Last Updated on October 23, 2023 by BFSLTeam BFSLTeam
Larsen & Toubro Ltd. (L&T) is a prominent entity in India’s corporate world. From its early days to now, L&T has grown side by side with the nation, helping to build India’s modern structures and industries. Founded before India’s independence, this company is a symbol of hard work, vision, and determination. It’s more than just a business story; it’s a tale of two determined founders, India’s growth, and the positive change brought to many people and communities. As we explore the different aspects of this company, it’s clear that understanding Larsen & Toubro Ltd. means understanding a key part of India’s growth story.
Table of Content
About Larsen & Toubro Ltd.
| Parameter | Detail |
| Founder | Henning Holck-Larsen and Søren Kristian Toubro |
| Industry Type | Conglomerate |
| Year Founded | 1938 |
| Headquarters | Mumbai, Maharashtra, India |
| Key People | A. M. Naik (Group Chairman), S. N. Subrahmanyan (CEO & MD) |
| Countries Operational In | Over 50 countries |
| Market Cap | ₹4.10 trillion |
| Total Employees | 245,677 |
Overview of Larsen & Toubro Ltd.
Larsen & Toubro Ltd. (L&T) is a renowned conglomerate based in Mumbai, Maharashtra. Established over eight decades ago, L&T has played a crucial role in India’s infrastructure and industrial growth. With operations in over 50 countries, its influence extends beyond India to the Middle East, Africa, and the Asia-Pacific. Their diversified interests span construction, IT, manufacturing, and financial services. Beyond business, L&T is committed to sustainability and community welfare, often engaging in corporate social responsibility initiatives. Awards have often acknowledged their contributions, emphasising their outstanding performance in multiple areas. To conclude, L&T stands as a symbol of progress, innovation, and social contribution.
Also Read: L&T Finance Holdings Q2 Results
Evolution of Larsen & Toubro Ltd.
1938: Two young and ambitious Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro, founded Larsen & Toubro. It began as a humble partnership firm in Mumbai. They first started by importing machinery from Europe for onward sales in India.
1940s: During the Second World War, L&T faced challenges with imports due to the war restrictions. This led to the company manufacturing dairy equipment locally, marking its maiden venture into the manufacturing sector.
1944: The company sets up its first workshop in Mumbai, marking its transition from trading to manufacturing.
1950: L&T transforms from a partnership firm to a Public Limited Company.
1960s: L&T started to set up multiple manufacturing facilities across India. They established a manufacturing plant in Powai, Mumbai.
1970s: L&T started producing indigenously designed critical machinery for core sectors. It played a vital role in setting up India’s nuclear power and space research programs.
1980s: L&T formed a partnership with the Defence Research and Development Organisation (DRDO). The government had not granted L&T permission to produce defence equipment. However, L&T was authorised to join design and development initiatives with DRDO.
1990s: Recognising the digital future, L&T established L&T Infotech to provide information technology services globally.
2000s: L&T expanded its global footprint with operations in the Middle East, Africa, and Asia-Pacific regions.
2011: Larsen & Toubro established L&T Hydrocarbon Engineering, aiming to provide EPC services for the oil and gas sector.
2012: The company delves into solutions for Smart Cities, Security Solutions, and Communication.
2019: In a landmark move, L&T acquired a significant stake in IT services company, Mindtree, reinforcing its interest and stake in the digital transformation world.
2020: L&T launched the final offshore patrol vessel for the Indian Coast Guard and clinched two risk management awards from CNBC TV18.
2021: L&T Hydrocarbon Engineering won the “EPC – Company of the Year” award.
2022: L&T secured orders for its hydrocarbon, transportation infrastructure, and water treatment businesses, and also acquired Chiyoda’s stake in LTC for Rs 75 cr.
Also Read: State Bank of India
Major Subsidiaries of Larsen & Toubro Ltd.
Diversification has been a key strategy for L&T, leading to the establishment of several pivotal subsidiaries:
- L&T Infotech: A jewel in L&T’s crown, L&T Infotech marks the company’s visionary approach to the digital future. Offering a wide range of services from AI, analytics, and IoT, this subsidiary is a leader in providing technology-driven solutions. Their commitment is not just to provide IT solutions but to transform businesses and help them adapt to the constantly evolving digital environment.
- L&T Finance Holdings: Beyond brick and mortar, L&T’s expertise extends to the world of finance. L&T Finance Holdings showcases the conglomerate’s versatility, providing a wide range of financial services. Be it rural finance, housing finance, or even wealth management, this subsidiary operates with the principle of creating value and promoting financial inclusiveness.
- L&T Metro Rail: Urban transportation is vital in today’s fast-paced world. L&T Metro Rail, a subsidiary of L&T, showcases the company’s commitment to enhancing city infrastructure. By establishing transportation networks across major Indian cities, it not only simplifies daily commutes but significantly contributes to reducing urban carbon footprint.
Also Read: Reliance Industries Ltd.
Major Acquisitions by Larsen & Toubro Ltd.
L&T’s growth hasn’t solely been organic. Strategic acquisitions have played a key role in the expansion and diversification of the company. By integrating new businesses and technologies, L&T has ensured it remains a step ahead in its respective industries. Here’s a glimpse into some significant acquisitions:
- Mindtree: One of the major headlines in the corporate world was L&T’s acquisition of Mindtree. This was not just a business transaction. It signified L&T’s vision to have a more profound presence in the IT domain, using Mindtree’s expertise in digital transformation and cloud services.
- PowerupCloud: One of the recent acquisitions by L&T is PowerupCloud. A prominent cloud consulting company, PowerupCloud specialises in solutions related to cloud platforms. This acquisition was significant for L&T Infotech, a subsidiary of L&T, to strengthen its cloud capabilities. Given the growing dependence on cloud technology in modern businesses, acquiring PowerupCloud showcased L&T’s commitment to staying updated in the rapidly evolving IT landscape.
- Audco India: L&T’s acquisition of Audco India showcased its strategic aim to become a major player in the valve manufacturing industry. While valves may appear to be straightforward devices, their significance spans across numerous sectors. With this acquisition, L&T positioned itself as a market leader, ensuring top-notch quality and innovation in this crucial industrial segment.
Products/Brands under Larsen & Toubro Ltd.
Larsen & Toubro Ltd. (L&T) not only drives multiple sectors but also shelters several iconic brands under its vast umbrella:
- L&T Realty: Beyond the concrete and steel, L&T Realty represents the company’s vision of building harmonious living spaces. These properties, whether residential or commercial, are carefully designed. The focus is not just on impressive architecture but also on sustainable building practices that contribute to a healthier environment. L&T Realty’s projects consistently display innovative features, transforming urban areas into communities that are both vibrant and eco-friendly.
- L&T Valves: Essential to several industries, L&T Valves are not just products but integral components ensuring efficiency and safety. Trusted in over 70 countries, L&T Valves meet high standards of quality, durability, and engineering precision. From the petrochemical industries to water treatment plants, these valves are trusted components, ensuring operations run smoothly and efficiently.
Conclusion
Larsen & Toubro Ltd. is not just a corporate entity but a representation of what dedication, long-term vision, and honest business practices can achieve. With its roots going back many decades, L&T has a track record filled with excellence and dynamic growth. Even with its rich history, L&T never stops looking ahead, continually pushing boundaries and adopting innovations. As this conglomerate continues moving forward, it stands as an inspirational model for businesses everywhere, showcasing the perfect balance between preserving legacy and gearing up for future challenges.
