Mr. A. M.

Naik, L&T’s Chairman & Managing Director, receives the Padma Bhushan from the President of India, Mrs. Pratibha Patil, on March 31, 2009.

Whole-Time Directors

A. M. Naik Chairman & Managing Director

J. P. Nayak President
(Machinery & Industrial Products)

Y. M. Deosthalee Chief Financial Officer

K. Venkataramanan President
(Engineering & Construction Projects)

The Padma Bhushan R. N. Mukhija President

- one of India’s highest civilian honours
(Electrical & Electronics)

Contents K. V. Rangaswami President

(Construction)

V. K. Magapu Senior Executive Vice President

Company Profile 2
(IT & Technology Services)
Balance Sheet and Profit & Loss Account 3

L&T’s Domestic and International network 4 M. V. Kotwal Senior Executive Vice President
(Heavy Engineering)
Engineering & Construction 7

Heavy Engineering 19

Construction 31

Electrical & Electronics 49

Machinery & Industrial Products 55

L&T Infotech & Technology Services 63

Financial Services 67

Produced by L&T’s Corporate Communications Dept.

 Mr. A. M. Naik, L&T’s Chairman & Managing Director, receives the Padma Bhushan from the President of India, Mrs. Pratibha Patil, on March 31, 2009.

Whole-Time Directors

A. M. Naik Chairman & Managing Director

J. P. Nayak President
(Machinery & Industrial Products)

Y. M. Deosthalee Chief Financial Officer

K. Venkataramanan President
(Engineering & Construction Projects)

The Padma Bhushan R. N. Mukhija President

- one of India’s highest civilian honours
(Electrical & Electronics)

Contents K. V. Rangaswami President

(Construction)

V. K. Magapu Senior Executive Vice President

Company Profile 2
(IT & Technology Services)
Balance Sheet and Profit & Loss Account 3

L&T’s Domestic and International network 4 M. V. Kotwal Senior Executive Vice President
(Heavy Engineering)
Engineering & Construction 7

Heavy Engineering 19

Construction 31

Electrical & Electronics 49

Machinery & Industrial Products 55

L&T Infotech & Technology Services 63

Financial Services 67

Produced by L&T’s Corporate Communications Dept.

 A. M. NAIK
ChaIrman & managIng DIreCtor

ELECTRICAL MACHINERY & IT & FINANCE DEVELOPMENT

ENGINEERING & CONSTRUCTION & INDUSTRIAL ENGINEERING & PROJECTS &
ELECTRONICS PRODUCTS SERVICES HR FINANCIAL
CIO
SERVICES

K. V. RANGASWAMI K. VENKATARAMANAN M. V. KOTWAL R. N. MUKHIJA J. P. NAYAK V. K. MAGAPU Y. M. DEOSTHALEE

RAVI UPPAL

CONSTRUCTION E&C PROJECTS HEAVY INDUSTRY

OPERATING Cos. OPERATING Cos. A.K. CHHATWANI OPERATING Co. OPERATING Cos. OPERATING Co. OPERATING Cos. OPERATING Co. Financial
Services
Buildings & Factories Upstream L&T Power Limited Heavy Engineering Electrical & Industrial Machinery L&T Infotech • Infrastructure
• Institutional & Commercial • oil & gas ePC • Coal Based Projects • Coal gasifiers Automation & Products IT Services Finance
Buildings Projects OPERATING Co. • gas Based Projects & thermal Plant • electrical Standard • Industrial machinery Verticals • equipment Finance
• townships & SeZ • modular Fabrication Power Development • Boiler Island Equipment Products for Paper, Steel, • manufacturing • trade Finance
• hotels & hospitals & Drilling rigs & Construction • Stg Island • Fertilizer & • tamCo – medium Bulk material • energy, oil & gas
• System housing • Floating Production • Power Development • Boiler Petrochemical Voltage Products Handling & Process Industries Infrastructure
• Industrial Plants Systems • Fuel Source manufacturing Equipment • electrical Systems & • rubber Processing • Product Development
• Formwork & Building Products • Installation Services management Facilities • refinery, Cracke Equipment machinery Engineering Projects
• Subsea Pipelines • o&m • turbine Plant and oil & gas • Control & automation • Plastics Processing Services • roads & Bridges
Infrastructure
• L&t Valdel - • Development & ePC manufacturing Equipment • metering & machinery • Insurance • Ports & harbours
• Ports & harbours
Engineering for alumina Project Facilities • Weapon Systems Protection Systems • Industrial Valves • Banking & Financial • railways
• Bridges
Services • ePC-nuclear • hP Piping • nuclear Power • Welding Products & Services • airports
• roads & runways
• thermal Power Plant manufacturing Equipment SBUs Cutting Tools Horizontals • hydro Power
• metro transportation
Mid & Downstream Construction Facilities • aerospace • medical equipment & • Foundry Products • erP – SaP, oracle Projects
• hydroelectric
• refineries • Water Process • Pulverizing mills & Aviation Systems • Infrastructure man- • transmission
• nuclear Power
• Petrochemical & technology (Vrm) • Petrol Dispensing • heavy Structure agement Services & Distribution
• L&t ramboll – engineering
Fertilizers • heavy Foundry Shipbuilding & Pumps & Systems Fabrication Projects
Services
• L&t Chiyoda - • L&t Sargent Marine Systems • electrostatic SBUs • Water Projects
Metallurgical, Material Engineering & Lundy - • naval Precipitators Integrated Engineer-
Handling & Water Services Engineering • merchant ing Services Urban Infrastructure
• minerals & metals Services • repair & refit Construction • mechanical & Development
• Bulk material handling Process Plant Machinery mechatronics
• Water treatment & Construction Heavy Forging • Construction & mining Services
Distribution Projects Facilities machinery • embedded Systems
Pipelines • hydraulic equipment & Software
Electrical Projects • ePC - Crosscountry • Undercarriage and
• transmission Lines Projects & material handling
• Substations Construction Systems
• Industrial electrification • L&t-gulf Pipeline • Spares & Service
& Instrumentation Engineering • Strategic Electronics
• railway electrification • Spectrum Infotech -- Avionics

Railway Projects
• turnkey Solutions
• mass transport Systems
• rolling Stock - engineering & manufacturing

INTERNATIONAL BUSINESS: L&T is consolidating its presence in the Middle East, Africa and South East Asia by ramping up capabilities in EPC, Construction and Manufacturing.
 Leadership Team

A. M. Naik
Chairman &
Managing Director

J. P. Nayak Y. M. Deosthalee K. Venkataramanan R. N. Mukhija K. V. Rangaswami

President Chief Financial Officer President President President
(Machinery & Industrial (Engineering & Construction (Electrical & Electronics) (Construction)
Products) Projects)

V. K. Magapu M. V. Kotwal
Senior Executive Senior Executive
Vice President Vice President
(IT & Technology Services) (Heavy Engineering)
 Balance Sheet as at March 31, 2009
Year 2008-09 at a Glance
L&T
l New Order inflow at Rs. 516215.20 million in CY as against
Rs. 420190.10 million in PY – 23% growth y-on-y Rs. million
l Order Book as at March 31, 2009: Rs. 703191.40 million as
against Rs. 526821.40 million as at March 31, 2008 – 33% As at 31.3.2009 As at 31.3.2008
growth y-on-y SOURCES OF FUNDS:
l Gross Sales at Rs. 340450.41 million in CY as against
Rs. 251874.80 million in PY – 35% growth over 07-08 Shareholders’ funds 124597 95551
l Segment wise composition of gross revenues: Loan funds 65560 35840
Engineering & Construction Segment – 81.9% in CY as against Deferred tax liabilities 4352 2443
75.3% in PY 194509 133834
Electrical & Electronics Segment – 7.9% in CY as against
10.3% in PY APPLICATION OF FUNDS:
Machinery & Industrial Products Segment – 7.1% in CY as Fixed assets:
against 9.3% in PY
Tangible assets 50538 35534
Others – 3.1% in CY as against 5.1% in PY Intangible assets 1408 920
l PBDIT before exceptional and extraordinary items at Investments 82637 69223
Rs. 44247.86 million in CY as against Rs. 33180.22 million in Deferred tax assets 3867 1830
PY – up by 33%
Net current assets 56056 26297
l PAT at Rs. 34816.57 million in CY as against Miscellaneous expenditure 3 30
Rs. 21734.24 million in PY – up by 60%
194509 133834
l Gross Debt Equity ratio of 0.53 :1 (previous year 0.38 : 1)
Note: Figures in the previous year have been regrouped / reclassified
L&T Group wherever necessary.
l Gross Sales at Rs. 406078.71 million in CY as against
Rs. 295611.24 million in PY – 37% growth over 07-08 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2009
Rs. million
l PAT at Rs. 37891.30 million in CY as against
Rs. 23245.90 million in PY – up by 63%
2008-2009 2007-2008

Sales & service (net) 336466 248547

Operational / other income 10196 6751

Larsen & Toubro is a technology, engineering, construction Record of Achievements 346662 255298
and manufacturing company. It is acknowledged as one of the Less: Expenditure:
leading companies in the region, reputed for its engagement L&T’s signature of excellence is evident on:
Manufacturing, construction and operating
in key growth sectors, its ability to respond positively to expenses 262320 191540
challenging requirements, and its excellent value system.  Hydrocarbon projects executed in India, the Middle East and
South East Asia Staff expenses 19980 15355
A strong, customer-focussed approach and the constant  Power projects executed in India, the Gulf and Sri Lanka. Sales, administration and other expenses 18395 13506
quest for top-class quality have enabled L&T to attain and  The world’s largest coal gasifier made in India and exported Interest expenses and brokerage 3503 1226
sustain leadership in its major lines of business across seven to China
decades.  The world’s biggest EO reactor for a petrochemical complex Depreciation, obsolescence and impairment 3060 2116
in the Gulf Profit before taxes before extraordinary items 39404 31555
L&T has an international presence, with a manufacturing  The world’s largest FCC regenerator for a refinery
footprint in eight countries, a wide network of offices, and  Asia’s highest viaduct
 Infrastructure projects in Jordan, U.A.E. and South East Asia Less: Provision for taxes 12312 9821
collaboration agreements with global majors. Within India, Profit after tax before extraordinary items 27092 21734
L&T has a presence in virtually every district with a number  The world’s longest coal conveyor
 India’s widest range of switchgear Gain on extraordinary items (net of tax) 7725 -
of offices, factories and distribution outlets.
 A wide range of construction and mining equipment
History Profit after taxes after extraordinary items 34817 21734
This publication presents an overview of the Company’s Basic earnings per equity share before
The evolution of L&T into the country’s largest engineering and capabilities in different business sectors, and an account of its extraordinary items (Rupees) 46.30 37.80
construction organisation is among the more remarkable success performance over the last financial year. The contents have Diluted earnings per equity share before
stories in Indian industry. The company was founded in Bombay been structured in keeping with the Operating Divisions of the
extraordinary items (Rupees) 45.68 36.38
(now Mumbai) in 1938 by two Danish engineers, Henning Holck- Company:
Larsen and Soren Kristian Toubro -- both of whom were strongly
committed to developing India’s engineering talent and enabling  Engineering & Construction Basic earnings per equity share after
it to meet the demands of industry. Beginning with the import  Heavy Engineering extraordinary items (Rupees) 59.50 37.80
of machinery from Europe, L&T rapidly took on engineering and  Construction Diluted earnings per equity share after
construction assignments of increasing sophistication. Today,  Electrical & Electronics extraordinary items (Rupees) 58.70 36.38
the company sets engineering benchmarks in terms of scale and  Machinery & Industrial Products
complexity.  Technology Services Note: Figures in the previous year have been regrouped / reclassified wherever necessary.

2 3
4
This pictorial representation does not purport to be the political map of India.
Nationwide Network
A Global Presence

Product & Equipment Supply

Fabrication

Note: Map is broadly representative of L&T’s presence in markets worldwide.

5
Hydrocarbon - Upstream
Engineering & Construction Division

Overview
E&C (Projects) Division delivers Engineering, Procurement, &
Construction (EPC) solutions in the oil & gas, petrochemicals,
power and water sectors. It offers single-source responsibility for
execution of lumpsum turnkey projects in multiple geographies.
The expertise and experience of E&C arising out of a successful
track record in executing projects worldwide encompasses front-
end design, engineering, fabrication, project management,
procurement, construction, installation and commissioning. These
integrated strengths are backed by flexibility of operation and agility
in response. A well-institutionalised Risk Management structure and
high safety standards are other key strengths of the Division.

E&C has consolidated its presence in international markets as part of

its mission to establish itself as a major EPC player in the Middle East
and South East Asia. It has set up offices and built manufacturing
capabilities in select geographies. Joint ventures are set up with
renowned local partners in Saudi Arabia, Kuwait, Oman, Qatar and
United Arab Emirates. The offices in Middle East are backed by a large
engineering resource base in India.

Key inherent strengths that enable the Division to offer world-class

solutions to its clients are:
• Over 7500 qualified and experienced personnel from various
disciplines
• Strong basic engineering capabilities
• Large Technology & Innovation Centers
• State-of-the-art CAD facilities with sophisticated plant design
systems
• Conformance to globally recognised Management Systems
Standards
• Open-yard facilities for modular fabrication with waterfront in
India and Oman.

Business Environment
The global economic meltdown in 2008-09 led to a liquidity crisis,
impacting business conditions. Decline in the industrial growth rate
has resulted in a sharp contraction in hydrocarbon, chemical and
construction industries.

Process platform complex at Bombay High executed by L&T on an EPC basis for Oil & Natural Gas Corporation. L&T provides turnkey solutions to the Computer-generated image of the heavy-lift-cum-pipelay vessel that
upstream hydrocarbon sector encompassing oil & gas production, processing and transportation. will add the installation dimension to L&T’s EPC capabilities in the
upstream hydrocarbon sector.

7
Oil & Gas Projects
The downturn caused a weak demand situation resulting in falling
commodity prices and cut down in production. However, the
decline in commodity prices showed disparate trends. Prices of steel
fell sharply yet the cost of machinery and other equipments remained
firm. Crude oil prices saw a sharp decline from a peak of $140 down
to $50+ per barrel. This coupled with the credit squeeze forced re-
examination of the project viability or deferment / cancellation
of investment decisions, resulting in slower Order Inflows during
2008-09. Bidding for jobs in an uncertain economic scenario was
a challenge by itself. Sharp swings in the commodity prices and
depreciation of the rupee further added to the uncertainties. Some
prospective clients sought to reduce project costs through re-
bids and protracted pre-award negotiations on price. Moreover,
the contracting basis is tending to change from LSTK to cost
reimbursable model due to volatility in the material and execution
costs. With the size of the contracts increasing, the pre-qualification
criteria have become more stringent, thereby delaying the take-off
phase of projects.

During the year, the Division created three Operating Companies

under its umbrella - for Hydrocarbon Upstream, Hydrocarbon
Mid & Downstream and Power businesses - to lay closer focus and
accelerate growth in the areas. An account of these Operating
Companies’ businesses is given below.

Hydrocarbon Upstream Operating Company

This Operating Company (OC) provides turnkey solutions in the
upstream hydrocarbon sector encompassing oil & gas production,
processing and transportation. It has been successfully executing
projects for the last two decades in India, the Gulf, Africa and South
East Asia for reputed clients. The solutions offered are in a wide
range of products such as process platforms, wellhead platforms,
submarine pipelines, platform and pipeline replacement, modules,
marine terminals and floating system projects.

Decline in crude oil prices has hit the viability of expansion plans of
the oil producing companies, leading to deceleration in exploration
activities. Domestic capex on development of new fields continues
to be low as compared to global trends. However, there is a renewed
thrust in deep-water exploration activities. The current global
trend in energy supply and consumption is economically and

Gas compressor module (Size: 31m x 16m x 16m) being despatched from L&T’s Modular Fabrication Facility at Hazira on India’s west coast. Load-out of flare deck and jacket for Maersk Oil – Qatar at L&T’s Modular
Fabrication Yard at Sohar, Oman. The 300m jetty has a 12m draught and
a bearing strength of 50 MT per sq.m.

9
Hydrocarbon - Mid & Downstream
environmentally unsustainable and is expected to improve in the
near future.

The OC has established a new state-of-the-art fabrication facility for

modular structures, heavy jackets and oil rigs at Sohar in Oman, in
partnership with The Zubair Corporation, Oman. The Yard, spread
over 400,000 sq. m, has facilities for heavy structural fabrication,
sophisticated equipment, systems integration and testing and load-
out of ultra-large modules. Significant progress has been achieved
on the capacity expansion plans at its existing modular fabrication
facility at Hazira in Gujarat.

L&T Valdel, the engineering arm of Upstream OC which provides

complete engineering solutions, is gearing up to cater to growth
needs through its centers located at Bangalore, Faridabad and
Chennai and is also currently positioning itself in the UAE. The OC has
set up a joint venture with SapuraCrest Petroleum Berhad of Malaysia
to add the installation dimensions to its offshore capabilities through
owning and operating a heavy-lift-cum-pipelay vessel, LTS 3000.

To focus better on marketing and business development activities at

the international level, the OC has set up Development Centers at:
1. Middle East Oil & Gas Projects at Abu Dhabi, primarily catering
to opportunities in GCC countries, Iran and North Africa
2. International Oil & Gas projects at Mumbai to address
opportunities in South East Asia, Australia and West Africa.

Hydrocarbon Mid & Downstream Operating Company

The Mid & Downstream OC offers single-point EPC solutions in the
field of hydrocarbon refining, petrochemical, fertiliser and chemical
sectors. The business has to its credit several complex projects
executed successfully in domestic and international markets. The OC
addresses the entire spectrum of opportunities in this sector which
include green-fuel projects, fuel upgradation, olefins, polyolefins,
aromatics, hydrogen, fertiliser, gas processing, reformers, cracking
furnaces, cross-country pipelines, gas-gathering stations, crude oil
terminals, etc.

Group-3 Lube-based oil project executed by L&T on an EPC basis for Petronas Melaka Refinery in Malaysia. L&T offers comprehensive services to the Naphtha Hydrotreater Reformer Unit constructed by L&T at ENOC
Refinery sector by undertaking EPC projects on Lumpsum Turnkey basis in India and abroad. Processing Company LLC at Jebel Ali Free Zone, Dubai , UAE.

11
Petrochemical Projects
In 2008-09, the Mid & Downsteam business took a slew of initiatives to
cash in on emerging opportunities when the economic environment
sets on a recovery path. While the capabilities in the upcoming area
of pipeline engineering were strengthened through the formation of
a joint venture with Gulf Interstate Engineering USA, the engineering
capacities at Mumbai, Vadodara and Faridabad centers were also
strengthened. This is in addition to the capabilities of L&T’s on-going
joint venture - L&T Chiyoda. Construction capacities were augmented
by adding strategic plant & machinery resources. In the international
arena, the OC has set up a full-fledged business unit at Sharjah to
cater to opportunities in the Middle East. Other country-specific
JVs have been formed to focus on specialised electro-mechanical
construction capabilities in the Gulf.

Power Operating Company

L&T has taken initiatives in synergising its internal strengths
developed over decades in the areas of project management,
engineering, manufacturing and construction by setting up an
organisation focused on opportunities in coal-based, gas-based and
nuclear power projects. This business provides turnkey solutions for
setting up utility power plants, co-generation and captive power
plants on EPC basis. It also provides power plant engineering services
through L&T Sargent & Lundy a joint venture of L&T and Sargent &
Lundy, U.S.A. L&T has formed two joint ventures with Mitsubishi
Heavy Industries, Japan to manufacture supercritical boilers and
steam turbine generators. In 2008-09, significant progress was made
in setting up manufacturing facilities for supercritical boilers and
turbines at Hazira. Setting up facilities to manufacture various power
auxiliaries such as boiler tubings, pressure pipes, pulverising mills,
etc. is also underway to put together a comprehensive offering of
power equipment to customers. Coal-sourcing initiatives are being
pursued actively through L&T Natural Resources.

Power Business is a major thrust area for L&T from the long-term
perspective. The company is undertaking significant efforts and
investments in this sector to take a leadership position. Technology
tie ups, setting up of manufacturing facilities and front-end
marketing structure, scaling up manpower resources are the major
initiatives already underway.

700 TPD methanol and 100 TPD CO plant for Methanol Chemicals Company (Chemanol) at Al Jubail in Saudi Arabia. Process Licensor: Haldor Topsøe An isomerisation project executed on EPCC basis by L&T for Mangalore
A/S Denmark. L&T is also executing a 50,000 TPA methylamine plant and a 60,000 TPA dimethyl formamide plant for Chemanol at the same location. Refinery & Petrochemicals Limited (MRPL). L&T is executing Hydrogen
Generation Unit (Capacity 70,000 TPA), Process Licensor : Haldor Topsøe
A/S, Denmark and Diesel Hydrotreater (Capacity: 3.7 MMTPA), Process
Licensor: Axens, France, at the same location.
13
Pipelines & Storage Facilities
Risk Management
The Division has a robust risk management framework. This has
been identified as one of the key enablers to achieve the Company’s
strategic objectives. The E&C Risk Management team has been set
up to effectively manage risk that is inherent in the Engineering and
Construction business, be it costing, scheduling, safety, financing,
human capital and contracting risk. It is an active member of the
Engineering & Construction Risk Institute (ECRI) USA, an initiative of
World Economic Forum. Today we see a shift away from traditional
compliance and insurance motivated risk management to one
that is closely linked to business performance. The objective is to
strengthen E&C’s competitive edge and evolve a risk-embracing
culture.

Increased competition, pressures on cost and deliveries, forex and

commodity price variations, impact of recessionary trends on the
award of jobs and manpower attrition are some of the major risks faced
by the Division. The Division has, however, adopted risk-mitigation
steps right from pre-bid stage covering technical, procurement and
financial risks. Measures such as advanced quantitative tools, global
sourcing, standard operating procedures, and operational excellence
initiatives have been implemented to enhance the profitability of the
businesses.

HR for Professional Excellence

‘Talent Management’ has been a prime mover in the company’s
ambitious business plans. E&C’s HR strategy dovetails personal
growth aspirations of employees with business needs. A variety of
HR interventions give E&C a strong competitive edge. A menu of
career growth options and training are offered to young aspiring
professionals for achieving excellence in engineering and project
management skills. Important initiatives undertaken during the year
include setting up an L&T Project Management Institute at Vadodara
complemented by the GLOPAT (‘global expatriates’) programme,
mentoring of new joinees, recognition of excellence, strategy
workshops and team-building programs.

Laying of 592-km , 24” PUF-insulated crude oil pipeline along with 8” gas pipeline from Barmer to Salaya for Cairn Energy India Limited on an EPC Asia’s largest and the world’s deepest cavern for storing LPG
basis. L&T offers EPC and commissioning services for cross-country pipelines, terminals, offsite facilities, tankages, fire-protection systems, etc. (190m below ground, capacity: 60,000MT) at Visakhapatnam in South
India.

15
Power - Supercritical, Coal & Gas Fired
Outlook
India ranks sixth in the world, with a refining capacity of 3.4%. Just
over 60% of the potential in the oil sector has been explored so far.
In order to enhance energy security of the country, the Government
has increased thrust on exploration, which is expected to lead to
to substantial investments resulting in an increased activity in the
upstream sector. Improving oil prices will encourage investments
in new refineries creating opportunities particularly for the Mid
& Downstream sector in GCC countries. A new fertiliser policy for
feedstock conversion projects announced during 2008-09, should
open up major opportunities in the next couple of years.

The reform process as envisaged in the Electricity Act in 2007

progressed during 2008-09. The sharp increase in demand for power
has led to new-generation capacities, a significant portion of which
is planned through setting up of ultra-mega power projects based
on super-critical technology. India has adopted a blend of thermal,
hydel and nuclear sources with a view to increasing the availability of
electricity. India needs to double its generation capacity in the next
7-10 years to meet potential demand for power.

E&C Division is geared to harness upcoming business opportunities.

Clearly drawn-out pre-bid strategies, intense marketing efforts
and enhanced execution capabilities will drive performance. E&C
has also been quick to roll out measures to mitigate the adverse
economic slowdown by taking concrete steps in the areas of cost
reduction, improving productivity of resources and operational
excellence. These initiatives are expected to be the underpinnings
of performance in the coming years. In the backdrop of this outlook,
E&C Division is optimistic of a good performance in the year
2009-10.

388.5 MW natural-gas-fired combined-cycle power plant built by L&T at Vemagiri in Andhra Pradesh. L&T has added another dimension to its 445 MW combined-cycle power plant at Konaseema in Andhra
capabilities in the power sector by forming joint ventures with Mitsubishi Heavy Industries, Japan, to manufacture supercritical boilers and turbines. Pradesh, South India.

17
Reactors & High Pressure Exchangers
Heavy Engineering Division

Heavy Engineering Division’s operations are managed through two

Operating Companies viz.:

• Heavy Equipment & Systems Operating Company

• Shipbuilding Operating Company

HEAVY EQUIPMENT & SYSTEMS OPERATING

COMPANY (HES OC)
Overview
Heavy Engineering & Systems Operating Company manufactures and
supplies custom designed and engineered critical equipment and
systems to core sector industries: fertiliser, refinery, petrochemical,
chemical, oil & gas, thermal & nuclear power, aerospace and defence.

HES OC has manufacturing and fabrication facilities at Mumbai

in Maharashtra, and at Hazira and Baroda in Gujarat. A Strategic
Systems Complex was commissioned during the year at Talegaon
in Maharashtra. A Precision Manufacturing Facility at Coimbatore in
Tamilnadu has been recently commissioned.

A Strategic Electronics Center for Defence Electronics Systems design

& engineering operates from Bangalore in Karnataka. Dedicated
engineering centers support manufacturing at all locations. The
Operating Company has set up three Technology Development
Centers at Powai - for new product development in process plant
equipment and for defence / nuclear equipment as well as one
focused on electronics systems / sub-systems.

Business Environment

The economic slowdown is mainly impacting potential exports.

Internationally the refining business has been hit by the fall in crude
oil prices and the general economic slowdown. Many planned
greenfield refineries and expansion projects have been deferred or
cancelled in the US, Canada as well as in the Middle East. With fewer

Methylamine converter for Chemanol-MA/DF plant is ready for despatch to Al-Jubail, Saudi Arabia. L&T offers a comprehensive range of High pressure screw plug exchanger being despatched to a refinery in
critical equipment and systems including Cr-Mo-V reactors / converters and high pressure exchangers for the hydrocarbon sector. Kuwait. L&T has manufactured over 200 such exchangers.

19
Refinery Equipment
projects on the anvil, the competition is intense. However, Indian
domestic refinery projects are going ahead based on mandates
given by the Supreme Court. No new petrochemical projects are
being planned, due to fall in demand for petrochemicals.

HES OC continues to see growth opportunities, despite the current

economic crisis. The recently announced fertiliser policy by the
Government is favourable for investment. The fertiliser sector
offers good opportunities both in the domestic market as well as
in international markets like the Middle East and Africa. The coal
gasification business continues to show promise in countries like
China and Vietnam in the short to medium term. A recent order
received for coal gasifiers in India could lead the way for more such
projects within the country. The Operating Company has achieved
a breakthrough by entering into the elite league of manufacturers
of surface condensers & feed water heaters for super-critical power
plants.

There was no positive change in the Defence Business environment

during the past year, apart from the announcement of the Defence
Procurement Procedure (DPP), 2008. The environment is still not very
supportive of private sector participation in defence production.
The plan to award Raksha Udyog Ratna (RUR) status to select private
sector system integrators and create a level playing field continues to
remain in abeyance. Offsets offer a potential growth area.

HES OC is proud to have been associated with the Chandrayaan

mission for supply of critical equipment and systems both for the
launch segment as well as ground / command control segment.
The inking of agreements and MoUs by DAE/NPCIL with US, France,
Russia & Kazakhstan for nuclear plants and fuel opens up new
opportunities for supply of critical nuclear power plant equipment.
This is over and above the opportunities offered by India’s domestic
programme. The OC has signed MoUs with leading foreign players
such as Westinghouse and GE of USA, Atomstroyexport from Russia
and AECL of Canada which will enable participation in nuclear
projects coming up not only in India but also, in some cases, outside
the country.

High pressure reactors set sail for a refinery in South-East Asia. L&T designs and manufactures sophisticated equipment of large dimensions at its Vacuum column for a refinery on India’s west coast. L&T offers critical
state-of-the-art manufacturing facilities in Hazira near the Arabian Sea. L&T is setting up additional manufacturing facilities at Sohar in Oman. equipment and systems for refineries and gas cracker plants.

21
Nuclear Power Plant Equipment

Significant Initiatives

The Operating Company has launched a number of key initiatives

aimed at establishing a leadership position in the global market.

Capacity Augmentation

HES OC has planned substantial capital expenditure in line with

its growth plans. The Strategic Systems Complex for assembly,
integration and testing of weapon systems, sensors and engineering
systems has started production at Talegaon. The advanced composite
facility for Defence, Aerospace and Aviation products has become
fully operational during the year at Ranoli complex, Baroda.

A dedicated facility for precision-engineered products was

commissioned at Coimbatore during the year under review. The
heavy fabrication facilities at Hazira are being upgraded and
expanded. Dedicated sub-contractors are being developed for
further capacity augmentation.

HES OC is setting up a heavy fabrication facility through a joint

venture in Oman to cater mainly to the Middle East market.

Capability Building

An integrated Special Steel Melting Shop with a Heavy Forging Facility

is proposed to be set up at Hazira for catering to the requirement of
heavy forgings for nuclear power plants as well as reactors for the
hydrocarbon market.

The Operating Company lays special emphasis on continuous

development / adaptation of manufacturing technology, modification
of existing products and development of new products through its
Technology Development Centers. The Technology Development
Centers have entered into partnerships with DRDO as well as other
national laboratories and academia for joint development work.

Steam generators for pressurized heavy water reactors under despatch. L&T has been accredited by ASME to use ‘N’ and ‘NPT’ stamps for manufacture Reactor vessel for Fast Breeder Reactor (FBR) being lowered into a vault
of equipment and systems including reactor vessels, reactor heads, steam generators, heat exchangers, control rod drive mechanism and fuel handling having a mirror-polished thermal insulation panel mounted on its
machinery for nuclear power plants. outside surface. L&T is at the forefront of India’s FBR programme.

23
Aerospace & Defence
A Warship & Submarine Design Center set up last year is being
strengthened for in-house design and construction of naval vessels.
A virtual reality facility was commissioned during the year.

Improvement Initiatives

As a further step in the thrust towards improving Employee

Engagement, a new initiative has been launched, titled ‘Enterprise-
wide Collaboration for Alignment with Strategy’ (ECAS), which aims to
significantly boost the preparedness of the organisation to meet new
challenges. A new Customer Intimacy Strategy along with promotion
of ‘Collaborative Culture’ across functions has been adopted with the
primary aim of providing best service to the customer.

The Product Lifecycle Management (PLM) project went live across

the Operating Company’s various locations during the year. The PLM
project will help improve knowledge management, reduce cycle time
and improve collaborative working across functions. Automation of
design and drafting work using knowledge-based engineering tools
is of great assistance in knowledge management and cycle-time
reduction in engineering.

A number of teams are working on various improvement projects

under the umbrella of the Operational Excellence theme. The
Operating Company relies on the Critical Chain Project Management
methodology based on the ‘Theory of Constraints’ for managing,
planning and execution of projects and for improving its delivery
performance.

The Operating Company follows a structured process for protection

of its Intellectual Property Rights. During 2009-10, the Operating
Company received four patents.

SHIPBUILDING OPERATING COMPANY (SHBD OC)

Ship Building Operating Company is in the business of construction/

repair of both commercial and defence vessels. The Operating

Lift-off of India’s prestigious space vehicle, Chandrayaan I. L&T provided specialised launch and tracking systems for this moon mission. Picture courtesy: Indian Space Research Organisation State-of-the-art stabilised naval rocket launch systems, designed and
L&T’s precision manufacturing facilities are geared to meet the exacting demands of supplying aerospace equipment and systems. developed by L&T, have been weaponised and inducted by the Indian
Navy on multiple platforms. Other naval weapon systems developed
by L&T include launch systems for anti-ship and surface-to-surface
missiles, ASW torpedoes and ASW rockets.
25
Reactors & Coal Gasifiers
Company has design, fabrication and shipbuilding facilities at Hazira
in Gujarat, which handles the construction of specialised vessels
subject to a draught limitation of up to 4 metres. Construction of a
new mega shipyard has been launched at Kattupalli in Tamilnadu.
The new shipyard will primarily focus on construction of naval ships
and submarines and hi-tech commercial vessels, in addition to
repairs and refits for military and commercial vessels.

Business Environment

The international commercial shipbuilding market is presently

going through a difficult phase marked by low freight rates. The
global financial crisis has led to a global slowdown in commercial
shipbuilding. Fleet owners have deferred their plans for acquisition
of new vessels. Though the major shipbuilding yards in China and
Korea are still booked with orders till 2011, they have slots freed up
due to cancellations in the bulkers segment.

The Government of India has agreed to grant shipbuilding subsidy

to all eligible vessel orders booked prior to 14th August 2007.
The Shipbuilders Association of India is working closely with the
Government for continuation of the subsidy scheme, to enable them
compete with Chinese and Korean yards.

Significant Initiatives

Augmentation of facilities and resources at Hazira is underway to

meet present and future growth needs. The Operating Company
is focusing on streamlining its internal systems and processes for
strengthening operations.

Services of internationally acclaimed consultants are being availed of

for the construction of state-of-the-art facilities at the new shipyard
at Kattupalli.

Outlook

There are early signs of a turnaround. The economic situation world

over is likely to improve in the next six months. The fertiliser sector

Sinopec TPCC Ethylene Oxide (EO) reactor, heat exchangers and EO strippers bound for China Petroleum International Company. L&T exports high- The world’s largest coal-gasifier - manufactured by L&T for China. Key
tech plant, equipment and systems to over 45 countries including the US, UK and France. coal gasification equipment is manufactured by L&T under a technical
tie-up with Shell Global Solutions.

27
Shipbuilding - Merchant & Naval
is expected to offer good opportunities with a few greenfield and
brownfield investments both in the domestic market as well as in
the international market. The Operating Company expects good
prospects from domestic refinery projects. Deferred projects in the
Middle East are likely to be revived in the third quarter of the current
year. New territories like Iran hold good potential.

With the signing of the Indo-US nuclear deal and India signing the
IAEA safeguard agreement, there are good opportunities for supply
of nuclear power plant equipment in the medium to long term. The
new government is expected to hasten the decision-making process
for new defence contracts and take measures to liberalise the sector.

With the international commercial shipbuilding industry being

severely affected by the financial meltdown, the order pipeline has
been thinning. The Operating Company has, therefore, been working
on enquiries for supply of specialised heavy cargo vessels, RoRo
vessels, Coast Guard Patrol vessels, etc. The Indian Navy is committed
to developing indigenous design and globally competitive
construction capabilities for naval vessels. The Operating Company
is well-poised to harness this potential demand through the new
shipyard under construction at Kattupalli.

Overall, both the Operating Companies envisage good market

opportunities in the medium term.

Specialised heavy-lift vessel launched from L&T’s ship-building yard at Hazira, on India’s west coast. Computer-generated image of 100-metre-long warship being
developed by L&T for India’s Coast Guard.

29
Buildings & Factories
Engineering, Construction &
Contracts Division

Overview

ECC – L&T’s Engineering, Construction and Contracts Division (ECCD)

undertakes engineering design and construction of infrastructure,
buildings, factories, industrial projects including power transmission
and distribution works covering civil, mechanical, electrical and
instrumentation engineering disciplines. ECC is equipped with
the requisite expertise and wide-ranging experience to undertake
Engineering Procurement and Construction (EPC) projects with
single source responsibility.

Many of India’s prized landmarks - its modern airports, most exquisite

buildings, its tallest structures, largest industrial projects, longest
flyovers and highest viaducts carry the distinctive signature of L&T’s
Construction Division.

ECC’s operations have been organized into four different Operating

Companies to allow for more in-depth technology and business
development as well as to focus attention on domestic and
international project execution.

BUILDINGS & FACTORIES

• Institutional and Commercial Buildings
• Residential Buildings
• Industrial Structures
• Mechanical, Electrical & Plumbing
• Construction Engineering Services (Formwork)

TRANSPORTATION INFRASTRUCTURE
• Roads & Runways
• Bridges, Metros & Ports
• Hydel Power
• Nuclear & Defence
• International Infrastructure

Multi-storeyed commercial complex in Dubai’s prestigious Silicon Oasis. L&T has executed several major projects in the GCC countries, including Factory of automobile major near Chennai.
residential and commercial complexes, bridges, switchyards and transmission lines.

31
Roads & Bridges
METALLURGICAL, MATERIAL HANDLING & WATER
• Minerals & Metals
• Bulk Material Handling
• Water & Utilities

ELECTRICAL & GULF PROJECTS

• Electrical, Instrumentation & Communication
• Transmission Lines & Railway Construction
• Gulf - Urban Infrastructure and Transmission & Distribution

Projects

ECC has built a reputation for innovative design and construction over
the last 65 years. It deploys state-of-the-art design tools and project
management techniques. It executes a wide variety of projects
in every facet of construction and undertakes lumpsum turnkey
construction with single-source responsibility. The Division ranks
40th among top global contractors and 67th among international
contractors as per the survey conducted by Engineering News Record
magazine, USA (August 2008). The current year’s performance
reaffirms the Company’s global stature.

Business Environment

Due to the liquidity crunch and real interest remaining relatively high,
private capital investments are showing signs of moderation. Various
measures taken by the Government / RBI are, however, expected
to offset the effect. On the positive side, inflation is under control
and commodity prices have dropped. This could help the industry
in general to improve margins. For the construction industry, the
primary drivers of growth remain robust in many areas. Business
would grow steadily over time, albeit at a slower pace. The three
important drivers are: (a) infrastructure development; (b) capacity
enhancement; and (c) urbanisation.

These growth drivers are irreversible and are underpinned by India’s

domestic demand & the social & physical ‘infrastructure deficit’. The
construction industry is cyclical by nature. The Indian construction
sector has been growing at nearly 1.5 times India’s overall growth.
Considering the current downturn in India, the construction sector
is expected to grow 9% - 11% in 2009-10 as against 17.5% in 2007-

83-km highway between Vadodara and Bharuch – one of the many road projects that provide a critical link to the Golden Quadrilateral that Panipat Elevated Expressway – India’s longest six-lane flyover on the
connects India’s major metropolitan centres. Infrastructure projects executed by L&T also include bridges, ports, airports and metro rail systems. country’s strategic National Highway-1.

33
Ports & Harbours
08, and 16.3% in 2008-09, resulting in slowdown in the overall order
inflow and sales growth.

Opportunities & Challenges

The construction market shows a mixture of optimism and

apprehension. Owing to lowering demand, some sectors like realty,
especially in premium housing and capacity augmentation in
manufacturing sectors, are expected to move a bit slower than in
the recent past. However with more and more migration of people in
to urban areas, the housing sector will continue to generate a lot of
opportunities. Mass-scale affordable housing is one such emerging
opportunity to be harnessed.

Infrastructure projects will continue to be the focus of both

Government and private sectors, supported by policy initiatives to
drive infrastructure growth. This is corroborated by the Planning
Commission’s ambitious investment plan on infrastructure over the
next 5 years in various sectors like power, irrigation, roads, railways,
ports and airports. The construction sector, which accounts for
almost 60-65% of the capital spend, would be the biggest beneficiary
of these investments. Transportation infrastructure (roads, bridges,
elevated corridors, etc.) is expected to gain enough focus from
private investors driven by favourable measures taken by NHAI like
transparent MCA (Model Concession Agreements), increased VGF
(Viability Gap Funding), etc. In addition, the state and district roads
are also in the limelight now.

Metros and MRTS (Mass Rapid Transport System) are emerging

as a major area of infrastructure development in metros and state
capitals. Urban infrastructure like water supply, sanitation, health
care, waste management, city roads, and flyovers are expected to
provide extensive opportunity in the year 2009-10. Tier II & Tier III
cities are expected to be the new centers for large-scale investments.
Increased budgetary allocation by the government for APDRP, NHDP,
Accelerated Irrigation benefit programme, Jawaharlal Nehru Urban
Renewal Mission, Bharat Nirman Programme etc., are good potential
for business opportunities in related segments. The increasing
‘demand–supply’ gap in the power sector and Government’s
continued focus will drive growth in the sector which will give boost
to order inflows for L&T’s Power Transmission & Distribution, Bulk
Material Handling, Hydel and Nuclear Business Units.

1300-metre jetty built by L&T at Karaikal, Puducherry, on India’s east coast. L&T undertakes design and construction of ports, harbours and waterfront Section of the Gangavaram Port at Visakhapatnam.
structures like deepwater berths, open-sea jetties, container terminals and breakwaters.

35
Airports
On the international front, the GCC countries have seen significant
investment drop in the realty sector. The investment in the oil sector
is also likely to be moderate due to reduction in prices of oil and
expectations of a drop in demand for oil. However, the other sectors
like power distribution and infrastructure development in the Gulf
region is expected to continue to be robust. The Division is optimistic
about exploiting the potential available in these businesses.

Buildings & Factories Operating Company (B&F OC)

This Operating Company is equipped with the domain knowledge,

requisite expertise and wide-ranging experience to undertake
Engineering, Procurement and Construction (EPC) of all types of
building and factory structures.

The range covers the Service Sector (IT parks, office complexes), the
Urban Infrastructure Sector (commercial centres like shopping malls,
modern airport buildings and metro rail stations), the Leisure Sector
(international class hotels, entertainment centers), the Educational
& Health Sector (knowledge centers, super-speciality hospitals and
medical colleges), the Social Sector (public buildings, religious/
convention centers and monumental structures) and the Sports
Sector (large stadiums, sports complexes).

In addition to design and construction of structural framework,

the OC offers finishing and interior works and electro-mechanical
services and latest project management techniques. MEP services
offered include: Heating, Ventilation and Air Conditioning (HVAC), Fire
Protection, Building Automation, Vertical Transportation, Plumbing
and Sanitary, Surveillance and Security Systems, Telecommunication
networks, Electrification, Kitchen, Laundry, Water and Effluent
management, Medical equipment, Landscaping and Horticulture.
This OC also provides customised solutions to business office spaces
and corporate townships.

The B&F OC has continued its growth trend during 2008-09 by

bagging large value turnkey, design-and-build orders in airports, IT
parks, commercial space, health and leisure segments and residential
and factory building sectors. The progress made by the B&F OC
during the year 2008-09 towards providing total turnkey solutions
was significant. Concept-to-Commissioning is the buzzword driving
growth. This unique capability along with focus on Key Account

Bengaluru International Airport. L&T is driving the airports revolution in India, building virtually every major new international airport in the country. Passenger terminal building of the new Rajiv Gandhi International
Airport at Hyderabad.

37
Railways & Mass Rapid Transport
Management has helped the OC to strengthen its relationship with
customers. The composition of design-and-build has increased to
65% of total revenue. Our involvement from the conceptual stage
of the project helps clients in optimisation of time and cost. The
execution of Delhi International Airport is progressing on schedule.
Sensing the realty slowdown ahead of time, the B&F OC has quickly
diversified into government projects, affordable housing and new
airports outside India / airport modernisation projects in Tier II cities.
A healthy order book stands testimony to the relentless business
development initiatives, giving the OC an assurance on revenue
growth for the year 2009-10.

Infrastructure Operating Company (Infra OC)

The Infrastructure Operating Company provides comprehensive

design and construction services for meeting ever increasing demand
for infrastructural facilities like highways, bridges, airport runways,
ports, harbours, railways and power. Recently, L&T was declared
“Infrastructure Company of the Year” by Essar Steel and CNBC-TV 18.

The Infra OC has the resources, expertise and experience to handle all
types of infrastructure projects, as well as well-equipped engineering
and design facilities – Engineering Design and Research Centre (EDRC)
– at Chennai and Faridabad that offer comprehensive engineering
and consultancy services for infrastructure projects. Engineering
solutions are also offered for the entire gamut of geotechnical and
foundation engineering designs through Foundation Engineering
Department. A dedicated team of engineers in the Infrastructure
Engineering & Technical Services Cell focuses on developing
construction methods and design of enabling works for all types of
hydel and nuclear power projects.

Bridges of all types in various span ranges have been built by L&T
using innovative and sophisticated construction techniques like
incremental launching, segmental construction, cables stay, precast,
prestressed concrete and steel-concrete composite construction.

L&T has extensive experience and expertise in the execution of many

challenging projects involving large maritime structures such as
docks, container terminals, ports, harbours, jetties, berths, shipyards,
breakwaters including design, supply and installation of lock gates.

Artist’s impression of India’s first monorail system – being built by L&T in Mumbai. L&T’s Railway Business Unit integrates the Company’s capabilities and Underground metro rail corridor for the Delhi Metro Rail Corporation,
provides comprehensive solutions in the rail sector. The focus is on urban mass transportation systems like monorails, metros and Light Rail Transport. New Delhi.

39
Nuclear & Hydel Power
Quarrying and placement of armoured stones and armoured
concrete blocks, preparation of beds for breakwaters and shore
projection works, seating of floating caissons including supply and
installation of shiplift platforms and transfer systems are a speciality.

Specialisation also covers design and construction of railway bridges

and other railway structures for metro, underground corridors
and elevated corridor, monorails, cut and cover and underground
structures. Sophisticated techniques of TBM and the Earth
Pressure Balancing Method (EPBM) are used for the construction of
underground railway tunnels.

L&T has the capability to construct critical and complex structures

for nuclear power with high level of quality standards. It has the
distinction of having participated in the construction of the majority
of nuclear power plants and heavy water plants in the country.

L&T caters to a large base of international clientele for infrastructure

projects. It has established its reputation as a construction
organisation, truly world-class in reach, resource, scale and speed that
helps turn resources into results in critical sectors of infrastructure.

The Infra OC continues to maintain its leadership position in

construction of roads, runways, bridges, metros, tunnels, hydel and
nuclear power plants. This OC has shown a significant growth in
revenues during 2008-09 driven primarily by BOT projects. During
the year, the Infra OC has successfully completed several projects,
viz. runway in Delhi Airport, the Kattumavadi-Ramanathapuram
and Krishnagiri–Thopurghat road packages, Panipat Elevated
Corridor and Veligonda Dam. Order Inflow and Order Book have
been impressive, thanks to the government’s renewed focus on
infrastructure as a tool to spur the economic growth. Major projects
bagged by the Infra OC include three prestigious Gujarat State road
packages, the Mumbai Monorail, a dam project in Bhutan and an
irrigation project in Andhra Pradesh.

Metallurgical, Material Handling and Water Operating

Company (MMHW OC)

This operating company is an established leader in all its areas of

operations, viz. minerals & metals, bulk material handling and water
and utilities.

The atomic power plant at Tarapur, Unit 4. L&T is working closely with leading national agencies in helping the country meet its stated target of Earthen dam spanning river Kurket built by L&T at Chattisgarh.
generating 20,000 MW of nuclear power by 2020 AD. L&T undertakes hydropower and irrigation projects such as weirs,
underground tunnels and powerhouses, penstocks including hydro-
mechanical works.

41
Metals & Minerals
It has played a significant role in the development of the steel
sector in India and undertakes turnkey construction contracts
in the Minerals & Metals sector involving detailed design and
engineering; manufacture, procurement and supply; civil and
structural construction; electrical & instrumentation works; utilities;
site fabrication and erection including testing, commissioning and
performance test. Focus area covers ferrous metals, non-ferrous
metals, mineral beneficiation and paper plants. L&T has executed
the maximum number of blast furnaces in the country.

L&T has been executing some of the major and critical water
transmission/ distribution and water treatment projects in India and
abroad for various metros, urban, municipal and rural customers
including public sector undertakings and reputed private clients.

The OC offers turnkey project services involving civil, mechanical,

electrical and instrumentation works with single point responsibility,
including engineering, design, procurement commissioning,
operation & maintenance (O&M) works for these projects. It also
undertakes water treatment plants; industrial effluent treatment
plants; waste water treatment and disposal; and rehabilitation of
pipelines.

In addition it has a well established structural steel fabrication unit -

L&T-ECC Workshops Limited at Kancheepuram near Chennai to meet
the customized needs of its customers.

The MMHW OC continues its record of successes during the year.

The Order Book increased significantly with projects from Tata’s
(blast furnace and sinter plant), SAIL (sinter plant, Rourkela), Vedanta
(alumina plant, Hindustan Zinc Limited, Debari, Utkal Alumina),
etc. MMHW OC has repeatedly proven its execution capabilities by
completing projects well ahead of time. MMHW OC is concurrently
executing six blast furnaces in the country – a milestone event in
Indian steel plant construction.

Electrical & Gulf Projects Operating Company (E&GP OC)

The E&GP OC extends its services mainly for all types of industrial
and project electrification works in the domestic markets as well as
for power transmission and distribution projects including buildings
and urban infrastructure projects in the Gulf markets.

India’s largest blast furnace (2.5 mtpa) built by L&T and Paul Wurth on EPC basis at Jamshedpur. L&T has constructed the largest number of blast Zinc Smelter Plant at Chanderiya, Rajasthan.
furnaces in the country. L&T carries out engineering, procurement, manufacture, supply, construction and commissioning of projects in ferrous and
non-ferrous metals, mineral beneficiation, coal washeries and paper plants.

43
Transmission & Distribution
Electrical Instrumentation & Communication (EI&C) Sector of the
OC provides turnkey & individual package based solutions in the
electrical infrastructure space. EI&C also provides comprehensive
services for the construction of EHV substations (up to 765kV), plant
electrification & instrumentation.

Turnkey construction of EHV transmission lines is a major area

of operation for the OC. With ISO and OHSAS certified tower-
manufacturing facilities in Puducherry and Pithampur, the
transmission line construction business have been taken beyond
Indian shores. Today, the OC has established niche markets in Middle
East, South East Asia and SAARC countries with high quality products
and services. Capabilities include design, survey, supply, erection,
testing and commissioning of transmission lines up to 765kV.

Railway Construction is yet another offering by this Company.

This covers design, supply, erection, testing and commissioning of
signalling & telecommunication, overhead equipment and traction
sub-station, supply & installation of permanent way including
associated embankment formation, construction of minor bridges /
culvers, supply of permanent way materials, track laying, etc.

As a part of its Gulf Operations, Power Transmission and Distribution

Sector (PT&D) is actively involved in power evacuation, power
transmission and power distribution projects. L&T being one of
the earliest Indian companies to operate in Gulf, it has gained
significant market presence in the PT&D Sector. The Buildings &
Urban Infrastructure Sector of Gulf Operations caters to the urban
infrastructure development of the individual GCC countries.

The E&GP OC has bagged a number of breakthrough orders like

Balance of Power Plants (BoP), 765 kV substation, power distribution
package for 2.0 MTPA steel plant, etc. With the commissioning of
expansion projects, installed capacity of our factories manufacturing
transmission line towers, has reached 1,00,000 MT per annum. The
Gulf operations have registered significant growth in revenues. L&T
Oman, one of the subsidiaries, has shown significant growth in the
Buildings and Electrical businesses. The key success factor for this OC
continues to be managing working capital efficiently owing to the
nature of job and clientele.

400kV double-circuit transmission line between Gorakhpur (Uttar Pradesh) and Muzaffarpur (Bihar). L&T undertakes design, survey, manufacture, 132kV switchyard in Bhutan. L&T has set up several power evacuation
supply, erection, testing and commissioning of transmission lines up to 765kV for several sectors – power grids and state electricity boards. systems – extra high voltage substations ranging up to 400kV – for air
and gas insulated switchgear in India and abroad.

45
Material Handling & Water Systems
Significant Initiatives

Operating companies (OCs) have been made fully functional since

July’08. OCs work virtually like independent companies to foster
rapid scaling up of the business and bring down the response time
to customers / projects. To tide over the suboptimal utilisation of
resources triggered by the current economic scenario, measures
have been taken to focus on better accountability at every level and
ensure good governance. A common forum to exchange knowledge
across OCs is under implementation. ECC envisages that the volatility
in the economy may result in under-utilisation of human resources in
pockets; consequently focus on multi-skilling / job rotation will get
renewed attention. ECC’s initiative to train and retain workmen across
India has been strengthened by additional budgetary allocation for
building centers in all the regions.

Outlook

The overall outlook for the Division remains good, owing to its robust
order book and diversified business portfolio. The government’s
commitment to revitalize the economy through renewed investment
in infrastructure provides immense scope and opportunities to
ECC. Increasing demand for power offers substantial business
opportunities for Bulk Material Handling business. The government’s
consistent support to augment water supply and develop a water
network across India provides sizeable opportunities for Water &
Effluent Treatment SBU. Similarly, the Gulf region offers many water-
related projects.

The outlook of the Minerals and Metals business seems challenging

for the year 2009-10. Special initiatives are being taken to extend our
capabilities beyond construction of blast furnaces / sinter plants, i.e.
towards pellet plant / compact strip production in the ferrous sector
and copper smelting / alumina refinery in the non-ferrous sector. The
Division is, therefore, hopeful of capitalising on these opportunities
to sustain the growth momentum established in recent years.

2730 cu.m per hour capacity bucket-wheel excavator manufactured and supplied by L&T for the Mines II Expansion Project of Neyveli Lignite 91-mld water treatment plant for Narmada Canal Distribution Project
Corporation. L&T’s product profile includes wagon loading systems, stockyard equipment and port-handling equipment and conveyor systems. in Gujarat. L&T offers engineering, procurement and construction
services for water sourcing, treatment, transmission and distribution
including industrial effluent/sewage treatment and disposal.

47
Switchgear - Low Voltage
Electrical & Electronics Division

Overview

The Electrical & Electronics Division (EBG) comprises Electrical and

Automation Operating Company (EAOC) and two stand-alone
business units of Medical Equipment & Systems (MED) and Petroleum
Dispensing Pumps & Systems (PDP).

Four Strategic Business Units (SBUs) - Electrical Standard Products

(ESP), Electrical Systems & Equipment (ESE), Metering & Protection
Systems (MPS) and Control & Automation (C&A) are under the
umbrella of EAOC. ESP and ESE have their production base in Powai,
Mumbai and at Ahmednagar in Maharashtra, with additional facilities
for ESE and a Precision Manufacturing Center for tooling solutions
at Coimbatore in Tamilnadu. Control & Automation business unit
operates from its Automation Campus in Navi-Mumbai, while
Metering & Protection Systems is based at Mysore in Karnataka.

EAOC has a significant international presence through manufacturing

facilities in Wuxi (China) for switchgear standard products, at Dammam
in Saudi Arabia for switchboards and for Control & Automation in
Jebel Ali, UAE. It has increased its international presence with the
acquisition of switchgear business of TAMCO Corporate Holding of
Malaysia last year, winning access to its manufacturing facilities and
markets in Malaysia, Indonesia, Australia and China.

Significant Initiatives

A Customer Interaction Center (CIC) went live in 2009. This new

initiative helped businesses to respond faster. EBG has initiated a
Division-wide awareness to focus on the 3 Cs: cost, cash and customer.
The highlights of this initiative are working capital measures such
as aligning deliveries with the end-user’s cash flow, insistence on
milestone-based payments in large-value orders and emphasis on
outstanding collections. There is continuous monitoring of targets
assigned to every sales person. Initiatives for operational excellence
such as 5S, Six Sigma and Value Engineering continue with up to 75%
increase in these projects.

Representative section of L&T’s wide range of switchgear. In addition to low-tension switchgear (featured here), L&T offers medium-voltage switchgear, Electricals for buildings – a wide range, specially designed for malls,
building electricals and energy meters. The range encompasses integrated automation and complete electrical solutions. commercial complexes and residential apartments.

49
Switchgear - Medium Voltage
For switchgear products, a new initiative to tap the retail market
for electrical products was started. The focus is to enlarge reach,
presence and visibility in the retail market through appointment of a
large number of dealers as channel partners under this programme.
A new partnership programme was initiated to provide automation
solutions to industrial and building segment customers.

After the acquisition of TAMCO there is a focus on growth in the MV

segment. EAOC is planning to set up a franchisee network for MV
products in India. Also there are plans for a franchisee network for
new design LV flat pack products for the Gulf market.

The Control & Automation business has set up a Technology Center to

nurture ongoing technologies, and looks forward to new upcoming
cutting-edge technologies to be used for Automation EPC projects.
Competency development and skill-building are under focus to
reduce technology gaps. New design meters have been introduced
and efforts are underway for providing automatic meter reading
(AMR) solutions.

New Product Development

Development of new products and technologies continues to be the

top priority for the Division. It plans to meet market expectations
and keep pace with competition by introducing new products, with
specific focus on cost effective offerings. In FY 10, ESP will be launching
‘right price’ product variants in Moulded Case Circuit Breakers and
Contactors. The U-Power range of ACBs will be upgraded. There will
be a focus on development of automation solutions for buildings
and energy management systems.

Post the acquisition of Tamco Switchgear, further development of the

MV switchgear product range was undertaken in the Ahmednagar
factory. The product range is now being increased for the Indian
market. ESE is the also coming up with a new state-of-the-art LV
switchboard product range which will meet Indian and international
standards.

Control and Automation BU is developing a toll management

system, which will be a state-of-the-art system including electronic
toll collection for national and state highways. A terminal

Medium voltage switchgear, made at L&T’s Tamco facility, has been widely installed in industries around the world. L&T offers custom-engineered Tamco – a wholly-owned subsidiary of L&T – manufactures medium-
switchboards – equipped with both conventional and intelligent protection, control and communication systems – to meet the power control and voltage switchgear. Picture shows factory at Kuala Lumpur, Malaysia.
distribution needs of industry. L&T’s manufacturing footprint extends to the Middle East, China,
Indonesia and Australia.

51
Automation Systems
automation system for integrated terminal automation and a tank
farm management system for petroleum products are also being
developed.

MPS is planning to replace the existing designs of tri-vector meter

with new cost effective designs. Development initiatives are
underway for meters for select international markets, GPRS modems
for data communication, meters with radio communication facility.
The R-APDRP initiative may require installation of open protocol in
meters and will also require all meters to be communicable over
various wired and wireless media.

MED had launched a new product range in Patient Monitoring under

55 series, which has been well accepted in the domestic market
and in the USA. A new set of multi-parameter monitors are being
developed to cater to the cost-conscious lower-end segments. A
partially modular monitor, Cosmic 55 will be released later this year. A
spot check monitor meant for physicians’ offices is being developed
and will be released in the US. PDP has developed a new electronics
platform (4GDE) for its dispensing pumps.

Intellectual Property Rights

The Division has put in intensive efforts to generate innovative ideas

and create value for the organisation by protecting them through
intellectual property rights. In 2008-09, EBG has filed 108 patent
applications, 33 design registrations, 5 trademarks filings and 6
copyrights filings. The Division has been focused on directing its
innovation energy towards improved manufacturing processes and
cost control. It is ensuring continuous alignment of business interests
& IP creation by way of Gate Processes of approvals according to
EBG’s Product Development System.

Multiple Geographies

The Division has increased its international presence with bases in 6

countries - Saudi Arabia, Jebel Ali (UAE), Malaysia, Indonesia, China
and Australia - in addition to India. Over 30% of the Division’s business
is from international markets. The Division has a multinational
workforce, over 15% of which belong to countries other than India.

Supervisory Control And Data Acquisition system designed, supplied and commissioned by L&T for Onshore Control Centers (OCCs) for offshore L&T’s range of electronic energy meters and numerical relays.
operations of Oil & Natural Gas Corporation. The system connects 133 wellhead platforms, 13 process complexes and nine drilling rigs to OCC.

53
Industrial Valves & Welding Products
Machinery & Industrial Products
Division

Overview

Machinery and Industrial Products Division (MIPD) comprises two

business sectors; Industrial Products & Machinery Sector (IPM) and
Construction Equipment Business Sector (CEBS).

I. Industrial Products & Machinery Sector (IPM)

In order to address the comprehensive needs of the common
customers in the industrial sector, the Division has aggregated
its industrial products and machinery businesses under the IPM
Operating Company (IPM OC). IPM OC has two distinct business
streams - Industrial Products and Industrial Machinery. Industrial
Products comprise Industrial Valves, Welding Products and Cutting
tools while Industrial Machinery consists of machinery for Paper
and Pulp, Mining, Mineral processing, Steel and Rubber & Plastic
Processing Industries. IPM OC consists of the following Strategic
Business Units and Joint Venture Units:

A. Industrial Products
Valves Business Unit (VBU)

This Unit markets valves and allied products manufactured by L&T’s

JVs; namely, Audco India Limited (AIL), Larsen & Toubro (Jiangsu)
Valve Company Limited, China, and a few Indian and overseas
manufacturers. L&T is one of the few select suppliers of valves for
global oil majors.

AIL is a 50:50 JV with Flowserve Corporation USA and manufactures a

wide range of industrial valves at its four factories in southern India.
Larsen & Toubro (Jiangsu) Valve Company Limited is a 70:30 JV with
Yancheng Sunt Valve Company Limited, China, set up in Yancheng
in Jiangsu province, China, for manufacture of certain ranges of
Industrial Valves for global markets. Besides, the JV manufacturing
facilities, VBU also has set up its own facility - Fluid Control Products

Wide range of industrial valves marketed by L&T, addressing applications in oil & gas, petrochemical and power sectors. Innovative solutions for welding, cutting and wear protection of metal
components.

55
Rubber & Plastic Processing Machinery
Center (FCPC) at Coimbatore - which provides technology support
for new product development as well as contract manufacturing of
valves in ranges not fully supported by AIL. The FCPC is also setting
up a new plant for manufacture of valves to support L&T’s foray in
the power sector.

Welding Products Business (WPB)

WPB markets products manufactured by EWAC Alloys Limited,

along with imported Inverter based welding machines from Fronius,
Austria, and Oxy-Fuel Equipment from Messer, Germany. Locally,
WPB also sells indigenously developed MIG welding machines and
inverter welding machines. To provide comprehensive solutions
to major clients in welding technology, WPB provides repair &
maintenance of critical industrial components.

EWAC Alloys Limited (EWAC) is a 50:50 JV of L&T and Messer Eutectic

+ Castolin Group of Germany. EWAC is a market leader in the business
of maintenance and repairs welding, and welding solutions.

Industrial Cutting Tools (INP) Business

This business provides metal cutting solutions to the Indian

manufacturing industry, covering automobile and machine
tool segments through marketing of industrial cutting tools
manufactured by ISCAR Limited, Israel.

B. Industrial Machinery
Kansbahal Works (KBL)

Machinery for Pulp & Paper, Mining, Mineral Processing and Steel
industries, as well as components for wind turbines are manufactured
and marketed by Kansbahal Works. Its foundry also manufactures
large wear and abrasion resistant castings for the power and cement
sectors. Voith Paper Technology (India) Limited is a 50:50 JV with
Voith Paper Holding GmbH & Co. KG, Heidenheim which provides
technological solutions and products catering to these industries.

LTM Business Unit (LTMBU)

LTMBU manufactures and markets Rubber Processing Machinery

for the tyre industry. Currently, the unit has manufacturing facilities
at Manapakkam and Kancheepuram in Tamilnadu. LTM has been
ranked No.11 amongst the top suppliers of tyre and rubber
machinery around the world by European Rubber Journal for the

Tyre-building machine equipped with state-of-the-art features for building car / light truck radial tyres, for a leading tyre company in India. L&T’s popular S-Tech Injection Moulding Machine for the plastics
The machine is part of the wide range of rubber-processing machines manufactured by L&T. industry.

57
Construction & Mining Equipment
year 2009. LTMBU also markets plastic injection moulding machines
manufactured by L&T-Plastics Machinery Limited. L&T-Plastics
Machinery’s products find applications in diverse industries like
automobiles, electrical goods, packaging, personal care products,
writing instruments and white goods.

II. Construction Equipment Business Sector (CEBS)

Construction Equipment Business Sector (CEBS) markets and renders
support for Construction & Mining Equipment. The sector comprises
the following business units:
• Construction & Mining Business Unit (CMB) which markets
equipment manufactured by L&T-Komatsu Limited, India and the
entire range of equipment available from Komatsu worldwide. It
also markets Scania’s mining tipper trucks;
• L&T-Komatsu Limited (LTK) – the 50:50 JV with Komatsu that
manufactures hydraulic excavators and hydraulic components, all
of which are distributed in India by L&T;
• L&T-Case Equipment Private Limited (LTCEPL), a 50:50 JV with
CNH Global N.V., which manufactures and markets loader
backhoes and vibratory compactors;
• Tractor Engineers Limited (TENGL), a 100% wholly-owned
subsidiary, which manufactures and markets undercarriage
systems for excavators and material handling systems like apron
conveyors and allied items.

Product Development Center

Product Development Center (PDC) based at Coimbatore renders
engineering and product development support to all the businesses
across MIPD.

Significant Initiatives
Specific initiatives being undertaken by the respective sectors
include:

I. IPM OC

• Setting up a 25000 TPA greenfield foundry in Coimbatore to

manufacture cast components for wind turbines which is expected
to go into commercial production in the 4th quarter of 2009-10.

L&T-Komatsu PC130-7 Hydraulic Excavator engaged in excavating a canal at an irrigation project. L&T markets within India, construction and mining Fleet of Scania tipper trucks at a coal mine. L&T distributes in India, the
equipment manufactured by L&T-Komatsu Limited as well as equipment supplied by Komatsu Limited worldwide. multi-axle trucks of Scania, the Swedish heavy-vehicle major.

59
Earthmoving & Road-building
• Securing additional approvals from major end-users for LTJVCL
valves in China.
• Introduction of duplex stainless steel electrodes and special hard-
faced excavator buckets for replacement market by the Welding
Products business.
• Introduction of new products in the cutting tools segment
which will help build competitive advantage and market share.
• Initiating of significant steps by most business units in IPM OC
for close monitoring to ensure reduction in working capital and
in particular, receivables management.
• Making efforts to bridge the gap in special products with metal
seating by engaging the services of specialists from overseas
markets

II. CMB

• Introduction of new imported models of hydraulic

excavators, viz. PC800, PC210-8, sourced from Komatsu, in the
Indian market.
• Expansion of after-sales support capability through long-term full
maintenance contracts and site support agreements for the
products to improve machine uptime and cap operating
costs, consequently giving the customers a competitive
advantage.
• Appointing a dealer for hydraulic excavators in Nepal to
take advantage of the expected development of road and hydro-
electric generation projects.
• Providing dealers and customers with attractive finance
options through tie-ups with major financiers such as L&T Finance
and SREI.

L&T-CASE 770 loader-backhoe engaged in a land-development project. L&T-CASE is a JV of Larsen & Toubro Limited and CNH, a global leader in L&T 752 Tandem Vibratory Compactors are involved with India’s infra-
manufacture of loader-backhoes. structure development. Machines seen here in action on a road construc-
tion project.

61
Information Technology
INFORMATION TECHNOLOGY SERVICES
LARSEN & TOUBRO INFOTECH LIMITED (LTIL)

LTIL is a wholly owned subsidiary of L&T engaged in providing

IT solutions and software consultancy globally. The Company
offers both onsite and offsite services in the areas of Application
Maintenance & Development, Enterprise Resource Planning, Data
Warehousing, Business Intelligence, Testing and IT Infrastructure
management. It has established a global footprint, with a presence
in the USA, Canada, Denmark, France, Germany, Japan, UK and
the Middle East. Around 26% of the Company’s clients are on the
Global / Fortune 500 list. The Company continues to focus on its
chosen verticals, viz. Manufacturing, Banking Financial Services and
Insurance, Energy and Petrochemicals, Product Engineering Services
(comprising of Communications and Embedded Software).

IT Center, Mahape, New Mumbai. In the backdrop of global economic downturn, L&T Infotech’s
growth in 2008-2009 was modest, with increase in revenues : 9% in
Software Development Center, Mahape. dollar terms over the previous years.

As technology firms have been among the first to be hit by the near-
collapse of the financial markets in the US and Europe, they are a step
ahead of the pack when it comes to restructuring their operations
to deal with the new situation of growth dipping and companies
adopting a wait-&-watch strategy. Since then, the industry in India
had started focusing on internal efficiencies and cost reduction. Given
the industry’s resilience to withstand various challenges in recent
years, the Company is confident to sustain the growth momentum
in the medium term.

ENGINEERING SERVICES

Carrying the brand and the legacy of Larsen and Toubro group
of companies, L&T Technology Services has been rated the No.1
engineering services provider in the World 2008 Black Book of
Outsourcing. The Division comprises Integrated Engineering
Services and Embedded Systems (EmSyS) business units which offer
Headquarters of L&T Infotech, Powai, Mumbai. a range of IT enabled engineering services and systems required
in the design and execution of turnkey projects and equipment /
product development.

L&T Infotech Center, Bangalore.

Technology Center II, Chennai.

L&T Infotech – a subsidiary of Larsen & Toubro Limited – leverages the domain expertise of the parent company to offer end-to-end software solutions Talent drawn from premier academic institutions plays a pivotal role
and services to clients across the globe. in L&T Infotech’s successful implementation of the key business and
technology needs of its client base.

63
Engineering Services
Integrated Engineering Services (IES)

IES, headquartered at Vadodara, Gujarat, has established its

design centers in Bangalore, Chennai, Mysore, and Mumbai. It
has about 3000 employees delivering high-quality engineering
and design solutions. The end-to-end services basket
comprises product design, analysis, proto-typing and testing,
embedded system design, production engineering, plant
engineering, buildings & factories design, asset information
management & sourcing support using cutting-edge CAD/CAM/
CAE technology. IES predominately renders its cutting-edge services
to high-end verticals such as automotive, aerospace, marine, off-
highway machinery, industrial products, consumer packaged goods,
pharmaceuticals, minerals & metals, oil & gas and utilities sectors.

Embedded Systems (EmSyS)

EmSyS provides embedded systems for electronics product design

and development. The solutions comprise supply of hardware,
application software and enclosure design for the systems largely
required in the automotive, medical, semi-conductor and industrial
products segments. The business unit has a dedicated team of more
than 1000 professionals operating from Mysore, Bangalore and
Mumbai. Additional capacity is being created at these locations to
cater to the growth in the business.

India is poised for a big leap in the product development market.

EmSyS, with expertise in product development, combined with its
experience in electronic product manufacturing is well-poised to
take a big share of this. It offers complete product development,
consultancy as well as various components of the lifecycle such as
re-engineering, sustenance-engineering, VAVE and obsolescence
management.

The business unit has also achieved CMMI Level 5 certification to

offer quality deliverables to the customers.

L&T Knowledge City – the new, state-of-the-art technology campus at Vadodara, Gujarat, provides integrated design engineering facilities for process Design Center for Embedded Systems at Mysore. L&T offers design
engineering, product development, mechanical design and analysis, process evaluation and technology adaptation. solutions in hardware, software, product development, etc.

65
Infrastructure Financing
FINANCIAL SERVICES
A. L&T FINANCE LIMITED (LTF) : Subsidiary Company

Overview

L&T Finance Limited, a wholly owned subsidiary of L&T Capital

Holdings Limited, is one of the leading diversified non-banking
finance companies in the country, with product offerings in
enterprise finance catering to various segments, commercial vehicle
finance and rural finance. From the current year, the Company has
been actively engaged in microfinance in the rural sector. It is also
engaged in the distribution of various financial products.

It has a robust sourcing, underwriting, receivables, collection and

operational model, commensurate with the size and risk of the
respective underlying asset class. In the last few years, LTF has built a
strong market presence through its unique business model and deep
understanding of its customers. It continues to serve its customers
through its pan-India network of branches.

Operations & Performance

The performance of the Company during 2008-2009 was adversely

affected due to the economic slowdown, which resulted in lower
business volumes across almost all the sectors catered to by the
Company. Tight liquidity conditions witnessed during the 3rd quarter
of the financial year under review also led to increased interest costs.
During the year, the Company added 24 branches to its network,
taking the total to 85, spread across 23 states. The highlights of
financial results for 2008-2009 are given below :

 Total assets grew from Rs. 47,932 million on March 31, 2008
to Rs. 53368 million on March 31, 2009.
 Total income grew to Rs. 8303 million in 2008-09 from
Rs. 6061million in 2007-08.
 Profit After Tax (PAT) for the year was lower at Rs. 988 million
as compared to Rs. 1150 million in 2007-08.

1.4 km bridge over the Narmada designed, constructed, maintained and operated by the Narmada Infrastructure Construction Enterprise. Cyber Towers - part of HITEC City, a software park in Hyderabad - built,
owned and operated by a joint venture of L&T Urban Infrastructure
Limited and the Andhra Pradesh Infrastructure Corporation Limited.

67
In order to consolidate L&T’s investments in Financial Services
businesses under one umbrella, its investment in LTF was
transferred to L&T Capital Holdings Limited in March 2009.
Outlook
The business conditions for non-banking finance companies
continue to be challenging due to lower economic/credit growth
and high cost of funds. Notwithstanding increasing competition,
LTF is in a strong position to deliver a resilient earnings profile,
supported by its well-balanced business platform and strong
asset quality. The Company’s strategy, as in the past, would be to
focus on strong risk management & processes, profitable growth,
innovative products and diversification of its product portfolio.
B. L&T INFRASTRUCTURE FINANCE COMPANY LIMITED
(LTIFC): Subsidiary Company
LTIFC, a wholly owned subsidiary of L&T Capital Holdings Limited,
is a premier non-banking finance company in the country,
focused on financing and developing of infrastructure projects,
covering various sectors. The Company intends to leverage L&T’s
domain knowledge in the engineering and construction fields to
provide infrastructure financing solutions through a mix of debt,
sub-debt, quasi-equity and equity participation. It also provides
active support to clients at project development stage.
LTIFC’s success since its inception in 2006 has been due to the
combination of many factors. The key ones are: the sheer demand
for infrastructure in the country, the Company acknowledged
expertise in all areas of infrastructure, its ability to tap financial
resources, its strategy to be a ‘one-stop-shop’ for infrastructure
and a strong synergy between the Company’s Professional
Management, its Board of Directors and key stakeholders that
allows the Company to expeditiously pursue opportunities for
yet more profitable growth.
Operations & Performance
Amid a global slowdown and recessionary fears, the Company
has achieved significant growth during 2008-09. with gross
approvals and disbursements of Rs.19130 million for 39 projects
and Rs.14120 million for 34 projects, respectively. The highlights
of financial results during 2008-09 are given below :
 Total assets grew from Rs. 19158 million on March 31, 2008
to Rs. 23978 million on March 31, 2009.
 Total income for the year 2008-09 was Rs. 2960 million as
compared to Rs. 1103 million in the previous year
 Profit After Tax (PAT) at Rs. 765 million in 2008-09 registered a
growth over Rs.452 million in 2007-08.
Information given in this publication has been excerpted from an analysis of the Division-wise performance of L&T and a financial review of the
Company. For more exhaustive information, please refer to L&T’s Annual Report 2008-09.
In order to consolidate L&T’s investments in Financial Services
businesses under one umbrella, its investment in LTIFC was
transferred to L&T Capital Holdings Limited in March 2009.
Outlook
The business sentiment for infrastructure finance companies
continues to be challenging with subdued economic conditions
and high cost of funds. With renewed focus by the Government
on infrastructure development, announcement of the fiscal
packages to provide economic stimulus, LTIFC is in a strong
position to deliver a resilient earnings profile, supported by its
well-balanced business platform and strong asset quality. The
Company’s strategy in the coming years is to continue to expand
its financial product offerings in order to provide a compelling
value proposition to clients in core infrastructure sectors and use
this strength to build a robust financial services platform with a
wider footprint and a more diversified revenue stream overtime.
C. L&T CAPITAL COMPANY LIMITED (LTCCL): Subsidiary
Company
LTCCL, a wholly owned subsidiary of L&T, is a SEBI registered
Portfolio Manager with close to Rs. 14500 million under its fund
management. It also provides service as a Mutual Fund Distributor
/ Advisor. LTCC holds and monitors a significant portion of the
L&T Group’s strategic investments.
Performance
Mutual fund markets were subdued in 2008-09. The net asset
values of most funds nose-dived. The adverse capital market
conditions had its impact on LTCCL’s income and profits. During
the year, the Company’s gross income recorded a decrease of 25%
to Rs. 64 million, as compared to Rs. 85 million in the previous
year.
The Company is planning to expand its fund management by
offering offshore advisory services. It is in the process of setting
up wholly owned subsidiaries in Mauritius towards meeting this
objective. The new services are likely to be offered in the second
half of 2009-10.
Outlook
With the domestic stock market looking up, new portfolio
management avenues would be available. The initiative in
offshore advisory services is expected to open up new vistas of
regular income streams for the Company, so as to counter the
fluctuations in the domestic market.