OUR PEOPLE

 
L&T is home to one of the country's most elite engineering talent pools. Our people are the
pillars of strength upon whom all our endeavours and successes rest. For us our employees
are not people who work for us but people we work with to build a better, more sustainable
future.
 
TALENT MANAGEMENT
Talent attraction, motivation and retention find prime focus at L&T. Manpower
categorisation differs in certain business units as L&T has diverse nature of
operations. Talent management initiatives to meet the challenges of skill
upgradation, remuneration and career aspirations of talent include structured
induction paths, capability building programs, focussed training, differentiated
reward systems, career progression plans, leadership development programs and
succession planning.
Productivity and job satisfaction are a result of matching individual capabilities
to job profiles. We have implemented an efficient skill matching system which
includes a 'Position Clarification' exercise. We record the skill matrix of team
members and match it with suitable requirements across the organisation. This
serves a dual advantage - it enhances the motivation quotient of the team and
helps us harness the full potential of our talent pool.
We encourage an open and constructive dialogue with employee
representatives. There is regular ongoing consultation between the organisation
and its employees as all our unionised employees are covered by collective
bargaining agreements.
The minimum notice period being governed by the terms of employment as
stated at the particular level, as well as in the collective bargaining agreement.
These best practices and consistent focus on creating symbiotic growth has once
again resulted in a retention rate of over 90%.
 
 TRAINING
Our success depends on our people. We therefore continuously invest in
improving employee skills, capacities, commitment and motivation through
comprehensive training programs.
Considering the scale and the diversity of our workforce our challenge lies in
appropriately identifying and addressing the training needs of each and every
employee. At L&T, identification and communication of individual training
needs is an integral part of the regular performance and career development
reviews.
Based on inputs from these reviews our human resource department draws up
an annual training calendar. The training programs span a wide variety of
disciplines and include management development programs such as
communication and presentation skills, programs on finance, analytical skills as
well as technical training through external and internal faculty. The training
sessions for workers are provided both on the shop floor and in the class rooms
to create a perfect balance of theory and practical applications.
We also partner with reputed technical institutes like IIT - Madras and Delhi, as
well as the National Institute of Construction Management & Research
(NICMAR), among others to enable our talent pool to remain on the forefront of
the latest developments in the field of engineering.
 
TALENT ACQUISITION
We are constantly adding fresh talent to our pool from a variety of sources. This
year too we brought in high caliber human resources in the areas of project
management and execution, manufacturing, engineering, marketing, finance,
human resources etc.
To augment our talent acquisition, we actively participated in academia-industry
interface and continued to invest in the L&T brand across campuses.
We inducted young blood from premier engineering and management campuses
across India. Talent was also absorbed from Larsen & Toubro Institute of
Technology (LTIT) that conducts diploma courses for employees' children. 

We have also undertaken initiatives like an e-learning portal and Any Time
Learning (ATL) to facilitate easy paced, convenient and need based self
learning by employees on a number of subjects. To encourage employees to
train and upgrade their skills we have also made a provision of sabbatical
periods with guaranteed return to employment.
Training programs span across their entire career. Programs are conducted for
skills management and lifelong learning that support the continued
employability of employees. We also go beyond and extend counselling and
training which assists them in making post retirement financial plans and an
effective transition to a non-working life.
 
 BUILD INDIA
The Build India Scholarship (BIS) is an initiative introduced by L&T in
collaboration with IIT - Madras and Delhi. The scheme entered its 11th year in
July 2009.
Its objective is to sponsor fresh, deserving engineering graduates interested in
pursuing M. Tech in Construction Technology & Management. Over the last
decade, L&T has built up a strong community of more than 400 BIS Scholars
who have contributed to the educational, technological and social development
of the country through various nation building activities.
 
 EMPLOYEE BENEFITS
We offer benefits like the provident fund, family pension, gratuity and
superannuation fund, the last two being fully funded in accordance with
actuarial valuations. Other benefits offered include transport to workplace,
subsidised canteens, medical benefits, welfare activities and counselling. LTIT
offers 4-year industry integrated diploma courses exclusively for the children of
employees and deceased employees.
 
ENRICHING WORK ENVIRONMENT
We are conscious of the fact that our employees dedicate their most productive
years towards our success. In return we have created an ambience to ensure
their professional and personal development. We are building a more positive
work environment through a host of initiatives like developmental workshops,
talks, activities and training programs directed towards enhancing employee
engagement and empowering them to lead a more fulfilling life. These
programs are divided under three categories:

Enhancing Wellness and Well-being

Enrichment sessions are conducted for employees on various topics like team
building, lifestyle modification, family life education, diet & nutrition and self
management
. 
Promoting Life Skills
Here we focused on strengthening interpersonal relationships through sessions
on parenting, personality development, mental health & well-being, managing
emotions, enriching relationships & married life and creativity & thinking skills
along with sessions for parents whose children are appearing in board exams or
going abroad for higher studies.

Creating a Vibrant Workplace

We engage employees through various workshops on dramatics, origami and
music; and camps on personal grooming and corporate dressing along with a
number of women-oriented events like Mangala Gaur, international women's
day, Dandiya Raas, traditional day, Rangoli competitions etc.
 
 OCCUPATIONAL HEALTH AND SAFETY
Safety continues to get our unremitting attention. Our safety strategy is to
nurture a zero accident culture and to reinforce it with fail-safe procedures, the
best protective gear and vigilant inspection. It is our commitment to provide a
clean, safe and healthy workplace and to enlist the active support of all
employees in achieving these ends. The EHS department conducts awareness
programs, mock drills, first aid training, safety induction program, safety audits,
occupational disease control and periodic medical check up for workmen
engaged in hazardous operations. Safety committees with 50% workforce
representation are in place across operating locations. In addition, safety review
committees closely monitor and provide guidance on occupational health and
safety programs at Plant (facility) level and Company level.
 
 SAFETY TRAINING
 Safety training has always played an important role and numerous
courses have been held over the years in order to train personnel
both in general concepts and in risks which are specific to the sector.
 We have well-equipped training centres to conduct safety training
for workmen and staff in a classroom setting. These are organized
regularly for contractor's employees as well. The training topics
include use of protective gear, first aid, emergency evacuation and
preventive practices for specific high-risk activities.
 We conduct training sessions through professional safety
organisations to help various business units in enhancing safety
conditions at their respective workshops.
 
 PRECAUTIONS
 Our units remain alert and proactively identify potential hazards
and reduce risks. New projects / expansion plans are reviewed by
Corporate and / or Divisional EHS experts. The engineering control
measures are designed at this stage and installed during the
implementation of the project.
 A complaint mechanism is in place to ensure that unsafe
conditions and work practices, if any, are reported for necessary
action by the EHS department.
 
 MONITORING
 We encourage recording and investigation of all incidents (near
miss, dangerous occurrences). Accidents are recorded and
investigated by trained managers (including the Unit EHS Manager) to
identify the root cause and recommend measures to prevent
recurrence. All statutory reporting requirements are strictly complied
with.
 Best practices are shared with external agencies such as British
safety Council, National Safety Council, safety consultants and other
government agencies.
We have fully equipped occupational health centres in all campuses manned by
specialists. At most locations, we have fully equipped ambulances. We also
have a well-established setup catering to employee needs for preventive,
curative and occupational health problems.
Counselling by trained professionals ensure the mental and emotional well
being of employees. We carry out regular health check-ups for chronic diseases,
annual health check-up of all canteen employees and immunisation of food
handlers / employees. Our in-house medical facilities are complemented by tie-
ups with nearby hospitals for emergency medical services.
L&T is amongst the first corporates to articulate a policy on HIV/AIDS. We
continue to conduct awareness programs on HIV/AIDS for members of the
community.
Even as we aim to attain a zero accident rate and create a safer working
environment for all our employees, accidents do take place. The declining
accident trend is evidence that our efforts are yielding encouraging results. But
we remain ever vigilant and safety conscious.
 
 PROJECT SITE PRACTICES
Safety is at the top of the daily checklist at every site, to ensure that we do our
best to protect our most valuable assets - our people.
Each day site safety engineers and execution engineers conduct tool-box talks
on safety methods. EHS committees are formed to monitor and advise on
Occupational Health and Safety programs at project sites. These assessments
bring out any safety-related risks that can impact the success of a project.
The sheer scale and expanse our project sites represents a unique challenge.
The Construction Division employs (direct / indirect) about 2 lakh workmen at
various sites. In 2008-09 there were 39 fatalities. To add to the complexity, even
the workmen turnover at the sites is very high due to the nature of the industry.
To combat these risks, every workman entering the site is screened and has to
undergo skill, experience and attitude tests to determine his/her safety quotient
for the assigned activity.
To facilitate enhanced focus on safety and to achieve an injury-free workplace,
the Construction Division has taken significant steps:
 Increased capital outlay to mechanise operations particularly in
high-risk areas.
 Intensify safety training.
Knowledge is the best prescription for safety. At L&T, workmen across
manufacturing locations and sites are trained on various aspects related to
Occupational Health and Safety,
 Importance of EHS in operations
 Defensive driving
 Legal requirements
 Typical construction hazards and precautionary measures
 Precautionary measures during radiography
 Safety while working at height
 Safety during material handling
In addition to above programs, necessary instructions are given to cover aspects
of health, personal hygiene and sanitation during induction. Formal agreements
with trade unions cover aspects related to personal protective equipment, joint
management - employee health and safety committees, participation of worker
representatives in health and safety inspections, audits and accident
investigations, training and education, complaints mechanism and periodic
inspections.
 
 DIVERSE AND EQUAL OPPORTUNITY
Our diverse workforce is a melting pot of different talents and viewpoints from
across the country, that enriches our business and work culture.
We promote diversity and provide equal opportunities for development of all
the people deployed in our operations. Job openings within the organisation are
announced through internal communication channels. Meritocracy governs all
aspects in recruiting and rewarding employees.
We comply with the equal remuneration act and meet all statutory & regulatory
norms regarding wages & benefits.
We do not engage in or support direct or indirect discrimination in recruitment,
compensation, access to training, promotion, termination or retirement based on
caste, religion, disability, gender, age, race, colour, ancestry, marital status or
affiliation with a religious or ethnic group. No incidents of any such
discrimination were reported at any of our locations during the reporting year.
Considering the nature of our operations, the proportion of women in our
workforce is relatively low. Yet we remain strongly committed to gender
equality in the workplace.
 
 HUMAN RIGHTS
L&T is committed to abiding by an open and fair industrial relations policy. We
are dedicated to upholding the applicable rules and regulations that have been
set out to guarantee basic human rights.
Systems are in place to ensure business agreements are in compliance with the
statutory requirements which in turn address human rights issues.
We honour all local laws and uphold the spirit of human rights as enshrined in
existing international standards such as the Universal Declaration of Human
Rights and the Fundamental Human Rights Conventions of the ILO.
It is ensured that the subcontractors & their workmen undergo screening for
their age and are given induction training on eligibility of pay and benefits.
During the reporting period there was no incident where an employee's right to
freedom of association was violated. Within our operations, relations remained
cordial and there was no risk to collective bargaining.
L&T does not permit child and forced labour. This rule is also extended to
vendors and contractors working within our premises. While selecting and
evaluating significant suppliers and contractors, we follow processes that
examine human rights practices.
Clauses pertaining to human rights relevant to operations are included in the
induction training program material to appraise all employees about our HR
practices and procedures.
Security personnel including those employed by customers at project sites are
made aware of human rights principles and requirements.
Our manufacturing facilities fall under marked industrial zones. There was no
incident of violations involving rights of indigenous people.
 
 WELFARE OF WORKMEN
In the construction Industry a large number of workmen relocate and many of
them stay together in makeshift temporary accommodations with compromised
living conditions near the construction site.
The welfare of our workmen is a prime responsibility for L&T and we therefore
ensure that our workmen across major sites are provided comfortable living
facilities and a safe, healthy and engaging environment.
Delhi International Airport (P) Ltd. (DIAL) is one of our major project sites,
which employs approximately 20,000 workmen. We have constructed a colony
for these workmen comprising of all basic amenities like sewerage, sanitation,
electricity, drinking water and medical services.
 
FACILITIES PROVIDED IN THE COLONY INCLUDE:
Medical Centre: A full-fledged 10 bed medical centre with qualified doctors, 5
ambulances and paramedical staff has been provided to take care of the workers'
health. Round-the-clock free health check-up facility and medicines are made
available.

Drinking Water: 24x7 supply of drinking water is provided at sufficient places

across the colony and the water quality is checked regularly.

General Stores: 10 general stores have been opened where workers can shop
for their daily requirements within the colony itself.

Solid Waste: The solid waste generated from the colony is collected in special
plastic containers and recyclable materials are subsequently segregated.

Electricity: Round-the-clock electricity facility is available in the colony.

Safety: Fire extinguishers & fire buckets are installed at all strategic locations.
Safety marshals too have been deployed at prominent locations.

Security: The colony is fenced and security guards are deployed at entry and
exit points. Identity cards have been provided to all the workers. Public
announcement systems are available for any emergency use.
Environment: Ambient air, drinking water and noise are regularly monitored.

Waste Water Treatment: Three Sewage Treatment Plants have been

constructed to treat the wastewater generated from the colony. This treated
water is reused for dust suppression within the project area.
 
 KEY BENEFITS
 Home away from home
 Ease of access to project site
 Improved productivity
 Enhanced safety
 Unity and high morale among workmen
 Improved lifestyle of workmen

Cm message

 
I am happy to present our second Sustainability Report. We at L&T view
'sustainability' as an inseparable part of doing business, and have all along
ensured that our business agenda today does not compromise the interests of the
future. For us 'sustainability' is not just 'survivability' but 'thrivability'. During
this difficult period, we not only overcame challenges but transformed some of
them into opportunities to post an impressive performance across the triple
bottom line. Throughout the year, we responded by seeking progressive
platforms that would provide sustainable growth, and future-ready technologies;
we fostered a work culture to inspire innovation, speed and efficiency. We
continued to fulfill our social responsibilities and lay the foundations for a
sustainable future.
In our sustainability journey, the biggest milestone we crossed during the year
was the formulation of concrete targets and timelines in specific areas like
energy & water conservation, training & skill development, safety, health and
people engagement. Each Operating Division is committed to achieve these
sustainability targets. We have also extended the scope of the report to cover
additional locations including operations of L&T Infotech.
 
 OUR SUSTAINABILITY LEVERS
 
At L&T, we have adopted a twin pronged approach to the practice of
sustainability. As India's leading Engineering & Construction Company, we
believe that the greatest contribution we can make through our sustainable
efforts is to develop 'sustainable infrastructure' and a 'sustainable product
portfolio'. In an effort to develop sustainable infrastructure we have ingrained
environmental enhancement, resource conservation, pollution
prevention/control and waste management techniques into our business
processes. We have invested extensively in setting up manufacturing facilities
for cleaner and sustainable energy generation equipment, such as Supercritical
boilers & turbines and forgings for nuclear and hydrocarbon reactors. Plans are
also underway to tap into more renewable energy sources such as Solar. We are
also minimising the environmental impact of our existing products by becoming
more resource efficient and introducing sustainable practices across the product
life cycle. Through stringent monitoring of activities at project sites and
manufacturing locations we are working towards reducing our carbon footprint.
Our vision is to become a technological growth engine that will power the
country's future across core sectors such as infrastructure, defense, aerospace
and nuclear energy.
 
 SUSTAINABILITY - A HUMAN ASPECT
Talent is the most critical resource today and nurturing it occupies our
undivided attention. We lead and empower this resource to perform at peak
potential. L&T continues to remain a sustainable and stable career destination,
despite uncertainty in the employment market.
We employ an integrated approach to develop employees. We help them
progress professionally and personally through capacity building, training
programs, career planning, constant feedback and appreciation.
Strong emphasis is laid on identifying and honing potential leaders. By
creating a team of leaders we are not just building our talent pool but also
augmenting the talent quotient of the industry.
 
 LAYING THE FOUNDATION FOR A STRONGER SOCIETY
India is a constellation of cities, towns and villages categorised by isolated and
uneven growth. This growing divide between the rich and poor economies has
serious social implications for the country. It is imperative that India aims for
inclusive growth. On our part, we are leveraging our countrywide presence and
capabilities to reduce disparities through specific interventions in education and
healthcare. Our regular and close interactions with the local community
members have enabled us to identify their pressing needs and we have
strategically aligned our interests with those of the community. We view skill
building and training as the most potent means of empowerment. Our
'Construction Skills Training Institutes' provide the unemployed rural workforce
access to certified training and thereby helps them increase their employability
and secure a livelihood. We are also working in close coordination with several
state governments including Gujarat, Rajasthan and Maharashtra to extend the
reach and coverage of our skill building initiative.
As part of another social initiative, we reached out to over 170,000 mothers and
children across India through our health centres and programs to ensure they
receive regular medical attention.
A thrust area this year was 'harnessing the power of our employees as change
agents' and in response our employee volunteering movement L&Teers -
gathered further momentum.
 
 THE FUTURE
We are aware that the coming times can hold challenges of unexpected
complexity, and we are proactively taking steps to be future ready. We will
actively strive to play a leadership role in sustainability by constantly seeking
alternative growth platforms, accentuating our efforts to develop the
competencies and attitudinal skills of our people. The values that form the
foundation of our business practices are part of our heritage, and we are
committed to carry them forward. We will harness sustainability drivers in our
unique way to create an organisation that will innovate and lead. We encourage
active involvement of all our stakeholders as we march ahead in our
sustainability journey.
 EBG customer interaction centre provides a single window to the
customers and ensures that all queries and complaints are promptly
attended to.
 E&C captures customer's feedback through steps defined in the
DACP - Departmental Activity Control Procedures and SOPs -
Standard Operating Procedures, which are as per requirements spelt
out in the ISO 9001 system manual.
A. M. Naik
Chairman & Managing Director