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Larsen & Turbo

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LARSEN & TOUBRO
History of development
Larsen & Toubro is a multinational conglomerate with headquarter in Mumbai, India. The legacy started in 1938, a year before the start of World War II, two Danish engineers Søren Kristian Toubro and Henning Holck-Larsen arrived in India to set up a small office to represent a dairy equipment manufacturer from their home country. In 1939 due to start of the World War II, imports were restricted, which forced to engineers to shut their business, by that time the war-time need was to repair and refit ships, this opportunity offered to L&T a chance and led to the set up two repairing and fabrication shops .
In 1940 L&T got an task to build a soda ash plant for the Tatas German group. L&T proved their capability at execution and the reputation is still with the company since. By 1945, Larsen and Toubro partnered with a British machines manufacturers equipment used to make hydrogenated oils, biscuits, soaps and glass . This assignment helped them to build a brand-new portfolio of foreign collaborations, L&T also collaborated with an US partner, Caterpillar Tractor company and with it, it ended into the earth moving equipment business.
In 1948 a year after the Indian Independence, L&T bought 55 acres of undeveloped mash in Powai, Mumbai¹. In the next years this lands became the company’s manufacturing landmark. In 1950 L&T went public with a paid-up capital of 2 million rupees and the sales turnover in the same year was 11 million rupees. By 1956, L&T got a new place in Bellard Estate, Mumbai, the move a part of their main office to this location, in the later years this will be knowing as the L&T House.
In the year of 1962 Toubro decided to retire from active management, later Holck-Larsen who was the chairman at that moment, also retired from his possession in 1978. When both of the founders left the company, it was in a critical moment because without them Larsen & Toubro stayed without leaders. Immediately other conglomerates, such like Reliance Industries Ltd. (an Indian company), tried to buy them at a cheaper price, but they could not do it.
In the decades that followed, the company grew more into engineering work thanks to the guidance of leaders like Desai, Subramanian, and others. Since December of 2003, Anil Naik is the executive chairman of Larsen & Toubro . Naik has been instrumental in segregating the cement business and localization of critical technology in defense and in nuclear sectors. Until this moment Larsen & Toubro have been taking more and more international presence.
They are one of the best examples of growth and unity. The company have a revenue of $15 billion and 84 027 employees in business segments ranging from engineering to financial services in real estate. L&T is the top engineering firms outside of India, especially in the Middle East. L&T has been contributing to the industrial development in India. They work in an international scale, L&T have manufacturing facilities in many countries such as China, Australia, Southeast Asia. They have customers from more than 30 countries and 137 subsidiaries and 16 associate companies .

Business Strategy
For over 70 years Larsen and Toubro has been innovation to work in technology, manufacturing, engineering and construction, this diversification of business has been the strategy of the company since the beginning. One of the recently examples of their business strategy is just starting to work. L&T has formed a new unit to carter to smart cities, security solutions and communication projects, the company expect a grow of $1 billion in the next 3-4 years in the business, due to government’s investment in these areas.
The new business unit will be named Smart World and Communication, it will work with the help of the others conglomerate’ verticals, whom will offer their resources in order to bring wholesome solutions to this initiative.

Products and services.
L&T has been successfully in every business that they operate in. They’ve been serving customers from more than 30 countries around the world. Their businesses are in different area :
Construction. Buildings & Factories; they specialize on building airports, factories, hospitals, malls, theaters, hotels, residential buildings and metro stations. One of their well-known project is the Abu Dhabi airport. Transportation infrastructure; L&T design and construct roads, highways, airside infrastructure, railways and elevated corridors in several cities. Heavy civil infrastructure; they offer engineering and construction of hydel power plants, nuclear power, ports, metro rail systems, the Mumbai Monorail is one of their latest works. Power transmission and distribution; they work on bringing infrastructure and industrial electrification to core industries, they connect the transmission line all around India and the Middle-East.
Hydrocarbon engineering. This is a subsidiary completely owned by L&T, they give engineering service to the oil and gas sector. Their projects are wellhead platforms, process platforms, compression platforms and floating systems projects, some of them are in India and other in an international level.
Power. L&T provides equipment for power services: supercritical boilers, turbine generators, power block auxiliaries. They have a manufacturing facility in Gujarat (India), it has a manufacturing capacity of 5000MW per year.
Heavy engineering. They design the necessary equipment to industries that produce fertilizers, chemical products, petrochemical, oil and gas. They have also projects in the nuclear power, aerospace and defence sector.
Shipbuilding. L&T design, make and give solutions to build ships, they work on making new ships, also they repair and retrofit them. Their ships are used to commercial and defence proposes.
Mining and construction machinery. L&T offers the required equipment in constructions, mining work like wheel loader, hydraulic excavator, compactors, all king of komatsu and trucks.
Valves. L&T valves bring flow-control solutions for critical services. This sector is a fully owned subsidiary of the company and is one of the main services that L&T gives. Their product range is valves for power, automation & control valves, process ball valves as well they give customized solutions. All of this valves have to go through a process, first they design them using state-of-the-art 3D, then a simulation and finally analysis software.
Empowering welding and cutting. They have a factory in Ankleshwar, they are the leaders in repair and maintenance welding. They also give their services to maintenance and repair railways.
Finance. This part of the company offers home loans, personal and commercial vehicle loans, business and corporate loans, construction equipment loans, rural loans and microfinance. This subsidiary was incorporated in 1994 like a Non-Banking Finance Company . Since their work started they have been growing strong in the financial services sector.
Realty. L&T expanded their business in the real-estate sector. They have many commercial, residential and retails projects across India. Their projects are the Emerald Isle, L&T Business Park, Seawoods Grand Central and others.

Organizational Structure.
L&T organization has One chairman and managing director, 7 executive directors and 8 non-executive directors . According to their organization chart published in the official web-site we can notice that the Adhocracy structure is present in the company. L&T has a highly organic structure with little formalization of behavior. They have business vertical-independent companies and subsidiaries. Each part of the different areas has Managers reporting to the Head of their department, and they give assignments to engineers and the other junior level manpower in order to execute the work.

Organizational Culture.
Thanks to their business diversity, L&T work in a multi-cultural environment. The organizational culture is good because of their backgrounds. They took diversity as an opportunity to learn from each other, so they expand their horizons and appreciate different points of view. One of the company's vision is to maximize the power of gender diversity so they can increase their business and innovation.
L&T employees have a strong engagement with the company. They have sessions/ of Team Building, Belbin workshops, etc. The purpose of this sessions is to create an atmosphere of brilliant and committed workforce. Due to the nature of the company, L&T possess a structured core of developmental programs, which is helped by institutions to develop superior management skills and capabilities. In conclusion the environment in L&T is well organized and brings the opportunities of professional growing.…...

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...CORPORATE SOCIAL RESPONSIBILTY SUSTAINABILITY ANALYSIS INTRODUCTION Larsen and Toubro is a USD 9.8 billion, technology, manufacturing, finance, engineering and construction conglomerate, with global operations. The company is headed by Mr. A.M Naik, CEO and M.D. During times when sustainability as the biggest challenge faced by mankind today, L and T has always pursued its long term strategic plans, remaining steadfast in its sustainability journey. 1.1 Sustainable Development United Nations in 1983 defined it as ‘Development that meets the needs of the present, without compromising the ability of the future generations to meet their own needs’. 1.2 Corporate sustainability Strategies and business practices adopted by the company to achieve corporate growth and profitability as well as to pursue societal goals, specifically those related to sustainable development-environment protection, social justice and economic development. In simple words, the well being of the society depends on the economy and the economy depends on the global ecosystem. 1.2 Corporate sustainability report L& T’s sustainability report is based on Global reporting initiative, i.e. GRI's Reporting Framework that is developed through a consensus-seeking, multi-stakeholder process. L and T reports are ‘ GRI Checked ‘ and graded as A+ reports, which is the highest grade for GRI reports. 1.3 L&T’s Take on Sustainability L & T views......

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