Shareholder bonhomie at Naik's last AGM as an era draws to a close

At the annual general meeting (AGM) of Larsen & Toubro (L&T) on Wednesday, shareholders made the usual request to the top management for bonus shares. But this time, the setting was different. The man at the helm, outgoing group chairman AM Naik, 82, was heard assuring shareholders that he would join the chorus soon. There were laughs and chuckles at Naik’s playful remark as he addressed the last AGM, nearly six decades after he joined L&T as a junior engineer and some 25 years at the top.
 

There was another change at this AGM. Naik, who’s often spotted in casuals (read T-shirts) these days, chose a traditional Nehru jacket, teaming it with a red tie for effect. He stopped wearing formal suits years ago, coinciding with the shift in executive powers, according to industry watchers. Naik moved out of his executive role in 2017, when he was designated non-executive chairman.
 

“I will now be the largest shareholder and will be asking SNS for bonus shares,” Naik said, answering shareholder queries at the AGM. The company’s chief executive officer and managing director S N Subrahmanyan, who’s popularly known as SNS, will take over as chairman and managing director in October.
 

Naik will remain chairman of the L&T Employees’ Trust — the largest shareholder in the company with a 14 per cent stake.

“This is my 25th AGM, after I took over at the helm of L&T. It will be the last and final occasion when I have the privilege of chairing the proceedings,” Naik said in his opening remarks at the Birla Matoshri Auditorium in Mumbai.

“Between 1999 and 2023, group revenues grew from Rs. 5,000 crore to nearly Rs. 1,83,000 crore on a like-to- like basis. This surge, achieved largely through organic growth, has few parallels in corporate India,” he said amid claps and cheer.

Referring to the change in guard, Naik said in his concluding remarks, “this is the culmination of the succession plan drawn up by me.” To mark the occasion, Naik handed over an L&T flag to Subrahmanyan. Seen participating in this symbolic ritual were the respective spouses – Geeta Naik and Meena Subrahmanyan.

At the AGM, which lasted almost three hours, praise for Naik and his contribution remained the central point of the shareholder commentary interspersed with lighter moments. For instance, when a shareholder called Naik as one of the greats of India Inc ‘’after Ratan Tata’’, he quipped that none of L&T’s business was inherited.

At the packed AGM, where some shareholders joined through video conference as well, the signals and symbolism didn’t go unnoticed. When SNS addressed shareholders with ‘’salaam’’ and ‘’we love you’’, there was no doubt that Naik’s legacy would stay on.