A.M. Naik outlines plan for L&T’s future1 min read . Updated: 23 Mar 2015, 11:34 PM IST
Group executive chairman says he is in the process of completing a succession planning exercise at L&T and working on rationalizing its portfolio
Mumbai: Larsen & Toubro Ltd’s group executive chairman A.M. Naik, who has completed 50 years at the company, on Monday outlined his plans for the future of India’s largest construction and engineering firm.
Naik, who joined the company as a junior engineer in 1965, said he is in the process of completing a succession planning exercise at L&T and working on rationalizing its portfolio to make it a more manageable company with greater focus.
“Going forward, my plan for the next two-and-half years is to work on the next five-year plan—2016 to 2021—to build a team and complete the succession planning exercise..," Naik, who celebrated his 50th anniversary at the company on 15 March, said at a function to mark the occasion.
Naik said L&T has too many businesses and needs to reduce complexity by rationalising its portfolio so that it can achieve greater focus. L&T has business interests in construction, heavy engineering, power, shipbuilding, defence manufacturing, information technology, finance and realty.
From a junior engineer, Naik rapidly rose to positions of increasing responsibility as he moved from general manager to managing director and chief executive officer, leading to his appointment as chairman and managing director on 29 December, 2003.
Effective April 2012, the board of directors extended Naik’s tenure as group executive chairman.
He said the company’s employees, through a trust, had become the second largest shareholders of L&T after government institutions.
“Since 1999, I have instituted the culture of entrepreneurship in the company and I am happy that the market capitalization of L&T has grown over 40 times since 1999. The sales turnover, even after selling many businesses and demerger of cement business, has grown over 18 times," Naik said.