Larsen and Toubro Limited (NSE: LT, BSE: 500510) (L&T) is a US$8.5 billion (2009)Indian technology, engineering, construction and manufacturing company.
L&T has diverse interests such as construction, hydraulic equipment, electrical and electronic power services, fertilizer projects, medical electronics, financial services and information technology.
History
Larsen & Toubro was founded in Mumbai in 1938 by two Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro. Beginning with the import of machinery from Europe, the company rapidly took on engineering and construction assignments of increasing sophistication.
Henning Holck-Larsen and Soren Kristian Toubro, school-mates in Denmark, would not have dreamt, as they were learning about India in history classes that they would, one day, create history in that land. In 1938, the two friends decided to forgo the comforts of working in Europe, and started their own operation in India. All they had was a dream. And the courage to dare. Their first office in Mumbai (Bombay) was so small that only one of the partners could use the office at a time! In the early years, they represented Danish manufacturers of dairy equipment for a modest retainer. But with the start of the Second World War in 1939, imports were restricted, compelling them to start a small work-shop to undertake jobs and provide service facilities. Germany's invasion of Denmark in 1940 stopped supplies of Danish products. This crisis forced the partners to stand on their own feet and innovate. They started manufacturing dairy equipment indigenously. These products proved to be a success, and L&T came to be recognised as a reliable fabricator with high standards. The war-time need to repair and refit ships offered L&T an opportunity, and led to the formation of a new company, Hilda Ltd., to handle these operations. L&T also started two repair and fabrication shops - the Company had begun to expand. Again, the sudden internment of German engineers (because of the War) who were to put up a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation - an area where their capability became well respected.
In 1944, ECC was incorporated. Around then, L&T decided to build a portfolio of foreign collaborations. By 1945, the Company represented British manufacturers of equipment used to manufacture products such as hydrogenated oils, biscuits, soaps and glass. In 1945, L&T signed an agreement with Caterpillar Tractor Company, USA, for marketing earthmoving equipment. At the end of the war, large numbers of war-surplus Caterpillar equipment were available at attractive prices, but the finances required were beyond the capacity of the partners. This prompted them to raise additional equity capital, and on 7th February 1946, Larsen & Toubro Private Limited was born. Independence and the subsequent demand for technology and expertise offered L&T the opportunity to consolidate and expand. Offices were set up in Kolkata (Calcutta), Chennai (Madras) and New Delhi. In 1948, fifty-five acres of undeveloped marsh and jungle was acquired in Powai. Today, Powai stands as a tribute to the vision of the men who transformed this uninhabitable swamp into a manufacturing landmark.
In December 1950, L&T became a Public Company with a paid-up capital of Rs.2 million. The sales turnover in that year was Rs.10.9 million. Prestigious orders executed by the Company during this period included the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant. With the successful completion of these jobs, L&T emerged as the largest erection contractor in the country. In 1956, a major part of the company's Bombay office moved to ICI House in Ballard Estate. A decade later this imposing grey-stone building was purchased by L&T, and renamed as L&T House - its Corporate Office. The sixties saw a significant change at L&T - S. K. Toubro retired from active management in 1962. The sixties were also a decade of rapid growth for the company, and witnessed the formation of many new ventures: UTMAL (set up in 1960), Audco India Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963).
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. In 1976, Holck-Larsen was awarded the Magsaysay Award for International Understanding in recognition of his contribution to India's industrial development. He retired as Chairman in 1978. In the decades that followed, the company grew into an engineering major under the guidance of leaders like N. M. Desai, U. V. Rao, S. D. Kulkarni and A. M. Naik.
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.
Offices and customers
Apart from several offices in India, the company has offices in the USA, Europe, Middle East and Japan. The customer profile of the Engineering Construction & Contracts Division of L&T includes Samsung, Chevron, Bechtel, Kvaerner, Pirelli, Siam Michelin, Goodyear etc.
Subsidiaries
Larsen & Toubro Komatsu Limited
Having Registerd office at Mumbai, India, focusing on construction equipment and mining equipment, L&T-Komatsu Limited is a joint venture of Larsen and Toubro and Komatsu Asia Pacific Pte Limited, Singapore, a wholly owned subsidiary of Komatsu Limited, Japan which is the world’s largest manufacturer of hydraulic excavators and has manufacturing and marketing facilities worldwide. The plant was started in the year 1975 by L&T to manufacture Hydraulic Excavators for the first time in India. Later it became a joint venture. L&T-Komatsu Limited's manufacturing facility – the Bangalore Works – comprises the Machinery Works and Hydraulics Works divisions. Machinery Works has a manufacturing facility with ISO 9001:2000 accreditation for design, manufacture and servicing of earthmoving equipment. Hydraulics Works, with a precision machine shop, manufactures the complete range of high pressure hydraulic components and systems, as well as design, development, manufacturing and servicing of hydraulic pumps, motors, cylinders, turning joints, hose assemblies, valve blocks, hydraulic systems, power drives and allied gear boxes.
L&T Infotech
L&T Infotech focuses on information technology and software services. Its clients include industry leaders like Marsh & McLennan, Standard Life, Chevron, Freescale, Hitachi, Sanyo , Lafarge , ABSA , CitiGroup, eCORPUS , Marathon and Qualcomm among others. It offers services and solutions for the following industries : banking and financial services, insurance, energy and petrochemicals, manufacturing, and engineering services.
L&T EmSyS
EmSyS works in the domains of embedded systems and software. It offers services related to hardware and software / firmware development in diverse verticals.EmSyS Quality Management System has been benchmarked at CMMI® - DEV + IPPD, ver 1.2, Maturity Level 5.
It offers the services in followaing industries : automotive electronics, consumer electronics, control automation, industrial systems, medical electronics, avionics and railway signalling.[1]
Larsen & Toubro Finance
Larsen & Toubro Finance is focused on Financial services.
Larsen & Toubro Infrastructure Finance
Larsen and Toubro Infrastructure Finance Company Limited was set up as a 100% subsidiary of L&T. It commenced its business in January 2007 upon obtaining Non-banking financial company (NBFC) license from the Reserve Bank of India (RBI).
As of March 31, 2008, L&T Infrastructure Finance has approved financing of more than a billion USD to select projects in the infrastructure sector.
Larsen & Toubro e-Engineering Solutions
A subsidiary focusing on providing engineering solutions using PLM technology. It provides engineering services. Operates from off-shore engineering centers at Vadodara, Chennai and Bangalore with onsite teams to cater to engineering requirements of global clients, many of them Fortune 500 companies.
Larsen & Toubro Valves Business Group
L&T’s Valves Business Group markets valves manufactured by joint ventures, Audco India Limited, India and Larsen & Toubro (Jiangsu) Valve Company Limited, China, as well as allied products from major international manufacturers.
L&T leverages the wide product range, global marketing network and advanced project management capabilities to deliver value-added flow control solutions to oil & gas, refining, petrochemical, chemical and power industries.
L&T is a leading global supplier of industrial valves and customised solutions for major Refinery, LNG, GTL, Petrochemical and Power projects.
Product Range: Gate, Globe & Check Valves Process Ball Valves Pipeline Ball Valves Cryogenic Valves Triple-offset Butterfly Valves Marketing Network L&T Valves Business Group has offices in the USA, India and China, and strategic alliances with leading integrated valve distributors and agents in the major markets.
The marketing network is supported by an experienced team of valve specialists.
Project Management We have an impressive track-record of supplying valves to the global oil majors for their projects and plants in the USA, Europe, the Middle East, Africa and Asia-Pacific.
L&T also has substantial experience in providing flow-control solutions to the key EPC contractors for world-scale projects across the globe.
For the customers, our project management capabilities translate into savings in time and money.
Joint Ventures
L & T Sargent and Lundy Limited
A 51 - 49 Joint venture between Larsen and Toubro and Sargent and Lundy LLC of USA. It is a power plant consultancy company. Set up in 1995, has grown up to one of the reputed power plant consultant. Executed Gas, Oil and Coal based as well as solar and hydro power projects in India and outside India. l&t made jv with Mhi
L & T Chiyoda Limited
A 50 - 50 Joint venture between Larsen and Toubro and Chiyoda corporaton of Japan. It is a consultancy company oil & gas units. Set up in 1993, has grown up to one of the reputed oil & gas consultant. Executed lot of refinery consulting.
Awards and accolades
- SGCCI Golden Jubilee Memorial Trust Award - for outstanding performance in Export of Engineering Goods for 2004-05. This Award highlights L&T's export of high-tech, custom-built equipment worldwide.
- Greentech Safety Awards (2005) - by the New Delhi-based non-profit organisation, Greentech Foundation, for the effort in industrial safety and environmental management.
- Ethics is Good Business award - from the New Delhi based PHD Chamber of Commerce & Industry (PHDCCI).
- India Manufacturing Excellence Award from Frost & Sullivan, 2004.
- Environment Excellence Award 2003-04, Greentech Foundation.
- L&T was ranked first in "India's Best Managed Companies" in a 2008 survey published by Business Today, India's leading business periodical.
Forbes Global 2000 Ranking - 2008
The Forbes Global 2000 list for the year 2008 ranked Larsen & Toubro at 961[2]. also in last year Mr.A.M.Naik has got businessman of year award in Delhi. This year Mr.A.M.Naik received Padma Bhushan from President of India.
External links
References
- ^ L&T EmSyS Company website
- ^ The Global 2000 - Forbes.com (2008)
