L&T Overview of Performance

COMPANY PROFILE
Larsen & Toubro Limited
REFERENCE CODE: BC12843B-5BD8-4976-90C4-A3B2589006AC

PUBLICATION DATE: 18 Feb 2015
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TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview..............................................................................................3
Key Facts...............................................................................................................3
Business Description...........................................................................................4
History...................................................................................................................6
Key Employees...................................................................................................12
Key Employee Biographies................................................................................13
Major Products and Services............................................................................15
Revenue Analysis...............................................................................................17
SWOT Analysis...................................................................................................19
Top Competitors.................................................................................................24
Company View.....................................................................................................25
Locations and Subsidiaries...............................................................................32

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Company Overview
COMPANY OVERVIEW
Larsen & Toubro Limited (L&T or the company") is a technology, engineering, construction, and
manufacturing company. Its other key activities include manufacturing of electrical and electronic
equipment, services, and information technology. The company operates primarily in India. L&T is
headquartered in Mumbai, India and employed 54,579 people as on March 31, 2014.
The company recorded revenues* of INR861,103.1 million ($14,294.3 million) during the financial
year ended March 2014 (FY2014), an increase of 14% over FY2013. The operating profit** of the
company was INR71,489.9 million ($1,186.7 million) in FY2014, a decrease of 1% compared to
FY2013. The net profit of the company was INR52,056.7 million ($864.1 million) in FY2014, an
increase of 6.2% over FY2013.
KEY FACTS
Head Office

L&T House
Ballard Estate
P. O. Box: 278
Mumbai 400 001
Maharashtra
IND
Phone
91 22 6752 5656
Fax
91 22 6752 5893
Web Address
http://www.larsentoubro.com
Revenue / turnover 861,103.1

(INR Mn)
Financial Year End
March
Employees
54,579
Bombay Ticker
500510
National Stock
Exchange of India
Ticker
LT

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Business Description
BUSINESS DESCRIPTION
Larsen & Toubro Limited (L&T or "the company") is a technology, engineering, construction, and
manufacturing company in India. It is also engaged in manufacturing of electrical and electronic
equipment, financial services, and information technology. L&T primarily operates in India and also
has international presence in various markets, including China, the Middle East, South East Asia,
and Australia.
L&T operates through seven business segments: infrastructure, metallurgical & material handling,
power, heavy engineering, electrical & automation, machinery & industrial products, and others.
The infrastructure segment comprises engineering and construction of building and factories,
transportation infrastructure, heavy civil infrastructure, power transmission & distribution and water
& renewable energy projects. This segment has presence in South Asia, South East Asia, the Middle
East, Russia, Commonwealth of Independent States (CIS) countries including African countries.
Metallurgical & Material handling (MMH) segment undertakes EPC (Engineering, Procurement &
Construction) projects for Ferrous (iron & steel making) and Non-Ferrous (aluminium, copper, lead
& zinc) metal industries, Bulk Material & Ash handling systems in Power, Ports, Steel and Mining
sector. It has Industrial Machinery & Foundry work shop at Kansbahal, Odisha and fabrication shop
at Kancheepuram, Tamil Nadu to cater specific requirements of the customer. MMH business
segment also has an International presence in Gulf region.
The power business segment provides engineering; procurement and construction (EPC) solutions
for setting up coal-based and gas-based thermal power plants including power generation equipment
with associated systems and/or balance-of-plant packages. This business has a pan India presence
with multiple project sites, project management centres at Vadodara, Faridabad and Chennai and
manufacturing facilities at Hazira.
The heavy engineering business segment manufactures and supplies custom designed, engineered
critical equipment & systems to core sector industries like Fertilizer, Refinery, Petrochemical,
Chemical, Oil & Gas, Thermal & Nuclear Power, Aerospace and Defence applications.
The electrical & automation segment comprises of products and solutions for electricity distribution
and control in industries, utilities, infrastructure, buildings and agriculture sectors. This includes
manufacture and sale of low and medium voltage switchgear components, custom built low and
medium voltage switchboards, electronic energy meters/protection (relays) systems and control &
automation products. The manufacturing operations of this segment are located at Mumbai (Powai),
Navi Mumbai (Mahape & Rabale), Ahmednagar, Vadodara, Coimbatore and Mysore in India. Its
international manufacturing facilities are located at in Saudi Arabia, Jebel Ali (Dubai), Kuwait, Malaysia,
Indonesia, Australia and the UK.

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Business Description
The machinery & industrial products segment comprises of manufacturing and sale of rubber
processing machinery & castings, manufacturing and marketing of industrial valves, construction
equipment and industrial products and manufacture and sale of welding and cutting equipment. It
also includes manufacturing and sale of plastic processing machinery and manufacturing and sale
of undercarriage assemblies in the previous year.
L&Ts others segment includes realty, shipbuilding and integrated engineering services.

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History
HISTORY
Larsen & Toubro Limited (L&T or "the company") was founded in Bombay (Mumbai) in 1938 by two
Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro. The company began with the
import of machinery from Europe, later took on engineering and construction assignments. In 1944,
the ECC division was incorporated.
During 1945, L&T signed an agreement with Caterpillar Tractor Company, the US, for marketing
earthmoving equipment. In the following year, the company raised additional equity capital and
Larsen & Toubro Private Limited was established. L&T acquired fifty-five acres of undeveloped
marsh and jungle in Powai in 1948.
L&T became a public company with a paid-up capital of INR2 million (approximately $36,840) in
1950. During that decade, the company executed some orders including the Amul Dairy at Anand
and Blast Furnaces at Rourkela Steel Plant and became the largest erection contractor in India.
The company grew rapidly during 1960s and formed many new ventures: UTMAL (1960), Audco
India Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963). During 1979, Wilcox
Buckwell India merged with the company.
A number of agreements were signed with a range of companies throughout the 1980s and 1990s
as the company expanded its operations. During this period, the company formed alliances with a
number of players, which included Y E Data of Japan and Jeumont Schneider of France for electronic
PABX, as well as Honeywell Information for printers.
L&T diversified its operations into medical electronics products in 1989, while receiving industrial
licenses to manufacture ship auxiliaries and certain components of mechanized sailing vessels and
rail track.
The 1990s saw the company take over the tractor unit of Kirloskar Pneumatic, a merger with Gould,
and a joint venture with Japanese company Komatsu.
In 2004, the company and Grasim Industries (Grasim) entered into a scheme of demerger for the
cement division, which was completed in the same year. As a result, Grasim acquired majority stake
in UltraTech CemCo (UltraTech), the demerged cement business of L&T.
L&T entered into an agreement with Datar Switchgear (DSL) of Nashik, India and merged DSL with
L&T in 2005. In the same year, the company, as part of its strategy to exit from non-core businesses,
divested its stake in L&T-John Deere (LTJD) to its joint venture partner and sold its glass packaging
business along with the manufacturing plant at Nashik to Ace Glass Containers.
Further in 2005, the company, in a joint venture agreement with Dubai Aluminum Company (Dubal),
established an integrated bauxite mining-cum-alumina refinery project in Orissa. In the same year,

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History
Oil & Natural Gas Corporation (ONGC) awarded a INR10,000 million ($184.2 million) turnkey project
order to L&T for four well platforms and inter-connecting pipelines for Mumbai High North and Bassein
fields.
In 2006, the company partnered with Provenco, the New Zealand based technology company, for
supply of petrol station forecourt technology to Bharat Petroleum Corporation. Subsequently, L&T
entered the dredging business by acquiring a majority stake in the Indian entity, International Seaport
Dredging, promoted by Belgian dredging multinational, Dredging International.
During the same year, the company entered into joint venture agreements with SapuraCrest Petroleum
Berhad to build, own, and operate a derrick cum pipe laying barge and Kuwait-based Bader Al Mulla
and Brothers Company to focus on construction projects in oil and gas, power, and infrastructure.
Also in 2006, L&T agreed to distribute Scania's range of multi-axle trucks in India.
In 2007, L&T Infotech, the IT consulting and services subsidiary of L&T, acquired GDA Technologies
and its design centers in the US and India. In the same year, L&T signed a joint venture with AA
Turki Contracting and Trading Corporation of Saudi Arabia to focus on electromechanical construction
for the hydrocarbon and power sector. The company built one of the world's largest FCC regenerators
and combustors for Reliance Petroleum's export oriented refinery at Jamnagar, Gujarat in 2007. In
the same year, the company acquired Tamco Switchgear Malaysia in a share sale agreement with
Tamco Corporate Holdings.
Subsequently in 2007, the company formed a joint venture with the US-based Gulf Interstate
Engineering Company for cross-country pipeline construction. In the same year, Raytheon Company,
a defense major, signed a memorandum of understanding (MOU) with L&T for the MMRCA (Medium
Multi Role Combat Aircraft) program. Furthermore, L&T signed a SUA (sub-usufruct agreement)
with Sohar Industrial Port Company and established a green-field plant in Sohar, Oman for the
manufacture of high-tech equipment for the process industry.
In 2008, the company, in a joint venture agreement with Tamil Nadu Industrial Development
Corporation, established a shipyard complex with a port facility in the Kattupalli village, near Ennore
in Tiruvallur District of Tamil Nadu. In the same year, L&T Electricals Saudi Arabia Company, the
companys joint venture with Yusuf Bin Ahmed Kanoo Group, inaugurated its switchboards
manufacturing facility in Saudi Arabia. In the same year, L&T sold its ready mix concrete (RMC)
business to Lafarge India and signed a strategic partnership agreement with GE Energy to focus on
the Indian power generation market.
Further in 2008, a consortium led by L&T with Scomi Engineering of Malaysia won an order from
the Mumbai Metropolitan Region Development Authority (MMRDA) to implement the country's first
monorail system in Mumbai. In the same year, L&T secured a major order from HPCL Mittal Energy,
a joint venture of Hindustan Petroleum Corporation and Mittal Energy Investments. The project order
involved setting up two 44,000 TPA capacity hydrogen generation units (HGU) for HMEL's grassroots
refinery in Bathinda, Punjab.

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History
During 2009, L&T signed MoUs with the following companies: the US based Westinghouse Electric
Company for co-operation on pressurized water nuclear reactors with modular construction technology
in India; Canada based Atomic Energy of Canada for co-operation on Advanced CANDU Reactor
ACR1000; Atomstroyexport of Russia for co-operation on design reactors VVER 1000; and the US
based GE Hitachi Nuclear Energy for co-operation on boiling water reactor and advanced boiling
water reactor nuclear power plants. In the same year, EADS Defense and Security (DS) and L&T
formed a joint venture company for defense electronics in India, based in Talegaon near Pune.
In 2009, L&T and Jaiprakash Power Ventures, the power generation subsidiary of Jaypee Group,
signed an agreement, for the supply and erection of the boiler and steam turbine and generator
(STG) islands for the two 660 megawatts (MW) Jaypee Nigrie Super Thermal Power Project located
in Singrauli district in Madhya Pradesh. Later in 2009, L&T sold its shares in Voith Paper Technology
India to its joint venture partner, Voith of Heidenheim, Germany.
In early 2010, L&T and Nuclear Power Corporation of India Ltd. (NPCIL) formed a joint venture
company to produce special steels and ultra heavy forgings. In 2010, L&T launched its asset
management operations with the acquisition of DBS Chola Mandalam Asset Management Company
by L&T Finance. The asset management company was renamed L&T Investment Management and
the fund house was renamed L&T Mutual Fund.
During 2010, L&T was awarded a contract by the Indian Ministry of Defense for the design and
construction of 36 high speed interceptor boats for the Indian Coast Guard. In the same year, L&T
sold its petroleum dispensing pump and systems (PDP) business to Gilbarco, a subsidiary of Danaher
Corporation. Also in 2010, L&T and Rolls-Royce, the global power systems company, signed an
MoU to address the need for light water reactors in India and internationally. In the same year, L&T
formed a joint venture with Howden to design, engineer, manufacture, and supply axial fans and air
pre-heaters to Indian thermal power plants.
In 2010, L&T General Insurance Company, a subsidiary of the company, received R3 approval from
Insurance Regulatory and Development Authority to commence its business operations in India.
Also in 2010, L&T and Befula Investments, an engineering and investment company in Durban
incorporated a joint venture company 'Larsen & Toubro T&D SA (PTY) Ltd.' in South Africa to
capitalize on the power transmission and distribution opportunities in the country.
During early 2011, L&T and Kobe Steel of Japan formed a joint venture to manufacture internal
mixers and twin screw rollerhead extruders for the tyre and rubber industry. During the same time,
the joint venture of L&T and Mitsubishi Heavy Industries opened a facility for manufacturing
supercritical boilers and turbine generators at Hazira, Surat.
L&T and Cassidian entered into a partnership in the first quarter of 2011, to become an electronics
house for defense and security. Subsequently, the Defence and Security Division of Europe's leading
Aerospace and Defence Group (EADS) was renamed Cassidian. In the same quarter, the company
sold its entire stake in L&T-CASE Equipment Private Limited to its joint venture partner CNH Global
NV engaged in the agricultural and construction equipment business.

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History
In mid-2011, L&Ts subsidiary L&T Finance completed an initial public offering (IPO) of 214.5 million
shares at a price of INR52 ($0.9) per share for total gross proceeds of INR11,154.5 million ($205.5
million).
L&T formed a strategic partnership in early 2012 with the UK based Cyan Holdings plc, an integrated
system design company to collaborate in the development, supply and delivery of advanced metering
solutions comprising utility meters equipped with Cyan's wireless communication capability for AMI,
smart metering and smart grid pilot projects.
Later in 2012, the electrical and automation business of L&T acquired the UK based Thalest Limited,
a holding company engaged in offering integrated platform management system and integrated
bridge system solutions for naval warships and mercantile marine ships, vessels and floating systems.
At the same time, L&T Construction, a division of L&T, commissioned Indias largest solar photo
voltaic based power plant (40 MWp), which is owned by Reliance Power Limited at Dhursar Village,
Jaisalmer district of Rajasthan.
The company, as part of its capacity expansion initiative for electrical and automation business,
inaugurated its manufacturing facility for switchgear products at Vadodara, on an 18-acre plot adjacent
to L&T Knowledge City in mid-2012. During the same period, L&T signed a share sale and purchase
agreement with Toshiba Machine Co., Ltd., Japan, and sold its entire stake in L&T Plastics Machinery
Limited in order to exit non-core businesses and rationalize its portfolio.
Towards the end of 2012, L&T won the order for manufacture and installation of ITERs Cryostat for
the experimental thermo nuclear fusion reactor in the South of France. At the same time, L&T Finance
acquired Indo Pacific Housing Finance, Ltd., a housing finance company that provides home loans
and loans against property, for INR1,100 million ($20.3 million). Also at the same time, Delhi Metro
Rail Corporation awarded L&T Construction an order worth INR12,520 million ($230.6 million), to
be executed as a joint venture with Shanghai Urban Construction Group. With a share of INR8,520
million ($156.9 million) in the joint venture, L&T is required to design and construct a tunnel between
Shankar Vihar and Hauz Khas as well as underground stations at Vasant Vihar, Munirka, R.K. Puram,
IIT and Hauz Khas.
The company secured an order valued at over INR7,320 million ($134.8 million) from NPCIL for the
Rajasthan Atomic Power Plant at the end of 2012. At the same time, L&T signed a contract with
PETRONAS Carigali Myanmar (Hong Kong) Limited in Yangon, Myanmar for executing an offshore
engineering, procurement, construction, installation and commissioning project valued at over $100
million.
The company signed an agreement with CMI Energy, Belgium in first quarter of 2013 for extension
of L&Ts licence territory to manufacture and supply small heat recovery steam generators installed
behind gas turbines below 80 MW to South East Asia and the Middle East. In the same month, L&T
inaugurated its offshore development centre for Calsonic Kansei (CK) at Chennai. In the same
period, the company completed the ownership transactions related to its India based group company
Audco India Limited (AIL), a manufacturer of industrial valves. Also in the same period, L&T

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History
announced that it would acquire 50% stake in L&T-Komatsu Limited held by Komatsu Asia & Pacific
Pte. Ltd.
In second quarter of 2013, Larsen Toubro Arabia LLC, a joint venture company of L&T secured an
EPC contract from the Saudi Arabian Oil Company (Saudi Aramco), for setting up gas processing
facilities for the Midyan Gas Fields, The project was scheduled to be completed in three years. In
the following quarter, L&T Construction won INR 82,500 million ($1,519.7 million) worth Riyadh
Metro Project and INR20,850 million ($384.1 milion) Al -Batinah Expressway Project.
In third quarter of 2013, the Sojitz-L&T Consortium signed an EPC rail contract with the Dedicated
Freight Corridor Corporation of India for the construction of 626 kilometer of a double track corridor
from Rewari in Haryana to Iqbalgarh in Gujarat, via Rajasthan. In the same quarter, the water and
renewable energy business of L&T Construction secured new orders worth INR11,410 million ($210.2
million) in various business segments.
L&T won two EPC projects of about INR11,000 million ($202.6 million) value in hydrocarbon segment
in the UAE and Qatar in towards the end of 2013. During the same period, L&T Construction secured
INR29,350 million ($540.6 million) worth EPS contract from Qatar General Electricity and Water
Corporation for the supply, construction and commissioning of 18EHV (Extra High Voltage) substations
and 151 kilometer of EHV cabling in Qatar.
In January 2014, L&T Saudi Arabia acquired a contract to construct 55 km of 230kV Double Circuit
Overhead Transmission line and Underground Cabling in the Kingdom of Saudi Arabia from the
Saudi Arabian Oil Company (Saudi Aramco). In the following month, the company declared that it
has secured new orders worth INR52,200 million ($866.5 million) across its various business segments
in January & February 2014.
The company bagged order for INR15500 million ($257.3 million) in March 2014 from the Ministry
of Transport and Communications, Sultanate of Oman, for the construction of a road between
Bidbid-Sur Section. Further, L&T construction won new orders worth INR29,350 million ($487.2
million) across various business segments in February and March 2014. Further in the same month,
L&T Construction secured an international contract for INR36,550 million ($606.7 million) from
ASHGHAL (Public Works Authority), State of Qatar to design and construction of Al Wakrah Bypass
Road (P015). Also L&T construction acquired another contract for INR19,810 million at the same
time for the construction of residential towers and villas in Bangalore.
In April 2014, L&T construction acquired contract for $740 million from Qatar Railways Company
for the design and construction of the Gold Line of the Doha Metro project in Qatar.
L&T Infrastructure Development Projects (L&T IDPL) and Tata Steel entered into an agreement with
Adani Ports in May 2014 to sell 100% stake in the Dhamra Port Company Limited (DPCL) for
approximately INR55,000 million ($913 million). Also in the same month, L&T Special Steels and
Heavy Forgings (LTSSHF) entered into a five year agreement with The Japan Steel Works, Ltd. The
agreement covered the transfer of critical technology for steel melting & heavy forgings made from
ingots for hydrocarbon, thermal power, steel & cement sectors. Also in the same month, the company

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History
acquired two engineering, procurement and construction orders for $480 million for setting up dual
fuel-fired gas based combined cycle power plants in Bangladesh.
L&T Technology Services purchased 74% of the equity capital of Thales Software India Pvt. Ltd. in
June 2014 to strengthen its Avionics Business. In the following month, L&T Hydrocarbon acquired
contract for INR50,760 million ($842.6 million) in the Middle-East from the Kuwait Oil Company
(KOC) to execute a complete Engineer Procure-Construct contract for a Gathering Centre for KOC.
The company secured contract in September 2015 from the state utility MP Power Generating
Company Limited for setting up a Supercritical Thermal Power Project at Shree Singaji TPP for
INR51,000 million ($846.6 million). Also in the same month, the company acquired 50% of the stake
in L&T-Ramboll Consulting Engineers Limited (LTR) held by Ramboll Denmark AS, to strengthen
its design base in the Infrastructure space.
In December 2014, L&T Construction acquired contracts for INR40,060 million ($665 million) in
various business segments in both domestic and international markets.

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Key Employees
KEY EMPLOYEES
Name
Job Title
Board
A. M. Naik
Group Executive Chairman
Executive Board
224285000 INR
Krishnamurthi
Venkataramanan
Chief Executive Officer & Managing Executive Board

Director
106709000 INR
Madhukar Vinayak Kotwal
Whole-time Director and President, Executive Board

Heavy Engineering
77227000 INR
S. N. Subrahmanyan
Whole-time Director and Sr.

Executive Vice President,
Construction and Infrastructure
Executive Board
104840000 INR
R. Shankar Raman
Whole-time Director and Chief

Financial Officer
Executive Board
85340000 INR
Shailendra Roy
Whole-time Director and Sr.

Executive Vice President, Power,
Minerals and Metals
Executive Board
64936000 INR
M.M. Chitale
Director
Non Executive Board
4205000 INR
Subodh Bhargava
Director
Non Executive Board
4540000 INR
M.Damodaran
Director
Non Executive Board
3985000 INR
Vikram Singh Mehta
Director
Non Executive Board
2765000 INR
Sushobhan Sarker
Director
Non Executive Board
2849000 INR
Adil Zainulbhai
Director
Non Executive Board
Akhilesh Krishna Gupta
Director
Non Executive Board

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Compensation
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Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES

A. M. Naik
Board: Executive Board
Job Title: Group Executive Chairman
Since: 2003
Mr. Naik has been the Group Executive Chairman of Larsen & Toubro Limited (L&T or the company")
since 2003. He joined the company as a Junior Engineer in 1965 and held various key positions
including General Manager, Managing Director, Vice President and Chief Executive Officer during
his career. Mr. Naik is also associated with several educational and charitable trusts. He is a Member
of the Board of Trustees at the Indian Business Trust for HIV/AIDS (IBT), Confederation of Indian
Industry (CII), National Council, Board of Trade, Ministry of Commerce, Government of India, Fellow
of the Indian National Academy of Engineers (INAE), and a Member of the Board of Governors at
the Indian Institute of Management, Ahmedabad.
Krishnamurthi Venkataramanan
Job Title: Chief Executive Officer & Managing Director
Since: 2012
Mr. Venkataramanan has been the Chief Executive Officer and Managing Director of L&T since
2012. He joined the company in 1969 and was appointed a whole-time Director at the company in
1999. Mr. Venkataramanan established the foundations for Project Engineering and Execution in
L&T. In 1983, he served as Head of Special Fabrication Shops, Production Engineering and Plant
Engineering. Mr. Venkataramanan is associated with many industry bodies which include The Indian
Institute of Chemical Engineers, Bombay Chamber of Commerce & Industry, Chemtech Foundation,
and the National Executive Council for 'Petroleum & Power' sector.
Madhukar Vinayak Kotwal

Job Title: Whole-time Director and President, Heavy Engineering
Mr. Kotwal currently serves as a Whole-time Director and the President of Heavy Engineering
segment of L&T. He was associated in various capacities with the manufacture of India's first Nuclear
Power Reactor (235 MW) as well as all the critical reactor equipment. Mr. Kotwal was later responsible
for the entire manufacturing operations of nuclear power equipment at the company. He was involved
in the planning and manufacture of an Ultra-high Vacuum Tokamak Vessel for Plasma Research
Laboratory and for Analyzing Magnets for Variable Energy Cyclotron Project set up by Bhabha

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Key Employee Biographies
Atomic Research Centre at Kolkata. Mr. Kotwal was also in charge of the manufacture of Rocket
Motor Casings for India's Space Research Program including Satellite Launch Vehicles SLV, ASLV,
PSLV and GSLV.
S. N. Subrahmanyan
Job Title: Whole-time Director and Sr. Executive Vice President, Construction and Infrastructure
Age: 54
Mr. Subrahmanyan currently serves as a Whole-time Director and Sr. Executive Vice President of
the Construction and Infrastructure segment of L&T. He joined the company in 1984 as a Project
Planning Engineer. Mr. Subrahmanyan completed the Executive Management Programme from
London Business School. He is a Civil Engineer with post-graduation in Management. Mr.
Subrahmanyan also serves on the boards of L&T Buildings and Factories Independent Company,
L&T Infrastructure Independent Company and L&T Oman LLC.
R. Shankar Raman
Job Title: Whole-time Director and Chief Financial Officer
Since: 2011
Age: 56
Mr. Raman has been a Whole-time Director and Chief Financial Officer of L&T since 2011. He joined
L&T Group in 1994 and set up L&T Finance Limited, a wholly owned Subsidiary and served as its
first Chief Executive Officer. Mr. Raman was transferred to Larsen & Toubro Limited in 2000 to
oversee its finance, accounts and taxation functions. He is also on the Board of Management of
several companies within the L&T Group.
Shailendra Roy
Job Title: Whole-time Director and Sr. Executive Vice President, Power, Minerals and Metals
Mr. Roy currently serves as a Whole-time Director and Sr. Executive Vice President of Power,
Minerals and Metals segment of L&T. He joined L&T in 2000 and held various key management
roles in the company. During 2002-04, Mr. Roy served as the Managing Director and Chief Executive
Officer of Bharat Heavy Plates and Vessels Ltd., a government of India undertaking. He rejoined
L&T in 2004. Mr. Roy holds a Bachelor of Technology degree, and is a graduate of the Wharton
Advanced Management Program.

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Major Products and Services
MAJOR PRODUCTS AND SERVICES

Larsen & Toubro Limited is a technology, engineering, construction, and manufacturing company.
The company is also involved in the manufacturing of electronic and electrical equipment and
information technology.
Its major products and services include:
Turnkey Projects:
Hydrocarbon
Power
Construction:
Building and factories
Transportation
Heavy civil infrastructure
Power transmission & distribution
Water & renewable energy projects
Engineering products & systems:
Refinery
Oil & gas
Petrochemicals
Fertilizers
Coal gasification
Aerospace
Thermal power plant
Nuclear power plant
Defence
Power Projects:
Thermal
Hydropower
Nuclear
Plant automation
Power transmission and distribution
Power development
Electrical and electronic products and systems:

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Major Products and Services
Control and automation

Electrical systems
Metering solutions
Switchgear products
IT and engineering services:
IT services
Integrated engineering services
Machinery and industrial products
Railway projects
Shipbuilding
Infrastructure development projects
L&T realty
Financial services:
Retail finance
Infrastructure finance
General insurance
Mutual fund
Wealth management

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Revenue Analysis
REVENUE ANALYSIS
Overview
The company recorded revenues of INR861,103.1 million ($14,294.3 million) during the financial
year ended March 2014 (FY2014), an increase of 14% over FY2013. In FY2014, domestic, the
company's largest geographic market, accounted for 84% of the total revenues.
L&T generates revenues through seven business segments: infrastructure (60.2% of the total
revenues in FY2013), metallurgical & material handling (9.5%), power (8.8%), heavy engineering
(7.4%), electrical & automation (6.7%), others (4%), and machinery & industrial products (3.3%).
Revenues by Segment
In FY2014, the infrastructure segment recorded revenues of INR351,153.1 million ($5,829.1 million),
an increase of 21.8% over FY2013.
The metallurgical & material handling segment recorded revenues of INR55,460.8 million ($920.6
million) in FY2014, a decrease of 13.8% compared to FY2013.
The power segment recorded revenues of INR51,400.6 million ($853.2 million) in FY2014, a decrease
of 36.3% compared to FY2013.
The heavy engineering segment recorded revenues of INR43,217.7 million ($717.4 million) in FY2014,
an increase of 43.9% over FY2013.
The electrical & automation segment recorded revenues of INR39,073.4 million ($648.6 million) in
FY2014, an increase of 7.2% over FY2013.
The others segment recorded revenues of INR23,469.6 million ($389.6 million) in FY2014, an increase
of 53.8% over FY2013.
The machinery & industrial products segment recorded revenues of INR19,428.7 million ($322.5
million) in FY2014, a decrease of 18.9% compared to FY2013.
Revenues by Geography
Domestic, L&T's largest geographical market, accounted for 84% of the total revenues in FY2014.
Revenues from domestic reached INR480,352.9 million ($7,973.9 million) in FY2014, an increase
of 7.5% over FY2013.

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Revenue Analysis
Overseas accounted for 16% of the total revenues in FY2014. Revenues from overseas reached
INR91,285.6 million ($1,515.3 million) in FY2014, an increase of 21.5% over FY2013.

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SWOT Analysis
SWOT ANALYSIS
Larsen & Toubro Limited (L&T or the company) is a technology, engineering, construction, and
manufacturing company. Its other key activities include manufacturing of electrical and electronic
equipment, services, and information technology. The company leverages its resources, capabilities,
and strong brand name to strengthen its market position. However, intense competition and economic
challenges in India could adversely impact the companys profitability.
Strengths
Weaknesses
Market leadership providing competitive

edge
Strong technical expertise reinforces
leadership position
Strong project pipeline ensures revenue
growth
Major dependence on domestic operations

for revenue generation
Increasing debt impacting financial flexibility
Opportunities
Threats
Strategic joint ventures strengthening

business
Growing Indian construction and
engineering industry
High global oil and gas capital expenditure
plans likely to enhance business
Economic challenges in India could

adversely impact the companys business
Challenges in land acquisition likely to affect
business
Intense competition may reduce profitability
Strengths
Market leadership providing competitive edge

L&T is a technology, engineering, construction, and manufacturing company. It is one of the largest
and most respected companies in India for engineering, manufacture and integration of custom
made technology-intensive equipment and systems. The company has manufacturing facilities in
India, China, Oman and Saudi Arabia; and has its customers in more than 35 countries. L&T has a
strong brand name, having built the world's largest coal gasifier made in India and exported to China,
the world's biggest ethylene oxide reactor for a petrochemical complex in the Gulf, the world's largest
Fluid Catalytic Cracker regenerator for a refinery, and the world's longest limestone conveyor. L&T
also played a critical role in building India's first nuclear powered submarine. The companys market
capitalization as on 9th February 2015 was $24 billion with AAA credit rating from both Crisil and
ICRA with a stable outlook.

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SWOT Analysis
In 2014, L&TMHI Boilers Private Ltd won the National Energy Conservation Award for the year
2013 by the Ministry of Power. Earlier in 2013, Engineering News Record, the international contractors
magazine, ranked L&T Construction 48th among the worlds top international contractors and 28th
among the worlds top global contractors, based on 2012 revenues. The company can leverage its
strong brand name and market leadership position to gain competitive advantage and also expand
into international markets.
Strong technical expertise reinforces leadership position
Technology plays a very important role in all of L&T's operations. In engineering and construction,
L&T's technology capabilities include a strategic mix of in-house strengths and the expertise of its
joint venture partners. Engineering centers carry out process design and simulation, analysis of
computational fluid dynamics, mechanical design, failure analysis, and trouble shooting. L&T has
set up an engineering and project management centre in Abu Dhabi to undertake oil and gas related
projects as well as engineering and consultancy services.
In manufacturing, L&T's design and engineering capabilities enable it to set new benchmarks in
terms of scale, sophistication, and speed.The company has engineering centers at the manufacturing
locations. L&T's electrical and electronics division is a pioneer in the design of switchgear and
switchboards that are engineered for tropical conditions. It has built further on this experience, and
has leveraged its research and development strengths to develop a host of new products and
features.
In technology services, L&T develops optimal solutions for its global clients. The embedded systems
unit provides technological assistance across a broad spectrum of operations including design,
maintenance, re-engineering, testing, prototyping, and industrial design. A strong technical expertise
helps the company to reinforce its leadership position, sustain its competitive strengths, and provides
with an edge over its competitors.
Strong project pipeline ensures revenue growth
L&T has a very strong pipeline of projects which would be completed in the next few years. Order
book as at March 31, 2014 was worth INR1,629,520 million (approximately $27,050 million as against
INR708,200 million (approximately $13,045 million) as at March 31, 2009. Further, the companys
order book inflow increased at a compounded growth of 18.1% since FY2009. It was primarily due
to bulk orders received by the company from engineering and construction. The company received
78% of the orders received from the infrastructure sector.The engineering and construction segment
received new orders worth INR1,270,680 million (approximately $21,093.3 million) in FY2014 for
projects such as Riyadh Metro in KSA, the Doha metro in Qatar, the EPC works for substations for
Kahramaa in Qatar and the Western Dedicated Freight Corridor (WDFC) for Dedicated Freight
Corridor Corporation of India Ltd. (DFCCIL) in India. Large number of projects in L&Ts pipeline
ensures a steady revenue growth.
Weaknesses

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SWOT Analysis
Major dependence on domestic operations for revenue generation

L&T is largely dependent on its domestic operations for generating its revenues. In FY2014, the
company's domestic (India) operations contributed approximately 84% of the total revenues. The
company's revenues can be affected with any adverse events occurring in the domestic market such
as adverse economic conditions and foreign currency fluctuations, among others. Higher dependence
on domestic operations to generate revenues could drastically affect L&T's revenues and profitability.
Increasing debt impacting financial flexibility
L&Ts debts are increasing steadily. The companys debts in the form of loans increased to
INR801,530 million ($13,305.4 million) in FY2014 from INR327,980 million ($5,444.5 million) in
FY2011. Increase in loans registered a compound annual rate of change (CARC) of 34.7% over the
FY2011-14 period. As a result, L&Ts interest expense over the period FY2011-14 increased to
INR10,760.8 million ($178.6 million) from from INR8,027.5 million ($147.9 million) in FY2011. L&Ts
increasing debts is impacting the companys financial flexibility.
Opportunities
Strategic joint ventures strengthening business

L&T has entered into several joint ventures in the recent past. During March 2013, the company
completed the ownership transactions related to its India based group company Audco India Limited
(AIL), a manufacturer of industrial valves. In the following month, L&T announced that it would acquire
50% stake in L&T-Komatsu Limited held by Komatsu Asia & Pacific Pte. Ltd. In December 2012,
L&T signed a contract with PETRONAS Carigali Myanmar (Hong Kong) Limited for executing an
offshore engineering, procurement, construction, installation and commissioning project valued at
over $100 million. Also during 2012, L&T acquired Indo Pacific Housing Finance, Ltd., a housing
finance company and the UK based Thalest Limited, a holding company engaged in offering integrated
platform management system and integrated bridge system solutions for naval warships and
mercantile marine ships, vessels and floating systems. In the same year, L&T formed a strategic
partnership with the UK based Cyan Holdings plc, an integrated system design company to collaborate
in the development, supply and delivery of advanced metering solutions comprising utility meters
equipped with Cyan's wireless communication capability for AMI, smart metering and smart grid pilot
projects.
L&Ts joint ventures in diversified areas such as finance, defense, transmission and distribution and
power plant equipment market could strengthen its presence in these business lines and add to its
expertise.
Growing Indian construction and engineering industry

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SWOT Analysis
Construction and engineering industry in India is growing rapidly. The industry grew by 4.4% in 2012
to reach a value of $117.4 billion. In 2017, the Indian construction and engineering industry is forecast
to have a value of $162 billion, an increase of 38% since 2012. This industry is expected to register
a Compound Annual Growth Rate of (CAGR) of 6.6% over the period 201217. The Planning
Commission of India has proposed an investment of around $1 trillion in construction sector in the
12th five-year plan (2012-2017). In 2011, Union government conferred infrastructure status to fertilizer
industry which has created conducive environment for revamping and modification of fertilizer plants.
L&T is one of the largest players in the Indian construction and engineering industry. The company
is well placed to leverage from the growing Indian construction and engineering industry and further
enhance its business in the coming years.
High global oil and gas capital expenditure plans likely to enhance business
The global oil and gas capital expenditure (Capex) plans are forecasted to remain high over the
coming years. This is likely to provide more business opportunities for the companys engineering
and construction projects division in 2015. Key drivers of growth in this sector in near future include
increasing brownfield prospects particularly in Middle East and Africa; the trend within Indian refining
units going for downstream petrochemical units for value added products; and growing prospects
in new business lines (gas processing, poly propylene and coal gasification). In addition, the growing
thrust on gas production and transportation is expected to increase investments in cross country
gas pipeline projects and to bring in more business. L&T is well placed to tap the growing global oil
and gas capex plans and enhance its business in the coming years.
Threats
Economic challenges in India could adversely impact the companys business

The Indian economy witnessed a decadal low growth in FY2014 with GDP of 5.8%. The country has
seen economic expansion drop since the start of the FY2011 to levels even below the crisis years
of FY2009. The slowdown which started in the industrial sector also extended to services sector.
While the moderation in growth in agriculture was largely on account of the rainfall deficiency, the
deceleration of industrial production growth to 1.7% in FY2014 from 2.7% in FY2012 was mainly
due to contraction in the mining and quarrying sector, and slowing growth in manufacturing and
electricity sectors. Also, the country continued to face persistent challenges due to high inflation,
tight monetary policy, deteriorating external balance and the global uncertainties. In addition,
government expenditure growth decelerated from 8.6% in FY2012 to 3.9% in FY2013 due to the
fiscal consolidation by the government to reduce the deficit. Continued economic challenges in India,
the companys largest geographic market could lead to further slow-down in industrial production
and impact L&Ts business prospects.
Challenges in land acquisition likely to affect business

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SWOT Analysis
Challenges in land acquisition are affecting L&Ts projects. Land acquisition issues are causing
delays and concerns to projects under various segments within the group. Difficulties in land
acquisition are slowing down the pace of project award decisions. Environmental and land acquisition
issues are current barriers in the near term for expansion of mining equipment demand. Power
projects and new projects in minerals and metals sector face hurdles due to land acquisition issues,
environmental clearances, and coal linkages. Moreover, in 2013, Indian government passed The
Land Acquisition, Rehabilitation and Resettlement Bill, 2011. As per the bill, compensation for the
owners of the acquired land should be four times the market value in rural areas and twice in urban
areas. Projects involving land acquisition that are undertaken by private companies and public private
partnerships must have consent of 80% of the people affected. L&T presently has many ongoing
projects under public private partnership. For instance, the land acquisition bill is expected to raise
Navi Mumbai airport's project cost by INR50,000 million ($921 million). Challenges in land acquisition
are likely to affect L&Ts business.
Intense competition may reduce profitability
The company faces stiff competition in the international market. The engineering and construction
segment faces intense competition from construction majors in the Middle East including ABB of
Sweden and Bechtel of the US. These companies have substantially greater resources and superior
capabilities than L&T. In the domestic market, the company primarily competes with players like
Hindalco, Sundaram Fasteners, Gammon India, and Lanco Infratech among others. Stiff competition
in the marketplace could erode the company's market share and reduce its profitability.

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Top Competitors
TOP COMPETITORS
The following companies are the major competitors of Larsen & Toubro Limited
Hindalco Industries Limited

Sundram Fasteners Limited
Fluor Corporation
ThyssenKrupp AG
ABB Ltd.
Bechtel Group, Inc.
Gammon India Limited
Lanco Infratech Limited
Tata Group of Compnies
Bharat Heavy Electricals Limited (BHEL)
Siemens India Ltd.
Crompton Greaves Limited

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Company View
COMPANY VIEW
A statement by A. M. Naik, the Group Executive Chairman of Larsen & Toubro Limited is given
below. The statement has been taken from the companys annual report for FY2014.
Dear Shareholders,
In May 2014, the country rang in a decisive mandate for change. It is now up to the new political
dispensation to deliver on its agenda and accelerate the process of renewed growth. It would need
to act decisively on a number of reform measures that will drive development, including reducing
subsidies, streamlining approval processes, professionalizing the public sector and privatizing natural
resources under a transparent and stable policy regime.
Looking back, fiscal 2013-14 continued to witness the constraints that have hampered the economy
in the last couple of years. GDP growth last year was lacklustre at 4.7% and Fiscal Deficit continued
to be high. Feeble industrial production for the third straight year, meant that FY14 ended in negative
growth. New investments, particularly in the private sector were muted as many projects remained
mired in uncertainty. While the Government managed to contain Fiscal Deficit within budgeted
numbers by cutting back on expenditure, the burden from the triad of subsidies continued unabated.
On the positive side, the Current Account Deficit was narrowed down through a restriction on gold
imports, aided by stagnant imports of petroleum products as well as capital goods thanks to the
industrial slowdown. Wholesale inflation also contracted, leading to a benign commodity pricing
environment. There was intermittent progress in key reforms such as expediting and streamlining
approval processes, SEB regulations, diesel/LPG price hikes, and establishing policy certainty in
areas such as power purchase tariffs and toll-based highway concessions.
In the international arena, FY14 was marked by encouraging developments such as a booming
infrastructure sector in the Middle East, with a number of landmark projects in transportation and
power transmission & distribution being ordered, and other multi-year opportunities in the pipeline.
The Hydrocarbon sector in the region also continues to be vibrant, and attracts a large number of
global E&C companies, giving rise to stiff competition.
Performance Overview
Against the backdrop of this challenging environment, your Company has turned in a commendable
performance on most key performance parameters.
Order Inflows, which are the mainstay of any company engaged predominantly in Engineering &
Construction business, clocked in at INR94,108 Cr., representing a robust 15% growth over the
previous year. The unexecuted Order Book at the year-end stands at INR162,952 Cr., thus providing
a healthy revenue and margin visibility over the next few years. Despite severe execution challenges
in the domestic market, your Company managed to keep project execution largely on track, and

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Company View
helped by robust growth in overseas revenues, registered a 10% growth in Gross Revenues at
INR57,164 Cr. Profit after Tax registered INR5,493 Cr which translates to a growth of 25% over the
previous year on a like-to-like basis.
At the Group level, Gross Revenues displayed a growth of 14% and stood at INR85,889 Cr for the
year under review. PAT, at INR4,902 Cr represents a decline of 6% over the previous year, caused
by capacity underutilization in two new subsidiaries, viz. L&T Shipbuilding Ltd. and L&T Special
Steels & Heavy Forgings Pvt. Ltd, as well as execution challenges faced in the Hydrocarbon business.
It gives me pleasure to announce that your Company has recommended dividend of INR14.25 per
equity share on a face value of INR2 per share for the year. The corresponding dividend during the
previous fiscal was at INR12.33 per equity share.
Internationalization
Your Company is moving decisively towards consolidating its international operations through a
replication in the Middle East of its domestic structure and systems. While the prime focus is the
Gulf Cooperation Council countries, the international outreach also extends to South East Asia, CIS,
and select African nations. International talent and experience is essential to achieve our goals, and
we are strengthening our multi-cultural leadership base, with the induction of professionals possessing
rich domain experience and local customer insight.
The thrust on international markets is yielding gratifying results. International Order Inflows represent
33% of the total inflows during the year under review, and showcase remarkable success in winning
major new orders in the infrastructure sector.
Talent Management
In an age of increasing technological parity, high caliber talent, with the requisite training and exposure
creates a key differentiator between companies and represents a competitive edge. Your company
therefore places continuing emphasis on identification and induction of talent at various levels and
across multiple functions. Systems are in place to ensure that a multicultural leadership team is
rapidly integrated into the mainstream and embedded with the values, ethos and philosophy of L&T.
We recognize that the career preferences of the youth today are biased towards jobs in the new
economy, making the task of attracting and retaining young talent more difficult. As a counterweight,
your company promotes and projects the opportunity of working on critical projects that would make
a tangible difference to nation, society and community.
Sustainable Development
Inclusive growth that takes into account the interests of all stakeholders is at the heart of your
Companys value system. These values have helped us empower communities and accelerate their
development. Right from inception, we have been involved in community engagement programmes

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Company View
ranging from health, education to skill building. The Companys contribution to CSR has been widely
recognized. Early in 2014, L&T received the prestigious The Economic Times Corporate Citizen of
the Year 2013 award.
The mandatory spending of 2% of profits on CSR initiatives under the newly introduced provisions
of the Companies Act, 2013, is in line with L&Ts policy on CSR. We are also using this window of
opportunity to extend our social and environmental outreach. A CSR committee with Board-level
representation has been constituted to drive projects across the organization in a more robust
manner. We have also expanded the sustainability organizational structure and formulated a
Sustainability & Corporate Social Responsibility (SCSR) team.
Thrust areas on the sustainability front include augmenting efforts at energy conservation, climate
change, water conservation and material management.
Outlook
Despite the continuing slowdown, the macro environment has shown early signs of recovery, and
with the dawn of a stable government, promises to improve gradually during FY15. Your Company
has identified specific opportunities for growth within India and internationally, which it is targeting
effectively. Segments that hold promise in FY15 include
1. Infrastructure
a. Roads This segment is expected to pick up in FY15 through ordering of more than 2,300 km of
new projects on Engineering, Procurement & Construction (EPC) mode, and 3,000 km in PPP mode.
Apart from this, there are several upcoming opportunities in building Expressways and Elevated
Corridors. Being the distinct leader in the segment, we will selectively participate in these EPC bids
where the prospects meet our internal viability benchmarks. We will also continue to target upcoming
road projects in the Gulf countries, where we have had significant order wins during FY14.
b. Metro and Mono Rails The Company has been involved in the execution of metro rail projects
in cities across the country and in Indias first monorail in Mumbai (Phase I commissioned in FY14).
This enables the Company to exploit opportunities to secure contracts in India, where multiple cities
are initiating metro rail projects. We have also won two major, prestigious contracts in the Middle
East, for Riyadh and Doha Metro projects during FY14, contributing significantly to the order inflow
growth during the year. We are participating in bidding for further such prospects in the region.
c. Railways Business The thrust on strengthening the rail network across the country holds good
prospects for our Railways business. We have already secured an initial order in consortium with a
Japanese company for a major section of the Dedicated Freight Corridor, and are bidding for more
packages. We are also exploring international markets, especially the Gulf countries where several
projects are coming up.
d. Water & Renewable Energy The sector has seen a strong growth in investments over the last
two years, with growing focus from the Government sector in improving access to water and preventing

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Company View
pollution of its sources. In FY14, your Company has been able to achieve significant order inflow
growth in this segment, backed by strong project execution capabilities and operational excellence.
With a healthy Order Backlog and growing order prospects, the business from these sectors is
expected to see an upswing in FY15.
e. Urban Infrastructure Opportunities in residential buildings, office space, hospitals, hotels,
educational institutions, shopping complexes and factories continue to provide a large canvas of
business potential. Your Company has become the EPC contractor of choice for major developers
and this is driving profitable growth. Projects in Mass and Affordable Housing, Healthcare and
Educational Institutions hold additional promise in FY15.
f. Airports Increasing passenger and cargo traffic over the last decade has sustained growth in
aviation industry. The Government plans to modernize a number of Tier II City airports and build a
few Greenfield airports as well. Similarly, a number of nations in the Asian region are modernizing
and expanding their airport infrastructure. On the back of our excellent track record in this sector,
we are well-positioned for airport projects within and outside India.
2. Heavy Engineering & Shipbuilding We have the capability to meet the requirements for high
technology critical equipment and systems. In the process plant equipment segment, the international
market looks promising in the medium term. The domestic nuclear segment is expected to see
ordering activity in FY15. However, the setback that the international nuclear power sector experienced
with the natural disaster at Fukushima, Japan, will continue to affect demand in this segment, and
impinge on volumes in our new forging unit.
During the last few years, the defence sector had been adversely impacted by a slow pace of decision
making resulting in deferral of contract awards. However, recent initiatives to involve the private
sector in defence equipment manufacturing and the stated intentions of the present stable political
establishment augur well for your Company.
The shipyard at Kattupalli, which was commissioned in FY13, is capable of building warships,
submarines and specialized commercial ships. It is equipped with a state-of-the-art ship-lift that
enables it to undertake simultaneous new build, repair & refits. While the global commercial
shipbuilding trend remains subdued, we envisage that the Indian defence sector is likely to open up
and provide opportunities for building defence ships.
Apart from this, we are looking at addressing the growing demand for specialized ships such as
LNG and Ethane carriers, and Chemical tankers through technical collaborations. We are also looking
to leverage our position in the hydrocarbon sector by developing semi-submersible rigs and floating
LNG platforms, opportunities emerging from oil & gas exploration and production in deep offshore
fields.
3. Hydrocarbon On the domestic front, Exploration & Production (E&P) spends in upstream
hydrocarbon segment are expected to sustain during FY15. The decision to move towards market
driven pricing in both Diesel and Natural Gas is expected to spur upstream capex. Opportunities in
LNG regasification terminals and integrated refinery and petrochemical projects should open up in

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Company View
the year ahead. Implementation of re-development projects should provide a fillip to the onshore
gas processing segment. Investments are also expected in cross-country pipeline projects.
In the upstream sector, the Companys capabilities extend to the repair, rebuild and construction of
new Jack-up Rigs and FPSO topsides. The business is well placed to leverage its multi-locational
Modular Fabrication Facilities to respond to global trends towards modularization of onshore gas
processing plants.
Several large and prestigious international orders have bolstered our presence in select geographies.
We are increasingly pursuing opportunities overseas through alliances with the leading global EPC
companies. This has necessitated putting in place a multinational organization, with a cross-cultural
team possessing local knowledge and domain expertise.
The Company has transferred its Hydrocarbon Business to a wholly owned subsidiary in FY14, to
enable greater autonomy and formulation of HR policies in line with industry practices so as to attract
the best talent.
4. Thermal Power - Policy paralysis, negative market sentiments and procedural bottlenecks have
adversely affected the domestic Power sector in the last couple of years. Pressing concerns with
respect to land, fuel, financing and statutory approvals have shrunk the order pipeline, putting
pressure on the Companys capacity utilization.
Some welcome steps such as raising distribution tariffs, imposing anti-dumping duties on imported
equipment, and fast tracking of Fuel Supply Agreements and other clearances have been taken.
However, in view of the large backlog of projects which are stuck due to various constraints, revival
in the sector is still some time away.
Under the circumstances, we are doing our best to be competitive through cost reduction, design
optimization and smart sourcing.
We are also placing emphasis on expanding our spectrum of services to select Gulf countries and
the Southeast Asia for gas based power plants, and have recently achieved breakthrough orders in
Bangladesh.
5. Power Transmission & Distribution - Government policies lay stress on investments in strengthening
the power grid and the power distribution system through central and multilateral funding agencies.
We have demonstrated a steady growth in order book position in domestic and international markets.
The emphasis on strengthening of transmission grids in Gulf countries will continue to provide
significant business opportunities for power transmission and distribution business in the coming
years.
6. Metallurgical and Material Handling - The outlook in this area continues to be challenging, due to
a myriad factors including sector slowdown, mining bans imposed by the judiciary, prevailing

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Company View
complexities of policies governing mining, land acquisition as well as the dearth of new investments.
Efforts are underway to resolve these issues through various government proposals, legislations
and policies. As the economy grows, demand for metals particularly steel, aluminium and copper
will necessitate expansion of capacity. We are well positioned to benefit from the confidence we
enjoy because of our track record and timely completion of projects. Material Handling prospects in
areas of steel, mines, power, ports and long distance conveyors for bulk ores are likely to grow in
line with economic growth.
7. Electrical & Automation - The Electrical & Automation business continues to maintain its leadership
position in LV Switchgear. It has also made a mark in the MV segment through an acquisition of an
international company a few years ago. Product development in both LV and MV Switchgear continues
to forge ahead. The project business has enhanced its focus on international markets. The coming
year should see an upward momentum. The Company has also acquired three companies which
will bridge technology gaps in one case, enhance product range in the second and augment market
reach through the third.
8. Machinery & Industrial Products - The Construction Machinery business was able to register
flattish growth despite shrinkage in construction equipment market and entry of new competitors.
Your Company acquired the stake of the JV partner Komatsu in Construction Machinery business.
The Company also acquired the stake of JV partner Flowserve in the Valves business. The reported
revenues in Valves and Cutting Tools businesses were lower for the Standalone entity, as the
businesses were transferred to subsidiaries during FY14. However, the Valves business as a whole
continued to grow due to Oil & Gas and Power sector investments in India and overseas. Fresh
infusion of investment in these sectors in the US, the Middle East and other countries is expanding
the potential for our international operations.
9. Realty L&T has recently started realty business by using its own land parcels and in joint ventures
with other developers and this has already started yielding good results. Market has received our
entry in this business with enthusiasm. With the help of L&Ts brand, its construction capability and
marketing reach, this business is poised to deliver profitable growth in the coming years.
10. Information Technology & Integrated Engineering Services Business - In USD terms, L&T Infotech,
a wholly owned subsidiary, grew at 18% Y-o-Y on a consolidated, like-to-like basis. Profit after Tax
grew by 4%, due to the impact of prior period adjustment. L&T Infotech has embarked on building
a strong sales and marketing team globally with emphasis on the Americas, Europe, Gulf countries
and the Far East. The Company has also undertaken certain major initiatives intended to enhance
the visibility, profile and sharpen its distinction through the differentiated solutions it offers in multiple
domains.
Technology Services, a Strategic Business Unit of L&T, is being formed into a subsidiary. This will
result in consolidation of all engineering services business of L&T and L&T Infotech. This subsidiary
will provide autonomous functioning in line with industry practices.

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Company View
11. Financial Services - This business, which was listed in 2011, continues to grow profitably with
a loan book in excess of Rs 40,000 Cr at the end of FY14. Net Interest Margins at 5.5% reflect the
healthy interest spreads that the business earns. The business has successfully concluded
acquisitions in mutual funds business and housing finance.
12. Developmental Projects - Development projects undertaken by the Company in roads, ports,
metro rail and power continue to progress satisfactorily, with some of these projects currently
operational. The Company has opened up alternate funding lines to enable commissioning of the
upcoming projects and reduce dependencies on your Companys balance sheet, and advanced on
monetizing the value of matured assets.
Before I conclude, I would like to extend my thanks to Team L&T, Government, customers, vendors
and other stakeholders, without whom our continued growth momentum would not have been
possible. I would also like to thank my fellow Board Members for their unstinted support and
encouragement.

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Locations and Subsidiaries
LOCATIONS AND SUBSIDIARIES

Head Office
L&T House
Ballard Estate
P. O. Box: 278
Mumbai 400 001
Maharashtra
IND
P:91 22 6752 5656
F:91 22 6752 5893
http://www.larsentoubro.com
Other Locations and Subsidiaries

L&T Europe
Suite 11.01
11th FloorExchange Tower
1 Harbour Exchange Square
Limeharbour
London E14 9GE
GBR
L&T Australia
31 Kitchen Road
Dandenong 3175
Melbourne
Victoria
Melbourne
AUS
L&T North America

3000 Towncenter
Suite 610
Southfield
Michigan 48075
USA
L&T South America

150 Rua Bauhineas Da Peninsula 1610
Barra Da Tijuca
Rio De Janeiro 22776 090
BRA
Larsen & Toubro T&D SA (Pty) Ltd.

First Floor Building 5
Parc Nicol
3001 William Nicol Drive
Bryanston 2021
Johannesburg
ZAF
Larsen and Toubro Kuwait Construction Co

WLL.
Eastern Plaza Building
Block 8
East Ahamadi
Fahaheel
KWT

38 Cubbon Road
Bangalore 560 001
Karnataka
IND

32 Shivaji Marg
New Delhi 110 015
IND

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Locations and Subsidiaries

5-10-173 Fateh Maidan Road
Hyderabad 500 004
Andhra Pradesh
IND

MarketLine

191/1 Dhole Patil Road
Pune 411 001
Maharashtra
IND
Page 33
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COMPANY PROFILE

Larsen & Toubro Limited

REFERENCE CODE: BC12843B-5BD8-4976-90C4-A3B2589006AC

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Revenue / turnover 861,103.1

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Group Executive Chairman

Chief Executive Officer & Managing Executive Board

Madhukar Vinayak Kotwal

Whole-time Director and President, Executive Board

Whole-time Director and Sr.

Whole-time Director and Chief

Whole-time Director and Sr.

Non Executive Board

Non Executive Board

Non Executive Board

Vikram Singh Mehta

Non Executive Board

Non Executive Board

Non Executive Board

Akhilesh Krishna Gupta

Non Executive Board

Larsen & Toubro Limited

Larsen & Toubro Limited

KEY EMPLOYEE BIOGRAPHIES

Madhukar Vinayak Kotwal

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

MAJOR PRODUCTS AND SERVICES

Larsen & Toubro Limited

Larsen & Toubro Limited

Control and automation

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Larsen & Toubro Limited

Market leadership providing competitive

Major dependence on domestic operations

Strategic joint ventures strengthening

Economic challenges in India could

L&T Overview of Performance

L&T Overview of Performance