Naik successor to take charge in Oct 2017

After two years of NDA rule, company continues to view outlook as cautiously optimistic

L&T executive chairman A M Naik on Wednesday reiterated that his successor will be in place from October next year. To a question whether the company deputy managing director and president S N Subrahmanyan will take over from him, he said, "He (Subrahmanyan) is number two. I don't see anybody coming from outside to run this company. He has a pretty good chance."

He declined to comment on his role thereafter.

On the completion of two years of NDA government, Naik said the company continues to view the outlook cautiously optimistic. However, he added the situation may look much more clear after six months as there is good possibility that the projects they talk, they are trying to bring it to active consideration and tendering.

"If all that happens we will convert the word cautiously optimistic to somewhat optimistic," Naik noted.

On a slew of decisions taken by the government in the defence sector, Naik said the things are looking better than what was. However, he added that how fast do the government moves is the only discussion point.

"They are moving in the right direction, encouraging private sector to participate. But there are certain ships they are giving on nomination basis to the shipyards like war ships, survey vessels, coast guard ships and so on. As of today there are more than Rs 2 to 2.50 lakh crore worth of ships have been ordered or letter of intent placed. Activity level is considerably high in favour of private sector participation than it ever was," Naik opined.

On L&T's plans in Iran, Iran, Naik said Iran offers huge potential. The company had four missions and it has already placed permanent representative and opened office. However, he indicated that the company will move little cautiously till financeability is secured.

On L&T's foray into Africa, Naik said the company is working on five east African countries including Mozambique, Tunasia, Kenya, Uganda and Tanzania. In North Africa it is Algeria. The company is likely to bid in Botswana and may be Zimbabwe.

On L&T Infotech IPO, Naik said it will be about a week before the company will decide whether it will be launched immediately or may be few months later. "But the fact is that IPO will be launched," he added.