Western protectionism fears more media hype than actual, says AM Naik

It can be noted that the 75-year-old Naik retires on October 1 from L&T

Terming the lingering uncertainties due to Brexit and protectionism in the US as "media hype", veteran business leader A M Naik on Wednesday said major markets have settled down to "business as usual" now.

"In the recent past, there has been lots of talks about protectionism in the US and uncertainties arising from the Brexit. This has resulted in many companies adopting a 'wait and watch' attitude," he said, addressing L&T Technology Services ((LTTS) annual general meeting in Mumbai.

"Much of this uncertainty has been the result of media hype, and the major markets seem to have settled down to 'business as usual'," Naik told the shareholders at his last annual general meeting.

It can be noted that Britons' desire to leave the Eurozone has in the past led many tech companies to report reverses in business, while the protectionist tendencies in the US have also forced to move for cover by increasing the local hiring.

Naik, the chairman of LTTS, said the US, the company's focus market, has seen industrial production rising for five consecutive months and added that the Trump administration's local manufacturing drive will help revive the capital expenditure in the coming months.

The European economy is forecast to grow at two per cent annually and crude prices are also stabilising, bringing the focus back on to reviving manufacturing and production, Naik said.

It can be noted that the 75-year-old Naik, who has led L&T into the largest EPC player in the country, retires on October 1 after serving the company for as many as 53 years.

However, unlike on Tuesday, where he showed an emotional side at his last AGM as the chairman of the parent L&T, today's meeting was a quick-paced, business-like one.

Naik reminisced about the genesis of LTTS, which got listed last year, saying in 2009, the parent decided to incubate engineering services as a separate line of business.

"In a short span, we managed to get a global recognition for this business by way of strong traction of relationships with many global majors, each a leader in its own space," he said, adding this led to a confidence of spinning it off as a separate company.

He termed these as times of "intense business change" involving continual transformation and disruption which is driving several industries to a tipping point, creating new markets and opportunities.