Larsen and Toubro Ltd.
Address:
L&T House, N.M. Marg, Ballard Estate,
Mumbai, Maharashtra - 400 001.
Name: B. Naga Sai Kiranmai
Department: Civil Engineering
Roll No.: 311506
This Conglomerate company is commonly known as L&T
is an Indian Multinational firm headquartered in
Mumbai, Maharashtra. It was founded by two Danish
engineers in the year 1938. The company has business
interests in engineering, construction, manufacturing
goods, information technology, and financial services,
and has offices worldwide.
In 1944 the company was focused on construction
projects. In 1945 it collaborated with British
manufacturers which manufactured products such as
hydrogenated oils, biscuits, soaps and glass.
Lists of Services and its Products provided by L&T
Construction:
Buildings & Factories
Transportation Infrastructure
Heavy Civil Infrastructure
Construction & Mining Machinery
Construction & Mining Equipment
Electrical & Automation
Automation Products & Systems
Low Voltage Products
Medium Voltage Products
Marinised products
Electrical Switches & Sockets
Heavy Engineering
Process Plant
Nuclear Power Plant
Defence & Aerospace
Critical Piping
Hydraulics
Hydraulic Cylinders
Swivel / Rotary Joints Strengths:
High Torque Low Speed Motors
Radial Piston Pumps
Customised Hydraulic Systems
Shipbuilding
New Construction - Defence Shipbuilding
New Construction - Commercial Shipbuilding
Ship Repairs, Refits & Mid-Life Upgrades
Technology Services
Smart Products & Services
Smart Manufacturing Services
Industrial Products
Medical Devices
Telecom, Consumer Electronics & Semiconductor
(TCES)
SWOT Analysis
Strengths:
1. Market leadership providing competitive edge - The
company can leverage its strong brand name and market
leadership position to gain competitive advantage and
also expand into international markets.
2. Strong technical expertise reinforce leadership position
- L&T has set up an engineering and project management
centre in Abu Dhabi to undertake oil and gas related
projects as well as engineering and consultancy services.
3. It has offerings like Construction, Heavy equipment,
Electrical equipment, Power, Shipbuilding, Financial
services and IT Services.
Weaknesses:
1. Dependence on domestic operations for revenue
generation - In FY2011, the company's domestic (India)
operations contributed more than 80% of the total
revenues.
2. Increasing debt impacting financial flexibility - L&T’s
interest and brokerage expenditure over the period
increased.
Opportunities:
1. Strategic joint ventures strengthening business - L&T
has formed a strategic partnership with Cyan Holdings
plc, a UK-based integrated system design company. L&T
and Cassidian entered into a partnership in February
2011, to become an electronics house for defense and
security.
2. Strong project pipeline ensures revenue growth.
3. Growing Indian construction & engineering industry -
In 2015, the Indian construction & engineering industry is
forecast to grow.
Threats:
1. Rise in cost of construction may affect margins - The
rise in crude prices, will increase the cost of
transportation.
2. Intense competition may reduce profitability – few
competitors have substantially greater resources and
superior capabilities than L&T.
Competition Landscape
1. ABB Ltd
2. Bechtel
3. Hindalco
4. Sundaram Fasteners
5. Gammon India
6. Lanco Infratech
Financial details:
The Company has performed well in all key performance
parameters during 2016-17. Despite facing delays in
bidding and award processes, the Company bagged fresh
orders of INR 142,995 crore recording a growth of 5%.
Group Revenues at INR 110,011 crore grew by 8% during
2016-17 despite impediments due to demonetisation,
tardy realisations from customers in some projects and
delays in obtaining clearances and work-front availability.
The Order Book of the Company stands at a robust level
of INR 261,241 crore, providing good revenue visibility for
2017-18. The Company recorded an impressive growth of
43% in the Group Profit After Tax for the year at INR
6,041 crore. The Company successfully listed two of its
subsidiaries, L&T Infotech Limited (LTI) and L&T
Technology Services Limited (LTTS) during 2016-17 in its
pursuit of creation and unlocking of value for the
shareholders of the Company. It gives me immense
pleasure to share with you that the Board of Directors
of your Company has recommended a bonus issue in the
ratio of 1:2 and a pre-bonus dividend of INR 21 per share.
The corresponding dividend in the previous year was INR
18.25 per share.
Source:
http://www.larsentoubro.com/
https://en.wikipedia.org/wiki/Larsen_%26_Toubro
