L&T to carve out 12 new subsidiaries
L&T, is restructuring its operations. The company plans to carve out 12 subsidiary companies with focus on its existing and emerging businesses.business Updated: Aug 29, 2008 20:45 IST
Engineering and construction giant, Larsen &Toubro (L&T), is restructuring its operations. The company plans to carve out 12 subsidiary companies with focus on its existing and emerging businesses.
“These 12 companies will help us focus on our diversified businesses, help us create leadership and nurture talent,” said A M Naik, chairman and managing director, L&T at the company’s annual general meeting in Mumbai on Friday.
The company had undertaken project Lakshya, which had envisioned a structure with greater alignment to industry and customer segment. Each of the 12 operating companies will be responsible for its own strategic and operational decisions and performance.
To ensure greater empowerment each operating company will have independent support function such as finance and accounts, HR, supply chain management, corporate centre etc. “This new structure is expected to provide a platform for sustained value creation,” he added.
The companies will include L&T’s highly profitable engineering construction and contract (ECC) business.
The company’s foray into nuclear power generation related activities would also be a part of these companies. L&T expects Rs 60,000 worth of new orders this year, Naik said at the meeting.