical construction.L&T-ECC Construction (M) SND. BHD - A company incorporated in Malaysia by L&T with three Malaysians, Syed Mohsen Alhabshi, Datuk M Rajasingam and Sivajothi Rajendram, to undertake engineering and construction for all types of industrial and infrastructure projects in Malaysia.L&T-RAMBOLL Consulting Engineers Limited - A JV of L&T and Ramboll A/S of Denmark that offers international quality design, project engineering and consultancy services for infrastructure projects.Voith Paper Technology (India) Limited - A JV between Voith Paper GmbH & Co. KG, Germany and L&T. It offers a range of solutions for fiber systems, paper and board industry.NAC Infrastructure Equipment Limited - Accepts deposits and rents out high-value, multipurpose, specialized and general purpose infrastructure equipment with value-added services.[29]L&T-HCC JV Jharkhand Road Project - A JV of L&T and HCC for constructing an 80 km four-lane concrete road with rigid pavement in Jharkhand, India.L&T-KBL JV - A JV of L&T and Kirloskar Brothers Limited, for executing Engineer-Procure-Construct (EPC) lift irrigation project, which involves lifting 7.80 TMC water from Goddamvaripalli village to Goddumarri Anicut in the Cuddapah district of Andhra Pradesh, India.HCC-L&T Purulia JV - A JV of L&T and HCC, for implementing the Purulia Pumped Storage Project with an installed capacity of 900 MW (4x225 MW each) for West Bengal State Electricity Board (WBSEB) and NHPC.L&T-AM JV - A JV between L&T and Alpine Mayeder Bau GmbH, Austria is constructing a 11.3 km long, 5.6m finished diameter, concrete lined Head Race Tunnel for NTPC’s 4x130 MW Tapovan Vishnugad hydropower project in Uttaranchal.
PATEL-L&T Consortium - A consortium of L&T and Patel Engineering Limited is constructing Diversion cum Spillway Tunnels (43 m High, 186 m Long), Spillway, Intake Structures and part of Head Race Tunnel (7.25 m dia horseshoe shaped, 5.9 km long) for NHPC’s 4 x 130 MW Parbati Hydro Electric Project – Stage III at Himachal Pradesh.International Seaports Dredging Limited (ISDL) - A JV between Dredging International N.V, Belgium and L&T, formed to exploit dredging market in all SAARC countries, Myanmar, Thailand and Indonesia. It is presently executing maintenance and capital dredging works in India with major jobs in Dhamra Port, Orissa and Gangavaram Port, Andhra Pradesh.Metro Tunneling Group (MTG) - A JV of DYWIDAG International, (Germany), L&T (India), IRCON International Ltd. (India), Samsung Engineering & Construction (South Korea) and Shimizu Corporation (Japan). It is constructing an underground metro rail corridor in Delhi for the Delhi Metro Rail Corporation (DMRC). It is currently executing a 3.10 km tunnel project by cut and cover method, using tunnel boring machines (Package BC – 18).L&T Infrastructure Development Projects Limited - A subsidiary company of L&T, implements various infrastructure projects through Public-Private Partnerships (PPP). It executes projects on Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer (BOOT), Build-Own-Lease-and-Transfer (BOLT), Build-Own-Operate-Share-and-Transfer (BOOST) basis and other variants including the annuity approach. A number of developmental projects are executed by L&T under various sectors on EPC basis through special purpose vehicles (SPVs) promoted by a consortium of private and public players.L&T Transportation Infrastructure Limited - It was formed to design and construct Tamil Nadu's first private BOT road project - the 28 km Coimbatore bypass and a two-lane bridge across river Noyyal at Athupalam.L&T Western Andhra Tollways Limited (L&T WATL) - Executing the project for four-laning the road from Jadcherla to Kothakota section of NH-7 in Andhra Pradesh, on BOT basis.L&T Vadodara Bharuch Tollway Limited (L&T VBTL) - It has been formed for the development of the six-laning of NH-8 from Vadodara to Bharuch in Gujarat on BOT basis.L&T Inter State Road Corridor Limited (L&T IRCL) - It is executing the four-laning of the 76 km highway between Palanpur and Swaroopgunj on the East West Corridor (NH-14), on BOT (annuity) basis.Narmada Infrastructure Construction Enterprise Limited (NICE) - An SPV formed for design, construction, maintenance and operation of the 1.4 km second Narmada bridge, including 4.6 km of approach roads, on BOT basis on NH-8 at Zadeshwar, Gujarat.L&T Western India Tollbridge Limited (L&TWIT) - An SPV, for constructing the 335m two-lane bridge across river Watrak on NH8 at Kheda, Ahmedabad-Vadodara section of NH8, on BOT basis, including 9.2 km of approach roads and strengthening of 10 km of the existing road.Second Vivekananda Bridge Tollway Company Limited (SVBTC) - An SPV formed to finance, design, build, operate and maintain the 6.1 km six-lane bridge across the Hooghly River on NH-2 near Kolkata on BOT basis.L&T Panipat Elevated Corridor Limited - An SPV formed to construct 3.4 km six-lane elevated flyover on NH 1 in Haryana.L&T Uttaranchal Hydro Power Limited - An SPV, is formed for the implementation of the Singoli Bhatwari Hydro-Electric Project, a run-of-the-river scheme on river Mandakini in Rudraprayag district of Uttarakhand, on BOOT basis.International Seaports (Haldia) Pvt. Limited. (ISPHL) - An SPV, formed to execute the project for the construction and operation of Berth No 4A in Haldia Dock Complex, on BOOT basis.Kakinada Seaports limited (KSPL) - An SPV formed to operate the existing facilities on a 610m long terminal and for developing an additional berth at Kakinada Deep Water Port in Andhra Pradesh.The Dhamra Port Company Limited (DPCL) - An SPV formed for developing and operating the port of Dhamra in the state of Orissa.L&T Urban Infrastructure Limited - L&T-UIL is a subsidiary company of L&T IDPL, formed to develop and promote residential and commercial complexes in all the leading cities and metros.Bangalore International Airport Limited (BIAL) - A JV of Karnataka State Industrial & Investment Development Corporation (KSIIDC), Airports Authority of India (AAI), Siemens, L&T and Unique (Zurich Airport) of Switzerland, to develop an airport at Devanahalli, Bangalore on BOOT basis.L&T Infocity Limited (LTIL) - A JV of L&T and Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for developing HITEC City (Hyderabad Information Technology Engineering Consultancy City). LTIL also operates and maintains all services in HITEC City and provides engineering and design consultancy, marketing and O&M consultancy.L&T Infocity Lanka Private Limited (LTILPL) - An SPV has conceptualised and rendered project management services and promoted the IT facility for HSBC in Colombo.L&T Infocity Infrastructure Limited (L&T IIL) - A subsidiary of LTIL and has developed an IT Park in Salt Lake, Kolkata.Vizag IT Park Limited (VIPL) - It has developed an IT Park project for HSBC Electronic Data Processing India Private Limited (HDPI) at Siripuram, Visakhapatnam.
L&T Tech Park Limited - A subsidiary of L&T IDPL, formed to promote an IT Park in Kakkanad, Kochi, Kerala.L&T Phoenix Infoparks Limited - A subsidiary of L&T-UIL, is developing HITEC City II at Gachibowli and Intellicity at Nanakramguda in Hyderabad.Cyber Park Development & Construction Limited - An SPV with Software Technology Parks of India (STPI), has developed a “Cyber Park” in Electronics City, Bangalore.L&T Arun Excello Realty Private Limited - A JV with Arun Excello, formed to promote an integrated township “Estancia” on GST Road, Chennai.L&T South City Projects Limited - A JV between L&T, Dinesh Ranka Associates and Pragnya Trustee and Investment Management Company, to develop an integrated township at Siruseri on the Old Mahabalipuram Road, Chennai and off Bannerghatta Road, Bangalore.L&T Vision Ventures Limited - An SPV promoted along with Vizag Urban Development Authority, to develop a township in Vizag on a 55-acre (220,000 m2) land (2.5 mi sft., 250 villas and 900 apartments, club house and a school).CSJ Infrastructure Private Limited - An SPV of L&T-UIL promoted to develop an integrated commercial complex in Chandigarh. It will come up on a 20.16 acres (97607.76 sq. yd) land parcel in the Industrial Area Phase-I of Chandigarh. This Integrated Commercial Complex will have a Shopping Mall of 11.15 lakh sq.ft, an upscale hotel of 250 rooms and a high-end office space of 3.75 lakh sq. ft.L&T Crossroads Limited - A JV between L&T and Piramal Holdings Limited, has developed a covered car parking spaces (seven levels) and air-conditioned commercial area in Nariman Point, Mumbai.Hyderabad International Trade Expositions Limited (HITEX) - Promoted by L&T Infocity Limited (LTIL), National Academy of Construction (NAC), Hyderabad Urban Development Authority (HUDA), Andhra Pradesh Tourism Development Corporation (APTDC) and Municipal Corporation of Hyderabad (MCH). This trade exposition centre has been developed for trade fairs and exhibitions.Andhra Pradesh Expositions Private Limited - Organises exhibitions/trade fairs and events at the exposition centre in collaboration with national, international event management companies.
The following are the portfolio of products and services offered by L&T
1. 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 pre- qualified for executing large, process-intensive projects for oil and gas, refinery, petrochemical and fertiliser sectors.
The various sectors for which L&T has done turnkey projects are Oil and Gas, water, Power, Cement and allied machinery, Engineering services and Railway projects.
2. Heavy Engineering
L&T is acknowledged as one of the top five fabrication companies in the world, with engineering and manufacturing capabilities that are among the most sought after in industry. Operating at the higher end of the technological spectrum, L&T has led the way in introducing new processes, products and materials in manufacturing. It has the logistics capabilities of fabricating and supplying over- dimensional equipment to tight delivery schedules.
The products in this category include hydrocrackers, reactors, heat exchangers, polymerization reactors etc.
Shipbuilding Shipbuilding represents a new thrust for L&T in the high technology manufacturing space and is in line with its strategic growth objectives. L&T is developing a shipyard capable of constructing vessels of up to 150 metres in length and displacement of 20000 tonnes at its heavy engineering complex at Hazira near Surat on 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, and electrical and instrumentation. L&T has also expanded its focus to the Middle East, South East Asia, Russia, CIS, Mauritius, African and SAARC countries. It also has keen interest in the markets of Indian Ocean rim countries, Africa and Latin America. Construction includes construction products like support structures etc. They also provide construction services like Fire Protection, Building Automation (IBMS), Vertical Transportation, Plumbing and Sanitary, Surveillance and Security Systems, Telecommunication networks, Electrification, Kitchen, Laundry, Water and Effluent management, Medical equipment for buildings
Electrical & Electronics
L&T is a major international manufacturer of a wide range of electrical and electronic products and systems. In the electrical segment, the Company holds leadership position in low tension switchgear in India, and is rapidly establishing itself in international markets. Its products are widely sold in markets in Europe and Australia. Recently, L&T set up a new manufacturing base for high-end air circuit breakers in China. It joined hands with Saudi 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. They also manufacture medical equipments like ECG machines, electrosurgical diathermies and ultrasound scanners etc.
Information Technology
Larsen & Toubro Infotech Limited, a 100 per cent subsidiary of L&T, offers comprehensive, end-to-end software solutions and services with a focus on Manufacturing, BFSI and Communications & Embedded Systems. It provides a cost cutting partnership in the realm of offshore outsourcing, application integration and package implementation.
Machinery & Industrial Products
L&T manufactures markets and provides service support for critical construction and mining machinery - surface miners, hydraulic excavators, aggregate crushers, loader backhoes and vibratory compactors.
PRODUCTS
Turnkey Proj Construction EPS
Hydrocarbon Construction Services Refinery
Power Infrastructure Oil & Gas
Cement Engg. Services Petrochemicals
Engg. International Projects Fertilizers
Petroleum Coal Gasification
Aero space
Thermal Power
Nuclear Power
EEPS IT MVI FIN SHIPSEVICES BUILDING
Switchgear Information Infrastructureservices Financing
Electrical Systems Engg. EquipmentServices Financing
Metering Systems EmbeddedServices
Medical Equipment Control Petroleum Dispenser
The offerings are divided into two parts - i) Project Executions
ii) Products
The projects are executed not only in the domestic sector, also in the international locations. The credentials what it has earned over the last decades has made a distinct branding for the companies. The latest order of Rs. 6900Cr from Mahagenco has established the company in the international Power Equipment Business.
The industrial products like the welding products, Valves, Switchgear, Metering Systems are known for high standard technologies & relaiblity.
PEOPLE & PROCESSES
Company recognises that people are the real source of competitive advantage. It is through people that ECC delivers total customer satisfaction. These values are reflected in our Human Resources practices which have earned national recognition several times.
The employee goes through a process of continuous learning, assisted by training programmes. Apart from on-the-job training and technical training, over 100 programmes on general management and behavioural topics are conducted each year. Interactive CD-ROM based programmes have enabled employees learn at their pace.
ECC has always believed in experimentation with and implementation of new ideas. HR practices such as collaborative performance appraisal, career & succession planning, team rewards have been institutionalised.
An extensive and rigorous recruitment process ensures quality induction. L&T's Graduate Engineer Trainee recruitment process covers India's major engineering colleges and institutions. Programmes, plant visits and comprehensive information-sharing facilitate induction.
Division has an ongoing organization development programme, which is one of the longest sustaining OD efforts in India.
The basic principles of Human Resources policies include
Recruitment based solely on merit by following well-defined and systematic selection procedures without discrimination
Sustain motivated and quality work force through appropriate and fair performance evaluation, reward and recognition systems
Identify training needs within the Organisation and design and implement those need based training programmes resulting in continuous up gradation of knowledge, skills and attitudes of the employees
Maintain a quality Human Resource Management System to meet the international standards as per ISO 9001. Plan, design, train, equip and motivate the department staff to meet this standard of expectation.
WORK CULTURE
Work culture emphasises:
· Freedom to experiment · Continuous learning and training
· Transparency · Quality in all aspects of work · Rewards based on performance and potential
A majority of L&T’s processes are ISO certified and comparable with the best in the world.
The company has an on time/ on budget project completion rate higher than the average for its industry, which translates to highly predictable construction & Engineering services delivery for its clients.
MAJOR COMPETITORS
Oil & Gas Power Construction Electrical &Electronics
LG BHEL HCC Schneider
Hyundai LG Gammon Siemens
Samsung Alstom Nagarjuna ABB
NPCC GE IVRCL -
MARKETING STRATGIES
CORPORATE SOCIAL RESPONSIBILITY
HEALTH
L&T's participates in building a healthy community through continuing initiatives in several areas of healthcare, with a focus on mother & child care and HIV/AIDS awareness. All L&T locations, including construction sites, have in-house AIDS awareness programs. Five additional mother & child care centres were set up in 2006-07. In partnership with local NGOs, these centres benefit children of commercial sex workers, street children and tribal communities. Through health care centres and regular family camps L&T organizes health checkups, provides gynaecology and laboratory facilities, carries out free cataract surgeries and intra ocular lens implants, and helps maintain health data for children. Supply of equipment and aid for orphanages and physically challenged children, periodic counselling to combat rampant alcoholism, awareness camps on childcare, reproductive health, sanitation, dental check-up, provision for safe drinking water, cancer awareness etc. are other healthcare activities that L&T supports.
EDUCATION
L&T's diverse and sustained programmes in education provide underprivileged children with learning opportunities through supply of educational materials, teaching aids, recreational tools and up scaling school infrastructure. L&T also enriches children's lives through programmes like summer camps, maths coaching, providing facilities like science laboratories, scholarship to deserving students, etc.
The vocational training institutes of the Larsen and Toubro Public Charitable Trust provide local communities with skill-based training in Formwork, Masonry, Agro Mechanics, Electricals, Fabrication, Welding and Housekeeping. Various diploma courses are also conducted by L&T Institute of Technology for the children of employees.
L&T has developed training modules in local languages in six centres across India for imparting skills sets in construction. L&T Training Centres provide courses for improving the standards of electrical engineering practices and for upgrading knowledge of maintenance, repair and welding.
ENVIRONMENT
Global warming: at L&T, we have always been conscious of the need to maintain harmony with the environment. We continuously seek newer environment-friendly approaches in all
our operations - energy conservation, exploring alternative sources like wind and solar energy, waste water reduction, etc.
The Zero Discharge approach of the Powai Campus saves over 350,000 litres water every day through water treatment and recycling. More than 13,500 trees have been planted in different L&T campuses in the last year, and an additional 4,000 saplings were distributed among local communities.
RESPONSE TO NATURAL CALAMITIES
L&T and its employees have provided relief measures during natural calamities like earthquake and floods. L&T has assisted in disaster relief through employee and corporate donations, employee volunteering, supply of construction material, medical and food supplies. After the floods in Surat (Gujarat-India), L&T played a major role in road-clearing operations, organising medical camps, and supply of food, water, clothes and other relief materials.
EMPLOYEE VOLUNTEERING
L&T encourages employees to volunteer for CSR activities, resulting in a self-driven approach while retaining consistency. L&T employees and the ladies clubs formed by their families at different locations, serve their communities by investing personal resources and time.
From taking initiatives in building the next generation of productive citizens, empowering women, paying regular visits to old age homes and orphanages, to organising blood donation camps, our employees have always believed in truly making a difference to the world in which they live.
PARTNERSHIP
ENGINEERING & CONSTRUCTION
i) L&T-Sargent & Lundy Limited
A joint venture with Sargent & Lundy (USA), it offers a complete range of engineering and design services for the power sector.
ii) Larsen & Toubro (Oman) LLC
A joint venture between L&T International FZE and The Muscat Trading Co. LLC
iii) Bangalore International Airport Limited (BIAL):
A JV of Karnataka State Industrial & Investment Development Corporation (KSIIDC), Airports Authority of India (AAI), Siemens, L&T and Unique (Zurich Airport) of Switzerland, to develop an airport at Devanahalli, Bangalore on BOOT basis.
MACHINERY & ENGINEERING
1) L&T-Case Equipment Private Limited
A joint venture of L&T and CNH America LLC (CNH America LLC is a wholly owned subsidiary of CNH Global N.V., USA, which has manufacturing and marketing facilities worldwide. It is the world's largest manufacturer of loader backhoes).
2) L&T Komatsu Limited (LTK)
A joint venture of L&T and Komatsu Asia Pacific Pte Ltd., Singapore, a wholly owned subsidiary of Komatsu Ltd., Japan. LTK manufactures hydraulic excavators and high pressure hydraulic equipment, such as cylinders, turning joints, radial flow pumps, axial piston pumps, Cam-lobe radial piston motors, axial piston motors, gear boxes / drives and systems.
3) Tractor Engineers Limited (TENGL)
A wholly-owned subsidiary of L&T. It designs and manufactures crawler undercarriage systems for excavators, blast-hole drills, bulldozers, amphibious dredgers, mobile crushers, etc. Apron feeders, chain conveyors, scraper conveyors, track modules, and crawler lowers are tailor- made by TENGL for material handling, and mining applications. TENGL manufactures centrifugal slurry pumps, which have found wide acceptance in industrial application and oilfield exploration.
4) Audco India Limited (AIL)
A joint venture company with equal equity holding by L&T and Flowserve Corporation, USA It is a leading manufacturer of industrial valves, with four independent and specialized manufacturing facilities.
5) L&T-Demag Plastics Machinery Limited
A 50:50 joint venture of L&T and Demag Plastics Group, Germany, it is the market leader in
India, involved in the manufacturing of a range of injection moulding machines for processing of thermoplastics and thermosets. The joint venture partner, Demag Plastics Group, Germany is a world leader in the field.
6) EWAC Alloys Limited
A joint venture of L&T and Messer Eutectic Castolin Holding GmbH, Germany. It manufactures special purpose welding electrodes, brazing rods, welding and soldering fluxes, powder alloys and delivery systems, flux-cored welding wires, cold repair compounds and wear plates.
GLOBAL STRATEGY
Railway bridge construction in Western Thailand in 1956. It was later immortalized by the film “The Bridge on the River Kwai”. It was obstructed by the companies from Germany & Japan. So, it concentrated on smaller orders to build its credibility. In 1976, it got the Subcontract for Abu Dhabi International Airport which was the landmark for its credibility.
It was in the mid-90s when the Indian government had initiated the liberalization process that L&T revisited its options overseas. Due to its prior experience in the UAE, the Middle East was an obvious choice. To build up a reputation as a quality provider of engineering and construction services, L&T management decided to follow a policy of “Take only what you can deliver”, bidding for contracts only when it was confident of timely completion. Based on the business policies of the Gulf countries, L&T went for joint ventures wherever required to secure contracts. In 1994, L&T Oman LLC was established as a joint venture with The Zubair Corporation, a leading business group of the Sultanate of Oman. In the UAE, L&T registered as an independent corporation in 1996. In Saudi Arabia, L&T established a joint venture called L&T Saudi Arabia LLC in 1999. In 2001, L&T incorporated a wholly owned subsidiary called L&T International FZE at Sharjah to provide project consultancy, equipment lease services and maintenance of plant and machinery in the Gulf region.
By mid 2006, almost all the Emirates had announced infrastructure plans, the total cost of which was estimated to be approximately $270 billion over the next ten years. Recognizing the growth potential, L&T’s management decided to expand its resource base and opened new offices in Dubai, Sharjah and Ras al Khaima in addition to Abu Dhabi. Some of the prestigious projects executed by L&T include four bridges at Palm Island, residential buildings at the Dubai Marina and construction of Raysut Cement Plant, Oman. Exhibit 1 provides a detailed list of projects successfully executed by L&T E&C in the Middle East.
Apart from the Gulf region, L&T E&C also gradually expanded its overseas operations to Russia, the CIS countries and China. Projects executed include a hydrogen reformer package for Dalian petrochemicals
in China, turnkey construction of international hotels at Uzbekistan and construction of residential township at Zernograd, Russia.
GLOBAL PRESENCE
PROMOTIONAL STRATEGIES
For the offerings like Turnkey Projects, Construction Projects, Engineered Products & Systems, IT, Financial services, Shipbuilding, the company directly maintain relationship with the customers.
Promotional strategies adopted by the organisation are:
Trade Shows
Telemarketing
Product Brochures
Direct selling
The EEPI & MVI categories are dependent on the respective distributors. The sales reps of the company along with the distributors market those products.
CORPORATE BRANDING CAMPAIGN
IMAGINEERING
L&T launched a corporate Branding campaign where it projected its capabilities in every category as “IMAGINEERING”.
As part of corporate brand building plans, L&T has produced a series of TV commercials on its business verticals. Each commercial shows some of its business offerings, and highlights the role that plays in everyday lives. The commercials were telecasted on CNBC- India’s leading business channel till December 26, 2008.
The advertisements focus on two core values of the organization:
Innovativeness
Customer focus and development focus
FOR ENGINEERS
FOR A TRAVELLER
FOR THE RECORD
FOR KONKAN RAILWAY FOR US
: A benchmark in innovation
: Fewer hours travelled, more hours lived :
Asia’s highest
: Accolades
: Imagineering as usual
The company gives its message that
As how it has achieved the excellence of being Asia highest
How it as created a level of performance and innovation through its engineering
How it is serving to the needs of its customers & consumers by providing them with revenues generated plus consumer satisfaction.
More over for Konkan Railways, the project achieved is a matter of pride but
For L&T it is merely creative & Innovative & Planned design based on what started with an imagination & now has taken a practical shape.
DISTRIBUTION CHANNELS
Distribution Channels at L&T -Various Divisions
It has a global supply network with offices in 10 locations worldwide, including Houston, London, Milan, Shanghai, and Seoul.
L&T Construction Division:
All the distribution is project based, and the sales are made through direct marketing. This is a Zero Level Channel Structure and this enables direct control to L&T project development teams.
L&T Engineering Equipment:
The equipment is dealt through dealers and other channels of delivery where the equipment sale can be made through dealers e.g., turnkey, valves etc
The sales pitch is made and followed up and detailed later on by the Dealers present in the Area, The distribution network is based on each geographical area.
L&T Financial Services:
In spite of increased competition from alternate distribution channels, L&T believes that independent agents continue to represent a major chunk of carriers' business. Hence it is imperative for carriers to focus on enriching their relationship with Agents. L&T’s suite of services enables insurance companies to achieve a 'Carrier of choice' status amongst agents.
The Agency Relationship Management Solution, Agency Point includes:
Agency Portal Mobile Based Agency Management Solution Agency - Carrier Interface Solution
these services enable insurance carriers to retain its top agents, while developing an attractive proposition to attract new agents.
L&T EmSys:
The channel of distribution is entirely corporate sales based, and project based, which is a Zero Level Channel structure. The projects are acquired through Relationships and a few dealers. The Distribution is entirely dependent on the Customers requirement.
The overseas offices of EmSys are located in USA, Europe and Japan along with a network of Business Associates in various places.
Larsen & Toubro e-Engineering Solutions
This subsidiary focuses on providing engineering solutions using PLM technology. It provides engineering services. It operates from off-shore engineering centres at Vadodara, Chennai and Bangalore with onsite teams to cater to engineering requirements of global clients, many of them Fortune 500 companies.
The marketing network is supported by an experienced team of valve specialists. The distribution is completely project based, and the teams develop relations with the customer to meet requirements. It is a leading global supplier of industrial valves and customized solutions for major Refinery, LNG, GTL, Petrochemical and Power projects.
Larsen & Toubro InfoTech:
The channel of delivery is again a zero level structure, wherein a project is handled just like a TCS or an Infosys to achieve maximum control and no Intermediaries.
PRICING STRATEGY
Price management is the disciplined method to understand the various cost components of transaction and to enforce a process to eliminate unstructured decision, thereby lead to improve the bottom line growth. Companies today are under great to increase the value for their shareholder on one hand and to satisfy continuous demand for the customers on the other hand.
Aggressive pricing (predatory pricing): In business and economics, predatory pricing is the practice of selling a product or
service at a very low price, intending to drive competitors out of the market, or create barriers to entry for potential new competitors. If competitors or potential competitors cannot sustain equal or lower prices without losing money, they go out of business or choose not to enter the business.
Biggest competitor of L&T is BHEL which takes part in all the bids of construction deals. L&T’s aggressive pricing strategy not only outbid BHEL but other overseas players also such as Chinese and Koreans, who are known for low pricing strategies.
Penetration strategy:
L&T acquired TAMCO switch gear in Malaysia. After the acquisition the switch gear products were sold at a very low price so as to attain a significant market in Malaysia.
Grasim and L&T deal:
LNT and Grasim deal lead to increased consolidation in the cement industry. This deal leads to increase in consolidation in the cement industry and considerable improvement in the
cement prices. Demand has been growing consistently and on the other there is less increase in capacity. Demand growth, driven by construction demand such as roads and housing, was over 8-9 per cent per annum over the medium term, lifting cement demand to 125 million
tonnes in FY05 from the 107 million tonnes in FY03. As the giants have consolidated they enjoyed monopoly to a certain extent and increased the cement prices to some extent. Multinational players would become marginal players. In fact, the biggest MNC player in India, Lafarge, had only a 3 per cent market share. Five Indian companies owned 55 per cent market share and the rest of the market were shared by 44 players of median capacity of 1.2 million tonnes. Any potential player would have to make several acquisitions to gain market shares comparable with the top Indian players.
Bid price A bid price is the highest price that a buyer (i.e., bidder) is willing to pay for a good. It is usually referred to simply as the "bid." L&T has been engaged itself in several bids with one of the most successful being of Rs 300 crore order for construction of the ductile iron spun pipe (DISP) plant of KIOCL Ltd, earlier known as the Kudremukh Iron Ore Company Ltd, the public sector undertaking under the ministry of steel and mines. KIOCL plans to set up a 100,000 tonnes per annum DISP plant at Mangalore as part of its diversification. L&T emerged as the L1 bidder for the project. The KIOCL board shortlisted L&T through a global bidding route for the proposed project.
Waterfall Strategy A popular strategy followed by L & T Ltd. Is the price waterfall strategy (also called Pocket price waterfall). It is the set of prices, price adjustments and cost elements that defines how list price gets to net price and how net price gets to net margin. Price waterfall depicts the build up of L & T ltd’s engineering products prices from a base price to the list price and then the discounts that are given to the dealers to get to the Invoice price, the rebates terms, bonuses and other Discounts that affect the Pocket Price, the Pocket margin based on Cost of Goods sold and the Net margin based on the other fixed costs. The Price Waterfall Strategy shows the different prices that are included in the pocket price to get to the dealers price for the L&T Ltd. Engineering and electrical products.
