Larsen & Toubro Limited, also known as L&T is an Indian multi-

national conglomerate headquartered in Mumbai,Maharashtra, India.[4] It was founded by Danish

engineers taking refuge in India, as well as an Indian financing partner.[5]The company has business
interests in engineering, construction, manufacturing goods, information technology, and financial
services, and also has an office in the Middle-East and other parts of Asia.[6]

L&T is India's largest engineering and construction company.[7][8] Described by NDTV in 2013 as a
"bellwether of India's engineering & construction sector",[8] L&T was recognised as the Company of
the Year in Economic Times 2010 awards.[9]

Contents
[hide]

1History

2Operating divisions

o 2.1L&T Realty

o 2.2L&T Technology Services

o 2.3L&T Solar

o 2.4Electrical and Automation

o 2.5Information Technology (IT)

o 2.6Machinery and industrial products

o 2.7EWAC Alloys Limited

3Major subsidiaries and joint ventures

4Corporate re-structuring

5Listing and shareholding

6Employees

7Awards and recognition

8Allegations of bribery

9See also

10Gallery
 11References

12External links

History[edit]
Prior to Indian independence, a company was founded in 1938 Bombay (Mumbai) (British India) by
two Danish engineers,Henning Holck-Larsen and Sren Kristian Toubro. The company began as a
representative of Danish manufacturers of dairy equipment. However, with the start of the Second
World War in 1939 and the resulting restriction on imports, the partners started a small workshop to
undertake jobs and provide service facilities.[10]

Germany's invasion of Denmark in 1940 stopped supplies of Danish products. [10] 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.[10] L&T also started to repair and fabricate ships signalling the
expansion of the company.[10]

The sudden internment of German engineers in British India (due to suspicions caused by
the Second World War), who were to put up a soda ash plant for the Tata's, gave L&T a chance to
enter the field of installation.[10]

In 1944, ECC was incorporated by the partners; the company at this time was focused on
construction projects (Presently, ECC is the construction division of L&T). L&T began several foreign
collaborations. By 1945, the company represented British manufacturers of equipment used to
manufacture products such as hydrogenated oils,biscuits, soaps and glass.[10]

In 1945, the company signed an agreement with Caterpillar Tractor Company, USA, for
marketing earth moving 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 7 February 1946, Larsen
& Toubro Private Limited was incorporated.[10]

After independence, offices were set up in Kolkata (Calcutta), Chennai (Madras) and New Delhi. In
1948, 55 acres of undeveloped marsh and jungle was acquired in Powai, Mumbai. A previously
uninhabitable swamp subsequently became the site of its main manufacturing hub. [10]

In December 1950, L&T became a public company with a paid-up capital of 20 lakhs (2 million
rupees) (2,000,000). The sales turnover in that year was 1.09 crore (10.9 million rupees).[10] In
1956, a major part of the company's Mumbai office moved to ICI House in Ballard Estate, Mumbai;
which would later be purchased by the company and renamed as L&T House, its present corporate
office.[10]

During the 1960s ventures included UTMAL (set up in 1960), Audco India Limited (1961), Eutectic
Welding Alloys (1962) and TENGL (1963).[10]
Operating divisions[edit]
L&T has formed a joint venture with SapuraCrest Petroleum Berhad, Malaysia for providing services
to the offshore construction industry.[11] The joint venture will own and operate the LTS 3000, a crane
vessel for heavy lifting and pipe-laying.

L&T Power has set up an organisation focused on coal-based, gas-based and nuclear power
projects.[12] L&T has formed two joint ventures with Mitsubishi Heavy Industries, Japan to
manufacture super critical boilers and steam turbine generators.[13]

L&T is among the largest five fabrication companies in the world. [14] L&T has a shipyard capable of
constructing vessels of up to 150 metre long and displacement of 20,000 tons [15] at its heavy
engineering complex at Hazira, Gujarat. The shipyard constructs specialised heavy-lift ships, CNG
carriers, chemical tankers, defence & para-military vessels, submarines and other role-specific
vessels.

The design wing of L&T ECC is EDRC (Engineering Design and Research Centre), which provides
consultancy, design and services. It carries out basic and detailed design for both residential and
commercial projects.

L&T Realty[edit]
Main article: L&T Realty

LnT Realty is the real estate development arm of Larsen & Toubro.[16][17] The company operates in
Western and Southern India, constructing residential, corporate office, retail, leisure and
entertainment properties with 35 million sq ft under various stages of development. [18]

L&T Technology Services[edit]

L&T Technology Services, a subsidiary of Larsen & Toubro, is an engineering services company that
operates in the global Engineering, Research and Development (ER&D) space. L&T Technology
Services offers design, development and testing services for the industrial products, medical
devices, transportation, aerospace, telecom and process industries. The company serves customers
across the product engineering life cycle from product conceptualization to implementation. Services
include consulting, design, development, testing, maintenance and to-market integration
services.L&T Technology hits the Indian Capital Marets with its IPO offering 10.4 million share at a
price band of Rs.850 to Rs.860[19]

L&T Solar[edit]
L&T Construction, a subsidiary of Larsen & Toubro, undertakes solar energy projects. In April 2012,
L&T commissioned India's largest solar photovoltaic power plant (40 MWp) owned by Reliance
Power at Jaisalmer, Rajasthan from concept to commissioning in 129 days. [20] In 2011, L&T entered
into a partnership with Sharp for EPC (engineering, procurement and construction) in megawatt
solar project and plan to construct about 100 MW in the next 12 months in most of the metros. [21] L&T
Infra Finance, promoted by the parent L&T Ltd, is also active in the funding of solar projects in India.
[22][23]

Electrical and Automation[edit]

L&T is an international manufacturer of electrical and electronic products and systems. The company
also manufactures custom-engineered switchboards for industrial sectors like power, refineries,
petrochemicals and cement.[24] In the electronic segment, L&T offers a range of metres and provides
control and automation systems for industries.

Medical Equipment.[25]

Information Technology (IT)[edit]

Main article: Larsen & Toubro Infotech

Larsen & Toubro Infotech Limited, a wholly owned subsidiary of L&T, offers information technology,
software and services with a focus on manufacturing, BFSI and communications and embedded
systems. It also provides services for embedded intelligence and engineering .

Machinery and industrial products[edit]

L&T manufactures, markets and provides service support for construction and mining machinery,
including surface miners, hydraulic excavators, aggregate crushers,loader backhoes and
vibratory compactors; supplies rubber processing machinery and manufactures and markets
industrial valves and allied products along with application-engineered welding alloys.[citation needed]

EWAC Alloys Limited[edit]

EWAC Alloys Limited is a wholly owned subsidiary of Larsen & Toubro, India. The company is
engaged in design & development, manufacture and supply of special welding electrodes,
gas brazing rods and fluxes, welding torches and accessories, atomised metal powder alloys, flux
cored continuous wires & wire feeders, polymer compounds & wear-resistant plates.

Prof Wasserman, founder of Eutectic Castolin, and Henning Hock Larsen, founder of Larsen &
Toubro, founded the Eutectic Division in India in the year 1962. Eutectic Castolin was later merged
into the Messer Group of companies, Germany and referred as Messer Eutectic Castolin (MEC). In
2010, Larsen & Toubro Limited, bought the entire stake from Messer to become the wholly owned
subsidiary of it. The current headquarters is in Ankleshwar, Gujarat (India), and the products are sold
under the name EWAC.

Major subsidiaries and joint ventures[edit]

L&T has over 130 subsidiaries and 15 associate companies.[26]
 L&T Kobelco Machinery Private Limited: this is a joint venture of L&T and Kobe Steel of
Japan, to manufacture internal mixers and twin screw roller-head extruder's for the tyre industry.
The company has a factory at Karai Village, Kanchipuram, that manufactures internal mixers
and twin-screw roller head extruder's for the tyreindustry, which commenced commercial
operations on 1 December 2012.

L&T Construction Equipment Limited: having its registered office at Mumbai, India and
focusing on construction equipment and mining equipment, L&T-Komatsu Limited[27] was a joint-
venture of Larsen and Toubro, and Komatsu Asia Pacific Pte Limited, Singapore, a wholly owned
subsidiary of Komatsu Limited, Japan. Komatsu is the worlds second largest manufacturer of
hydraulic excavators and has manufacturing and marketing facilities.[28] The plant was started in
1975 by L&T to manufacture hydraulic excavators for the first time in India. In 1998, it became a
joint-venture. The Bengaluru works comprises machinery and hydraulics works, with a
manufacturing facility for design, manufacture and servicing of earth moving equipment. The
hydraulics works has a precision machine shop, manufacturing high pressure hydraulic
components and systems, and designing, developing, manufacturing and servicing hydraulic
pumps, motors, cylinders, turning joints, hose assemblies, valve blocks, hydraulic systems and
power drives as well as allied gear boxes. In April 2013, L&T bought the 50% stake held by
Komatsu Asia & Pacific. The company's name was changed to L&T Construction Equipment
Limited.[29][30]

L&T Finance: Larsen & Toubro financial services Financial Services is a subsidiary which
was incorporated as a non-banking financial company in November 1994.[31] The subsidiary has
financial products and services for corporate, construction equipments etc. This became a
division in 2011 after the company declared its restructuring [32] A partnership between L&T
Finance and Sonalika Group farm equipment maker International Tractors Ltd in April 2014
provided credit and financing to customers of Sonalika Group in India. [33]

L & T Mutual Fund is the mutual fund company of the L&T group. Its average assets under
management (AUM) for the quarter Jul 2013 to September 2013 was 1,580 crore.[34]

Larsen & Toubro Infrastructure Finance: this wholly owned subsidiary commenced business
in January 2007 upon obtaining Non-Banking Financial Company (NBFC) licence from
the Reserve Bank of India (RBI). As of 31 March 2008, L&T Infrastructure Finance had approved
financing of more than US$1 billion to select projects in the infrastructure sector.[citation needed] It
received the status of "Infrastructure Finance Company" from the RBI within the overall
classification of "Non-Banking Financial Company".
 L&T Technology Services, a subsidiary of Larsen & Toubro, is a global engineering services
company headquartered out of Vadodara, Gujarat, India. It offers design, development and
testing solutions across the product and plant engineering value chain, for various domains
including Industrial Products, Transportation, Aerospace, Telecom & Hi-tech, and the Process
Industries. As of 2016, L&T Technology Services employs over 10,000 workers, across 12 global
delivery centres and has operations in 35 locations around the world. Its clientele includes a
large number of Fortune 500 companies globally.[citation needed]

L&T Valves business group markets valves manufactured by L&T's Valve Manufacturing Unit
and L&T's joint-ventures, Audco India Limited, India and Larsen & Toubro Valves Manufacturing
Unit, Coimbatore as well as allied products other manufacturers. The group's manufacturing unit
in Coimbatore manufactures industrial valves for the power industry, along with flow control
valves for the oil and gas, refining, petrochemical, chemical and power industries, industrial
valves and customised products for refinery, LNG, GTL, petrochemical and power projects. L&T
Valves Business Group has offices in the USA, South Africa, Dubai, Abu Dhabi, India and China,
and alliances with valve distributors and agents in these countries.

L&T-MHPS Boilers is a joint-venture between L&T and Mitsubishi Hitachi Power Systems.
The group specialises in engineering, manufacturing, erecting and commissioning
of supercritical steam generators used in power plants. It is mainly headquartered
in Faridabad with a manufacturing facility in Hazira and an engineering centre in Chennai and
Faridabad. Currently the group is engaged in projects for JVPL, MAHAGENCO, Nabha Power &
RRVUNL.

L&T MHPS Turbine Generators Pvt Ltd: in 2007, Larsen & Toubro and Mitsubishi Heavy
Industries set up a joint-venture manufacturing agreement to supply a supercritical steam turbine
and generator facility in Hazira. This followed a technology licensing and technical assistance
agreement for manufacture of supercritical turbines and generators between L&T, MHI,
and Mitsubishi Electric Corporation (MELCO), headquartered in Tokyo, Japan. In February 2014,
MHI and Hitachi Ltd integrated the business centred on thermal power generation systems (gas
turbines, steam turbines, coal gasification generating equipment, boilers, thermal power control
systems, generators, fuel cells, environmental equipment and so on) and started a new
company as Mitsubishi Hitachi Power Systems (MHPS) Ltd, headquartered in Yokohama,
Japan.

L&T Howden Pvt Ltd is a joint-venture between L&T and Howden to manufacture axial
fans and air pre-heaters in the range of 120-1200 MW to thermal power stations. L&T Howden is
an ISO 9001 and ISO 5001 certified organisation, with a plant located in Surat Hazira and a
marketing office in Faridabad.
 L&T Special Steels and Heavy Forgings Pvt Ltd. is a joint-venture between L&T and NPCIL,
headquartered at Hazira. It is the largest integrated steel plant and heavy forging unit in India,
capable of producing forgings weighing 120 MT each. LTSSHF currently is engaged in projects
from the nuclear, hydrocarbon, power and oil and gas sectors. [35]

L&T General Insurance

In 2015, the company began developing commercial, retail and office space around
the Hyderabad Metro Rail project.[36][37][38][39][40][41]

Corporate re-structuring[edit]
In January 2011, its Chairman A M Naik announced that the company would be restructured into
nine independent virtual companies.[42] with a CEO, CFO and HR head, its own profit and loss
account, and board with at least three independent directors. Each board does not have any legal or
statutory standing,[43] but merely advises management.

The original nine virtual companies which operated in different segments, [44] were subsequently
increased to 12, for which the companies formed are: [45] Building and Factories, Transportation &
Infrastructure, Metallurgical & Material Handling, Power Transmission and Distribution, Hydrocarbon
and Chemicals, Water, Smart World & Communication, Geo-Structure, Power, Infotech, Finance,
Heavy Civil Engineering, and Engineering Services. Hydrocarbon and Chemicals later became a
real company, with independent standings and stocks.

Listing and shareholding[edit]

The equity shares of the company are listed on the Bombay Stock Exchange (BSE) and the National
Stock Exchange of India (NSE). The companys shares constitute a part of BSE 30 Index of the BSE
Limited as well as NIFTY Index of the NSE.[3] Its global depository receipts (GDR) are listed on
the Luxembourg Stock Exchange andLondon Stock Exchange.[3] As on 31 March 2013, Financial
institutions held around 30.5% equity shares in L&T. Over 8.5 lakh individual shareholders hold
approx 24% of its shares.[3][46] Foreign Institutional Investors held approx 16.6% shares. Others held
approx 29% of the shares. Life Insurance Corporation of India is the largest shareholder in the
company with 16.45% shareholding.[citation needed]

Shareholders (as on 31 March 2013) Shareholding[3][46]

Financial Institutions 30.54%

General Public 24.05%

Foreign Institutional Investors (FII) 16.58%

L&T Employees Welfare Foundation 12.09%

Bodies Corporate 07.17%

Mutual Funds 05.56%

GDRs 03.58%

Directors & Relatives 00.43%

Total 100.0%

Employees[edit]
As on 31 March 2013, the company (excluding its subsidiaries) had 54,062 permanent employees,
out of which 2,635 were women (4.87%) and 74 were employees with disabilities (0.14%). During
the FY 2012-13, the company incurred 4,436 crore for employee benefit, including salaries.[3]

Awards and recognition[edit]

In 1997, the Bengaluru Works division was awarded the "Best of all" Rajiv Gandhi National
Quality Award[47]

In 2014 Larsen & Toubro ranked 500 on Forbes list of 2000 worlds largest and most
powerful public companies based on revenues, profits, assets and market value. 54 Indian
companies made it to the prestigious list, and L&T is the highest-ranked company in the
engineering and construction section and 10th among all Indian public and private sectors. [48]
 According to the Brand Trust Report 2012 published by Trust Research Advisory, a brand
analytic's company, L&T was positioned 47th among India's most trusted brands.
[49]
Subsequently, in Brand Trust Report 2013, L&T was ranked 127th among the most trusted
brands in India while according to the Brand Trust Report 2014, L&T was elevated to the 38th
position among India's most trusted brands.[50][51]

In 2013, L&T Power received 'Golden Peacock National Quality Award 2012' at the 23rd
World Congress on 'Leadership & Quality of Governance'. [52][53]

In 2012, Forbes ranked L&T as 9th most innovative company in the world. [6][54] L&T was also
featured in the Forbes Asia's annual 'Fabulous 50' list in 2010, for the fifth time in a row.[55]

In 2012, L&T was ranked 4th by Newsweek in the global list of green companies in the
industrial sector.[56]

In 2013 the Harvard Business Review named L&T's Executive Chairman, A M Naik, as the
32nd Best Performing CEO in the world.[57][58]

Allegations of bribery[edit]
In 2016 The Huffington Post and The Age reported that Larsen & Toubro was involved in the alleged
bribery scandal centered around Unaoil. According to these reports, leaked emails from Unaoil show
that a senior executive at Larsen & Toubro was aware that the company had contracted Unaoil to
bribe a senior official at Abu Dhabi Marine Operating Company for the purpose of winning contracts
worth $400 million. By 2011 Larsen & Toubro had won contracts worth $500 million from Abu Dhabi
Marine Operating Company.[59] The Vice President of Larsen & Toubro has confirmed that Unaoil was
contracted to do some consultancy work, but denies that any payment was made to Unaoil. [60]