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From Wikipedia, the free encyclopedia
ISIN INE018A01030
Industry Conglomerate
Mumbai, Maharashtra
India[2]
Subsidiaries LTIMindtree
L&T Technology Services
L&T Heavy Engineering
L&T Metro Rail
L&T Realty
L&T Shipbuilding
Website www.larsentoubro.com
History
[edit]
Henning Holck-Larsen and Søren Kristian Toubro were in India to represent the
interests of the Danish dairy equipment manufacturer FLSmidth when they founded L&T
through an oral agreement in 1938. The company was legally incorporated in 1946. [7]
The start of World War II in 1939 and the resulting blockade of trade, led Larsen and
Toubro to undertake jobs and provide service facilities. The German invasion of
Denmark in April 1940 stopped supplies of Danish products. The war-time need to
repair, 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. The internment of German engineers in India who were to construct
a soda ash plant for the Tata Group gave L&T a chance to enter the field of installation.
[10]
In 1946, they incorporated Engineering Construction & Contracts Ltd. (ECC) to focus on
construction projects. ECC now exists as the construction division of L&T.[7] By 1947, the
company represented the 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 to market 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]
In 1947, the firm set up offices in Calcutta and Madras 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 ₹22 crore or US$2.6 million in 2023). The sales turnover in that year was ₹1.09
crore (equivalent to ₹120 crore or US$14 million in 2023). In 1956, a major part of the
company's Bombay 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.[10]
During the 1960s, ventures included the Utkal Machinery Limited (UTMAL) (set up in
1960), Audco India Limited (1961), Eutectic Welding Alloys (1962) and Tractor
Engineers Limited (TENGL) (1963).[10]
In 1965, the firm had been chosen as a partner for building nuclear reactors. Dr. Homi
Bhabha, chairman of the Atomic Energy Commission had approached L&T in the 1950s
to fabricate critical components for nuclear reactors.
During the 1970s, L&T was contracted to work with Indian Space Research
Organisation (ISRO). Chairman Vikram Sarabhai chose L&T as manufacturing partner.
[11]
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.[12]
In 1985, L&T entered into a partnership with the 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 Indian government would then assign the
production work to a public sector defence unit or ordnance factory for manufacture.
The firm currently makes a range of weapon and missile systems, command and control
systems, engineering systems, and submarines through DRDO.[11]
Larsen & Toubro established a financial services subsidiary called L&T Finance in
November 1994.[13]
In 2015, the company began developing commercial, retail and office space around
the Hyderabad Metro Rail project.[14]
Major subsidiaries
[edit]
Construction
[edit]
L&T Construction
L&T Metro Rail Hyderabad
L&T Realty
EPC Projects
[edit]
L&T Valves
L&T Energy Hydrocarbon
L&T Power
Technology
[edit]
LTIMindtree
L&T Technology Services
Manufacturing
[edit]
L&T Finance
Digital
[edit]
L&T-SuFin[16]
L&T Edutech[17] Engineering
Other subsidiaries and joint ventures
[edit]
L&T – Construction Equipment Limited: having its registered office at Mumbai, India
and focusing on construction equipment and mining equipment, L&T-Komatsu
Limited[19] 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 world's second largest manufacturer of hydraulic excavators and has
manufacturing and marketing facilities.[20] 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 comprise machinery and hydraulics works, with a
manufacturing facility for design, manufacture, and servicing of earth moving
equipment. 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.[21][22]
L&T has a joint venture with Qatari company Al Balagh group as the main
contractors for the Al Rayyan stadium, the 2022 FIFA World Cup stadium which will
host matches up to the quarter-final.[23]
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.[24]
L&T Special Steels and Heavy Forgings Pvt Ltd. is a joint venture between L&T and
the Nuclear Power Corporation of India (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.[25]
L&T-Sargent & Lundy Limited (L&T-S&L), established in 1995, is an engineering and
consultancy firm in the power sector, formed by L&T and Sargent & Lundy L.L.C. -
USA, a global consulting firm in the power industry since 1891[26][27]
Divestments
[edit]
L&T has across the decades exited from several businesses. These include:
Cement
[edit]
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.[28]
L&T-John Deere
[edit]
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. [29]
L&T Case
[edit]
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.[30]
In 1987, L&T launched the L&T Medical Equipment & Systems division.[31] In November
2012, it was sold to Skanray Technologies Pvt Ltd.[32] 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 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.[33] 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.
In November 2009, Larsen and Toubro (L&T) sold its petroleum dispensing pump
(PDP) business to Gilbarco Veeder-Root, a US-based payments systems company, for
around Rs 150 crore. Gilbarco has signed a definitive purchase agreement to acquire
the business. With the completion of acquisition, L&T's PDP business will become part
of a new division called Gilbarco Veeder-Root India Pvt Ltd.[34]
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.[35]
L&T Mutual Fund was the mutual fund company of the L&T Group. Its average assets
under management (AuM) as of May 2019 is ₹ 73,936.68 crore.[39] On November 26,
2022, L&T Mutual Fund was sold to HSBC.[40]
Larsen & Toubro, signed an agreement to divest its stake in L&T IDPL to a portfolio
company of Infrastructure Yield Plus II, an infrastructure fund managed by Edelweiss
Alternatives in December 2022. The transaction is subject to completion of customary
closing conditions including receipt of applicable regulatory and other approvals.[41]
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.[42] Its global
depository receipts (GDR) are listed on the Luxembourg Stock Exchange and London
Stock Exchange.[42]
Shareholders
[edit]
Employees
[edit]
As on 31 March 2022, the company had 45,615 permanent employees, out of which
2,997 were women and 48 employees with disabilities. At the same period company
had 200,062 workers on contract basis.[44]
L&T ranked 2nd in Top 25 EPC Contractors 2022 in the Middle East List by Oil &
Gas Middle East[45]
L&T ranked 4th in the 2021 LinkedIn Top Companies list, India[46]
In 2021, L&T won the Innovation in Onboarding at the OLX People HR Excellence
awards by The Economic Times HRWorld[47]
L&T Hydrocarbon won the Federation of Indian Petroleum Industry (FIPI)
‘Engineering Procurement Construction (EPC) - Company of the Year’ Award for
2020[48]
In 1997, the Bengaluru Works division was awarded the "Best of all" Rajiv Gandhi
National Quality Award[49]
In 2013, L&T Power received 'Golden Peacock National Quality Award – 2012' at the
23rd World Congress on 'Leadership & Quality of Governance'.[50][51]
L&T ranked at No.22 among World's Best Employers and No.1 in India by Forbes for
2018.
Industry collaboration
[edit]
An agreement has been signed by Nibe Space, a division of Nibe Defence and
Aerospace on 9 September 2024, with Larsen & Toubro, Skyroot Aerospace, Centum
Electronics, AgniKul Cosmos, SpaceFields, Sisir Radar and CYRAN AI Solutions for the
launch of India's first constellation of multi-sensor, all-weather, high-revisit Earth
observation satellites.[52]
See also
[edit]
Companies portal
India portal
Official website
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Divisions & subsidiaries LTIMindtree
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