The story of a company that started from the manufacturing of dairy machinery to the Construction Giant in India with a market capitalization of Rs 121,520.89 Cr and total income in the last quarter Rs 36242.68 Cr.
This all started with joining hands with another firm to start the business, a master plan of L&T to start the business with someone who has some experience in the field of business where you want to enter.
Larsen And Toubro (L&T) Journey
With a chair and a table in a tiny room: -L&T (Larsen And Toubro) opens its first office. L&T(Larsen And Toubro) takes a calculated risk in 1944 when L&T dared to become a construction company with less knowledge and having high risk in this sector at that time. So they make it a subsidiary company which didn’t harm directly to the parent company.
Due to the growth of ECC, Bombay Municipal Corporation, Western railways, and ACC became the 1ST client of L&T(Larsen And Toubro). After the growth of the firm, it expanded rigorously into international business in all directions.
A department of the design was established in the year 1963 and then Engineering Design and Research Center (EDRC) to support the main work of the company through design, quality, and quantity. It represents the importance of continuous and systematic improvement of the work by concentrating on the improvement of major activity work.
Larsen And Toubro (L&T) Master Plan
In 2012 Mr. A.M Naik, the chairmen and managing director of L&T(Larsen And Toubro) take the calculated risk of all that he made into a restructuring that is splitting the L&T company into nine virtual companies.
According to the interview given by Mr. A.M Naik, he informed that the company has stretched itself beyond the limits to get the revenue of 50,000 Cr. and it needed to change the earlier structure of the company by creating a company under a company. He selected three external people and one person from the parent company to run the virtual company and make it mature.
It took about 5 Years to properly restructure and simplified the L&T(Larsen And Toubro) firm to compete with the gorillas of the world. First, he created a new vision to resolve the issues and problems inherited by the company.
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Then he studied the implementation of the restructuring of L&T(Larsen And Toubro). He studied the new businesses and put them in buckets. A non-core and small company like leather shoes and glass bottles. And give them the instruction to close if they can’t sell, too small, can’t grow and heavily dependent on foreign technology. The reason behind what he did with cement.
The result of continuous, systematic improvement work shows some unique work:-
- L&T has made the largest coal gasifier in India and exported it to China — India’s 1st hydrocracker reactor and the world’s largest Continuous Catalyst Regeneration reactor.
- India’s 1st nuclear submarine, Arihant.
- World’s tallest statue,‘ Statue of Unity’ built in a mare about 33 months.
Larsen And Toubro Future
The recent focus of the Current Government on Infrastructure, the problem arises with the scarcity of water in India with the rising demands of infrastructure and exploration of minerals and Oil in the Gulf country and African continents give L&T a new problem to solve and grow in the future.