Larsen & Toubro

Larsen & Toubro Limited
Traded as NSE: LT
BSE: 500510
BSE SENSEX Constituent
Industry Conglomerate
Founded 1938 (1938) in Mumbai, India
Products Real estate
Construction
Heavy equipment
Electrical equipment
Power
Shipbuilding
Financial services
IT Services
Revenue ₹102,631.69 crore (US$15 billion) (2016)[1]
Profit ₹5,537.99 crore (US$820 million) (2016)[2]
Total assets ₹227,524.72 crore (US$34 billion) (2016)[2]
Number of employees
 84,027 (Mar 2014)[3]
Divisions Real Estate(Realty),Technology, Engineering, Construction, Manufacturing
Subsidiaries L&T Technology Services, L&T Infotech, L&T Mutual Fund, L&T Infrastructure Finance Company, L&T Finance Holdings, L&T MHPS
Website www.larsentoubro.com



'Larsen & Toubro , also known as L&T is an Indian multi-national conglomerate headquartered in Mumbai, Maharashtra, India.[4] It was founded by Danish engineers taking refuge in India, as well as an Indian financing partner.[5] The company has business interests in engineering, construction, manufacturing goods, information technology, and financial services, and also has an office in the Middle-East and other parts of Asia.

History

Prior to Indian independence, a company was founded in 1938 Bombay (Mumbai) (British India) by two Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro. The company began 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.[6]

Germany's invasion of Denmark in 1940 stopped supplies of Danish products.[6] 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.[6] L&T also started to repair and fabricate ships signalling the expansion of the company.[6]

The sudden internment of German engineers in British India (due to suspicions caused by the Second World War), who were to put up a soda ash plant for the Tata's, gave L&T a chance to enter the field of installation.[6]

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). L&T began several foreign collaborations. By 1945, the company represented British manufacturers of equipment used to manufacture products such as hydrogenated oils, biscuits, soaps and glass.[6]

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 7 February 1946, Larsen & Toubro Private Limited was incorporated.[6]

After independence, offices were set up in Kolkata (Calcutta), Chennai (Madras) and New Delhi. In 1948, 55 acres of undeveloped marsh and jungle was acquired in Powai, Mumbai. A previously uninhabitable swamp subsequently became the site of its main manufacturing hub.[6]

In December 1950, L&T became a public company with a paid-up capital of ₹ 20 lakhs (2 million rupees) (2,000,000). The sales turnover in that year was ₹ 1.09 crore (10.9 million rupees).[6] In 1956, a major part of the company's Mumbai office moved to ICI House in Ballard Estate, Mumbai; which would later be purchased by the company and renamed as L&T House, its present corporate office.[6]

During the 1960s ventures included UTMAL (set up in 1960), Audco India Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963).[6]

Operating divisions

L&T has formed a joint venture with SapuraCrest Petroleum Berhad, Malaysia for providing services to the offshore construction industry.[7] The joint venture will own and operate the LTS 3000, a crane vessel for heavy lifting and pipe-laying.

L&T Power has set up an organisation focused on coal-based, gas-based and nuclear power projects.[8] L&T has formed two joint ventures with Mitsubishi Heavy Industries, Japan to manufacture super critical boilers and steam turbine generators.[9]

L&T is among the largest five fabrication companies in the world.[10] L&T has a shipyard capable of constructing vessels of up to 150 metre long and displacement of 20,000 tons[11] at its heavy engineering complex at Hazira, Gujarat. The shipyard constructs specialised heavy-lift ships, CNG carriers, chemical tankers, defence & para-military vessels, submarines and other role-specific vessels.

The design wing of L&T ECC is EDRC (Engineering Design and Research Centre), which provides consultancy, design and services. It carries out basic and detailed design for both residential and commercial projects.

L&T Realty

Main article: L&T Realty

LnT Realty is the real estate development arm of Larsen & Toubro.[12][13] The company operates in Western and Southern India, constructing residential, corporate office, retail, leisure and entertainment properties with 35 million sq ft under various stages of development.[14]

L&T Technology Services

L&T Technology Services, a subsidiary of Larsen & Toubro, is an engineering services company that operates in the global Engineering, Research and Development (“ER&D”) space. L&T Technology Services offers design, development and testing services for the industrial products, medical devices, transportation, aerospace, telecom and process industries. The company serves customers across the product engineering life cycle from product conceptualization to implementation. Services include consulting, design, development, testing, maintenance and to-market integration services.L&T Technology hits the Indian Capital Marets with its IPO offering 10.4 million share at a price band of Rs.850 to Rs.860[15]

L&T Solar

L&T Construction, a subsidiary of Larsen & Toubro, undertakes solar energy projects. In April 2012, L&T commissioned India's largest solar photovoltaic power plant (40 MWp) owned by Reliance Power at Jaisalmer, Rajasthan from concept to commissioning in 129 days.[16] In 2011, L&T entered into a partnership with Sharp for EPC (engineering, procurement and construction) in megawatt solar project and plan to construct about 100 MW in the next 12 months in most of the metros.[17] L&T Infra Finance, promoted by the parent L&T Ltd, is also active in the funding of solar projects in India.[18][19]

Electrical and Automation

L&T is an international manufacturer of electrical and electronic products and systems. The company also manufactures custom-engineered switchboards for industrial sectors like power, refineries, petrochemicals and cement.[20] In the electronic segment, L&T offers a range of metres and provides control and automation systems for industries.

Medical Equipment.[21]

Information Technology (IT)

Larsen & Toubro Infotech Limited, a wholly owned subsidiary of L&T, offers information technology, software and services with a focus on manufacturing, BFSI and communications and embedded systems. It also provides services for embedded intelligence and engineering .

Machinery and industrial products

L&T manufactures, markets and provides service support for construction and mining machinery, including surface miners, hydraulic excavators, aggregate crushers, loader backhoes and vibratory compactors; supplies rubber processing machinery and manufactures and markets industrial valves and allied products along with application-engineered welding alloys.

EWAC Alloys Limited

EWAC Alloys Limited is a wholly owned subsidiary of Larsen & Toubro, India. The company is engaged in design & development, manufacture and supply of special welding electrodes, gas brazing rods and fluxes, welding torches and accessories, atomised metal powder alloys, flux cored continuous wires & wire feeders, polymer compounds & wear-resistant plates.

Prof Wasserman, founder of Eutectic Castolin, and Henning Hock Larsen, founder of Larsen & Toubro, founded the Eutectic Division in India in the year 1962. Eutectic Castolin was later merged into the Messer Group of companies, Germany and referred as Messer Eutectic Castolin (MEC). In 2010, Larsen & Toubro Limited, bought the entire stake from Messer to become the wholly owned subsidiary of it. The current headquarters is in Ankleshwar, Gujarat (India), and the products are sold under the name EWAC.

Major subsidiaries and joint ventures

L&T has over 130 subsidiaries and 15 associate companies.[22]

Corporate re-structuring

In January 2011, its Chairman A M Naik announced that the company would be restructured into nine independent virtual companies.[38] with a CEO, CFO and HR head, its own profit and loss account, and board with at least three independent directors. Each board does not have any legal or statutory standing,[39] but merely advises management.

The original nine virtual companies which operated in different segments,[40] were subsequently increased to 12, for which the companies formed are:[41] Building and Factories, Transportation & Infrastructure, Metallurgical & Material Handling, Power Transmission and Distribution, Hydrocarbon and Chemicals, Water, Smart World & Communication, Geo-Structure, Power, Infotech, Finance, Heavy Civil Engineering, and Engineering Services. Hydrocarbon and Chemicals later became a real company, with independent standings and stocks.

Listing and shareholding

The equity shares of the company are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). The company’s shares constitute a part of BSE 30 Index of the BSE Limited as well as NIFTY Index of the NSE.[3] Its global depository receipts (GDR) are listed on the Luxembourg Stock Exchange and London Stock Exchange.[3] As on 31 March 2013, Financial institutions held around 30.5% equity shares in L&T. Over 8.5 lakh individual shareholders hold approx 24% of its shares.[3][42] Foreign Institutional Investors held approx 16.6% shares. Others held approx 29% of the shares. Life Insurance Corporation of India is the largest shareholder in the company with 16.45% shareholding.

Shareholders (as on 31 March 2013) Shareholding[3][42]
Financial Institutions30.54%
General Public24.05%
Foreign Institutional Investors (FII)16.58%
L&T Employees Welfare Foundation12.09%
Bodies Corporate07.17%
Mutual Funds05.56%
GDRs03.58%
Directors & Relatives00.43%
Total100.0%

Employees

As on 31 March 2013, the company (excluding its subsidiaries) had 54,062 permanent employees, out of which 2,635 were women (4.87%) and 74 were employees with disabilities (0.14%). During the FY 2012-13, the company incurred ₹ 4,436 crore for employee benefit, including salaries. [3] As per the news article in November 2016, it had around 109,000 employees after mass firing of 14,000 across all sectors.[43]

Awards and recognition

Allegations of bribery

In 2016 The Huffington Post and The Age reported that Larsen & Toubro was involved in the alleged bribery scandal centered around Unaoil. According to these reports, leaked emails from Unaoil show that a senior executive at Larsen & Toubro was aware that the company had contracted Unaoil to bribe a senior official at Abu Dhabi Marine Operating Company for the purpose of winning contracts worth $400 million. By 2011 Larsen & Toubro had won contracts worth $500 million from Abu Dhabi Marine Operating Company.[57] The Vice President of Larsen & Toubro has confirmed that Unaoil was contracted to do some consultancy work, but denies that any payment was made to Unaoil.[58]

See also

Gallery

  1. ^ "Architectural Blossoming of the Lotus - The Bahá'í House of Worship". www.bahaihouseofworship.in. Retrieved 2016-01-15. 
  2. ^ Cite error: The named reference auto was invoked but never defined (see the help page).
  3. ^ "Hebbal, the new hub of development". The New Indian Express. Retrieved 2016-01-16. 
  4. ^ "A green township - Realty bytes". Deccan Herald. Retrieved 2016-01-16. 
  5. ^ "Premium projects set the right tone in festive fervour". epaperbeta.timesofindia.com. Retrieved 2016-01-15. 
  6. ^ "A signature landmark promising a lifestyle experience amidst green environs at Powai". epaperbeta.timesofindia.com. Retrieved 2016-01-15. 
  7. ^ http://profit.ndtv.com/news/corporates/article-statue-of-unity-to-be-built-by-larsen-toubro-in-nearly-rs-3000-crore-contract-685371

References

  1. ↑ "Larsen and Toubro Balance Sheet, Larsen and Toubro Financial Statement & Accounts".
  2. 1 2 "Larsen and Toubro Quarterly Results". EarningsIndia.
  3. 1 2 3 4 5 6 "Annual Report 2012-13" (PDF). L&T. Retrieved 3 December 2013.
  4. ↑ Larsen & Toubro Ltd 171109.pdf
  5. ↑ Shah, Shashank (2014-02-18). "Stakeholders Management in the Indian Construction Industry: Insights into the Approach at Larsen & Toubro's Construction Division". Journal of Values Based Leadership. 7 (1). Retrieved 11 June 2014.
  6. 1 2 3 4 5 6 7 8 9 10 11 "Larsen & Toubro – Hydrocarbon Upstream". Retrieved 21 June 2012.
  7. ↑ "(OIF), Joint Venture company formed by Larsen & Toubro Ltd. (L&T), India and SapuraCrest Petroleum Berhad, Malaysia". Offshore International FZC. Retrieved 16 July 2010.
  8. ↑ "Larsen & Toubro (L & T)". India Environment Portal. Retrieved 16 July 2010.
  9. ↑ "MHI Receives Order for 3 Supercritical-Pressure Boiler/Steam Turbine Sets | Asia > South Asia from". AllBusiness.com. 11 May 2010. Retrieved 16 July 2010.
  10. ↑ "No.1 Construction Companies in World". No.1 Construction. Retrieved 10 August 2011.
  11. ↑ "Larsen & Toubro.It's All About Engineering!". Tej Web World. 28 February 2010. Retrieved 16 July 2010.
  12. ↑ "An address that is distinctly refined, exceptionally rare". epaperbeta.timesofindia.com. Retrieved 2016-01-15.
  13. ↑ "L&T's 'youngest baby' shows growth in face of slowdown | Business Standard Mobile Website". wap.business-standard.com. Retrieved 2016-01-15.
  14. ↑ "Blackstone in talks with L&T realty to buy 1 million sq ft retail space - The Economic Times". The Economic Times. Retrieved 2016-01-15.
  15. ↑ "L&T Technology hits the capital markets". MyShareBazaar.com. Retrieved 2016-09-08.
  16. ↑ "L&T commissions India's largest solar power plant". Retrieved 7 February 2013.
  17. ↑ "L&T partners with Sharp to provide turnkey Solar EPC-targets 100MW in 12 months and turnover of Rs 13 billion". Retrieved 7 February 2013.
  18. ↑ "L&T Infra bets on solar power". Retrieved 7 February 2013.
  19. ↑ "L&T Infra raises $ 100 mn through ECB to fund solar projects". Retrieved 7 February 2013.
  20. ↑ Powered by Intergage www.intergage.co.uk. "Larsen & Toubro Limited (L&T)". Rina.org.uk. Retrieved 16 July 2010.
  21. ↑ "L&T finally decides to retain its Mysore-based Medical Equip Biz | TopNews". Topnews.in. Retrieved 7 February 2013.
  22. ↑ "Subsidiaries and associates". L&T. Retrieved 3 December 2013.
  23. ↑ "L&T Komatsu Ltd". Komatsu Limited. Retrieved 10 August 2011.
  24. ↑ Komatsu Limited
  25. ↑ "Change name". Larsen&Toubro. Retrieved 10 June 2013.
  26. ↑ "L&T to buy out Komatsu subsidiary in joint venture". Economic Times. 13 April 2013. Retrieved 13 April 2013.
  27. ↑ "Overview". Larsen&Toubro. Retrieved 10 August 2011.
  28. ↑ "L&T to restructure biz into 9 verticals". business Standard. 24 January 2011. Retrieved 10 August 2011.
  29. ↑ "International Tractors Ltd signs pact with L&T Finance for vehicle loans". The Economic Times of India. Retrieved 22 April 2014.
  30. ↑ "Average AUM". Association of Mutual Funds in India. Retrieved 8 December 2013.
  31. ↑ http://www.npcil.nic.in/pdf/press_lnt_jv.pdf
  32. ↑ V. Rishi Kumar. "L&T Hyderabad Metro wins infrastructure award". The Hindu Business Line.
  33. ↑ V Rishi Kumar. "Hyderabad metro to boost transit-oriented development". The Hindu Business Line.
  34. ↑ Viswanath Pilla. "L&T begins leasing commercial space along Hyderabad Metro". livemint.com/.
  35. ↑ "L&T to Develop Commercial Space Around Hyderabad Metro".
  36. ↑ "L&T plans 8 malls on metro route". The Times of India.
  37. ↑ IANS (10 June 2015). "L&T to develop commercial space with Hyderabad Metro".
  38. ↑ "Larsen & Toubro re-structuring". Dalal Street. Retrieved 8 October 2011.
  39. ↑ "Restructuring module splits Larsen&Toubro". livemint. Retrieved 8 October 2011.
  40. ↑ "L&T to split into 9 independent entities". Economic Times. 5 January 2011. Retrieved 3 December 2013.
  41. ↑ "Restructuring Larsen&Toubro". Livemint. 24 January 2011. Retrieved 3 December 2013.
  42. 1 2 "Shareholding Pattern". BSEIndia.com. Retrieved 3 December 2013.
  43. ↑ http://economictimes.indiatimes.com/industry/indl-goods/svs/engineering/in-one-of-indias-biggest-ever-layoffs-lt-sheds-14000-employees-from-its-workforce/articleshow/55570052.cms
  44. ↑ SHRAWAN (2013-05-29). "ANNEX IV: LIST OF AWARD WINNERS OF RAJIV GANDHI NATIONAL QUALITY AWARDS" (PDF). bis.org.in. New Delhi: Bureau of Indian Standards. Retrieved 2014-05-15.
  45. ↑ "Larsen & Toubro". Forbes.
  46. ↑ "India's Most Trusted Brands 2012".
  47. ↑ "India's Most Trusted Brands 2013".
  48. ↑ "India's Most Trusted Brands 2014".
  49. ↑ "National Quality Award (GPNQA)". goldenpeacockawards.com. 13 February 2013. Retrieved 3 December 2013.
  50. ↑ "L&T Power Wins 'Golden Peacock National Quality Award'" (PDF). L&T. 13 February 2013. Retrieved 3 December 2013.
  51. ↑ "Larsen & Toubro on the Forbes Global 2000 List". Forbes. 7 September 2012. Retrieved 3 December 2013.
  52. ↑ "Five Indian firms among world's most innovative". Hindustan Times. 7 September 2012. Retrieved 3 December 2013.
  53. ↑ "Asia's Fab 50 Companies: Larsen & Toubro". Forbes. 15 September 2010. Retrieved 3 December 2013.
  54. ↑ "India's 20 most respected companies". Rediff.com. 11 September 2013. Retrieved 4 December 2013.
  55. ↑ "Eight Indians in HBR's 100 best CEO list". The Hindu. 24 December 2012. Retrieved 3 December 2013.
  56. ↑ "Mr. A.M. Naik Ranked 32nd Best Performing CEO In The World" (PDF). L&T. 24 December 2012. Retrieved 3 December 2013.
  57. ↑ "Unaoil: UAE". The Age. Retrieved 2016-04-07.
  58. ↑ Nyvold, Mads (2016-04-06). "Dansk-stiftede Larsen & Toubro beskyldes for korruption" [Danish founded Larsen & Toubro accused of corruption] (in Danish). Danish Society of Engineers. Retrieved 2016-04-07.

External links

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