L&T to go asset-light; eyes Far East and Africa

To tap defence market, too

L&T Chairman and Managing Director A M Naik said his priorities before stepping down in 2017 included making the company asset-light, expediting restructuring schemes and reviving small businesses. Further, he will devote his time mentoring 20 employees a year.

Naik told reporters the company would complete the restructuring of its arm IDPL, engaged in infrastructure projects, by next March.

The company recently sold the general insurance arm and the asset-heavy Kattupalli port.  Subsequently, it will restructure the Nabha power plant in Punjab after settling issues with the state government. It may take a year or two to sort that out, Naik said. “Unfinished agenda is many. But I have a good successor. He will finish it.” Naik said the company would now focus on the Persian Gulf, South Asian Market and Africa. ''Middle East has slowed down due to the oil price crash.

Many infrastructure projects have been suspended and will remain so for at least two years. Therefore, the company will charter new territories. We have already entered Tanzania, Kenya, Ethiopia, Uganda, Mozambique and Algeria and also opened a front in Malaysia, Vietnam and Indonesia.  The Far East is being opened up to substitute partly what we are going to lose in the Middle East.”

As far as defence was concerned, Naik said, the Pinaka, a multiple rocket launcher worth Rs 300 crore, would come to L&T in a month.

Big guns worth Rs 4,300 crore were expected to be bagged by the company in four to six weeks. It hopes to bag submarine orders by next year.