Larsen & Toubro
|Traded as||NSE: LT
BSE SENSEX Constituent
|Founded||Mumbai, Maharastra, India (1938)|
|Founder||Søren Kristian Toubro
|Headquarters||L&T House, Ballard Estate,
Mumbai, Maharashtra, India
|India, Middle East, East Asia and Southeast Asia|
|K. Venkataramanan (CEO & MD)
A. M. Naik (Executive Chairman)
|Revenue||US$ 14 Billion (2014)|
|US$ 1.07 Billion (2014)|
|US$ 952.638 Million (2013)|
|Total assets||US$ 26.188 Billion (2013)|
|Total equity||US$ 6.6818 Billion (2013)|
Number of employees
|84,027 (Mar 2014)|
|Divisions||Technology, engineering, construction, manufacturing|
|Subsidiaries||L&T Infotech, L&T Mutual Fund,|
Larsen & Toubro Limited, also known as L&T, is an Indian multinational conglomerate headquartered in Mumbai, Maharashtra, India. It was founded by Danish engineers taking refuge in India, as well as an Indian financing partner. 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.
L&T is India's largest engineering and construction company. Considered to be the "bellwether of India's engineering & construction sector", L&T was recognized as the Company of the Year in Economic Times 2010 awards.
- 1 History
- 2 Operating divisions
- 3 Major subsidiaries and joint ventures
- 4 Corporate re-structuring
- 5 Listing and shareholding
- 6 Employees
- 7 Awards and recognition
- 8 See also
- 9 References
- 10 External links
A company was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen and Soren 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.
Germany's invasion of Denmark in 1940 stopped supplies of Danish products. 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 to repair and fabrication shops signalling the expansion of the company.
The sudden internment of German engineers in British 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). 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 7 February 1946, Larsen & Toubro Private Limited was incorporated.
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, Mumbai. That uninhabitable swamp subsequently became the site of its main manufacturing hub.
In December 1950, L&T became a public company with a paid-up capital of Rs. 20 lakhs (2 million rupees) (2,000,000). The sales turnover in that year was Rs. 1.09 crore (10.9 million rupees). 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.
The sixties witnessed the formation of many new ventures: UTMAL (set up in 1960), Audco India Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963).
L&T has delivered Engineering, Procurement and Construction (EPC) services for many projects in the upstream hydrocarbon sector over the last two decades, in India, Middle East, Africa, South-East Asia and Australia.
L&T has formed a joint venture with SapuraCrest Petroleum Berhad, Malaysia for providing services to offshore construction industry worldwide. The joint venture will own and operate the LTS 3000, a Heavy Lift cum Pipelay Vessel.
L&T Power has set up an organization focused on coal-based, gas-based and nuclear power projects. L&T has formed two joint ventures with Mitsubishi Heavy Industries, Japan to manufacture super critical boilers and steam turbine generators.
L&T is among the top five fabrication companies in the world. L&T has a shipyard capable of constructing vessels of up to 150 meters long and displacement of 20,000 tons at its heavy engineering complex at Hazira. The shipyard is geared up to take up construction of niche vessels such as specialized Heavy lift Cargo Vessels, CNG carriers, Chemical tankers, defense & para military vessels, submarines and other role specific vessels.
The design wing of L&T ECC is called EDRC (Engineering Design and Research Centre). EDRC provides consultancy, design and total engineering solutions to customers. It carries out basic and detailed design for both residential and commercial projects.
L&T Construction a subsidiary of the Larsen & Toubro conglomerate also undertakes solar projects. In April ’12, L&T commissioned India's largest solar photo voltaic-based power plant (40 MWp) owned by Reliance Power at Jaisalmer, Rajasthan from concept to commissioning in 129 days. 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. L&T Infra Finance, promoted by the parent L&T Ltd, is also active in the funding of solar projects in India. ≤
Electrical and automation
L&T is an international manufacturer of a wide range of electrical and electronic products and systems. L&T also manufactures custom-engineered switchboards for industrial sectors like power, refineries, petrochemicals and cement. In the electronic segment, L&T offers a range of meters and provides control and automation systems for industries. Medical Equipment.
L&T Infotech focuses on information technology and software services. Larsen & Toubro Infotech Limited, a 100 per cent subsidiary of the L&T, offers software and services with a focus on Manufacturing, BFSI and Communications and Embedded Systems. It also provides services in the embedded intelligence and engineering space.
Machinery and industrial products
L&T manufactures, markets and provides service support for construction and mining machinery, surface miners, hydraulic excavators, aggregate crushers, loader backhoes and vibratory compactors; supplies a wide range of rubber processing surya; and manufactures and markets industrial valves and allied products and a range of 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 Mr. Henning Hock Larsen, Founder of Larsen & Toubro, laid the foundation of Eutectic Division in India in the year 1962. Recently Eutectic Castolin merged into Messer Group of Companies, Germany and referred as Messer Eutectic Castolin (MEC).
Major subsidiaries and joint ventures
L&T has over 130 subsidiaries and 15 associate companies.
L&T Kobelco Machinery Private Limited
This is a joint venture of L&T and Kobe Steel of Japan, to manufacture internal mixers and twin screw roller-head extruders for the tyre industry.The Company has set up a factory at Karai Village, Kanchipuram to manufacture Internal Mixers and Twin Screw Roller head Extruders for the tyre industry and commenced its commercial operations in December 1, 2012.
L&T – Komatsu Limited
Having its registered office at Mumbai, India and focusing on construction equipment and mining equipment, L&T-Komatsu Limited is a joint venture of Larsen and Toubro, 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.
The plant was started in the year 1975 by L&T to manufacture Hydraulic Excavators for the first time in India. In 1998, 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 manufacturing facility 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 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.In April 2013, L&T bought the 50% stake held by Komatsu Asia & Pacific. The company's name was changed to L&T Construction Equipment Limited. 
The subsidiary has financial products and services for corporate, construction equipments etc. This is a new division after the company declared its restructuring
A partnership between L&T Finance and Sonalika Group farm equipment maker International Tractors Ltd, was announced in April 2014. The partnership would provide credit and financing benefits to customers of Sonalika Group throughout India.
L & T Mutual Fund is the mutual fund company of the L&T group. This company provides mutual fund schemes for investors in India. The average Assets Under Management (AUM) of L&T Mutual Fund for the quarter Jul-13 to Sep-13 was INR 15.8 billion.
Larsen & Toubro Infrastructure Finance
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 Technology Services (previously known as Integrated Engineering Services or 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 TS has its design and delivery locations in Vadodara, Chennai, Bangalore, Mysore and Mumbai in India.
L&T TS 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 .
Mysore based campus of Electronic design unit of TS works predominantly for Embedded systems with a variety of range of operations from Avionics, Automotive, Industrial automation and metering, Medical and more.
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 Valves Manufacturing Unit, Coimbatore as well as allied products from major international manufacturers.
The company's valve manufacturing Unit in Coimbatore manufactures industrial valves specifically for the Power Industry. It also sells value-added flow control solutions to oil and gas, refining, petrochemical, chemical and power industries, industrial valves and customized products for major Refinery, LNG, GTL, Petrochemical and Power projects.
L&T Valves Business Group has offices in the USA, South Africa, Dubai, Abu Dhabi, India and China, and alliances with valve distributors and agents in these countries.
L&T MHPS Boiler
LMB is the joint venture between L&T and Mitsubishi Hitachi Power Systems. The group specializes in Engineering, Manufacturing, Erecting & Commissioning of Super Critical Boilers used in Mega and Ultra Mega power plants. It is mainly headquartered in Faridabad with Manufacturing facility in Hazira and an Engineering Centre in Chennai & Faridabad. Currently the group is engaged in projects for JVPL, MAHAGENCO, NABHA Power & RRVUNL.
L&T MHPS Turbine Generators Pvt.Ltd
In 2007, Larsen & Toubro Limited (“L&T”) and Mitsubishi Heavy Industries Limited (“MHI”), headquartered in Tokyo, Japan inked a Joint Venture Agreement for setting up a manufacturing facility to supply super-critical Steam Turbine & Generator facility in Hazira, Surat, India, . This follows a Technology Licensing and Technical Assistance Agreement for manufacture of super-critical Turbine & Generator, signed between L&T, MHI, and Mitsubishi Electric Corporation (MELCO), headquartered in Tokyo, Japan.In February 2014, MHI and Hitachi Ltd integrated the business centered on thermal power generation systems (gas turbines, steam turbines, coal gasification generating equipment, boilers, thermal power control systems, generators, fuel cells, environmental equipment and so on) and started a new company as Mitsubishi Hitachi Power Systems Ltd. (“MHPS”), headquartered in Yokohama, Japan .
L&T Howden Pvt.Ltd
L&T Howden Pvt. Ltd. is a joint venture between L&T and Howden to cater Axial Fans and Air Preheaters of range 120-1200 MW to thermal power plants. L&T Howden is an ISO -9001 and 5001 certified organisation, Plant is located in Surat Hazira and marketing office in Faridabad.
L&T Special Steels and Heavy Forgings Pvt. Ltd.
LTSSHF is a joint venture between L&T and NPCIL. Headquartered at Hazia, LTSSHF is recognized as India's largest integrated steel plant and heavy forging unit. With state-of-the art facilities, LTSSHF is capable of producing forgings weighing 120MT each. LTSSHF currently is engaged in projects from Nuclear, Hydrocarbon, Power and Oil & Gas sectors.
L&T General Insurance
In January 2011, its Chairman A.M. Naik announced that the company will be restructured into nine virtual companies. Each will be called an independent company, and will have a CEO, CFO and HR head, its own profit and loss account, and a board of directors with at least three independent directors. Each board will not have any legal or statutory standing, but will merely advise management.
- Building and Factories
- Transportation & Infrastructure
- Metallurgical & Material Handling
- Power Transmission and Distribution
- Hydrocarbon and Chemicals
- Heavy Engineering
- Engineering Services
Recently Hydrocarbon and chemicals has become a real company with its independent standings and stocks.
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.
Shareholding: As on 31 March 2013, Financial Institutions held around 30.5% equity shares in L&T. Over 850,000 individual shareholders hold approx. 24% of its shares. 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|
|Foreign Institutional Investors (FII)||16.58%|
|L&T Employees Welfare Foundation||12.09%|
|Directors & Relatives||00.43%|
As on 31 March 2013, the company (excluding its subsidiaries) had 54062 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 INR 44.36 billion for employee benefit, including salaries.
The Harvard Business Review in its January–February 2013 edition named L&T's Executive Chairman, A.M. Naik, as the 32nd Best Performing CEO in the world.
Awards and recognition
- In 1997, the Bangalore Works division was awarded the "Best of all" Rajiv Gandhi National Quality Award
- In 2014 Larsen & Toubro ranked 500 on Forbes list of 2000 world’s largest and most powerful public companies based on revenues, profits, assets and market value.54 Indian companies made it to the prestigious list,and L&T is the highest ranked company in the engineering and construction section and 10th among all Indian public and private sectors.
- According to the Brand Trust Report 2012 published by Trust Research Advisory, a brand analytics company, L&T was positioned 47th among India's most trusted brands. Subsequently, in Brand Trust Report 2013, L&T was ranked 127th among the most trusted brands in India while according to the Brand Trust Report 2014, L&T was elevated to the 38th position among India's most trusted brands.
- In 2013, L&T Power received 'Golden Peacock National Quality Award – 2012' at the 23rd World Congress on 'Leadership & Quality of Governance'.
- In 2012, Forbes ranked L&T as 9th most innovative company in the world. L&T was also featured in the Forbes Asia's annual 'Fabulous 50' list in 2010, for the fifth time in a row.
- In 2012, L&T was ranked 4th by Newsweek in the global list of green companies in the industrial sector.
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- "L&T Infra raises $ 100 mn through ECB to fund solar projects". Retrieved 7 February 2013.
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- "Mr. A.M. Naik Ranked 32nd Best Performing CEO In The World" (PDF). L&T. 24 December 2012. Retrieved 3 December 2013.
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