Cover Story

Most Admired Companies | Larsen & Toubro

August 2014
A key arm of the $14.3-billion engineering-construction-manufacturing-financial services global giant, Larsen & Toubro, L&T Construction has been transforming cityscapes and landscapes over the past seven decades. India's largest construction organisation and ranked among the world's top 30 contractors, its capabilities span the gamut of construction - civil, mechanical, electrical, instrumentation engineering - and its services extend to all core industries and infrastructure projects.

Major achievements
Some of its key accomplishments in 2013-14 included creating new focused business verticals; widening the spectrum and scope of projects; establishing a new corporate entity for the Gulf and African markets; maintaining a robust risk management process; embracing new technologies; improving the supply chain; and increasing the trained labour force - all towards enhancing operational efficiency.

Tough decisions
L&T took some bold steps in last year´s tough business scenario. ¨We cut costs yet maintaining and even enhancing the quality of construction, managed labour shortage by investing in our construction skills training centres, and opted for global vendors to solve the bottlenecks of local material shortages,¨ reveals SN Subrahmanyan, Whole-Time Director & Senior Executive Vice President (Construction & Infrastructure), Larsen & Toubro Ltd. ¨Perhaps, a smart decision we took was to focus on ´internationalisation´, to seek and tap opportunities from a larger geographical spread. It came with the multiple challenges of contending with a new market, new operating conditions, meeting new expectations, working with new partners and an alien workforce, and achieving entirely new quality and safety standards.¨

Ace project
In Subrahmanyan´s view, of all the projects completed last year, the most demanding and satisfying was the construction of Terminal 2 at Mumbai International Airport. ¨Unique in terms of size, scope, scale and complexity, it is truly globally benchmarked for its architecture, design, quality and cost,¨ he elaborates. ¨The biggest challenge was to construct it right in the middle of a fully functioning airport, which also happened to be one of the busiest in the world, without any disruption of operations.¨

Opportunities ahead
The company´s pitch to seek new geographies and markets has opened up big opportunities, especially in the Middle East. Some fruits of its efforts include orders from the Ministry of Transport and Communications, Sultanate of Oman, for the construction of a road between Bidbid-Sur Section (Second Phase, First Part); from ASHGHAL (Public Works Authority), State of Qatar, for design and construction of the Al Wakrah Bypass Road (P015); and from Qatar Railways Company for the design and construction of the Gold Line of the Doha Metro. ¨Our sights are now trained on Africa, another market that augurs huge potential,¨ says Subrahmanyan.

Recommendations to the Government
For India´s next phase of growth and the economy to revive, creating new infrastructure is an imperative. ¨Apart from possessing the political will to fast-track infrastructure development, it is also important for the Government to remove multiple roadblocks and quickly kick-start stalled projects while clearing fresh ones to build momentum and accelerate growth. We also strongly recommend the single-window system to facilitate quick clearance and implementation of massive infrastructure projects,¨ he concludes.

¨We seek that the new Government remains focused on infrastructure development.¨ - SN Subrahmanyan, Whole-Time Director & Senior Executive Vice President
(Construction & Infrastructure), Larsen & Toubro Ltd

Fact Sheet:
Year of establishment:
1938
Top management: AM Naik, Group Executive Chairman; K Venkataramanan, Chief Executive Officer & Managing Director; MV Kotwal, Whole-Time Director & President (Heavy Engineering); SN Subrahmanyan, Whole-Time Director & Senior Executive Vice President (Construction & Infrastructure); R Shankar Raman, Whole-Time Director & Chief Financial Officer; Shailendra Roy, Whole-Time Director & Senior Executive Vice President (Power, Minerals & Metals)
Number of employees: 60,000
Turnover for 2012-13: Rs 74,498 crore (Group)
Turnover for 2013-14: Rs 85,128 crore (Group)
Orderbook for 2013-14: Rs 1,63,000 crore (Standalone)

Ongoing projects:
International Convention Centre at Bandra Kurla Complex, Mumbai; Riyadh Metro, Saudi Arabia; Doha Metro, Qatar; Western Dedicated Freight Corridor, Rewari to Iqbalgarh; Batinah & Bid-Bid Sur Highway, Oman; Al-Wakrah Highway, Qatar; Maffraq to Al Ghwaifat Road Project, UAE; PHED water supply scheme (1,300 villages), Rajasthan; City surveillance and intelligent traffic management system, Gandhinagar, Ahmedabad and Vadodara; EHV GIS substations (18 no.s) and cabling works (151 km), Qatar

Projects commissioned in 2013-14:
Terminal T2 and Air Traffic Control Tower for Mumbai International Airport; expansion of the terminal building in Bengaluru International Airport; phase 1 of India´s first monorail project in Mumbai; major portions of Sheikh Khalifa Interchange that connects Dubai and Abu Dhabi; units 1 and 2 of the Kudankulam Nuclear Project; elevated corridor at Mumbai airport; Hogenakkal Water Supply & Fluorosis Mitigation Project in Krishnagiri and Dharmapuri districts of Tamil Nadu; Botad Branch Canal Lift Irrigation Project for Narnada Water Resources, Water Supply & Kalpsar Department, Gujarat; 7.5 MW rooftop-based solar photo-voltaic plant - the largest single roof in the world

Accolades and awards received (2013-14):

  • L&T features in Forbes List of World´s Most Powerful Companies - Highest ranked among engineering & construction companies in India - 2014.
  • L&T wins Most Attractive Employer in Infrastructure Industry from Randstad - 2014.
  • L&T bags 'Best Sustainability Report Award´ - 2014.
  • L&T wins D&B Top Infrastructure Company Award - 2013.
  • L&T Construction bags the award for the Fastest Growing Construction Company (large category) at the 11th Annual Construction World Global Awards 2013.