Larsen & Toubro Limited, or L&T, is an Indian corporation with global interests in technology, engineering, construction, manufacturing, and financial services. Mumbai, Maharashtra, India, is the company's headquarters. The company's commercial activities include basic and heavy engineering, construction, real estate, capital goods manufacture, information technology, and financial services. Sabyasachi Das has been named the CEO of L&T EduTech, which will provide a variety of engineering and technology-related courses. But, first, let's get to know the success story of this fantastic company.
Larsen & Toubro - Company Highlights
- Startup Name - Larsen & Toubro Limited
- Founded - February 7, 1938
- Founders - Henning Holck-Larsen, Søren Kristian Toubro
- CEO - S. N. Subrahmanyan
- Headquarters - Mumbai, India
- Industry - Conglomerate
- Website - www.larsentoubro.com
Larsen & Toubro – India’s Top Conglomerate
Larsen & Toubro Limited ('Larsen & Toubro' or 'L&T') is a multinational technology, engineering, construction, projects, manufacturing, and financial services corporation with a market capitalization of USD 17 billion. Infrastructure, hydrocarbon, construction, power, defense, heavy engineering, shipbuilding, aircraft, electrical & automation, mining, and metallurgy are critical areas that solve vital demands.
Larsen & Toubro - Founders
Henning Holck-Larsen and Soren Kristian Toubro, two Danish engineers, created Larsen & Toubro in Mumbai in 1938.
Larsen & Toubro - Business Model
- Customer Segments : With a specific customer sector, L&T has a niche market business model. The company's services got aimed at businesses in the industrial sector.
- Value Proposition : The company's value proposition provides a wide range of options, making it more accessible. L&T is a multibillion-dollar corporation with operations in various product and service sectors, including technology, engineering, construction, manufacturing, and financial services.
- Subsidiaries and Partnerships : Because of its success, the corporation has developed a strong brand with more than 130 subsidiaries and 15 partner companies. It is one of the world's top five fabrication corporations. In addition, it claims to be India's largest engineering and construction company and one of the country's major multinational corporations.
- Advertisements : The key route for L&T is its business development team. The company advertises its services on its website, social media pages, promotions, and conferences.
- Customer Relationships : The majority of L&T's customer relationships get based on human support. Customers receive full training as well as extended phone and email support from the company.
- Designing, developing, manufacturing, and providing services : These all are part of L&T's business model.
- Key Partners : To provide best-in-class services to its clients, L&T maintains technical alliances (e.g., joint ventures) with various companies. The companies are from multiple industries, including power, construction, and hydrocarbons. For example, GULF Interstate Engineering, Chiyoda Corporation of Japan, Sargent & Lundy, and Valdez are specific partners.
Fun Fact - Larsen & Toubro has named SN Subrahmanyan its new Chief Executive Officer and Managing Director. On July 1, 2017, he took over the reins from Mr. Anil Manibhai Naik.
Larsen & Toubro - Acquisitions
Larsen & Toubro Limited has purchased two companies MindTree & Spectrum. MindTree was their most recent acquisition, which occurred on June 3, 2019.
Note - On December 1, 2006, Larsen & Toubro Limited invested in City Union Bank. The Post-IPO Equity - City Union Bank investment got valued at $450 million.
Larsen & Toubro - Competitors
L&T's main competitors are:
- Aditya Birla Group
- Tata Projects
- GMR Group
- LANCO Group
Larsen & Toubro - Challenges Faced
Some of the main challenges of the company are as follows:
- Fewer Workers - With the lifting of the lockdown, India's largest engineering and construction firm, Larsen and Toubro (L&T), is looking to re-start work at its construction sites. During the lockdown, over one lakh workers — nearly half of the company's workforce — went home to their homes in Uttar Pradesh, Bihar, Jharkhand, West Bengal, and Orissa.
- Execution - The Corporation has reopened most of its operations and over half of the 1,000-plus project locations, but implementation remains an issue.
- Competitors – L&T has many competitors in the market, and most of them are significant players. It is one of the main challenges of the company to overshadow its competitors.
Fun Fact : L&T expects to hire many workers from the Gulf region who have got laid off due to the sharp drop in oil prices.
Larsen & Toubro - Future Plans
Some of the upcoming plans of the company are as follows:
- Larsen & Toubro (L&T) is a few months away from releasing its 'Lakshya 2021' business plan, in which it set a revenue target of INR 2-trillion.
- The company developed an in-house digital platform that provides seamless connectivity to its many processes, increasing productivity and cutting decision-making time.
- L&T is taking this commitment to the next level with its new strategic initiative, aptly dubbed 'L&T-Nxt,' which will employ new technologies, digitization, and analytics to commercially provide industrial solutions by capitalizing on opportunities as firms progress toward 'Industry 4.0.'
Larsen & Toubro - Conclusion
L&T works in high-impact sectors of the economy, and our integrated skills cover the whole 'design to delivery' spectrum. They have unmatched expertise across Technology, Engineering, Construction, Infrastructure Projects, and manufacturing and maintain a leadership position in all of our major lines of business, thanks to 8 decades of a robust, customer-focused approach and a never-ending quest for world-class quality.