L&T aims to double revenue in 5 years

Naik announces 5-year plan, with thrust on digitisation

Engineering and construction major Larsen & Toubro plans to double its annual revenue to Rs 2 lakh crore by 2021. This is to be done without compromising on its margins.

The company also plans to make its order inflow in excess of Rs 2.5 lakh crore a year in the same period.

Issuing a five-year strategic plan  at the 71st annual general meeting here on Friday, A M Naik, chairman and managing director, said the theme was ‘technology leadership’, at the heart of the new L&T.

“Our mission is profitable growth through technology leadership — year after year. As the country surges forward, with a focus on technology-led initiatives, the company is future-ready,” he said.  Select growth businesses identified in the broad portfolio are information technology, technology services, defence, smart world and water management.

According to Naik, India is at the cusp of a turnaround. All indicators are positive.  With a projected growth rate of 7.4 per cent in 2016-17, this is the fastest growing large economy in the world.  “The government's thrust on infrastructure and its ‘Make in India’ initiatives provide a range of opportunities for your company,” he said.

“Our plan involves re-allocation of resources, both talent and capital, to businesses with visible value creation potential.  As most of these are also asset-light businesses, the initiative will be in line with our larger objective of building an asset-light organisation,” said Naik. Operational excellence was a key aim and “a major step in this direction has been the setting up of a separate digital group, which will ideate and implement solutions across functions”. In the coming years, digital levers on profitability and growth would extend deeper into the organisation, alter processes and yield dramatically superior outcomes, he predicted.

“Our group companies, L&T Infotech and L&T Technology Services, will play a key role in this process. For our technology arms, these enterprise-wide initiatives will act as a ready-to-market showcase, enhancing client confidence in their capabilities.”

He added L&T had a seven-step leadership programme, designed to build a robust pipeline of future leaders. The stages include training by some of the world's leading business schools, like IIM-A, Ross, INSEAD and Harvard. And, at the final stage, mentoring by him. “I have personally mentored over 50 future leaders and equipped them with the competencies and strength of character to steer your company through the challenges of the future.”
 

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