Restructuring fortunes

“Restructuring has been a way of life,” said AM Naik, CMD, Larsen & Toubro, in one of his interviews in August 2009. He reconfirmed that statement by recently announcing a major restructuring plan for the company that involves splitting the diversified conglomerate into nine different companies. These nine distinct business units will be in the area of power, hydrocarbon, machinery and product, switchgear, heavy engineering, infrastructure, building and factories, metals and minerals and electrical businesses. They will have their own board of directors, including three independent directors along with their own CEOs, CFOs and HR heads. They will also manage their own profit and loss account. “The restructuring will make the job easier for my successor by streamlining L&T’s sprawling and complex web of 64 businesses, “ says Naik.