The secret of my success is very simple.

It is passion and devotion.

Devotion is beyond the stage of dedication
and far beyond that of hard work.
Devotion is when you worship your God in a temple.
My mandir, my temple has been Larsen & Toubro.
A M Naik

Living life
the L&T way!

Mr. A M Naiks story

Howard Schultz, Oprah Winfrey, Ralph Lauren, George Soros, A M Naik they all have
one thing in common apart from the fact that they are globally recognized celebrities and
outstanding successes in their respective fields. They have all had a humble beginning. All
these success stories are of individuals chasing a dream and finally realizing it. Mr. Naiks
saga is all about devotion beyond dedication which has driven him from a small village in
Gujarat to spearhead the fortunes of a true Indian multinational Larsen & Toubro. His has
been a tough and arduous journey but he has negotiated the twists and turns with elan,
turned adversities into fantastic triumphs, helped many in Team L&T to become millionaires
and placed L&T as one of the brightest stars in the global corporate firmament. A journey
that is now five decades strong and growing stronger, and half a century of passion for all
of us to learn from and salute a true champion!

2 | ECC CONCORD, Jan - Mar 2015

ECC CONCORD, Jan - Mar 2015 |

Picking up
the threads
the formative years
of a leader in the
making

Mr. Naik hails from a family of teachers

Mr. Naik, leaving behind his expansive

or Master Kutumb as they were referred

public school with a large playground and

to in Gujarati. His grandfather was the

proper benches to be sitting on gobar

headmaster of the Gurukul school while his

floors and having to appear for exams at

father, an M.Sc. M.Ed, moved to Mumbai

centres that were 15 km away. Undeterred,

in 1944 and became a senior teacher at

he took everything in his stride and soon

Hansraj Morarjee Public School at Andheri,

school days were over and the more

Mumbai, one of the best schools in the city.

exciting college days dawned. Though IITs

Mr. Naiks strong patriotic fervor comes

from his father who participated in
Mahatma Gandhis Quit India movement

Nagar, Anand which had an university

environment, he points out.

and, as Mr. Naik recalls, under the

College, however, couldnt restrain this

philosophical influence of Gandhiji that

exuberant

India lives in the villages, he decided to

himself

return to his village, Kharel in Surat to

and programmes and soon became the

serve the community. A math and science

undisputed Student Secretary. Not only

teacher par excellence, he soon became

was he an all-rounder in sports, the lure of

the Principal of a newly started high school.

the silver screen was very strong that saw

A forward thinking person, well ahead of

him sneak away to Baroda and Ahmedabad

his time, he, despite strong opposition, got

to see multiple shows one after another. I

young

in

various

man

who

student

involved
initiatives

his daughter educated in medicine making

saw Madhumathi seven times, he declares

her the first ever doctor and MD in their

unabashedly.

entire community!

The classroom saw little of Mr. Naik but

I have only one role model my father!

come exam time, he would focus sharply

avers Mr. Naik who carries other sterling

on his studies. He once asked his roommate

qualities of his father like indomitable

to lock him up in his hostel room for a

courage, relentless hard work, unyielding

few intensive weeks. Inevitably, when the

passion and a never say die attitude.

results were declared, the young Anil Naik

The move from Mumbai to a nondescript

village in 1952 did have an impact on young

4 | ECC CONCORD, Jan - Mar 2015

beckoned, he enrolled with Vallabh Vidhya

would be among the toppers.

My upbringing has a
lot to do with who
I am today

ECC CONCORD, Jan - Mar 2015 |

An Interview

My father has been

my only role model
in life!
When I was a student 52 years ago, there were two well-known
companies where mechanical and civil engineers wanted to go Larsen & Toubro and the Tata Group. Both professionally managed
but not entrepreneurially professionally managed and while
L&T was semi bureaucratic, the Tata group was a bureaucratic
organization though now they have changed and have become
entrepreneurial. I always desired to work in L&T while I was in
engineering but couldnt make it initially.
My father was a great social worker, committed to working for
the poor and the down-trodden. Though, a very senior teacher
who could have become a Principal of one of the best schools in
Mumbai, he joined the Quit India movement in 1942 along with
his sister, my aunt, and under Gandhijis philosophical influence
strongly believed that India lived in villages and that villages have
to come up for Indias prosperity. So when the opportunity arose
of starting new schools, the trustees approached him to become
the founding principal which he accepted, gave up his Mumbai job
and returned to the village. Consequently, all of us went too. The
change was radical. In Bombay I was sitting on a bench in a nice
classroom but in the village I was sitting on a gobar floor till the
7th standard.
The first IIT came up in the year I finished 11th standard and I could
have appeared for an open test in IIT, but my father told me to go
to Vallah Vidhya Nagar, Anand, which had a university environment
from where I graduated with a degree in engineering. Each of these
events are important chapters in my life and hopefully one day I will
write a book about them. Anyway, when I returned to Bombay
after doing engineering, my English was very poor as I had studied
in a vernacular language in a village all of 2500 people.
By the way, I was also a student leader and a president of 29,000
students! If you go to Vallah Vidhya Nagar, there are three buildings
one of which is named Brilla Vishwakarma Mahavidhyalay,
who established the college, the second is the founder and first
principals hostel, called Junakars hostel. The third is named after a
student me, a huge building called the A M Naik block. I was an
all-rounder; a sportsman and I used to play table tennis, shuttle, a
little bit of cricket, a little bit of volley ball. Then, I was a secretary

6 | ECC CONCORD, Jan - Mar 2015

of sports in the first year. Initially, I used to fight the elections every
year but later there was no need because everybody knew that if I
stood, I would win. Those were very interesting days indeed.
L&T did not call me for an interview initially as I was not from IIT
because at that time they would only interview students from IITs
and VJTI, Bombay. So I joined a small company called Nestor Boilers
which is another chapter of my life. I was rising like a bullet in that
company: At the age of 22, I first became a workshop-in-charge
for burners, then for boilers and then for the whole workshop,
both divisions. I was dealing with the union too. Things were going
well and in January 1965, I was to go to England for training on
the firing systems and boilers and my salary was to be Rs. 850 on
my return.
However, one incident changed all this. There was only one phone
in the entire factory. My cabin was the farthest so I had to run to
take the call. One day when I came to take the phone, I saw the
son of the owner who used that cabin and who always wanted
everything instantly which was difficult in those days, call a Quality
Control In-charge named Punewallah and fire him. Actually, he
ridiculed him. I also fire people but I mean good to them so that
they can improve and come up in life. When you ridicule, you are
belittling and insulting people that can demoralize them and result
in counter productivity. At such moments, I always think about
how my father would react if he was in my place for he has been
my only role model in life and I realized that I could not tolerate this
value system. So, for the second time in my life, I sent applications
to many companies one of which was Larsen & Toubro who wanted
to enter pressure vessel manufacturing and boilers were one step
higher than pressure vessels. The job was appropriate for me and I
was called for the interview which is another big chapter in my life.

I saw Madhumathi 7 times!

I used to play cricket for the college though not for the university, but I still follow the game.
Yes, my favourite actor in the old days used to be Dilip Kumar. I saw Madhumathi 7 times
and 105 movies in my first year science. Today I like Amitabh Bachchan. But thats another
story. I used to see films one after another 12-3, 3-6, 6-9 and 9-12. The theaters were all in
a line in Baroda and you can come out of one and enter the other. At midnight after the last
show, I used to catch the last train from Baroda at 1.45 am, reach Anand station at 3.15 am
and then cycle the 5 kilometers to the hostel and then sleep. I rarely went to college because
I was involved in all other activities. But I was always in top 5 ranks!

The return of
the native
and the first steps in
his professional life!

1963 saw Mr. Naik retrace his steps back to

into the exercise with his customary zeal.

Mumbai armed with an engineering degree

Language audio cassettes and long hours

but he says with complete honesty, an

practicing in front of a mirror helped him

engineer with poor English! a drawback

gain proficiency over the language.

that was soon to cost him dearly. Thanks

to a letter of introduction from his father to
Viren Shah of Mukand Steels, he was called
and asked to fill a form for the interview.
Disaster struck because the personnel
manager pointed out eight mistakes in the
form he had filled out. Realizing the need to
improve his English, Mr. Naik threw himself

His first stint as a professional was with

a Parsi company named Nestor Boilers,
located in the quiet environs of Byculla in
Mumbai. They didnt have money, recalls
Mr. Naik but that did not prove to be a
growth deterrent for a young, enthusiastic
engineer who quickly grew the ranks
to become the workshop in-charge for
burners, later for boilers and soon followed
by the whole workshop for both divisions.
Mr. Naik, however, did not find their value
system palatable and although he was
destined for bigger things like being sent
to England for training and a salary hike on
his return, made up his mind to find fresh

Up close &
personal

pastures and started applying for jobs in

many companies, including L&T.

ECC CONCORD, Jan - Mar 2015 |

L&T welcomes
Earlier, L&T had not called him for an

He kept punishing hours starting his day at

interview as he was not an IIT-ian but now

7.30 in the morning and pushed himself

with a years experience under his belt, Mr.

very hard. Often, his departing message

Naik found himself within the portals of

to his young wife would be, if I am not

L&T, sitting in front of Mr. Baker answering

back by midnight, I will be back tomorrow

questions for an interview for the position

morning! Such undeterred commitment

of Assistant Engineer. Though he scored

and fiery passion were reasons for his

well with Mr. Baker who offered him the

meteoric rise to become the youngest

job with a salary of Rs. 760 per month, Mr.

Production Manager and later the youngest

Gunnar Hansen, a stern Danish gentleman,

Deputy General Manager. Mentally ticking

found Mr. Naik too cocky and watered

off all the days events every morning

down the offer to a far poorer one. A

followed by a hard days work and a

true gentleman, Mr. Baker felt bad that

thorough introspection at the end of the

the smart youngster was being unfairly

day are habits that he cultivated right

short-charged and attempted to mollify

from Day One of his career. These traits,

him but Mr. Naik politely told him that he

he feels, can help hone ones skills. Old

had dreamt of joining L&T from his days

timers of L&T still recall how he would ride

as a student and this was its realization;

through the gates of Powai on his Vespa

Money does not matter!

scooter at odd hours of the night to inspect

So Mr. Naik joined L&T on March 15, 1965,

to mark the beginning of an era!

production. This earned him the respect of

the workmen resulting in a harmonious
relationship with them that held him in

Mr. Baker had promised him a promotion

very good stead during negotiations with

if he did a damn good job and both

the unions of yesteryears. Freedom at

were true to their word. Mr. Naik did a

work, the culture of learning from mistakes

damn good job and Mr. Baker rewarded

and not repeating them, and a sense of

him with a pay hike to the afore promised

ownership were virtues that formed the

Rs. 760 and a confirmation. Again, as Mr.

bedrock of Mr. Naiks blossoming career at

Naik had predicted, time did tell and how!

L&T.

18 months was all that it took for the

dynamic Mr. Naik in his early-twenties to
have the entire workshop of 850 workmen
at Powai reporting to him. Striking a quick
rapport with the workmen, he led from the
front, greatly enhancing productivity and
enforcing discipline using his inimitable
charm, and considerable persuasion skills
backed by an unflinching sense of purpose.

The early seventies saw the progressive exit

At L&T, I met Mr. Baker, a Britisher for my interview. He was impressed with me and offered me a job as assistant
engineer in the supervisory cadre with a salary of Rs. 760 but he said, before I appoint you, I have to take you to
the old man. The old man was a General Manager from Denmark named Hansen who used to speak rhythmic
English like the way Danish people speak and he asked me, among many questions, how many people report
to me. I said about 350. Oh thats a lot thats a lot. In L&T it will take a long long time before you get such
responsibility, replied Mr. Hanson. Now I used to think in Gujarati and convert into English and I told you that my
English was very poor so I just told him Who knows, time will tell. Now, in Gujarati it doesnt sound so bad but
in English it sounded cocky. He asked me to leave the room immediately. Within 30 seconds, Baker also came out
of the room mumbling and back in his room he said that the old man thought that I was over confident and that I
was being offered a salary of only Rs. 670 and not Rs. 760, not assistant engineer, not supervisory cadre. So I was
downgraded across all three points all within 45 minutes.
Language, I believe, is a vehicle of thought and anyone who has complete control on vocabulary can be a very
successful speaker and a convincer for he will be able to share his thoughts and ideas.

You make the

company strong,
you make your
nation strong

Mr. Baker was apologetic because he liked me and promised to make it up in future if I did my best. I told him not
to worry because as a student I had dreamt of joining L&T and now I was getting a chance to do so and that I was
not worried about money. It is another matter that my previous company did not release me for three and half
months because I was the key man for the whole company.
Finally, I joined L&T on 15th March, 1965 and since I did a damn good job, Mr. Baker gave me my confirmation on
15th September along with a rise in salary to Rs. 760 and I was made assistant engineer.
My entire life I have worked in L&T with passion, conviction, determination, commitment. One day about 7-8
years ago, my wife was interviewed on Walk the Talk and she was asked how does she spend her time when
her husband was hardly there, either travelling or not at home. She replied, Look, when I got married and came
into this house, I soon realized that my husbands first wife was Larsen & Toubro and I was the second and I have
accepted that situation because he works for a company that builds India. She also said that she was very proud
of me because all my energy goes towards building a brighter India of tomorrow.

of Scandinavian Directors to be replaced by

their Indian counterparts. Mr Naiks career
trajectory was not as rapid as before but
he did not let it affect his performance
and work. He remained steadfast in his
commitment and recognition and rewards
followed soon enough. By 1989, AMN was
on the board and a decade thereafter he
took over the reins of L&T as CEO.

8 | ECC CONCORD, Jan - Mar 2015

An Interview

My entire life I have

worked in L&T with passion,
conviction, determination,
commitment.

Mr. A M Naik

Up close &
personal
ECC CONCORD, Jan - Mar 2015 |

of an employees trust that held majority stake.

Having successfully played this masterstroke, he
declared, Grow L&T to such a size and stature that
people will think twice before making overtures.
Aligning L&Ts broad capabilities to the demands
of the emerging economic environment, Mr. Naik
deftly transformed the organization into a worldclass conglomerate, providing total project solutions
in critical sectors such as power, hydrocarbon,
infrastructure, IT & engineering services.
Over the years, Mr. Naik has led with conviction
and sagacity, steering the company through tough
times but never losing sight of his lofty goals. The
numbers tell the story: Rs. 1,55,000 crore market
cap, 8,70,000 happy shareholders, a 54,000-strong
workforce, expanding global presence and an ever
renewed vigour to deliver perfection.

A CEOs
early
days

Mr. Naik took charge as CEO in 1999 and

an Indian multinational by benchmarking

his first issue was to tackle L&Ts diversity;

all its processes with the global best,

precious resources were getting frittered

constantly creating value for stakeholders

away into too many businesses, some

and maintaining trust, faith and respect for

of which a legacy of the License Raj. In a

its prime asset people.

bold but brilliant move to rationalize the

portfolio, he decided to exit from over
a dozen companies while at the same
time create new opportunities in sizeable
segments to the tune of USD 1bn per

My mantra:

annum for long-term sustainability that

Passion.
Commitment.
Devotion.

growth. It was very much like pruning a

paved the way for L&Ts accelerated

banyan tree for it to grow better.
Another challenge before him was to
transform market perceptions. Though
a professionally managed company, that
positive perception was not being reflected
in the companys valuation because L&T
was too technology-focused with limited
emphasis on value creation. Mr. Naik
developed a long term vision to make L&T

10 | ECC CONCORD, Jan - Mar 2015

He encapsulated this strategic thinking

in LAKSHYA literally meaning goal in
Sanskrit. LAKSHYA was also an acronym
with each letter standing for an attribute
of the organization that he dreamt to
create. L stood for Lean, A for Agile, K
for Knowledge, S for Speed, H Human,
Y for Yielding Value and A for Actionoriented.
Bullish about L&T, he ferociously and
fearlessly fought off several take-over bids
and in what analysts consider a brilliant
move and Mr. Naik himself says was a
masterstroke, he made employees of
L&T, co-owners of the company through
his stock option plans and the creation

ECC CONCORD, Jan - Mar 2015 | 11

An Interview

"My masterstroke has changed

the lives of many of our
employees and made them
millionaires and crorepatis!
When I inherited L&T, the economy was not in a good shape.
Secondly, two cement plants got capitalized so that the entire
burden of depreciation and interest came on the company. Then,
there was a hoarding contract signed before my time initially
for one year and then it was converted to ten years with 15%
escalation every year. The contract value was Rs. 500 crores while
our profit was only Rs. 210 crores! I did not see the need for this
because we were an engineering company, not a white goods
company needing so much of advertising. It became a legal and
then a criminal case but we won all of them. Finally, I cancelled
the contract half way, converted the balance to 1/4th the cost and
saved about Rs. 200 crores for the company. This took me one and
half to two years.
I couldnt make any significant new strategic decisions until I was
out of all these past troubles. Then came the take-over bid and I
fought virtually single-handedly to avert it. The final outcome was
win-win for both: Grasim got cement and L&T, engineering and
that is how the L&T Employee Foundation came into being. We are
the largest shareholder from zero and none of the employees have
paid for that money. We earned dividend and repaid the loan out
of that dividend. It was a masterstroke. Then we gave stock options
to about 2000 employees who all became millionaires. Since the
entire debt was with L&T, our debt equity ratio had become 1:121,
we had been downgraded by the rating agency to AA+ from AAA.
Once I transferred all the debt to the cement company, our debt
equity ratio improved from 1.121 to 0.1921 and we were upgraded
to AAA. That was a terrific move. Our equity was Rs. 250 crores
and with balance sheets of the past 21 years that I personally drew
up, I proved to the board that all the money raised in the past was
for cement, otherwise my equity should have been Rs. 15 crore not
Rs. 250 crore. Finally, I settled with equity of Rs. 25 crores.
Fortunately, after 2003, the economy started to improve. I was in
need of some capital to the tune of Rs. 275 crores, so I pledged
the Grasim shares but managed only about Rs. 150 crores from the
banks. Then I decided to give a 5% increase to all the employees
on the condition that post tax, they contribute 3.5% to the L&T
Foundation to repay the loan. This was a boon out of the blue for

12 | ECC CONCORD, Jan - Mar 2015

them as they would get their money over 7 years with guaranteed
returns of 5% post tax. We were able to repay L&T Foundation
2 years earlier and the banks 2 to 4 years earlier all because our
dividend income went up. Starting from zero, our Employees
Foundation today has Rs. 460 crores. Whats more, all employees
got stock options, we became owners of the company as the
largest shareholder, reduced debt, improved credit rating back to
AAA, brought down equity and was able to give three bonuses
in 2006, 2008 and 2011. The share price has multiplied some
1600 times and that is how many of our employees have become
millionaires and crorepatis. There are many General Managers
living in 2-bedroom flats who would have been forced to move to
one-bedroom flats post retirement like many of their predecessors,
but I changed all that.
Those were very eventful years for me but also very fulfilling. All of
my 50 years, I have been devoted only to one thing and that is L&T.
I have worked on an average about 14 to 16 hours a day so I have
actually worked close to 80 to 100 years, not 50 years. For 21 years
I did not take leave and I had a very young wife of 17 and a half. I
used to leave her at home and never come back at night because
there was no transport available and we had an understanding that
if I didnt come back at night I would return early next morning. The
last 50 years have been tough and it continues to be so, especially
with the ups and downs in the economic situation of the country.

A Peoples
Chairman
Firmly advocating the core principle, People are our Prime Movers, Mr. Naik created the
unique L&T Employees Welfare Foundation Trust that holds the company together. He
personally took it upon himself to steer HR, Training and Development, IT in business and
self-reliance in the organizations transformational journey.
Be it tough negotiation with the workmen

hours a day on the shop floor or in the

on wages, or cordially requesting a

office, seldom taking a day off.

colleague to take up an overseas role,

Mr. Naik works his disarming charm to
advantage. The note of conviction in his
voice is all that is needed for one to accept
his point of view on things, which, most

Up close &
personal

I was not a salesman,

nor a design man.
I was always a
peoples man.

often, is far-sighted and futuristic.

He could therefore empathize with the

issues faced by workmen and they in-turn
found in their Chairman, an approachable
and hardworking person who led by
example. Cutting across hierarchy, he
symbolized trust and assurance to the

His working day has always been longer

entire workforce making him not just a

than normal. Right from his early days

Chairman, but a Peoples Chairman.

he was given to spending upwards of 14

ECC CONCORD, Jan - Mar 2015 | 13

A visionary
par excellence

I always tell my people - L&T is a platform

where you can help to build the nation

His characteristic restlessness drove him to seek more for his company, constantly scanning
the horizons and sensing opportunities long before they became realities.

Towards creating a

My focus is on
building capability
and not just
capacity.

jewel in
the L&T
crown

Anybody with
money can build
capacity.
As early as 1988, he foresaw Indias need
for a world-class, global-scale heavy
engineering facility to cater not only to the
countrys strategic requirements but world
markets as well. To the existing heavy
engineering workshop facility at Powai,
Mumbai, he added a new one at Hazira
in Gujarat, which was globally competitive
in size and sophistication. Being a coastal
based facility, it also served the dual
purpose of manufacture and transportation
of large and heavy equipment such as
submarine components, modules and
offshore structures for major core sector
industries. Ranked amongst the top ten in
the world, Hazira Works is not only L&Ts
pride, but of the nation as well.
The creation of an integrated shipyard cum
port project at Kattupalli near Chennai
was again his brainchild. Built over an area
of 1200 acres, this project is a landmark
for building modern vessels, warships,

14 | ECC CONCORD, Jan - Mar 2015

submarines, ship repair, as well as having

the wherewithal to be an important port
on the eastern coast of India. This facility
will not only strengthen Indias defence
infrastructure through the Indian Navy but
also boost maritime trade, thanks to its
containerisation facility. He was also the
moving force behind the setting up of a
state-of-the-art 200 acre manufacturing
facility at Kanchipuram near Chennai and
an advanced transmission line research and
testing centre that is among the best in the
world.
His dynamism, dedication and passion
helped unlock the organizations real value
and during his stewardship, L&Ts total
income grew from Rs. 7400 Crore to Rs.
85,128 Crore an exponential growth of
12 times while Profit After Tax went up
from Rs. 470 Crore to Rs. 4875 Crore an
increase of over 10 times!

L&T Construction or ECC as it was earlier

have gone up 45 times since then. It is

known and, is still referred to by Mr. Naik,

the largest construction organization in

had a special place in his scheme of things

the country and its phenomenal success

because it was the most visible face of the

has prompted Mr. Naik to christen it as

organizations varied businesses. Many

a Jewel in the crown of L&T. He was

magnificent structures across the country

also instrumental in pushing its influence

bore the L&T mark of excellence - buildings,

beyond the shores of India and the

airports, commercial complexes, places of

setting up of L&T 2 in the Middle East

worship, stadiums, malls, bridges, dams

to capitalize on the opportunities there.

the list was long and getting longer.

The growth of several Asian and African

Mr. Naik entered the frame around 2006

and gave the business a new orientation,
redefined its vision, urged the business
leaders to think big and the result is there
for all to see: the construction divisions

economies caught his attention and many

of these markets of potential have already
been tapped. These are significant steps
towards realizing one of Mr. Naiks dreams
of making L&T a truly global company.

business has grown 15 times and profits

ECC CONCORD, Jan - Mar 2015 | 15

An Interview
It was 2006 onwards that ECC started to become a jewel when my
real contribution started. Until then I was making only a marginal
contribution but 2006 onwards I got more involved, we devised a
strategy and I worked closely with Rangaswami (Mr. K V Rangaswami)
and later with Subrahmanyan (Mr. S N Subrahmanyan) and we decided
how to take ECC to the next level. Looking at the global scenario, we
still have several steps to go to be considered the best construction
company in the world. But we are definitely moving towards that.
I recall an incident back in 2006-07. I was invited by a Site Manager
to visit the IIT Hostel project in Chennai that was under construction.
I went and the Site Manager was very excited since the Chairman
had come visiting. I asked him how big the job was and he replied
about Rs. 12 13 crores. I asked him the cost of the project but he
could not respond properly and he did not have any answer to my
question as to whether we were making any money from the project.
But there was great excitement of doing the job. Historically, L&T has
thrived on doing things with excitement but in the bargain completely
forgetting the investors and other stakeholders like the shareholders,
media, analysts, institutional investors with the result, L&Ts share price
never went up for 15 years between 1985-2000. In fact, after 1983
we were unable to give shareholders a bonus for 20 years!
ECC always had a mindset that they were different; they wanted to
be a part of L&T and yet be independent and gradually I matured to
understand the dynamics of how ECC functioned. Though I could not
make the kind of contribution that I could have, things changed when
Rangaswami took over in 2006 and we started working very closely.
He would implement whatever we decide. That site engineer at
Chennai awakened and prompted me to list all ECC projects and
I discovered that all projects of up to Rs. 10 crore were running in
losses; projects between Rs. 10 to 25 were running with minor losses
or just breaking even so I told Rangaswami not to take any job below
Rs. 25 crores. This completely shook up the system in ECC and there
was widespread fear as to how to fill the order basket. But we stuck
to our guns and subsequently raised the bar by saying that no project
should be taken that was below Rs. 50 crores and the following year
I raised the ceiling further to Rs. 100 crores. Gradually as the shock
wore off, ECC started to grasp the situation with the result, today I
dont have to tell anything because they themselves say that a Rs. 250
crore job is too small.
16 | ECC CONCORD, Jan - Mar 2015

ECC has blossomed

and that has been
very satisfying and
fulfilling for me
it continues to be not
only a jewel but a
Kohinoor in the crown
of L&T!

A thoroughbred patriot
Patriotism runs deep in Mr. Naiks veins, obviously inspired by his fathers Gandhian
philosophies and reflected in the tricolor that he always sports on his lapel. The needs of
Indias defence have always struck a chord in him realizing that technological self-reliance
can be the difference between uncertainty and assurance. Towards this end, he developed
capabilities to make L&T a reliable private sector partner for a broad range of defence needs
including some of the countrys most strategic initiatives.

After I took over in 2006, I once visited two hydro power plants in
Kulu Manali. One, a Rs. 210 crore project and the other a Rs. 115 crore
project on which we had already been working for 5 years. On the
way up the hill to the project site, I found that there were no railings
on the road that was muddy for half the year. This was very dangerous
so I made a rule that we would not accept any hydropower project
less than Rs. 750 crores so that we could provide safety to our people.
Today, we do not bid for projects below Rs. 1,000 crores which is a
remarkable sea change.
The other area was profitability. When Rangaswami and I started
working, ECCs margin was 3.5%, while today it is running at 10.5%
which means it is 3 times more. ECC then was about Rs. 4000 odd
crores, today it is Rs. 50,000 crore, so we have been able to increase
profitability by 30 times.
Somewhere around 2006, I came in touch with Subrahmanyan and
over the last 8 years, I have had an opportunity to constantly mentor
him, almost on a daily basis. He has radically changed. He has now
become a businessman and I am making him a global businessman.
A lot has changed and I think ECC has blossomed. It is therefore from
2007 that I started talking about ECC being the jewel in the crown
when I found people responding to our collective vision and agreeing
on a strategy to implement it which for me has been very very satisfying
and fulfilling. And ECC, to my mind, continues to be not only a jewel
but a Kohinoor in the crown of L&T. I hope they continue this progress
and become one of the best companies in the world.

My country first.

While scientists like Homi Bhabha drew the

space research programme for over three

blue print for Indias nuclear programme, it

decades and under his leadership, L&T has

was the engineering expertise developed

mastered the technology to manufacture

by Mr. Naik in L&Ts workshops that turned

vital elements of space launch vehicles. A

this vision into reality. He masterminded

crowning achievement was the vital hand

the manufacture of critical components

the company played in Indias successful

for nuclear power plants such as calandria,

Mars mission.

end shields, nuclear waste storage tanks

and steam generators and thus it is no
wonder that L&T has built almost all

Up close &
personal

And last, myself.

the nuclear reactors in India. Mr. Naik

has been the driving force behind L&Ts
close

association

with

the

Under

his

astute

stewardship,

L&T

transformed from just an infrastructure

and construction company into a builder of
nations!

countrys

ECC CONCORD, Jan - Mar 2015 | 17

an even
bigger heart
strata and trained them into fine technicians

It is not enough
that we care for
the less privileged
- care needs to be
translated into
action, and action
into results.

capable

and construction sector to report its

His strong belief that industry should

fulfill its obligations as an engine of social
development is ingrained into L&Ts value
system and reflected in his numerous
personal

initiatives.

He

selected

and

employed people from the lower economic

of

manufacturing

world-class

products at Powai. This approach was later

honed into an initiative to select and train
rural ITI students for eventual absorption
into L&Ts Hazira plant. Even before the
construction of the factory started in mid1985, a training centre was established to
provide skilled workmen for the plant for
which, personnel from L&T visited nearly
1200 schools in Gujarat to attract trainees.
The Construction Skills Training Institutes,
fashioned on similar lines, today trains
thousands of uneducated and unemployed
rural youth who find employment with the
companys construction contractors.
Mr. Naik infused life into PRAYAS, a trust
run by the spouses of L&T's employees
and

enabled

its

sustenance

through

sustainability performance across the triple

bottom line and has demonstrated that
business growth can go hand-in-hand
with an underlying commitment to the
environment and society. According to
him, this is not just a probable solution; it is
indeed the only solution.

An Interview

A big man with

Both my grandfather and

father worked for the poor
and now possibly some of
that has stuck onto me!
Both my grandfather and father were patriotic. In fact, my
grandfather received a gold medal from Gaekwad in Baroda 140
years ago and became the headmaster of the Gurukul, the highest
level, and spent all his life teaching poor people without charging a
single rupee. He used to go to his Gurukul School on foot starting
at 4 in the morning as it was located 12 miles away, reach there
by 7 am and then start back on Saturdays at 2 in the afternoon
and after reaching home at 5, go straight to the field for farming.
Sunday he would spend on the field and then start out again on
Monday. He used to go to the Adivasi colony and although he had
no money, both his coat pockets would be filled with peppermints
and the Adivasi children would run after him chanting Baapa
Baapa Baapa as he was fondly called and he would distribute the
peppermints. All these are in front of my eyes as if it all happened
yesterday.
And the same path was taken by my father who worked for the
poor people. Now possibly some of that has stuck onto me. I could
not go back to teaching, but I run a big educational institution
which I have built myself from out of our stock options and have
contributed Rs. 105 crores to build it. I have built a general and a
cancer hospital because I lost my granddaughter to cancer and this
year I am going to spend Rs. 75 crores for a Vedic school, a second
cancer machine and I plan to break down the old school where I sat
on gobar floors and build a new one in its place.

timely financial support. He patronized

the branching of its units across various
divisions and countries to carry out yeomen
service to the needy and deserving.
Several

initiatives

consumption

and

to

reduce

promote

energy

renewable

energy are a result of Mr. Naik embedding

sustainability

within

L&Ts

strategic

growth plans. He led L&T to become

the first company in the engineering

18 | ECC CONCORD, Jan - Mar 2015

Up close &
personal
ECC CONCORD, Jan - Mar 2015 | 19

An Interview

It is only an
entrepreneur who
can constantly add
value! L&T needs more
entrepreneurs.
Once, people in L&T were managers who were extremely happy
when the company was described as a professionally managed
one. For me, a professional manager can only maintain value and
by value I mean market capitalization. An outstanding leader with
professional management who is a top-class leader can add value.
But it is only an entrepreneur who creates value at every step. It is
only a person who is entrepreneurial, with outstanding leadership
qualities and a professional background who can multiply value.
Since I took over in 1999, L&Ts market cap has multiplied 60 times
because of the transformation I brought about to convert L&T
from a professionally managed company to an entrepreneurial
one. This is the essence of what I wanted to achieve and more and
more of our colleagues even at ECC are beginning to understand
and accept this reality though there are still some who have not.
Sooner or later, such people will retire and I am sure the younger
generation who will take over will be far more proactive and will
run the company completely entrepreneurially taking measured
risks. Of course, we dont want madness of risk otherwise you will
lose a lot of money.

L&T is
my temple
jeena yahan,
marna yahan;
iske siva
jana kahan?

A stirring
legacy
His considerable talent, foresight, passion and commitment has propelled L&T
to this orbit of achievement, and through his intense mentoring, Mr. Naik has
been grooming future leaders to take on the huge responsibility of taking the
organization forward. He wishes to leave behind the impression of being
remembered as the person who found and developed a team of transformational
leaders capable of taking L&T to the next level.

My early days at Powai were very tough. I was advised not to enter
the workshop after 7 pm because it was dangerous and only 4
months before, one foreman had been knifed but I went to the
shop floor at all odd hours of the night and seeing my hard work,
my devotion and that I was sacrificing my whole life for Larsen &
Toubro they started to feel isko kya karega! I removed 52 notorious
people, whom nobody could even touch but I went about it very
systematically. I gave them a lot of chances, took the union into
confidence and finally we were able to remove the trouble-makers
peacefully.
On a lighter vein, I was in Dubai some 20 years later at a get-together
to honour me and among many supervisors and engineers, I met
two workers who asked if I remembered them. They were actually
two workers whom I had sacked and they thanked me for sacking
them. They said that it was because of my grounding and teaching
them discipline that had got them to where they were.

Up close &
personal
20 | ECC CONCORD, Jan - Mar 2015

It has been an eventful 50 years. I dont think I can re-live these

50 years because this happens once in million. It was my sheer
determination to see that L&T comes up and therefore I treated L&T
more than my home. You worship in a temple and my temple is
L&T. Jeena Yahan Marna Yahan, Iske Siva Jaana Kahan

ECC CONCORD, Jan - Mar 2015 | 21

Key
Honours
for Mr. A M Naik

Leading a company that is helping build the

nation is a matter of pride in itself. To receive
high national recognition for this service
is a rare privilege.


On receiving the Padma Bhushan

Mr. Naik's array of accolades affirm the quality

and strength of his leadership.
Recent prestigious awards include:

Padma Bhushan
Entrepreneur of the Year
Business Leader of the Year
Businessman of the Year
Transformational Leader of the Year
Among Indias 50 Most Powerful People
Asias Business Leader
In the Top 10 High & Mighty Power List
Order of Dannebrog - First Class
Best Corporate Man of the Decade
Outstanding Chief Executive
Gujarat Garima
Good Corporate Citizen

22 | ECC CONCORD, Jan - Mar 2015

ECC CONCORD, Jan - Mar 2015 | 23

The historical and factual details of how L&T

thwarted two corporate invasions are very
well known, but little known are the details
of how AMN single-handedly fought and won a
corporate war with the Birlas, at the end of which
he parted with the cement business but ensured
that no further invasion occurs in the future.

I feel extremely honoured and privileged to

AMN identified himself totally with the

should start emulating senior leaders like

He hand-held me for quite some time and

The historical and factual details of how

On the personal side, he is a very humane

have been asked to write this piece on a

company and was like a 24x7 GET. Taking

AMN and become a leader of leaders.

under his able guidance and pragmatic

L&T thwarted two corporate invasions

person. I always liken him to a jack fruit

Many Splendoured Personality like Shri A

responsibility and proving his worth by

This is the roadmap I have advocated to

suggestions, we made very profitable

are very well known, but little known are

where the exterior appears thornish but the

M Naik, on the occasion of his completing

hard work, dedication and passion that

budding youngsters when they join.

growth strides.

the details of how AMN single-handedly

contents are so sweet. He rightly believes

an incredible milestone of 50 years of service

came naturally to him.

fought and won a corporate war with the

that there is no place for mediocracy in

Birlas, at the end of which he parted with

our staff quality. His commitment to staff

the cement business but ensured that no

welfare is great. He has created many

further invasion occurs in the future. In

millionaires and crorepathis with stock

the process, he innovated an ownership

options and I am sure he will innovate and

structure which ensured that a significant

ensure many more such acts of kindness to

part of the shareholding stayed with us.

all staff in the few years ahead.

in the company. I am not a statistician to

keep such corporate feats at my fingertips
but suffice to say that in a public limited
professionally managed company, this
is a very very rare milestone. In promoter
owned companies this happens once in a
way; but in a National company like L&T
(as described by a prominent personality),
it is virtually impossible and for this to
happen one should join the company at
the tender age of 20 and sustain till 70
and that happens only to very meritorious
personalities like Mr. Naik.

Though I have myself had a long career,

AMN was both a long-term macro planner

It is just not 50 years stay but meritorious

it was almost after 30 years in the

and very great micro-management leader.

service and half of it in senior positions like

company that I started knowing AMN

In 1999, he wasted no time to put his

Whole-time Director, CEO and Chairman.

and interacting with him. My erstwhile

ideas into action for strategic and long

When I address the GETs every year, who

bosses in ECC had their own excellence

term plans and the various Lakshya 5 Year

are ever anxious about their career plans,

and streaks of brilliance. If Mr. Mortensen

Plans are the ones which have propelled

I say that the first ten years of their service

excelled in establishing a culture for quality

the company into a grandeur status. I

should be devoted to unlearn college

and timely execution, CRR instilled a sense

remember during our second 5 Year Plan,

learnings and become very proficient

of discipline and marketing. He was also an

we set ourselves a target of 2010 - that is

in practice and pragmatic knowledge.

able administrator. AR (Mr. A. Ramakrishna)

20% CAGR, 10% PBIT & 20% ROCE by the

The second ten years should be spent

was a technocrat par excellence and was

year 2010. AMN took an active role in the

in

principles.

a great innovator. When I succeeded him

evolution of that plan and thats keeping

After becoming good managers, they

and started reporting to AMN, I found all

us (ECC) in good stead today. His attention

should spend the third 10 years to get

these qualities in him in abundance plus a

to details on such occasions was amazing

into leadership roles. After 30 years, they

business sense which was ever pervading.

with a razor-sharp memory for statistics

embracing

management

During the work-outs, he always used to

say that the best insurance against such
take-over attempts was to make the

I wish him great health and happiness on

this happy occasion.

company very valuable and his various

K. V. Rangaswami

strategies and actions have all accounted

Whole-time Director (Retd.)

for the company having a market cap of

Larsen & Toubro Limited

Rs.1,70,000 crores today. His commitment

to shareholder value is stupendous.

and numbers.

24 | ECC CONCORD, Jan - Mar 2015

ECC CONCORD, Jan - Mar 2015 | 25

For me, he has been an extraordinary role model.

Spending time with him is better than doing any
management course in a B-school because with
him, you are in the theatre of life grappling with
real issues.

To complete 50 years in a career is quite

I was very surprised by his demeanor, his

He has always led from the front and to

B-school because with him, you are in the

entirely new orientation to the way we did

He has taught us to be a L&Tite and to

incredible but to complete 50 years in a

attitude and the way he treated me. At

borrow a cricket parlance, has always

theatre of life grappling with real issues.

business. He urged us all to think big and

be that with self-confidence and self-

single organization and that too with such

closer quarters, I was even more awed

played on the front foot and his straight

The way he approaches an issue, the

think smart. The results are all there to see

respect; he has taught us principles in

success and panache is simply fantastic and

by him. I am fortunate that he took me

batting has held L&T in very good stead

manner in which he studies and analyses

in our exponential growth. I am proud that

our life and the meaning of extraordinary

I am very proud of having been associated

under his huge wings and from day one he

especially during his early days as CEO in

it from all possible angles, the process by

he refers to L&T Construction as a jewel in

value creation. More than anything he has

with AMN for some of those 50 years!

has been a great mentor. His dedication,

the late 90s when he had to almost single-

which he arrives at probable solutions and

the crown of L&T and it just gives us all the

taught us to be a proud, a very proud and

devotion, commitment and passion are

handedly ward off very strong take-over

takes the final decision are all worthy of

drive to keep our flag flying high.

an extremely proud Indian.

sterling qualities for all to espouse. He has

bids. He stood his ground, fought and won

emulation.

that uncanny ability that is there in all great

all his battles and thus has been primarily

We all have a great leader to look up

All the best, Sir! You have truly made us

leaders to cut to the chase and home in

responsible to secure the fortunes and the

His influence on the fortunes of L&T

to; I have in him a great mentor, leading

what we are!

on the crux of a problem. Decision-making

future of this great organization.

Construction has been enormous ever since

and guiding me and as he completes this

he became closely involved in its running

magnificent half century of life in L&T, it is

For me, he has been an extraordinary role

from about 2006 onwards. He quickly

our privilege to stand up and salute a true

understandably with a lot of trepidation that

model. Spending time with him is better

assessed the situation, presented a new

champion.

I first started to deal with him. But honestly

than doing any management course in a

vision, redefined the strategy and gave an

Initially, I used to hear of his exploits and be

simply awed by the clarity of his thinking,
the astuteness of his strategies and the
boldness of his actions. I was told that
he was a tough guy who expected and
asked a lot from his colleagues so it was

26 | ECC CONCORD, Jan - Mar 2015

suddenly becomes so much easier.

S. N. Subrahmanyan
Member of the Board &
Senior Executive Vice President
(Infrastructure & Construction)

ECC CONCORD, Jan - Mar 2015 | 27

Most of us Indians believe in Karma. I must

endeared to me a lot. He is very charitable

have done something wonderful in my

as is apparent from the numerous projects

previous life to be granted the privilege

that he has successfully implemented

of being born to such wonderful parents.

benefitting the poor and needy. Starting

My parents were very young adults when

a school, a hospital, a cancer radiation

I came along. My Dad always says I have

center, helping uplift women and children

been lucky for him. Maybe I am. But I can

has been so heart-warming to see. Another

assure you that it takes much more than

virtue I admire in my Dad is his respect

just luck to get to where my Dad is. He

for elders. He took exemplary care of my

immersed himself in L&T; sometimes days

grandparents as they neared the end of

would pass before I could see him, leaving

their life journey. To this day, he never

for work before I would wake up and

leaves home without praying to God and

coming home after I had gone to bed. As

his parents photos. He always maintains

he made his way up through the corporate

that one should never forget ones roots no

ranks, his dedication, loyalty and desire to

matter where they are in life.

take L&T to the pinnacle of the corporate

world burned stronger. Family life took a
back seat; weekday, weekend, holiday
were all the same without him because
he would be at work. Despite that, he
always made sure all our needs were met.

He has made careers, touched and changed

lives of so many people in a positive way!
All of this has been possible in part due to
the unwavering support he has at home
in the form of a resilient, self-sacrificing,
loving, caring pillar of strength my Mom!

Even after he became Chairman and CEO

I hope my Dad now finds more time for her,

of L&T, he remained level-headed, caring

for us and for his grandchildren!

and respecting each and every L&T-ite

as his own family. This quality of his has

Pratiksha

I love you,

Pappa

28 | ECC CONCORD, Jan - Mar 2015

ECC CONCORD, Jan - Mar 2015 | 29

Mr. Naik is like Amitabh Bachchan or

some point of time had their fair share

want to leave him at any point of time. We

It is a matter of great pride and happiness

What is noteworthy of him is his visionary

I would like to personally thank our

Dilip Kumar in the field of business and

of opportunities to be mentored by him.

only look forward that Mr. Naik keeps very

that

Chairman

leadership that has forayed into multiple

Chairman Mr. Naik for having chosen me

corporate. He is such a complete person

Personally, Im blessed that for a brief

good health, remains his jovial self, keeps

Mr. A M Naik is completing 50 years of

businesses for L&T. He has been the force

as one of the early mentees to be mentored

that we often feel like pigmies in front

period of about 8 to 9 months I got

leading the company for a long time to

outstanding service in our organization.

behind the creation of a bouquet of

by him which has enabled me to transform

of him. Hailing from a modest family

mentored by him and under his guidance,

come. Today, he has converted Larsen &

Few have achieved what he has achieved.

Independent Companies. By doing so, he

into a leader of his expectation.

background and a vernacular education,

the business we started in transportation

Toubro into a huge conglomerate but as

He has put in a lions share of his personal

has decentralized power, responsibility and

AMN still made it big by virtue of his sheer

infrastructure has grown manifold. The

he rightly says, a lot of milestones are yet

life into this great company for the growth

accountability. This has created enough

grit and determination. Almost 80% of

courage,

and

to be achieved and he now has a mission

of this organization and for the welfare of

focus in the organization which has ushered

Larsen & Toubros businesses today are

dedication which Mr. Naik amply shows

of restructuring the company into a more

its people. Hailing from a modest family

in domestic and international growth. Over

due to AMNs initiatives. He has stuck

inspires the ordinary man to come up and

easily manageable one.

background, Mr. Naik has achieved the

the years, under his leadership, L&T has

tirelessly to a single-minded mission of

make it big in life.

pinnacle of success through sheer hard

been able to create its own brand image

work and grit.

which every L&T-ite is proud to carry on.

building Larsen & Toubro and in the process

forsaken the pleasures of life.
He can claim to have developed quite a

determination,

passion

D. K. Sen

It is difficult for Mr. Naik to come out of

Sr. Vice President & Head

Larsen & Toubro mentally and physically

Transportation Infrastructure IC

our

distinguished

S. Rajavel
EVP & Head
Water & Renewable Energy

but Im sure that Larsen & Toubro doesnt

lot of leaders in their own realm who at

As an organization we owe a huge debt to

to learn in any of the management schools.

and how he overcame his shortcomings

I recall the time when AMN took the reins

of business fair play he had and reinforced

The sense of dynamism and business

AMN. He saved the company from takeover

The mentoring sessions with him are not

in English speaking and built his financial

of leadership in Larsen & Toubro. He was

the fact that nothing was personal and

acumen that he exhibits has infused into

by handling the threats in a very challenging

easy but he handholds you. It reminds me

acumen are lessons for all us. Im sure his

known as a tough task master and in

it is all about business. We were all

us values that he holds dear to his heart.

and innovative way. The ICs are his brainchild

of a doha by Sant Kabir: Guru kumhar

accolades when penned will warrant more

the first few meetings that we had with

flabbergasted when he increased our

Today, the growth of ECC, the growth

which have substantially enhanced the

shish kumbh hai, gadhi gadhi kadhe khot.

than a book. To sum up, he did not found

him, he tore into us on the quality of our

threshold value from ten to twenty corers

of L&T, is only because of his dynamic

growth of the company.

Antar hath sahar de, bahar bahe chot.

this company but saved and redefined it.

presentation and the business sense that

to hundred crores for bidding jobs. We

leadership. He has not only looked after

He is a true living legend.

we displayed. However upon improving our

were wondering as to how we are going

the businesses but also has looked after us

quality, he was the first to acknowledge.

to fill up our basket of order prospects

through the ESOP schemes.

I have been fortunate enough to have been

Under his tough exterior, AMN has a

mentored by him and have learnt invaluable

heart of gold. I remember once when he

M. V. Satish

lessons in vision building, networking,

came to Muscat, he brought gifts for all

Sr. Vice President & Head

It

fighting spirit and perseverance. These are

his personal employees. His progression

Buildings & Factories IC

acknowledged that ECC was the jewel in

some of the things which you will not get

from a junior engineer on the shop floor

was

amazing

when

he

publicly

the crown of L&T. It only showed the sense

but then it elevated our sight to look into

mega orders. In fact, this really gave us the
courage to go after large orders like Riyadh
Metro. And I will always remain thankful to

A. L. Sekar
EVP & Head
Heavy Civil Infrastructure IC

AMN for giving me that courage.

30 | ECC CONCORD, Jan - Mar 2015

ECC CONCORD, Jan - Mar 2015 | 31

Today, an organization like Larsen & Toubro

Mr. A M Naiks proactive thinking and

learn

the

can be associated only with one name

analytical ability is far superior. The way

how

one

of

My first interaction with AMN was when

stop here. It also motivated me to think

visionary and business leader but also an

we made a presentation to him on EDRCs

of establishing a world-class engineering

exceptional HR Guru. His inherent strategic

which is Mr. Naik. He is one of the greatest

leaders and an inspiring force for all us to

Mr. Naik gets into details and grasps even

professionally managed engineer to an

capabilities in our Convention Centre at

team to leverage technology in building

vision and in-built mastery of human

the latest and the smallest change that

entrepreneur leader.

HQ in 2006. For that meeting, we had

design and build business models. This

relationship has brought out growth in L&T

continue in this organization. L&T is in this

can effect this organization are things

position because of his long term vision and

which each one of us should try to learn

arranged PA systems with microphones on

in my view has pushed L&T Construction

through various Independent Companies.

the table. To our surprise, AMN was not

to the forefront by bidding for projects

This has created tremendous value to the

strategic thoughts. He had the foresight

and imbibe. It is really a pleasure to work

that we will be going through an economic

under Mr. Naik because each time we learn

impressed with the mikes on the table citing

greater than a billion USD and also position

shareholders and various stake holders. It

inconvenience in using the conventional

us as a one point solutions provider to the

is important to mention at this point that

downturn and ensured that we diversify

something that can never be acquired

at the right time into different countries

even in our work experience. We would

system and the meeting was immediately

customer.

L&T GeoStructure is his brainchild and it

so that even when the Indian market

have just learnt 10% of what he is trying

T. Madhava Das

just been inaugurated and was equipped

remained sluggish we could make up from

to tell us. We continue to look forward

EVP & Head

with a high end system. This feedback

the Middle East and other countries.

that we will still get opportunities to

Power Transmission & Distribution IC

triggered me to think big while providing

keep

working

under

him

great
can

characteristic
transform

from

Mr. Naiks career is a classic example that

growth in this organization is purely based
on merit. He who started as a junior engineer
rose up the ranks to lead this organization
to its pinnacle of success.

shifted to TC II conference room which had

into a major transformation. He gave me

I dont know where he gets all the energy

people and energizing them into action. I still

a dream and empowerment to go with it

to work tirelessly for the growth of the

remember the day when I spent an hour with

and I knew I will rise to the occasion and do

organization. It is a miracle. He is a great

him at L&T House discussing our strategic

my best to meet his expectations. Indeed,

example of a self-grown leader. We wish

plans and the road map for ramping up the

he is the inspiration behind the successful

that he continues to guide the destiny of

business during my induction into PT&D Gulf.

growth of PT&D in the Gulf. But for his

Larsen & Toubro.

It was a turning point in my life and within

that one hour the entire perspective went

strategic direction and inputs, we would not

have achieved the kind of growth that we
targeted.

J. S. Sudarsan
EVP Special Initiatives

S. Kanappan
EVP & Chief Executive

my journey. Our AMN is not only a great

L&T GeoStructure

I recollect the days when I was at L&T

the Aditya Birla Group increasing their

attempts and could not succeed. We went

House during which two important events

stake and finally they had to accept only

with the third attempt incorporating his

happened. One was the hoarding case and

the Cement Division and left L&T on its

points and during the presentation we

the other was the cement demerger. On

own. Mr. A M Naik pulled off a wonderful

could see that Mr. Naiks proactive thinking

both occasions, L&T was on the defensive

deal which benefited not only L&T but also

was far ahead as he was able to predict the

and but for Mr. A M Naiks leadership,

made several of our employees very happy

outcome and guided us through.

courage and the strategic thoughts which

with the allotment of ESOPs. We are all very

he implemented, the events would have

thankful to him for having achieved this.

definitely resulted in a different way than

Words fail me to express Mr. A M Naiks

what really happened.

leadership quality which bailed L&T out of

During the cement demerger, Mr. A M

32 | ECC CONCORD, Jan - Mar 2015

in the near future.

forward feedbacks which has helped me in

the growing needs of business. It did not

Mr. Naik knows the art of transforming

the period, I have learnt many things

will create value to the parent organization

by way of getting candid and straight

facilities and bring in technologies to fulfill

and

Through my interactions with AMN over

troubled times and led it to greater heights.

Naik took the lead and all the Whole-time

I also recall a presentation made to him

Directors stood shoulder to shoulder along

when we had a small company called

with him and raised serious objections to

LELCOL to be floated. We made two

I heartily congratulate him for relentlessly

working for L&T during the last 50 years.
If you take the number of hours he has
worked, probably he would be touching
close to 100 years of experience in L&T.
B. Ramakrishnan
EVP - Finance & Accounts (Construction)

First of all, I want to congratulate AMN on behalf of our

It is truly heartening. 50 years of purposeful, dedicated

PT&D Middle East team for completing 50 years of service

and fulfilling involvement in our organization is something

in our organization but this commendable feat is actually

great. Such things dont happen that often and it doesnt

more than 100 years of professional effort. He has shown

happen for many also. Im truly proud to have been part of

the same focus and childlike passion for the development

your team during this journey. I have my own description

of the company and its people. Many of us are unware

of what AMN stands for: A is the ability to foresee and

of his philanthropic deeds which he goes about doing

act. M is motivated and motivating. You are truly a

without any public fanfare.

highly motivated person and the excellence achieved is a

I was the Company Secretary at the time when Mr. Naik took over

testimony to that. Regarding motivating others, we cannot

as Managing Director in the year 1999. We met on a daily basis to

forget those days when we were taking a steep take-

discuss matters of importance and as an MD he really took over

off and you made us to think big through the LAKSHYA

the reins of the company. What a remarkable turnaround he has

initiatives. Your leadership is always an inspiring force for

made is something for you people to see.

During his first review of the Middle East business, he

said that we should be present across the market and
not be glued to a couple of countries. With his push and
direction, we looked at Qatar, Saudi and Kuwait and got

us. And N is the never give up attitude that is what AMN

the opportunity to expand this business. Within 5 to 6

is according to me. It is your great effort that has made

years, we could grow to a one billion dollar business by the

L&T to be looked upon as a national company. And this

end of 2013-14 and also become a market leader across

the Gulf.
On the personal side, I had the opportunity to interact
with AMN since 2008. He will always give you a direct
feedback which is parental in nature with the intention of
developing and transforming you into a better leader and
individual. His knowledge bank is so vast and rich and if HR
Department puts efforts to tape all his speeches it could be
used to mould young managers of the future into business
leaders and help the company scale greater heights.
A. Ravindran
EVP & Head Power Transmission & Distribution
(Middle East)

feat has made you become an Industry leader. Naturally

I still vividly remember my first direct interaction with the

the awards, titles and recognition were given to you. We

Chairman during his visit to the GCC. The striking impression

in our organization owe a lot to you and on this occasion

I got to know after meeting him in person was that besides

I think we wish more from you for the nation and for our

his business acumen, how caring a person he is. L&T has seen

organization.

a total transformation and has reached new heights under

Soon after he took charge, he decided to introduce the employee

stock option scheme. He felt that most of the employees at L&T
worked just for the love of it and not by looking at emoluments
because if they had, they would have left the organization long
back for better prospects. I had the privilege of working with
him on developing the scheme and introducing various rules and
regulations. While doing so, I could understand his concern for
the employees and his love for them. He always says, We are the

his leadership. His complete dedication to the organization

K. Venkataraman

emotional owners of this company. Whenever a question arose as

and his passion to keep the companys flag flying high is an

Sr. Vice President (Retd.) - HC & P Sector

to how to frame a rule, it was always in favor of the employee, but

inspiration to all of us.

His move to ring fence the organization from any hostile
takeover will be remembered in Corporate Indias history for a
long time to come. He is a living example of how one can reach
great heights with sheer passion. His knowledge on different
subjects with all the data at his fingertips makes him a walking
encyclopedia. He made us to think big and helped us shift our
mindsets from being sheer technocrats to entrepreneurs.

at the same time, he was also ensuring that any employee who was
walking away from the company did not get undue benefits of the
scheme.
There were some contracts which the company had which were
unfair despite being legally very good. Many of Mr. Naiks colleagues
including myself advised him not to fight the contracts as they
were stacked against the company and the directors. But he said
a firm no and was prepared to fight it out, sometimes even fight
criminal cases at personal levels. We ultimately won them all and

We are truly blessed to have him at the helm of affairs and

the company was freed from huge liabilities for several years. That

are proud to be in the organization which is being led by him.

showed the guts of the man, his vision, his thinking. As for the

I wish him many more years of good health, happiness and

shareholders are concerned, from 1999 onwards till today, I think

continued guidance to the organization.

we have given three bonus issues and generous dividends year after

Shrinath Rao
VP & Head Transportation BU (Middle East)

year. All sections of the society have been taken care of during these
50 years, particularly during the last ten years when he has taken
over as the Managing Director and now he is the Chairman.
Finally, I have to admire that a person at this age has got so much
of energy to devote for the company. He practically lives for the
company. It is impossible for us to get another person like him to
head L&T.
S. V. Subramanian
Vice President (Retd.) - Legal & Secretarial

34 | ECC CONCORD, Jan - Mar 2015

ECC CONCORD, Jan - Mar 2015 | 35

I first met Mr. Naik in Hyderabad at the Hi-

simple and decisive, close and distant,

His understanding of the IT scenario has

tech City while at the TCS booth waiting

passionate and sensitive, personal touch

always been sharp.

to welcome President Bill Clinton in

with a professional relationship, down to

March 2000. AMN, being the charming,

earth to towering, inspirational to be in

aggressive and consummate salesman that

awe, passionately selling the organization

he is, spoke about his dreams for both L&T

to be upfront on the nature of business

and L&T Infotech very passionately. This

deal, managing an old economy behemoth

passion sealed my conviction to join the

to nurturing it into a new economy young

L&T group of companies.

organization, human to humane.

My first day at L&T was made memorable

I have always wondered if only other

in Pali Hill many times over. He straddles

At every key juncture in our journey, Mr. Naik inspired us with his presence

wherein AMN personally welcomed me

business leaders would have been as

from being a simple, earthy person to an

and blessings be it at our golden jubilee celebration in 2012 or the

into the organization at L&T House and

passionate as him 24x7, the landscape of

enigma. His traits are legendary. He looks

inauguration of the state-of-the-art facility at Coimbatore on March 5,

introduced me to senior executives. He

this country would have been different. In

tough, acts tough, is tough but is a very

2015.

intently listened to the strategy presented,

my mind, he was always selling and trying

kind person at heart. He carries the details

asked searching questions and more

to get the best deal for the organization.

of the past with a phenomenal memory be

importantly appreciated the quality of the

L&T Infotech is really fortunate to have

it milestones, actions, incidences, but at the

same a rare honour bestowed.

him as its Chairman. I have never seen a

same time is ready to forgive and forget.

Over the last 10 years, I have been

fortunate to see various facets of AMN

Group Chairman selling the services of

its IT wing as passionately and with so
much conviction, while being a strong
believer in the values of an old economy.

I have had the opportunity to see him at

close quarters as well as from distance.
Interacting with employees, colleagues,
customers, media, families, old L&T-ites, his
family and business acquaintances. I have
heard stories about his interviews with
Mr. Baker in the very house that he lives

L&T Valves has always been very close to Mr. A M Naiks heart and over
the decades he played a key role in every strategic step that we took.
His leadership enabled us to be the first business in the L&T group to
obtain ISO 9001 certification and also the first to implement SAP ERP.
Mr. Naik guided our international market development, expansion into
new location at Coimbatore as well as entry into the higher spectrum
of flow-control technology comprising valves for offshore services and
control valves.

Very few leaders have the acumen to plan at both micro and macro
levels at the same time, and our Group Executive Chairman is a rare
leader who accomplishes this flawlessly. His visionary thinking and his
ability to foresee the emerging trends helped us think big and chalk out a

V. Chandrashekar

strategic plan to achieve it. Even though Valves is a small business in the

EVP - L&T Infotech

vast universe of L&T, Mr. Naik always gave us the time and the strategic
impetus to take us to the next level.
I personally had the good fortune to be mentored by him before I
took over as the head of the Valves Business. He exudes an infectious
enthusiasm and energy and after every meeting with him, I have returned
recharged, richer with new ideas and fresh perspectives. He is an eternal
source of inspiration to me and a role model in every sphere of activity.

I have had several occasions, or would rather define as great opportunities,

of interacting with our Group Executive Chairman. Each interaction has

N. V. Venkatasubramanian

been a learning opportunity of something new for me. He has always

CE & Director, L&T Valves

inspired me as a great leader and encouraged me to keep innovating,

improving and challenging manufacturing processes, driving change to
improve the overall performance by keeping the ultimate customer in
mind.
One memorable moment I keep recalling is his visit to Bangalore
Works during the days when we had undertaken modernization of
the plant with a vision to build 4000 excavators annually. Mr. Naik
supported our approach by asking us to focus on Scale and speed
and also reinforced the conviction saying, Our ability to move ahead
by understanding the market will keep us alive and benefit us at the
right time. These words still keep ringing in my ears and drive me
with more energy.
S. R. Subramanian
EVP & Head Machinery SBG

36 | ECC CONCORD, Jan - Mar 2015

ECC CONCORD, Jan - Mar 2015 | 37

Inspirational quotes are all over the

It was in April 2010 during my stint at the Mumbai International Airport project that I was offered a chance for the position
of Executive Assistant at the Chairmans office. Though I was not nervous, there certainly was some anxiety as I entered the
interview room. Seated amidst a panel of four was AMN who asked me to take my seat in a very casual manner. From then on
I was at ease and was totally myself which got me the coveted portfolio. A few days before I moved to the Chairmans office,
SNS happened to visit our project. He wished me luck and advised me to take this assignment as a part of my learning curve
and assume that I was doing an MBA without going to a B-School. How true indeed!

place. It certainly helps bring about a

sense of confidence for a fleeting few
seconds before triggering the process of
introspection. But being in the presence
of someone, who is an embodiment of
inspiration for so many, brings a sense
of confidence for a lifetime. For me, this

In my short tenure at the Chairmans office, I dont remember a single instance when somebody was not convinced by

person was Mr. A M Naik. Since the day

his response, opinions or decisions. What is more amazing is the respect he commands not just from people within the

I stepped into this organization, Mr. A M

organisation, but from the business circle as well, which includes media, analysts, competitors and senior management of

Naik has always been the face of L&T and an

other large corporates.

inspirational, charismatic leader who I dreamt

Our Chairman believes in utilising every minute that is available. His calendar is ever so dynamic and in any given day his EAs
would receive at least four revisions from his secretary. If a meeting gets concluded half an hour before schedule, he would

of meeting one day, until the call from Mr.

S.N. Subrahmanyan made it a reality.

Services and a Technocrat when it came to

freedom to interact with other directors,

top management of various ICs, and other

find ways to accommodate short meetings before the next scheduled meeting. His energy is boundless and even at this age,

My first major learning was the importance

manufacturing and production business.

he is ever willing to travel long distances on business trips and at times comes in straight to office even if he had flown across

of time, the value of each minute. He

He went on to prove that an accomplished

business houses, which by itself was a rich

demonstrated the remarkable ability of

businessman cannot be restricted by any

learning experience and an opportunity

being able to perceive a situation from

one domain, which marks the difference

to develop various management skillsets.

different angles and take business decisions

between a remarkable engineer and

The whole journey for me has been

within a short frame of time with complete

a successful businessman. He had not

transformational, from that of an Engineer

conviction. I observed his ability to switch

marked any boundaries as his comfort

to an Entrepreneur. As an individual I can

from one thinking hat to another, such as

zone, making his adaptability the reason

only describe Mr. A M Naik as the Leader

an Architect through L&T Realty, an EPC

behind the vast empire of L&T.

of Leaders, and a peoples man!

Mr. A M Naik enthused similar qualities in

B. R. Karthikeyan
Former Executive Assistant at
Chairmans Office

continents, such is his commitment and passion.

The list of things one can learn from him is endless and I consider myself fortunate for having got a chance to work under an
icon for at least 14 months out of the 600 months that he has completed in this great organisation.
Arun Iyer
Former Executive Assistant at Chairmans Office

Contractor through L&T Construction, a

Developer through IDPL, an IT Businessman
through L&T Infotech and L&T Technology

Ever since I started my career with L&T

grooming. Above all, he inspired everyone

as a GET, I was in awe of the towering

to be patriotic and made us ensure that

personality of Mr. A M Naik who was not

L&T remains a company in the National

just a guiding beacon for the company

Sector, always working for the progress of

but also an inspiration for all of us. For

the nation.

the world he was and is the Face of L&T

and one of the most respected business
personalities.

The most important lesson that I learnt,

however, was a life changing one. He
inspired me to move out of my comfort

Even day-to-day interactions with Mr.

zone and personally encouraged me to

Naik had lessons ranging from strategy,

take up challenges which I was unsure of,

business

performance,

both in my professional and personal life.

marketing,

management

leadership,
work

ethics,

personality, confidence, inspiration and

38 | ECC CONCORD, Jan - Mar 2015

us by giving us the opportunity and the

Priyank Kulshreshtha
Former Executive Assistant at
Chairmans Office

ECC CONCORD, Jan - Mar 2015 | 39

Edited by Mr. Vinod Jacob Chacko for L&T Construction from L&T Construction
Headquarters, Manapakkam, Chennai - 600 089. The views expressed in this magazine
are not necessarily those of the Management. The contents of this magazine may not
be reproduced without the written permission of the Editor. Not for sale. Only for free
circulation among employees of L&T Construction and their customers.
40 | ECC CONCORD, Jan - Mar 2015

Editor: Vinod Jacob Chacko

Associate Editor: Gopi Kannan. S
Editorial team: V. Ramesh Kumar | Ashwin Chand | Mayura. K
Photography: V. S. Natanavelu | R. Vijay Kumar
Design & layout: VentureMediaWork.com