COMPANY PROFILE LARSEN & TOUBRO LTD.

Type Industry Founded

Public Conglomerate Mumbai, India (1938)

Founder(s)

Hennin Holck Larsen Sren Kristian Toubro

Headquarters L&T House, Ballard Estate, Mumbai, Maharashtra, India Area served India, Middle East, East Asia and South East Asia

Key people

K.Venkataramanan (CEO&MD) A. M. Naik (ExecutiveChairman)) Construction Heavy equipment Electrical equipment

Products

Power Shipbuilding Financial services, IT serivces

Divisions Subsidiaries Website

Technology, engineering, construction, manufacturing L&T MHI, L&T InfoTech, L & T Mutual Fund, L&T Infrastructure Finance Company, L&T Finance Holdings, L&T IES www.larsentoubro.com
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INTRODUCTION
Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India's private sector.

More than seven decades of a strong, customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of business.

L&T has an international presence, with a global spread of offices. A thrust on international business has seen overseas earnings grow significantly. It continues to grow its global footprint, with offices and manufacturing facilities in multiple countries.

The company's businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support.

L&T believes that progress must be achieved in harmony with the environment. A commitment to community welfare and environmental protection are an integral part of the corporate vision.

In response to changing market dynamics, L&T has gone through a phased process of redefining its organisation model to facilitate growth through greater levels of empowerment. The new structure is built around multiple businesses serve the needs of different industries.

HISTORY
The evolution of L&T into the country's largest engineering and construction organization is among the most remarkable success stories in Indian industry.

L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly committed to developing India's engineering capabilities to meet the demands of industry.

Henning Holck-Larsen

Soren Kristian Toubro

(4.7.1907 - 27.7.2003)

(27.02.1906 -4.3.1982)

Beginning with the import of machinery from Europe, L&T rapidly took on engineering and construction assignments of increasing sophistication. Today, the company sets global engineering benchmarks in terms of scale and complexity.

EARLY DAY

Henning Holck-Larsen and Soren Kristian Toubro, school-mates in Denmark, would not have dreamt, as they were learning about India in history classes that they would, one day, create history in that land.

In 1938, the two friends decided to forgo the comforts of working in Europe, and started their own operation in India. All they had was a dream. And the courage to dare.

Their first office in Mumbai (Bombay) was so small that only one of the partners could use the office at a time!

In the early years, they represented Danish manufacturers of dairy equipment for a modest retainer. But with the start of the Second World War in 1939, imports were restricted, compelling them to start a small work-shop 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 stand on their own feet and innovate. They started manufacturing dairy equipment indigenously. These products proved to be a success, and L&T came to be recognised as a reliable fabricator with high standards.

The war-time need to repair and refit ships 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 - the Company had begun to expand.

Again, the sudden internment of German engineers (because of 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 - an area where their capability became well respected.

THE JOURNEY In 1944, ECC was incorporated. 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, L&T signed an agreement with Caterpillar Tractor Company, USA, for marketing earthmoving 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.

Independence and the subsequent demand for technology and expertise offered L&T the opportunity to consolidate and expand. Offices were set up in Kolkata (Calcutta), Chennai (Madras) and New Delhi. In 1948, fifty-five acres of undeveloped marsh and jungle was acquired in Powai. Today, Powai stands as a tribute to the vision of the men who transformed this uninhabitable swamp into a manufacturing landmark.

PUBLIC LIMITED CO. In December 1950, L&T became a Public Company with a paid-up capital of Rs.2 million. The sales turnover in that year was Rs.10.9 million.

Prestigious orders executed by the Company during this period included the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant. With the successful completion of these jobs, L&T emerged as the largest erection contractor in the country.

In 1956, a major part of the company's Bombay office moved to ICI House in Ballard Estate. A decade later this imposing grey-stone building was purchased by L&T, and renamed as L&T House - its Corporate Office.

The sixties saw a significant change at L&T - S. K. Toubro retired from active management in 1962.

The sixties were also a decade of rapid growth for the company, and witnessed the formation of many new ventures: UTMAL (set up in 1960), Audco India Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963).

EXPANDING HORIZON By 1964, L&T had widened its capabilities to include some of the best technologies in the world. In the decade that followed, the company grew rapidly, and by 1973 had become one of the Top-25 Indian companies.

In 1976, Holck-Larsen was awarded the Magsaysay Award for International Understanding in recognition of his contribution to India's industrial development. He retired as Chairman in 1978.

In the decades that followed, the company grew into an engineering major under the guidance of leaders like N. M. Desai, S.R. Subramaniam, U. V. Rao, S. D. Kulkarni and A. M. Naik.

Today, L&T is one of India's biggest and best known industrial organisations with a reputation for technological excellence, high quality of products and services, and strong customer orientation. It is also taking steps to grow its international presence.

For an institution that has grown to legendary proportions, there cannot and must not be an 'end'. Unlike other stories, the L&T saga continues.....

Objective of the Study

Primary Objective The primary objective is to study, understand and analyse various aspects related to startegies and procedure at L & T.

Research Methodology Nature of Data Primary data : Data which is collected through direct interviews and by raising questionnaires

Secondary data: Secondary data that is already available and publish edit could be internal and external source of data. Internal source: which originates from the specific field or area where research is carried out e.g. publish broachers, official reports, annual report etc..

External source : This originates outside the field of study like books, periodicals, journals, newspapers and the Internet

REVIEW OF LITERATURE
L & T AN INDIAN MULTINATIONAL Larsen & Toubro Limited (L&T) is one of Asia's largest v e r t i c a l l y i n t e g r a t e d E n g i n e e r i n g & C o n s t r u c t i o n c o n g l o m e r a t e w i t h additional interests in Information Technology and electrical business. A strong, customer-focused approach and the constant quest for top-class quality have enabled the company to attain and sustain leadership position for over seven decades. In line with its strategy of aligning capabilities to meet emerging trends, L&T recently initiated a mega-transformation process, internally to ensure that it emerges, as a knowledge-based Indian multinational. Over the years the company has proactively created the necessary infrastructure for its global initiative with office locations in USA, Europe, Middle East and Japan. The Engineering & Construction Division made significant progress during the year in increasing its presence in the overseas markets. The Division secured orders from international clients l o c a t e d a t M a l a y s i a , U S A , U K , B r a z i l , S a u d i A r a b i a , U A E , Q a t a r , Bangladesh, Sri Lanka, etc. The export earnings of the Division amounted to Rs. 24600 million during the year 2011-12. L&T believes that progress must necessarily be achieved in harmony with the environment. A commitment to community welfare and environmental protection constitute an integral part of the Corporate Vision.

VISION STATEMENT 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.

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MISSION STATEMNET

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NATIONWIDE NETWORK Manufacturing facilities in- 18 locations Offices in - 19 cities Management Development Centre Lonavala Knowledge City Vadodara Logistic Advantages - Ability to optimize resources at various locations

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GLOBAL PRESENCE L&T has a global presence. A thrust on international business over the years has seen overseas revenues growing steadily. The company has manufacturing facilities in India, the Middle East, South East Asia, China and Australia. Customers include global majors in over 30 countries

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BUSINESS PRODUCTS

L&T Electrical & Automation (E&A) business portfolio includes low voltage switchgear products, electrical systems, marine switchgear, industrial and building automation solutions, energy meters & relays. Its products and solutions cater to a variety of segments like industries, utilities, infrastructure, building and agriculture.

L&T meets the complex and varying needs of customers with a wide range of switchgear products maintaining high and consistent quality standards. The range includes low voltage switchgear and control gear components as well as products and automation solutions for Industrial, Building and Home segments.

It manufactures custom-built low and medium voltage switchboards along with Distribution Boards and control panels and undertakes turnkey contracts for comprehensive system engineering, supply, installation, testing and commissioning of switchboards and allied equipment including retrofitting.

L&T manufactures and markets a comprehensive range of high quality electrical energy meters and protective relays for Utilities, Industries, Commercial establishments and domestic consumers. The meter range includes programmable trivector meters, single phase and three phase meters as well as intelligent meter panels.

Further, L&T offers solutions for control, regulation and monitoring. It also provides system analysis, project planning, hardware selection, application engineering, application software, manufacture, testing, integration, commissioning and documentation. It caters to

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several industry segments like chemical, petrochemical, manufacturing, power, cement, iron & steel, material handling, pulp & paper, oil & gas and food processing.

A major strength of L&T is its in-house tooling facility that designs and manufactures a wide range of high precision tools, a pre-requisite for high quality products. The facility is equipped with CAD systems, and is also linked to the integrated CAD facility.

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CONSTRUCTION EQUIPMENT BUSINESS

Construction Equipment Business markets and provides service support for Hydraulic Excavators manufactured by L&T Construction Equipment Limited (a wholly owned subsidiary of L&T) in Bangalore. The range comprises models in the 7 ton to 60 ton class, powered by diesel engines ranging from 60HP to 320HP. The range includes Hydraulic Excavators, Motor Graders, Dozers and other road building/recycling equipment .L&T 9020 Wheel Loader manufactured.

MINNING Mining Equipment Business distributes and provides after-sales support to a wide range of mining equipment worldwide. The range includes super large Hydraulic Excavators with bucket capacities upto50 CuM, Wheel Loaders ofupto 35 CuM, Off-highway Dumpers, large-size Dozers fitted with rippers, Wheel Dozers and other mining equipment. Surface Miners, manufactured at L&T.

CONSTRUCTION AND MINNING TIPPER BUSINESS

Construction & Mining Tipper Business distributes multi-axle tipper trucks, manufactured by Swedish heavy vehicle major Scania. These heavy-duty trucks, in the 300-500 hp range cater to the needs of the construction

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and mining sectors. The trucks provide an ideal complement to the range of hydraulic excavators that are widely deployed in mining projects around the country. L&T extends effective field support to customers through a network of specialized and well-equipped service units.

HYDRAULIC EQUIPMENT BUSINESS Hydraulic Equipment Business markets and provides application engineering and after-sales support for a wide range of high-pressure hydraulic products manufactured by L&T Construction Equipment Limited Bangalore. These include hightorque-low-speed motors, multi-flow pumps, cylinders, turning joints, hoses, as well as customized hydraulic systems. These products are used in various industrial and mobile applications. Custom-designed hydraulic systems are supplied to various applications in material handling, mineral processing, shunting locomotives, railways etc.

PRODUCT SUPPORT

L&T extends product support to the entire range of construction, mining and hydraulic equipment, and value-added services like maintenance contracts and site support agreements. Service Centres equipped to overhaul and rebuild customers' machines are located at Nagpur, Pune, Bahadurgarh, Durgapur and Kancheepuram. Service engineers based near high machine-population sites provide diagnostic support and ensure high uptime of machines.

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BUSINESS PORTFOLIO

SECTORAL PRESENCE

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CONSTRUCTION Building & Factories-commercial Buildings & & Factories This vertical undertakes engineering design & construction of airports, IT office spaces, institutional buildings, hospitals, hotels, residential building, factories and cement plants. It provides concept to commissioning solutions across various business segments. The company possesses the technological capability to meet the demand of new trends in civil engineering and construction technology like high rise towers, green buildings, MRO facilities and precast housing. The completion of prestigious projects under challenging time schedule underlines L&Ts superior capabilities in project management, project execution and in successfully handling large design-&-build projects. Infrastructure- Heavy civil, transportation Infrastructure It undertakes construction of roads, runways, elevated bridges, metros ports, special bridges, hydel projects rail projects, nuclear facilities and defense projects-all to international standards of quality using advanced construction techniques. Metallurgical & Material-handling-Minerals & Metals, Bulk Material handling, Water & Effluent Treatment L&T is a leader in turnkey construction projects in the mineral and metals sector, bulk material-handling projects, water supply and treatment plants. Airports, Residential Buildings

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HYDROCARBON L&T's Hydrocarbon Business delivers 'design to build' world-class engineering and construction solutions on turnkey basis in oil & gas, petroleum refining, chemicals & petrochemicals and fertiliser sectors. Inhouse expertise and experience, synergised with strategic partnerships enables it to deliver single point solution for every phase of a project right from the front end design through engineering, fabrication, project management, construction and installation up to commissioning. L&T hydrocarbon consists of the following strategic business groups: Hydrocarbon Upstream , Hydrocarbon Mid & Downstream, Hydrocarbon Construction & Pipelines ELECTRICAL & AUTOMATION Product projects Medical Equipments & systems L&T is a major international manufacture of electrical and electronic products & systems. In the electrical segment, L&T holds leadership position in low tension switchgear in India, & is rapidly establishing itself in international markets. L&T manufactures custom engineered. LV and MV switchboards. In the electronics segment, L&T offers electricity meters and protective relays, energy managements, building and home automation products. L&T also provides complete control and automation solutions for industries and utilities.

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POWER L&T Power is a business brand of Larsen & Toubro, with a mandate to integrate L&Ts varied offerings in the thermal power sector. The Company is uniquely positioned to combine rich and diverse strands of experience in engineering, manufacturing and project execution with strong management focus on providing turnkey solutions. L&T Power is also committed to continually upgrading its skills to meet the challenge of the future.

MACHINERY AND INDUSTRIAL PRODUCTS

L&T manufactures, markets & provides service support for a wide range of critical construction& mining machinery & aggregate curshers. It also manufactures & supplies a wide range robber processing machinery, plastic injection moulding machine, industrial vavles & allied products, & casting for wind power & other engineering sectors.

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HEAVY ENGINEERING L&T's Heavy Engineering has established a reputation in global markets for quality products. It manufactures and supplies custom designed and engineered critical equipment and systems to the needs of core-sector industries and the defence sector. It is the preferred supplier of equipment for a select range of products, globally. L&T has state-of-the art manufacturing facilities, which are capable of meeting the challenges of technology, quality conformance and delivery, while ensuring cost competitiveness. L&T Heavy Engineering has entered into Shipbuilding business and is engaged in construction of speciality commercial vessels and warships for the navy as well as the coast guard.

INFORMATION TECHNOLOGY L&T InfoTech offers comprehensive, end-to-end technology solutions and services in banking & financial services, energy & petrochemicals, insurance, manufacturing (automotive, consumer packaged goods/retail, industries products) and product engineering servies (telecom). L&T InfoTechs unique brand differentiation is Business-to-IT Connect which enables the Company to convert the business knowledge acquired, into a winning edge for clients, leading to faster tome-to-market.

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SWOT Analysis The SWOT analysis is a tool used in strategic planning to evaluate the Strenghts, Weaknesses, Opportunities and Threats involved in a new project. The SWOT analysis enables you to have a better understanding of what you should be aware of before starting a new project. It evaluate the good and the bad and clearly shows if the new project is viable or not.

Strengths Private sector housing boom & high demand of commercial building L&Ts experience in India Brand name of Larsen & Toubro An experienced base employee Diversified business group Strong financial results Low cost skilled labour availability

Weakness Slowdown in middle east Average experience employee age nearing retirement Huge attrition rate Low employee satisfaction Week Global Reach Training itself is a challenge. Lack of new products & services

SWOT
Opportunities Major Infrastructure projects coming up (govt.) Renewable energy projects will bring more projects Financial support by Govt. & growth in income level of people Global economic recovery Investment in Defense sector Threats Inflationary and cost pressures Threat of a global Financial Turmoil Vendor issues Government policies Competitors Taxation policie Lack of financial resources.

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STRATEGIES ADOPTED

BUSINESS STRATEGEY The company was mainly into engineering, procurement and construction segments. It also has a large exposure to commodity businesses such as cement and ready-mix concrete. In the year 2000, L&T began implementing its business restructuring exercise with its first two five year plans. The restructuring plans had set a target to reach a business volume of Rs35,000 crore annually which the company achieved and exceeded by 15-20%. As per the restructuring plans. L&T had divested its cement business in favour of the Aditya Birla Group and its ready-mix concrete business in favour of Lafarge SA. The third five-year plan of the company will be executed from 2010 to 2015.

GROWTH STRATEGY L&T is concentrating on hi-tech areas, vacating non-remunerative product lines and focusing on the exports market. L&T developed technology for manufacturing critical equipment for process, nuclear and defence sectors. It is also in talks with leading aircraft manufacturers in India and abroad for supplying components.
Recently the company signed a joint venture with EADS Defence and Security, for defence electronics in India.

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RISK MANAGEMENT STRATEGEY Doing business within India remains paramount. Vision is to become an Indian multinational not just another multinational. Investment made in the Middle East for training of workmen. Showing a long term commitment to consolidating presence in select geographies through setting up of offices, entering into alliance with collaborators, developing marketing networks, brand promotion and wherever feasible, setting up manufacturing facility. Institutionalised a risk management culture and framework in the Company.

FUTURE STRATEGY A blueprint for the next phase of growth till 2015, named Vision 2015,at Larsen and Toubro Ltd is being drafted.

The first plan was devised by Boston Consulting Group, a leading global management consulting firm.

L&Ts recent moves such as signing a slew of pacts with nuclear engineering firms such as Westinghouse of USA, Atomic Energy Commission of Canada and Russia's Atoms troy export for nuclear plants, an entry into nuclear equipment forging, defence ship building and the latest joint venture make it clear that L&T is focusing more on its core competencies

Its power business is also taking shape with 11 new factories making various parts of power equipment.

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It has put in place a nuclear equipment forging shop in Hazira in Gujarat at an investment of Rs1, 500 crore. As per plan, the company will create three operating companies to look after defence, aerospace and nuclear power sectors for effective operations.

DEVELOPMENT STRATEGY L&T has established itself as a dominant player in the engineering andconstruction through infrastructure development. The company has an international presence with a global spread of officesand joint ventures with world leaders. Develop leaders from within.

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ANALYZES AND SUGGESTIONS

ADVANTAGES OBSERVED (Good strategies) IN FIRM

If we observe the vision statement Understood that management involved right from the start. Adequate or correctmarketing researchis done at each and every level There is no lack of vision on the relationship between processes, technology and organization.

If we observe the Strategies, and Decision Making There is sufficient company resources to accomplish task. New strategies are well explained to employees. Incentives given to workers to embrace the new strategy. Promoting the new employee and their management skills. There is a good employee commitment. Important strategies like collaboration with lead manufacturing companies. Saved the company from Ambani Brother Undertook proposal.

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STRATEGIC MANTRAS OF LARSEN AND TOUBRO LIMITED A WHOLE AND REALISTIC VIEW Audacious in vision. Focus on what know best. Trim flab to achieve operational excellence. Good governance made the business sense. Develop leaders from within. Forge stronger partnerships with supplier base. Pursue quality with zeal. Innovate to create value for customers. Give back to the society The Indian edge.

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CONCLUSION
Factors fuelling L&Ts global initiatives Several factors have contributed to the global
expansion of L&T. Several years of expertise and wide range of products and services have served as the necessary pillars for L&T to embark determinedly on a global expansion strategy. In fact one of the key factors for its global success has been the fact that it has been able to integrate its strengths across several areas like engineering, construction, procurement and process technology to be able to provide a single point responsibility under stringent delivery schedules. L&T has also set itself a vision of becoming an Indian multinational and hence all its initiatives rally around this vision. Hence, the company constantly comes up with measures that would help it inch closer to this goal. An endeavour in this effort has been the LAKSHYA programme, which is the strategic plan that the company has laid out for 2010-15.Through this it will seek to diversify its portfolio, growth targets for each business and compete effectively in the wake of global challenges.

Another key area that has given its international strategy a thrust is its global sourcing policy.With a steady rise in material costs, the company has placed sourcing teams in China, Europe and Russia.

The talent pool at L&T has also played a major role in developing its global strategy. Its resource base of experienced people gives it the ability to offer integrated solutions in the market. It also selects and trains its managers in a manner that will help them take on the global challenges and help them function more effectively in todays globalised era. L&Ts strategy of establishing offices and factories across several countries has led to the creation of a distribution network that complements its operations. Also, alliances with several other global leaders give it the access to the

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latest in technology as well as the strength to execute even larger turnkey projects, thereby adding to its expertise levels. Several other small initiatives have helped it boostits global expansion. For instance, each business division of the company has a cell that it dedicated to coming up with initiatives to boost exports. It also has several agents abroad to boost its exports. The company regularly participates in several international exhibitions, besides also initiating direct mail campaigns and market surveys. It also expands the reach of some of its new products through the synergy with existing products.

Larsen & Toubro, India's leading engineering-to-financial services organization. Their new emerging verticals include Media & Entertainment and Life Sciences& Healthcare. Larsen & Toubro Infotech Ltd. (L&T Infotech), one of the fastest growing IT/Services companies, is ranked by NASSCOM among the top software &services exporters from India in 2009. Their other Service offerings are: Business Analytics, Legacy Modernization, Applications Outsourcing, Architecture Consulting, PLM and Service Oriented Architecture.

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BIBILOGRAPHY

Books Larsen & Toubro- Annual Report

Web site used to get more information about:

http://www.larsentoubro.com http://www.scribd.com/doc/135853328/l-t-business-strategy www.lntebg.com www.lnthed.com www.lntecc.com www.lntenc.com www.lntinfotech.com

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