Presentation on A.

M Naik
By Darshil Khadkhad(24)

A.M Naik
Chairman and Managing Director, Larsen & Toubro, A.M. Naiks passion and commitment enabled him to grow the companys revenue from Rs. 109 billion to Rs. 46,108 billion. He believed in the philosophy of change is a way of life He basically had 3 objectives in mind: 1. to align our growth to the growth of the nation 2. global competitiveness 3. to bring prosperity to all stakeholders. For this he brought the concept of stock option which was not considered intially but later proved benificial

Strategies adopted by him when he took over

create a new vision and a new strategy After implementing this study various business Sell businesses that contribute little to revenues, profits, market share or brand. This could range from businesses such as valves to construction to road building equipment Restructure to scale up and sell. Example: buy out competition in a business such as plastic machinery; and sell. Naik has used this strategy in cement and readymix concrete with brilliant returns Streamline business arrangements that are large (upwards of Rs 2,000 crore) like the venture with construction and mining equipment maker Komatsu Grow businesses with big potential for growth. Realty, for instance, which Naik believes can add Rs 500 crore to L&T's net profit in a few years

Turnaround strategies at L&T

Quest for excellence: There is a continuous and unstoppable drive to seek excellence in everything. Thinking tomorrow today:There is a constant focus on identifying issues and challenges, and thus, they prepare themselves in anticipation of the imminent changes. There is an active thrust on thinking global Focused growth strategy and value creation:There was an active thrust on value creation through divestment, portfolio restructuring, building cost and quality competitiveness, along with customization, innovation, speed of response, and people power Speed:. L&T was transformed from being a sleeping giant into a sprinting giant with the introduction of speed, urgency and quick response to move ahead of competition

Turnaround strategies at L&T (contd.)

Empowerment:The company reaped the fruits of nurturing a highly empowered work culture by enabling tremendous amount of togetherness, loyalty and sense of belongingness amongst its employees. Entrepreneurial innovation: The company believed in enterpreneurial innovation to avoid the trap of inertia Ethical organization:L&T-ites take great pride in the ethical orientation of their company, and this is driven by their values of transparency, ethics and integrity Customer focus:They believe that the organization exists because of its customers and so, follow a customer-centric approach for creating a winning organization

Turnaround strategies at L&T (contd.)

Caring organization:. The culture of L&T demonstrates a high degree of concern towards employee welfare and spends adequate time to understand the needs and expectations of employees through continuous interactions. Contribution-centric meritocracy: L&T being a professional company, performance is of prime importance. There is direct relation between reward and performance which is considered by L&T

Nurturing talent: The HR techniques like 360 degree appraisal, assessment centers, mentoring, and counseling aim to build a leadership bank at L&T. There is emphasis on younger people holding higher positions.