Industrial Analysis

1. LARSEN And TOUBRO
(Industry Analysis)
Shipra Tiwari
2013MBA-027
Indian Institute Of Information Technology And
Management, Gwalior

3. CONTENTS
• Introduction
• Company Profile
• History
• Vision
• Organization Structure
• Product Line
• Nation Network
• Global Presence
• Industrial Analysis
• Conclusion

4. WHY LARSEN AND TOUBRO?????

5. Introduction
• Larsen & Toubro Limited (L&T) is a technology,
engineering, construction and manufacturing
company.
• One of the largest and most respected
companies in India's private sector.
• An Indian multinational conglomerate
• Considered to be the "bellwether of India's
engineering sector.

6. Company Profile
• It was founded in Mumbai in 1938 by two Danish
engineers, Henning Holck Larsen and Soren Kristin
Toubro.
• Headquarter is in: L&T House, Ballard Estate,
Mumbai, Maharashtra, India
• Area served :India, Middle East, East Asia and South
East Asia
• Traded as: NSE
BSE
BSE SENSEX Constituent
• Revenue :US$ 14 billion

7. Contd…
• Operating income: US$ 1.488 billion.
• Net income: US$ 907 million.
• Total assets: US$ 22.84 billion
• Total equity: US$ 5.978 billion
• Employees :45,117

8. LOGO
• Designed by a Danish engineer - Otto Hansen
in the early 40's when L&T began its foray into
manufacturing.
• It has come to be associated with the values
that the Company stands for - quality, trust
and reliability.
• Tagline: “ITS ALL ABOUT IMAGINEERING”

9. • 1938-1940 1944-1946 1964-73 to 2013
(Up to the Second world war) (Till the Company was Born) (Becoming the leaders)
• 1946-1956: L&T became a Public Limited Company
HISTORY
Early Days Journey
Expanding
Horizons

10. Quick Facts
• Divisions: Technology, engineering, construction,
manufacturing
• Type: Public
• Industry: Conglomerate
• Subsidiaries: L&T Infrastructure Finance Company
L&T MHI,
L&T Infotech
L & T Mutual Fund
L&T Finance Holdings
• Website: www.larsentoubro.com

12. Organization Structure
• K. Venkataramanan
(CEO & MD)
• A. M. Naik
(Executive Chairman)
• R. Shankar Raman
(Chief Financial Officer)

14. Service Line
• Hydrocarbon
• Heavy Engineering
• L&T Construction
• Power
• Electrical and Automation
• Machinery and industrial Products
• Information Technology
• Financial Services
• Shipbuilding

15. Service Length

17. N

18. Global Presence

19. Industrial Analysis
• L&T – A winner till date, but is it efficient??
• One of India's leading
engineering companies .
•Provides EPC solutions to all
major engineering Verticals
•10 Year X-ray: Green
•Long term future projects: Green
Short Term Future : Orange
•To be a Winner in future, L&T
needs to get rid of its operational
efficiencies.
•Yes, L&T is an investment Worth
company but only at right time.
CURRENT FINANCIALS
Net sales: Rs 37013 Cr.
Net profit: Rs 3315 Cr.
Net Profit Margin: 9%

20. What does L&T’s past say??

21. Performance
• L&T registered a top line growth but a fall in
profits mainly due to:
a) Subdued performance from its E&C
department
B) A higher interest and depreciation cost

22. Future Opportunities
• Witnessing an increase in order inflows since the
past few years.
• Expecting a healthy order book of Rs 100239 Cr.
• Begged 2 projects worth Rs 1200 Cr. from ONGC to
set up additional processing units.
• Planning capacity expansions and improvement in
manufacturing facilities at Hazira and coimbatore.

23. Weakness
• Since the last two years, it has a huge amount
of cash locked up.
• Company is almost operating at the cost of the
suppliers-e.g.- L&T Shipbuilding.
• Operational efficiencies
• Strong Hierarchal process.
• Company is facing execution issues or even
quality problem.

24. Conclusion
• L&T is one of the leading player in Indian
industry.
• Poised for good growth in future considering
the got focus and spending on infrastructure,
power and its strategic plans.
• But it needs to work on a plan to manage its
operational efficiencies.

25. WE BUILD THE NATION WHERE YOU LIVE!!!!
CONQUERING THE WORLD!!!!