LARSEN & TOUBRO - Company Overview or Financial Statements.

                          

OVERVIEW:

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.

L&T has an international presence, with a global spread of offices. The companies businesses are supported by a wide marketing and distribution network, and 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.

L&T’s SIGNATURE OF EXCELLENCE IS EVIDENT ON:

• Hydrocarbon projects executed in India, the Middle East & South East Asia.
• Power projects executed in India, the Gulf and Sri Lanka.
• The world's largest coal gasifier made in India and exported to China.
• The world’s biggest EO reactor for a petrochemical complex in the Gulf.
• The world’s largest FCC regenerators for a refinery.
• The world’s longest limestone conveyor.
• L&T played a critical role in building India’s first nuclear powered submarine.
• L&T played a major role in India's maiden moon mission.

HISTORY:

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 Kristain Toubro

                   (04.07.1907 – 27.07.2003)                        (27.02.1906 – 04.03.1982)

Henning Holck-Larsen and Soren Kristian Toubro, school-mates in Denmark. They were learning about India in history classes that they would, one day, create history in that land. L&T became a private limited company in 1946 and in 1956 L&T became a public limited company with a paid-up capital of Rs.2 million. The sales turnover in that year was Rs.10.9 million.

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.

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.

                                            

OPERATING DIVISION:

• Engineering & Construction Projects.
• Heavy Engineering (HED).
• Construction.
• Power.
• Electrical & Electronics.
• Machinery & Industrial Projects.
• IT & Technology Services.
• Financial Services.
• Railway Projects.

Engineering & Construction Projects:

Engineering and construction Division forms the biggest segment in Larson & Turbo. This division is capable of carrying out Turnkey projects in core industry sectors on EPS basis.

                             

The Engineering and Construction Division has strengths in process technology, basic and detailed Engineering, Modular fabrication, procurement, construction and commissioning. The Division has offices at various locations in India-Mumbai, Vadodara and Faridabad.

• L&T’s Modular Fabrication Facility (MFF) AT Hazira is capable of manufacturing large modules.
• The Division has secured orders from international clients in Malaysia, USA, UK, Brazil, Saudi Arabia, UAE, Qatar, Bangladesh, Sri Lanka, etc.
• The customer profile includes leading names such as Samsung, Chevron, Bechtel, Kvaerner, Pirelli, Siam Michelin, Goodyear, etc.

HEAVY Engineering:

It has established a reputation for Quality products.The division manufactures

custom designed and engineered equipments and systems to core sector

industries and defence sectors.

                              

The division has entered into ship building business and also in specialised commercial

Vessels and warships for navy and cost guard.

L&T's world-class fabrication capabilities have been achieved through perfect

integration of efficient material handling & preparation, precision machining and

Welding processes for a range of material in varying thicknesses, backed by

technological excellence in design & engineering and responsive quality systems.

Engineering Construction:

The Engineering, Construction and contracts (ECC) Division of L&T is largest

Construction organization in country and ECC finds its unique position(35th) among

World’s top contractors.

                   

Runways and Road:

ECC creates high quality infrastructure for transportation. It has executed several transportation projects such as expressways, highways and runways.

Ports, Harbours and Special Projects:

ECC undertakes heavy civil construction works and infrastructure projects such as

Ports, harbours, breakwaters, waterfront structures and underground metro rail

Corridors.

Electrical Instrumentation & Communication:

ECC handles some of the largest electrical and instrumentation contracts in India and abroad. It has moved from individual, package-based contracts, to providing turnkey solutions for major project electrification works, high voltage sub-stations and telecommunication and instrumentation projects. There are 16 strategic business units grouped into 8 business Sectors based on core Technology.

Larsen and Turbo Power Ltd.:

"Coming to the Right Place at the Right time and Making the Right Choice is the example of the good fortune and the wise mind"

It is a subsidiary of Larsen and Turbo and combines rich and diverse experience in engineering, manufacturing and project execution with strong management focus.

L&T Power seeks to partner with its customers in providing solutions that best address their needs. In-house strengths are supplemented by collaborations with global leaders in the fields of engineering and manufacturing. L&T Power is also committed to continually upgrading its skills to meet the challenge of the future.

KEY EMPLOYEES:

• Chairman & Managing Director A. M Naik President (Machinery & Industrial Products)
• J. P Nayak Chief Financial Officer Y. M Deosthalee President (IT, Eng. Services & Corporate Initiatives)
• V. K Magapu President (Power) Ravi Uppal

Key Facts:

• Corporate Office 9th Floor, Amandeep Building, 14 Kasturba Gandhi Marg, New Delhi.
• Registerd Office L&T House, N. M Marg, Ballard Estate, Mumbai.
• Listed In BSE and NSE.
• Website www.larsentoubro.com

SWOT Analysis:

Strengths:

• Good Quality & Reliability.
• Brand Image.
• High Degree of Customer Satisfaction.
• Lower response time with efficient and effective service.
• Superior Products

Weakness:

• Not very popular in International Market.
• Customer service staff need training.

Opportunities:

• Could seek better supplier deals.
• Could extend to overseas broadly.
• Profit margins will be good.
• New Technologies and customers of other competitors.

Threats:

• Lack of infrastructure in rural areas could constrain investment.
• Exiting core business distribution risk.
• Vulnerable to reactive attack by major competitors.

PORTER’s FIVE FORCE MODEL:

                    

HRM Policies:

Recruitment based solely on merit by following well-defined and systematic election 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 upgradation of knowledge, skills 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 Emphasises:

• Freedom to experiment.
• Continuous learning and training.
• Transparency.
• Quality in all aspects of work.
• Rewards based on performance and potential.

The company encourages entrepreneurial skills thus, enabling and empowering employees to take appropriate risks. Employee participation is encouraged by inviting suggestions & opinions. This is coupled with competitive compensation & rewards and training through Core Development & Behaviour Development Programmes, to enable them to unleash their full potential.

CSR:

• L&T claims to be conscious of the larger social obligations that business carries.
• In line with this objective, it has taken pat in children’s education and causes such as HIV/AIDS awareness.
• Got medal for Industrial peace

Initiatives:

Prayas

Prayas, a trust formed by the spouses of ECC employees in Chennai, to help the less privileged people of the society.

Rehabilitation Efforts

L&T is among the first in the Indian corporate sector to join rescue and

rehabilitation efforts for the victims of natural calamity. When Orissa, Gujarat were ravaged by the cyclone, ECC swung into action to provide shelter to the workforce including employees and contractors' men and also provide relief to those people who became homeless.

L&T extended assistance in the form of men, machine and money during the earthquake in Gujarat. L&T redeployed equipment from its various construction sites in Gujarat and sent a multi-skilled team of engineers for rescue and relief operations.

Financial:

* This presentation is made by Rishabh Saxena and Priya Srivastava. This presentation is only for class purpose.