L&T to integrate divisions

L&T to integrate divisions
Published: 07 June 2004

Toubro will be integrating its engineering construction and contracts (ECC) division and its engineering and construction (E &C) business as part of a grand five-year strategy to more than double its turnover from Rs 10,000 crore now to around Rs 25,000 crore by 2008-2009.  At the same time, L&T is working towards positioning itself as a global brand and has also earmarked Rs 500 crore this year for overseas acquisitions.
 
The company has decided to almost treble its ready mix concrete (RMC) capacity by increasing the number of RMC plants to 84 from the current 27.  L&T has short listed the Boston Consulting Group (BCG) and McKinsey & Co to draw up a strategy for growth. A final call on the management consultant is to be taken shortly.  BCG had submitted L&T¹s previous five-year plan. This had suggested, among other things, the demerger of the cement business.
 
YM Deosthalee, L&T¹s chief financial officer, told Business Standard, ³The job of the consultant would be to identify gaps in our overall growth strategy and accordingly guide us to achieve our targets. The consultants would essentially work at identifying the potential at various business levels, areas that have a hidden potential that has escaped the management¹s attention. The consultant would also work at developing a net to catch potential global opportunities, besides designing the right mix between manufacturing and service-oriented businesses. While international business accounts for 17 per cent currently, we target it to be around 30 per cent,² Deosthalee added.