Engineering and construction giant Larsen and Toubro (L&T) will initiate its third round of major business restructuring in 2010 and has appointed consultants McKinsey and Bain to guide it, as also in the succession plan, with chairman A M Naik retiring in September 2012.
Since 2000, L&T has implemented two five-year plans to reposition the company, which was heavily into engineering, procurement and construction segments, with a large exposure to commodity businesses such as cement and ready-mix concrete, to a more focussed, value-added engineering company.
“We hired McKinsey and Bain for preparing the blueprint of restructuring. The third five-year plan of the company will be executed from 2010 to 2015. The consultants are working with 50-60 people from each of our 15 businesses to draw the blueprint on where we want to be. Not only in terms of volume but also on the character of the company,” A M Naik told Business Standard.