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, ONGC,Maersk oil,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-Valdel Engineering Pvt. Limited
A joint venture with Bangalore based Valdel Engineers & Constructors Pvt. Ltd. It offers upstream engineering services to the oil & gas sector.
L&T-Chiyoda Limited
A joint venture with Chiyoda Corporation of Japan, it offers international-grade engineering services to the hydrocarbon processing industries that include refineries, petrochemicals, oil & gas processing, LPG and LNG terminals, fertilisers, chemicals, etc.
L&T-Sargent & Lundy Limited
A joint venture with Sargent & Lundy (USA), it offers a complete range of engineering and design services for the power sector.
HPL Cogeneration Limited
Provides power to Haldia Petrochemicals Limited.
L&T International FZE
A wholly owned subsidiary of L&T, incorporated in 2001 at The Hamriyah Free Zone, Sharjah, United Arab Emirates. It is the investment arm of L&T for all international joint ventures and provides resource for international projects.
Larsen & Toubro (Oman) LLC
A joint venture between L&T International FZE and The Muscat Trading Co. LLC. This ISO 9001 company offers quality products and services in the construction field, with specialisation in turnkey projects.
Larsen & Toubro Electromech LLC (formerly Zubair Kilpatrick LLC)
A joint venture company of Larsen & Toubro International FZE and The Zubair Corporation in the Sultanate of Oman. LTEM is engaged in construction and service sector through four business units, viz: MEP works (Building Services), Electrical & Instrumentation works for Oil and Gas sector, Maintenance and Construction works in E&I sector and Facility Management for large assets.
L&T and Eastern Contracting LLC Joint Venture
Building a prestigious residential property (295 ‘grandeur’ villas of Ground + 1 configuration, conforming to 11 different types of Mediterranean, Spanish and European styles of architecture) in Dubai Sports City for Victory Heights Golf Residential and Development LLC
Larsen & Toubro Readymix Concrete Industries LLC
A JV between L&T International FZE and Mr.Shukri Saleh Yahya Al Braik, an UAE National. Incorporated in 2006, the plant in Dubai offers complete design solutions for all the grades of concrete including specialized concrete such as HPC, SCC and colored concrete.
Larsen & Toubro Saudi Arabia LLC
A JV between L&T International FZE and Engineer Khaled Hizam Al-Nabet, a Saudi National. It offers turnkey solutions in specialised fields of oil and gas, petrochemicals, fertilisers and chemicals, infrastructure, buildings, factories, power transmission & distribution and telecommunication projects.
Larsen & Toubro Qatar LLC
A JV between L&T International FZE and AL Jazeera International Trading WLL. It offers turnkey solutions in specialised fields of buildings & factories, roads, bridges, airports, transmission lines, industrial electrification, petroleum & petrochemical projects, fertiliser plants, pipelines, water, sewerage and drainage system.
Larsen & Toubro Kuwait Construction WLL
A new venture of L&T and Kuwait-based Bader Al Mulla group focusing on construction projects in oil & gas, power and infrastructure, with primary focus on electro-mechanical construction.
L&T-ECC Construction (M) SND. BHD
A company incorporated in Malaysia by L&T with three Malaysians, Syed Mohsen Alhabshi, Datuk M Rajasingam and Sivajothi Rajendram, to undertake engineering and construction for all types of industrial and infrastructure projects in Malaysia.
L&T-RAMBOLL Consulting Engineers Limited
A joint venture of L&T and Ramboll A/S of Denmark that offers international quality design, project engineering and consultancy services for infrastructure projects.
Voith Paper Technology (India) Limited
A JV Voith Paper GmbH & Co. KG, Germany and L&T. It offers a range of solutions for fiber systems, paper and board industry.
NAC Infrastructure Equipment Limited
Accepts deposits and rents out high-value, multi-purpose, specialised and general purpose infrastructure equipment with value-added services.
L&T-HCC JV Jharkhand Road Project
A JV of L&T and HCC for constructing an 80km four-lane concrete road with rigid pavement in Jharkhand.
L&T-KBL JV
A JV of L&T and Kirloskar Brothers Limited, for executing Engineer-Procure-Construct (EPC) lift irrigation project, which involves lifting 7.80 TMC water from Goddamvaripalli village to Goddumarri Anicut in the Cuddappah district of Andhra Pradesh
HCC-L&T Purulia JV
A JV of L&T and HCC, for implementing the Purulia Pumped Storage Project with an installed capacity of 900 MW (4x225 MW each) for West Bengal State Electricity Board (WBSEB) and NHPC.
L&T-AM JV
A JV between L&T and Alpine Mayeder Bau GmbH, Austria is constructing 11.3 km long, 5.6 m finished diameter, concrete lined Head Race Tunnel for NTPC’s 4x130 MW Tapovan Vishnugad hydropower project in Uttaranchal
PATEL-L&T Consortium
A consortium of L&T and Patel Engineering Limited is constructing Diversion cum Spillway Tunnels (43 m High, 186 m Long), Spillway, Intake Structures and part of Head Race Tunnel (7.25 m dia hose shoe shaped, 5.9 km long) for NHPC’s 4 x 130 MW Parbati Hydro Electric Project – Stage III at Himachal Pradesh.
International Seaports Dredging Limited (ISDL)
A JV between Dredging International N.V, Belgium formed to exploit dredging market in all SAARC countries , Myanmar, Thailand and Indonesia. It is presently executing maintenance and capital dredging works in India with major jobs in Dharmra Port, Orissa and Gangavaram Port, Andhra Pradesh.
Metro Tunneling Group (MTG)
A JV of DYWIDAG International, (Germany), L&T (India), IRCON International Ltd. (India), Samsung Engineering & Construction (South Korea) and Shimizu Corporation (Japan). It is constructing an underground metro rail corridor in Delhi for the Delhi Metro Rail Corporation (DMRC). It is currently executing 3.10 km tunnel project by cut and cover method, using Tunnel Boring Machines (Package BC – 18)
L&T Infrastructure Development Projects Limited
A subsidiary company of L&T, implements various infrastructure projects through Public-Private partnerships. It executes projects on Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer (BOOT), Build-Own-Lease-and-Transfer (BOLT), Build-Own-Operate-Share-and-Transfer (BOOST) basis and other variants including the annuity approach. A number of developmental projects are executed by L&T under various sectors on EPC basis through special purpose vehicles (SPVs) promoted by a consortia of private and public players.
L&T Transportation Infrastructure Limited
It was formed to design and construct Tamil Nadu's first private BOT road project - the 28km Coimbatore bypass and a two-lane bridge across river Noyyal at Athupalam.
L&T Western Andhra Tollways Limited (L&T WATL)
Executing the project for four-laning the road from Jadcherla to Kothakota section of NH-7 in Andhra Pradesh, on BOT basis.
L&T Vadodara Bharuch Tollway Limited (L&T VBTL)
It has been formed for the development of the six-laning of NH-8 from Vadodara to Bharuch in Gujarat on BOT basis.
L&T Inter State Road Corridor Limited (L&T IRCL)
It is executing the four-laning of the 76-km highway between Palanpur and Swaroopgunj on the East West Corridor (NH-14), on BOT (annuity) basis.
Narmada Infrastructure Construction Enterprise Limited (NICE)
An SPV formed for design, construction, maintenance and operation of the 1.4-km second Narmada bridge, including 4.6km of approach roads, on BOT basis on NH-8 at Zadeshwar, Gujarat.
L&T Western India Tollbridge Limited (L&TWIT)
An SPV, constructed the 335m two-lane bridge across river Watrak on NH8 at Kheda, Ahmedabad-Vadodara section of NH8, on BOT basis, including 9.2km of approach roads and strengthening of 10km of the existing road.
Second Vivekananda Bridge Tollway Company Limited (SVBTC)
An SPV formed to finance, design, build, operate and maintain the 6.1 km six-lane bridge across the Hooghly on NH-2 near Kolkata on BOT basis.
L&T Panipat Elevated Corridor Limited
An SPV formed to construct 3.4 km six lane elevated flyover on NH 1 in Haryana.
L&T Uttaranchal Hydro Power Limited
An SPV, is formed for the implementation of the Singoli Bhatwari Hydro-Electric Project, a run-of-the-river scheme on river Mandakini in Rudraprayag district of Uttaranchal, on BOOT Basis.
International Seaports (Haldia) Pvt. Limited. (ISPHL)
An SPV, formed to execute the Project for the construction and operation of Berth No 4A in Haldia Dock Complex, on BOOT basis.
Kakinada Seaports limited (KSPL)
An SPV formed to operate the existing facilities on a 610m long terminal and for developing an additional berth at Kakinada Deep Water Port in Andhra Pradesh.
The Dhamra Port Company Limited (DPCL)
An SPV formed for developing and operating the Port of Dhamra in the state of Orissa.
L&T Urban Infrastructure Limited
L&T-UIL is a subsidiary company of L&T IDPL, formed to develop and promote residential and commercial complexes in all the leading cities and metros.
Bangalore International Airport Limited (BIAL)
A JV of Karnataka State Industrial & Investment Development Corporation (KSIIDC), Airports Authority of India (AAI), Siemens, L&T and Unique (Zurich Airport) of Switzerland, to develop an airport at Devanahalli, Bangalore on BOOT basis. (www.bialairport.com)
L&T Infocity Limited (LTIL)
A JV of L&T and Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for developing HITEC City (Hyderabad Information Technology Engineering Consultancy City). LTIL also operates and maintains all services in HITEC City and provides engineering and design consultancy, marketing and O&M consultancy. (www.ltinfocity.com)
L&T Infocity Lanka Private Limited (LTILPL)
An SPV has conceptualised and rendered project management services and promoted the IT facility for HSBC in Colombo.
L&T Infocity Infrastructure Limited (L&T IIL)
A subsidiary of LTIL and has developed an exclusive built-to-suit IT Park in Salt Lake, Kolkata.
Vizag IT Park Limited (VIPL)
It has developed an exclusive built-to-suit IT Park project for HSBC Electronic Data Processing India Private Limited (HDPI) at Siripuram, Visakhapatnam.
L&T Tech Park Limited
A subsidiary of L&T IDPL, formed to promote a state-of-the-art IT Park in Kakkanad, Kochi. (www.lnttechpark.com)
L&T Phoenix Infoparks Limited
A subsidiary of L&T-UIL, is developing HITEC City II at Gachibowli and Intellicity at Nanakramguda in Hyderabad.
Cyber Park Development & Construction Limited
An SPV with Software Technology Parks of India (STPI), has developed a state-of-the-art “Cyber Park” in Electronics City, Bangalore. (www.cyberpark.co.in)
L&T Arun Excello Realty Private Limited
A JV with Arun Excello, formed to promote an integrated township “Estancia” on GST Road, Chennai.
L&T South City Projects Limited
A JV between L&T, Dinesh Ranka Associates and Pragnya Trustee and Investment Management Company, to develop an integrated township at Siruseri on the Old Mahabalipuram Road, Chennai
L&T Vision Ventures Limited
An SPV promoted along with Vizag Urban Development Authority, to develop a township in Vizag on a 55 acre land (2.5 mi sft., 250 villas and 900 apartments, ‘top-class’ club house and a school)
CSJ Infrastructure Private Limited
An SPV of L&T-UIL promoted to develop an integrated commercial complex in Chandigarh. It will come up on a 20.16 Acres (97607.76 sq. yd) land parcel in the Industrial Area Phase-I of Chandigarh. This Integrated Commercial Complex will have a Shopping Mall of 11.15 lakh sq.ft, an upscale Hotel of 250 rooms and a high end office space of 3.75 lakh sq.ft.
L&T Crossroads Limited
A JV between L&T and Piramal Holdings Limited, has developed a covered car parking spaces (7 levels) and air-conditioned commercial area in Nariman Point, Mumbai.
Hyderabad International Trade Expositions Limited (HITEX)
Promoted by L&T Infocity Limited (LTIL), National Academy of Construction (NAC), Hyderabad Urban Development Authority (HUDA), Andhra Pradesh Tourism Development Corporation (APTDC) and Municipal Corporation of Hyderabad (MCH). This state-of-the-art modern air-cooled trade exposition centre has been developed for high-profile international trade fairs and exhibitions. (www.hitex.co.in)
Andhra Pradesh Expositions Private Limited
Orgniases exhibition / trade fairs and events at the exposition centre in collaboration with national, international event management companies
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)
