LARSEN & TOUBRO

INTRODUCTION
Larsen & Toubro Ltd, commonly known as L&T, is an Indian
multinational conglomerate company, with business interests
in engineering, construction, manufacturing, technology, information
technology and financial services, headquartered in Mumbai. The company is
counted among world's top five construction companies. It was founded by Henning
Holck-Larsen and Søren Kristian Toubro, who were two Danish engineers taking
refuge in India.
As of 2020, L&T Group comprises 118 subsidiaries, 6 associates, 25 joint-venture
and 35 joint operations companies, operating across basic and heavy engineering,
construction, realty, manufacturing of capital goods, information technology, and
financial services.

Trade As : NSE:LT
BSE:500510
BSE SENSEX Constituent
NSE NIFTY 50 Constituent

Industry : Conglomerate
Founded : 7 February 1946; 76 years ago
Bombay, Bombay Presidency, British India
(present-day Mumbai, Maharashtra, India)
Founders : Henning Holck-Larsen Søren Kristian Toubro

Services : Power generation ,Infrastructure Construction, Heavy industry ,IT Services

Rapid transit, Financial Services, Shipbuilding , Real estate Defence
History
Larsen & Toubro originated from a company founded in 1946 in Bombay by two
Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro. The company
began as a representative of Danish manufacturers of dairy and allied equipment.
However, with the start of the Second World War in 1939 and the resulting blockade
of trade lines, the partners started a small workshop to undertake jobs and provide
service facilities. Germany's invasion of Denmark in 1940 stopped supplies of Danish
products. The war-time need to repair and refit and degauss ships offered L&T an
opportunity, and led to the formation of a new company, Hilda Ltd, to handle these
operations. L&T also started to repair and fabricate ships signalling the expansion of
the company. 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 Tatas, gave L&T a chance to enter the field of installation.
In 1946, ECC (Engineering Construction & Contracts) 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 1947, the company represented British manufacturers of equipment used to
manufacture products such as hydrogenated oils, biscuits, soaps and glass. In 1947,
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 equipments 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.
After India's independence in 1947, the firm set up offices in Calcutta (now Kolkata),
Madras (now Chennai) and New Delhi. In 1948, 55 acres of undeveloped marsh and
jungle was acquired in Powai, Mumbai. In December 1950, L&T became a public
company with a paid-up capital of ₹20 lakh (equivalent to ₹19 crore or
US$2.4 million in 2020). The sales turnover in that year was ₹1.09 crore (equivalent
to ₹102 crore or US$13 million in 2020). In 1956, a major part of the company's
Mumbai office moved to ICI House in Ballard Estate, which would later be purchased
by the company and renamed as L&T House, its present headquarters.
During the 1960s, ventures included UTMAL (set up in 1960), Audco India
Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963).
In 1965, the firm had been chosen as a partner for building nuclear reactors.
Dr. Homi Bhabha, then chairman of the Atomic Energy Commission (AEC) had in
fact first approached L&T in the 1950s to fabricate critical components for atomic
reactors. He convinced Holck-Larsen, a friend with whom he shared an interest in
the arts that the company could do it, indeed must do it. L&T has since contributed
significantly to the Indian nuclear programme ... Holck-Larsen was once asked by a
junior engineer why L&T should get into building nuclear power plants when
companies in the US and Germany were losing money on nuclear jobs.  He replied:
'Young man, India has to build nuclear power plants. If not L&T, who will do it?' 
During the 1970s, L&T was contracted to work with Indian Space Research
Organisation (ISRO). Its then chairman, Vikram Sarabhai, chose L&T as
manufacturing partner. In 1972, when India launched its space programme, the firm
was invited to participate.
In 1976, ECC bid for a large airport project in Abu Dhabi. ECC's balance sheet,
however, did not meet the bid's financial qualification requirement. So it was merged
into L&T. ECC was eventually rechristened L&T Construction and now accounts for
the largest slice of the group's annual revenue.
In 1985, L&T entered into a partnership with Defence Research and Development
Organisation (DRDO). L&T was not yet allowed by the government to manufacture
defence equipment but was permitted to participate in design and development
programmes with DRDO. After the design and development was done,the firm had
to hand over all the drawings to DRDO. The government would then assign the
production work to a public sector defence unit or ordnance factory for manufacture.
After a series of successes and positive policy initiatives, the firm today makes a
range of weapon and missile systems, command and control systems, engineering
systems and submarines through DRDO.

Construction
L&T Construction is among the world's top 15 contractors. The business involves the
construction of Buildings & Factories, Heavy Civil Infrastructure, Transportation
Infrastructure, Power transmission & Distribution Infrastructure, Water & Effluent
Treatment plants, Metallurgical & Material Handling Infrastructure and Smart World &
Communication Infrastructure
Buildings & Factories
L&T's buildings and factories (B&F) business undertakes construction projects such as
commercial buildings and airports, residential buildings, and factories. Its track record includes,
400 high-rise towers, 11 airports, 53 IT parks, 17 automobile plants, 28 cement plants and 45
hospitals.  L&T offered to oversee the design and construction of Ram Mandir, Ayodhya free of
cost and is the contractor of the project.
Heavy Civil Infrastructure
L&T's Heavy Civil Infrastructure (HCI) business undertakes projects in the areas of hydel power,
tunnels, nuclear power, special bridges, metros, ports, harbours and defence installations. Its
track record includes 231 km of metro rail corridors, 19.5 km of monorail corridors, 8,315 MW of
hydropower projects and 8,080 MW of nuclear power projects. [] It has a subsidiary, L&T
Geostructure LLP, and two JVs set up for metros in Doha and Saudi Arabia – ALYSI JV Gold
Line Doha Metro and ArRiyadh New Mobility Consortium Riyadh Metro Orange Line.
Transportation Infrastructure
L&T's Transportation Infrastructure (TI) business undertakes projects such as roads, runways,
elevated corridors, railways, etc. Its track record includes 13,500 lane km of highways, 7.49
million sq.m of runways and 3,260 tkm (track kilometre) of railway tracks. It also operates through
subsidiaries such as L&T Oman LLC, L&T Infrastructure Engineering Ltd, and Hitech Rock
Products & Aggregates Ltd.
Power Transmission and Distribution
L&T's Power Transmission and Distribution (PT&D) business undertakes projects involving the
construction of substations, utility power distribution systems, transmission lines and optic fibre
cabling projects. It executes projects in the renewables space, such as utility scale, microgrids
and energy storage. It also operates in the Middle East, Africa and the ASEAN region. Its track
record includes 12,510 tkm of railway electrification, 585 substations, 29,380 MW of E-BoP, and
20,600 ckm (circuit kilometre) of transmission lines.
Water & Effluent Treatment
L&T's Water & Effluent Treatment (WET) business undertakes projects involving water supply
and distribution, wastewater treatment, industrial and large water systems and smart water
infrastructure. Its track record includes 40,000 km of water and wastewater networks and 3,400
MLD (millions of litres per day) of water and wastewater treatment plants.
Minerals & Metals Strategic Business Group
L&T also undertakes projects in the ferrous and non-ferrous sectors, i.e. iron and steel,
aluminium, copper, zinc, lead and mineral beneficiation plants. It offers EPC solutions in bulk
material handling for the coal sector. Its Industrial Machinery and Cast Products business offers
fabrication, machining, assembly and casting products for industries such as chemical, cement,
steel, paper, power, mineral and railways.
Renewable Energy - L&T Solar[
L&T develops concentrated solar power and solar photovoltaic technologies (grid-connected,
rooftop and microgrid). It designs and builds solar power plants. L&T Solar, a subsidiary ,
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. 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. L&T Infra Finance, promoted by the
parent L&T Ltd, is also active in the funding of solar projects in India. It is governed by Rebel
Enterprises.
L&T Technology Services
Main article: L&T Technology Services
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 Markets with its IPO offering
10.4 million shares at a price band of Rs.850 to Rs.860
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 and has
operations in 35 locations around the world. Its clientele includes a large number of Fortune 500
companies globally

Larsen & Toubro Infotech (LTI)

Main article: Larsen & Toubro Infotech
Larsen & Toubro Infotech Limited, a listed subsidiary, owned 74% by L&T, offers information
technology, software and services with a focus on manufacturing, BFSI and communications
and embedded systems.[73] It also provides services for embedded intelligence and engineering.

L&T Smart World & Communication

L&T's Smart World & Communication business vertical is designed to provide end-to-end
solutions as a master systems integrator in security solutions for critical infrastructure: ports,
airports, metros, IT Parks and public buildings. It has built one of the largest surveillance projects
comprising 6000 cameras across 1500 locations in Mumbai, and city surveillance and Intelligent
Traffic Management Systems in Ahmedabad, Gandhinagar and Vadodara. In Jaipur, India's first
smart city, L&T provided smart solutions[ like wi-fi hotspots, citizen information systems and
surveillance cameras.

L&T-NxTIn 2019 L&T announced a new initiative, L&T-Nxt, to focus on new-age technologies
like artificial intelligence and cybersecurity. L&T-Nxt will focus on the areas of artificial
intelligence, internet of things (IoT), virtual reality, augmented reality, geospatial solution ] as well
as cybersecurity and leverage the experience that L&T has garnered over the decades. L&T-NxT
is based on the strength and experience of L&T.
Mindtree[
Main article: Mindtree
In 2019 L&T gained a controlling stake in Mindtree, a global technology consulting and services
company with a share of 60 per cent. The takeover of Mindtree was, at the time, referred to as
the first-ever hostile takeover in the Indian IT industry

International Markets
L&T sharpened its focus on international markets, especially the Gulf, from 2010 onwards. Since
then, from under one-tenth, international business now contributes around one-third to both order
inflow and revenue. L&T has set up a full range of operations in the Middle East catering to the
Gulf and North Africa. Many of the projects are being undertaken through joint ventures with
leading companies based in the Gulf. L&T provides turnkey solutions across key regions: the
Middle East (UAE, Qatar, Kuwait, Oman, Saudi Arabia and Bahrain), Africa (Algeria, Kenya,
Ethiopia and Malawi) and ASEAN (Malaysia and Thailand). The range of work is wide and
varied: high-voltage substations, power transmission lines, extra-high-voltage cabling and
instrumentation and control systems

Divestments
L&T has across the decades exited from several businesses. These include:

Cement
L&T sold its 16.5 million tonne/per year capacity cement division to UltraTech Cement and also
divested its 8.5% stake in A V Birla group company Grasim Industries in 2004

L&T-John Deere
In 1992, L&T established a 50-50 joint venture with John Deere to manufacture tractors in India,
called L&T - John Deere. L&T sold their interest to John Deere in 2005

L&T Case
In 1992, L&T established L&T-Case Construction with CNH Global as a 50-50 joint venture to
build backhoes. In 2011, L&T sold its share to CNH, and the company was renamed Case New
Holland Construction Equipment India

L&T Medical Equipment and Systems

's medical equipment division, known as L&T Medical Equipment & Systems, was established in
1987 In November 2012, L&T sold it to Skanray Technologies Pvt Ltd.Currently, L&T Mysore
division manufactures Single-phase and Three-phase static solid-state Electricity Meters to
various utilities in India. The range of meters varies from residential, industrial, prepayment and
smart meters. there are both whole current and CT operated meters. It also houses a relay
servicing unit.

EWAC Alloys Limited

EWAC Alloys Limited was a wholly owned subsidiary of L&T. The company was 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 L&T,
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, L&T, 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.
L&T sold its entire stake in unlisted subsidiary EWAC Alloys to UK-registered ESAB Holdings for
a total consideration of Rs 522 crore. The share purchase agreement has been executed on 11
October 2017]The acquirer ESAB offers products for welding and cutting process. In 2012, ESAB
was acquired by Colfax Corp., a diversified industrial manufacturing company based in the US.

L&T Kobelco Machinery Private Limited

This was 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. L&T sold its entire 51% stake in L&T Kobelco
Machinery Private to its joint venture partner in the company, Kobe Steel of Japan, for Rs 43.5
crore

L&T Electrical and Automation Ltd.

L&T was an international manufacturer of electrical and electronic products and systems. The
company manufactured custom-engineered switchboards for industrial sectors like power,
refineries, petrochemicals and cement. In the electronic segment, L&T offered a range
of metres and provides control automation systems for industries. In May 2018, the firm signed a
definitive agreement with Schneider Electric for the strategic divestment of its electrical and
automation (E&A) business in an all-cash deal of ₹14,000 crore.The deal was completed on 31
August 2020 after receiving the requisite regulatory approvals. L&T has said that its exit from the
electrical and automation business is a part of its strategic portfolio review process

Listing and shareholding

The equity shares of the company are listed on the Bombay Stock Exchange (BSE) and
the National Stock Exchange of India (NSE). The company's shares constitute a part of the BSE
SENSEX of the BSE as well as the NIFTY 50 index of the NSE.[90] Its global depository
receipts (GDR) are listed on the Luxembourg Stock Exchange and London Stock Exchange.

Employees[
As on 31 January 2022, the company had 55,332 permanent employees, out of which 2,822
were women (5.29%) and 90 were employees with disabilities (0.1012%). At the same period
company had 293,662 employees on contract basis.

Awards and recognition

 L&T ranked 2nd in Top 25 EPC Contractors 2022 in the Middle East List by Oil & Gas Middle
East
 L&T ranked 4th in the 2021 LinkedIn Top Companies list, India
 In 2021, L&T won the Innovation in Onboarding at the OLX People HR Excellence awards by
The Economic Times HRWorld
 L&T Hydrocarbon won the Federation of Indian Petroleum Industry (FIPI) ‘Engineering
Procurement Construction (EPC) - Company of the Year’ Award for 2020
 In 1997, the Bengaluru Works division was awarded the "Best of all" Rajiv Gandhi National
Quality Award
 In 2013, L&T Power received 'Golden Peacock National Quality Award – 2012' at the 23rd
World Congress on 'Leadership & Quality of Governance'.
 L&T ranked at No.22 among World’s Best Employers and No.1 in India by Forbes for 2018.

See also

• L&T Realty

• List of companies of India

• List of oilfield service companies

• Companies portal

• India Portal