Larsen and Toubro Ltd - L&T Limited

Larsen & Toubro Limited (L&T) is India's largest engineering and construction conglomerate with additional interests in electricals, electronics and IT. A strong customer-focus approach and constant quest for top-class quality have enabled L&T to attain and sustain leadership position over 6 decades. L&T enjoys a premiere brand image in India and its international presence is on the rise, with a global spread of over 30 offices and joint ventures with world leaders.

ECC - the Engineering Construction & Contracts Division of L&T - is India's largest construction organisation. Many of the country's prized landmarks - its exquisite buildings, tallest structures, largest industrial projects, longest flyovers, highest viaducts - have been built by ECC. Leading-edge capabilities of ECC cover every discipline of construction: civil, mechanical, electrical and instrumentation engineering.
Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India's private sector.

Seven decades of a strong, customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of business.

L&T has an international presence, with a global spread of offices. A thrust on international business has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing footprint, with facilities in China and the Gulf region.

The company's businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support.

L&T believes that progress must be achieved in harmony with the environment. A commitment to community welfare and environmental protection are an integral part of the corporate vision.

Operating Divisions:
Engineering & Construction Projects (E&C)
Heavy Engineering (HED)
Engineering Construction & Contracts (ECC)
Electrical & Electronics (EBG)
Machinery & Industrial Products (MIPD)
Information Technology & Engineering Services
History:
The evolution of L&T into the country's largest engineering and construction organization is among the most remarkable success stories in Indian industry.

L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly committed to developing India's engineering capabilities to meet the demands of industry.
Beginning with the import of machinery from Europe, L&T rapidly took on engineering and construction assignments of increasing sophistication. Today, the company sets global engineering benchmarks in terms of scale and complexity.

Henning Holck-Larsen and Soren Kristian Toubro, school-mates in Denmark, would not have dreamt, as they were learning about India in history classes that they would, one day, create history in that land.
In 1938, the two friends decided to forgo the comforts of working in Europe, and started their own operation in India. All they had was a dream. And the courage to dare.
Their first office in Mumbai (Bombay) was so small that only one of the partners could use the office at a time!
In the early years, they represented Danish manufacturers of dairy equipment for a modest retainer. But with the start of the Second World War in 1939, imports were restricted, compelling them to start a small work-shop to undertake jobs and provide service facilities.
Germany's invasion of Denmark in 1940 stopped supplies of Danish products. This crisis forced the partners to stand on their own feet and innovate. They started manufacturing dairy equipment indigenously. These products proved to be a success, and L&T came to be recognised as a reliable fabricator with high standards.
The war-time need to repair and refit ships offered L&T an opportunity, and led to the formation of a new company, Hilda Ltd., to handle these operations. L&T also started two repair and fabrication shops - the Company had begun to expand.
Again, the sudden internment of German engineers (because of the War) who were to put up a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation - an area where their capability became well respected.

In 1944, ECC was incorporated. Around then, L&T decided to build a portfolio of foreign collaborations. By 1945, the Company represented British manufacturers of equipment used to manufacture products such as hydrogenated oils, biscuits, soaps and glass.
In 1945, L&T signed an agreement with Caterpillar Tractor Company, USA, for marketing earthmoving equipment. At the end of the war, large numbers of war-surplus Caterpillar equipment were available at attractive prices, but the finances required were beyond the capacity of the partners. This prompted them to raise additional equity capital, and on 7th February 1946, Larsen & Toubro Private Limited was born.
Independence and the subsequent demand for technology and expertise offered L&T the opportunity to consolidate and expand. Offices were set up in Kolkata (Calcutta), Chennai (Madras) and New Delhi. In 1948, fifty-five acres of undeveloped marsh and jungle was acquired in Powai. Today, Powai stands as a tribute to the vision of the men who transformed this uninhabitable swamp into a manufacturing landmark.

In December 1950, L&T became a Public Company with a paid-up capital of Rs.2 million. The sales turnover in that year was Rs.10.9 million.
Prestigious orders executed by the Company during this period included the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant. With the successful completion of these jobs, L&T emerged as the largest erection contractor in the country.
In 1956, a major part of the company's Bombay office moved to ICI House in Ballard Estate. A decade later this imposing grey-stone building was purchased by L&T, and renamed as L&T House - its Corporate Office.
The sixties saw a significant change at L&T - S. K. Toubro retired from active management in 1962.
The sixties were also a decade of rapid growth for the company, and witnessed the formation of many new ventures: UTMAL (set up in 1960), Audco India Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963).

By 1964, L&T had widened its capabilities to include some of the best technologies in the world. In the decade that followed, the company grew rapidly, and by 1973 had become one of the Top-25 Indian companies.
In 1976, Holck-Larsen was awarded the Magsaysay Award for International Understanding in recognition of his contribution to India's industrial development. He retired as Chairman in 1978.
In the decades that followed, the company grew into an engineering major under the guidance of leaders like N. M. Desai, U. V. Rao, S. D. Kulkarni and A. M. Naik.
Today, L&T is one of India's biggest and best known industrial organisations with a reputation for technological excellence, high quality of products and services, and strong customer orientation. It is also taking steps to grow its international presence.
For an institution that has grown to legendary proportions, there cannot and must not be an 'end'. Unlike other stories, the L&T saga continues...


PLANT & MACHINERY
MATERIALS MANAGEMENT
RESOURCES SUPPORT
SUBCONTRACT MANAGEMENT
QUARRY AND CRUSHING
PLANT & MACHINERY

ECC’s Plant & Machinery Business Unit, which is part of Resources Support & Supply Chain Management function, has India’s largest fleet of Construction Equipment worth around Rs.830 Crore and numbering more than 12,000 pieces of equipment. The fleet comprises of a wide range of sophisticated and specialized equipment for achieving speed, quality and cost-effective construction.

The asset base includes Heavy Duty Cranes, Heavy Earthmovers, Asphalt, Batching & Crushing Plants, Asphalt & Concrete Pavers, Vibratory Compactors, Concrete Pumps, Boom Placers, Drilling Jumbos, Rock bolting / Shotcreting machines, On / Offshore Hydraulic Drilling Rigs, Core Drilling Machines, Winders, Compressors, D.G. Sets and Mobile Crushing units.

P&M Business Unit offers ‘Total Equipment Management Services’ which include identification, evalution, selection, mobilization, commissioning, operation & maintenance of plant and machinery at sites in India and abroad. It focuses on optimum and effective utilization of equipment, high equipment availability, technical support and offers alternative solutions to control operating & maintenance costs through data driven practices and Quality policies for ensuring customer (operating Business Unit) satisfaction. In recognition of its performance, this Business Unit has been accredited with ISO9001 certification by BVQI.

ECC’s resources in terms of Equipment, People and Facilities enable it to undertake construction of complex structures of large magnitude with quality and within stringent time schedule. The equipment management activities at jobsites like mobilization, commissioning, operation, periodic maintenance and repairs are undertaken through well defined operating procedures. These activities are handled by P&M in-charges located at sites duly supported in terms of men, material and technical advice by Regional Plant Managers (RPLMs) located in the seven regional offices and senior executives at HQ. ECC has repair workshops at strategic locations to carry out major repairs and overhauls to the equipment. Technical Training Centers at Mumbai and Chennai impart high level of training to our staff for honing and enhancing their skills. Apart from this, periodical ‘On-the-job’ training programmes are conducted at various project sites by both internal and external (OEM representatives) faculties.

MATERIALS MANAGEMENT

Materials Management, the most important link in Supply Chain Management, supports the global operations of ECC by catering to the needs of all the offices, factories and projects spread across all parts of India and abroad by constantly enhancing value creation. The Materials Management function includes procurement from both indigenous and overseas sources, logistics management, inventory management at regional stores, disposal of obsolete / unserviceable items etc. The overall operations of Materials Management function are monitored from ECC’s Headquarters in Chennai. The Department has received ISO 9001:2000 certification through BVQI.

Materials Department at HQ handles all issues connected with imports, exports, procurement of capital items and procurement for all projects and factories. It also handles high value purchases, Rate Contracts, system development & implementation and lays down procurement policies and systems to ensure compliance. The Department also identifies alternative sources of supply and assists the Business Units in pre-tender tie-ups. It takes care of the Training and Developmental needs of all its staff. Materials Department in the Regions takes care of material requirement of all the projects in their respective geographical areas including finalisation of Rate Contracts, management of logistics, Regional stores and disposal of scrap / obsolete items.

To manage the growing business volume and to support the Division’s aspiration to become global, procurement offices have been established in China and UAE, with a clear focus to identify low cost sources for procurement and support the operations in optimising the costs. A separate Cell located in HQ caters to the ever-growing requirements of imports and exports. Export formalities and clearance of import consignments are also done through Regional Materials Departments located in Mumbai and Kolkata. Imports/Exports Cell in Materials Department at HQ oversees the activities of these Regional set-ups.

HQ, all the Regional offices and sites are linked with a state-of-the-art EIP system, developed in-house. The entire Materials management functions right from indents for materials required till disposals, including e-auctions, executive reports etc. are organised through EIP.

RESOURCES SUPPORT

Resources Support Department fulfills the resource requirement of manpower and Plant & Machinery for various projects in India and abroad. It helps in identifying and mobilizing the right resources for the right job to facilitate timely completion of the projects. It also acts as a resource center to support project sites with data on subcontractors available for various types of works. The resource identification, allocation and distribution is taken care at two levels, i.e. at the HQ for the inter-regional requirements and in Regional Offices for intra-regional requirements.

The Department is a “focal point” that helps the Operational Units to optimize productivity by maintaining a balance between the availability, requirement and utilization of resources (Staff and Plant & Machinery). It also facilitates the process of decision making to maintain the in-house asset base at an acceptable level and monitors hiring of equipment from external agencies. This department plays a vital role in effective distribution and deployment of resources in co-ordination with all Sectors/ BUs, Service Units & Regions.

SUBCONTRACT MANAGEMENT

Subcontracting is one of the major inputs in the execution of projects. The main areas of focus are streamlining / standardizing of systems and procedures, contractor registration, data bank on the track record and rating of subcontractors based on their performance through a suitable on-line system. Importance is given for imparting training to subcontract labour to suit ECC’s requirements.

On-line management of data on subcontractors across the company is an important function of this department. This includes regular coordination and monitoring of Subcontractors’ registration, reporting of their performance at periodical intervals, identification of skilled personnel available with subcontractors and data on operating rates for major items of work across the Division.

QUARRY AND CRUSHING

Fully mechanised stone and metal quarries and crushing plants throughout India strengthen ECC’s resource base. They are operated on environment-friendly lines.

Project efficiency is sustained through a dependable channel for high-quality aggregates. ECC’s specialised Quarry and Crushing Department was set up to meet this need. The department has extended its services to include:

* Controlled drilling and blasting for heavy civil foundations/ excavations

* Controlled blasting close to existing structures and pipelines.

* Demolition of old bridges/culverts by blasting

* Tunnelling

* Large scale mechanised rock excavation

* Producing graded stones for breakwater/marine work


ECC operates 24 stone metal quarries, and crushing plants in different parts of the country, which are fully mechanised and run on modern lines. Two state-of-the-art mobile crushing plants add to its strength. These handle over one million tons of
aggregates every year, providing efficient support to all construction operations.