Larsen & Toubro Limited: Pioneering Innovation and Excellence in Engineering

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Larsen & Toubro Limited, commonly known as L&T, is an Indian conglomerate involved in technology, engineering, construction, manufacturing, and financial services, with global operations. The company is headquartered in Mumbai, Maharashtra, India. The business interests of the company lie in basic and heavy engineering, construction, realty, manufacturing of capital goods, information technology, and financial services.

Read on to find out more about L&T's history, founders and owners, net worth, business model, growth, competitors, revenue model, acquisitions, future plans, and more.

Larsen & Toubro - Company Highlights

Larsen & Toubro - About and How it works ?
Larsen & Toubro - Logo and its meaning
Larsen & Toubro - Founder and History
Larsen & Toubro - Mission
Larsen & Toubro - Business Model
Larsen & Toubro - Revenue
Larsen & Toubro - Investments
Larsen & Toubro - Acquisitions
Larsen & Toubro - Competitors
Larsen & Toubro - Challenges Faced
Larsen & Toubro - Future Plans
Larsen & Toubro - Conclusion

Larsen & Toubro - About and How it works ?

Larsen & Toubro Limited (‘Larsen & Toubro’ or ‘L&T’) is a USD 12.65 billion technology (as of 2024), Indian technology engineering, construction, projects, manufacturing, and financial services conglomerate, with global operations. It addresses critical needs in key sectors – infrastructure, construction, defense, hydrocarbon, heavy engineering, power, shipbuilding, aerospace, electrical & automation, mining and metallurgy.

Three key products/services in which L&T is engaged are Construction and project-related activity, manufacturing and trading activity, and engineering services.

For administrative purposes, L&T has been structured into five broad categories:

• Construction: This covers Buildings & Factories, Heavy Civil Infrastructure, Transportation Infrastructure, Power Transmission & Distribution, Water & Effluent Treatment, Metallurgical & Material Handling and Smart World & Communication;
• EPC Projects: This includes Hydrocarbon Engineering, Power and Power Development;
• Manufacturing: This includes Defence Equipment & Systems, Heavy Engineering, Construction, Mining & Industrial Machinery, Industrial Valves and Electrical & Automation Systems;
• Services: This includes Realty, Information Technology, Technology Services, and Financial Services.
• Others: This includes Hyderabad Metro, Infrastructure Development Projects and corporate functions
• Larsen & Toubro forayed into the Edtech space with the launch of L&T EduTech in October 2021. Sabyasachi Das has been appointed as the CEO of L&T EduTech, which will offer various courses centered around the engineering and technology verticals.

Larsen & Toubro - Logo and its meaning

The L&T logo comprises a monogram that is in blue.

Larsen & Toubro - Founder and History

Larsen & Toubro was founded in 1938 in Mumbai by two Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro.

The company began as a representative of Danish manufacturers of dairy and allied equipment. However, with the start of the Second World War in 1939 and the resulting blockade of trade lines, the partners started a small workshop to undertake jobs and provide service facilities. Germany's invasion of Denmark in 1940 stopped supplies of Danish products. The wartime need to repair and refit and degauss ships offered L&T an opportunity, and led to the formation of a new company, Hilda Ltd, to handle these operations. L&T also started to repair and fabricate ships signaling the expansion of the company. The sudden internment of German engineers in British India (due to suspicions caused by the Second World War), who were to put up a soda ash plant for the Tata's, gave L&T a chance to enter the field of installation.

After India's independence in 1947, L&T set up offices in Calcutta (now Kolkata), Madras (now Chennai) and New Delhi. In 1948, 55 acres of undeveloped marsh and jungle were acquired in Powai, Mumbai. A previously uninhabitable swamp subsequently became the site of its main manufacturing hub. In December 1950, L&T became a public company with a paid-up capital of ₹20 lakh (US$28,000). The sales turnover in that year was ₹1.09 crore (US$150,000). In 1956, a major part of the company's Mumbai office moved to ICI House in Ballard Estate, which would later be purchased by the company and renamed L&T House, its present headquarters.

L&T appointed SN Subrahmanyan as the Chief Executive Officer & Managing Director of Larsen & Toubro. He took over the reins from Mr Anil Manibhai Naik on 1 July 2017 later he became chairman and managing director of L&T.

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Larsen & Toubro - Mission

Larsen & Toubro's mission statement says,

"To develop and deliver high quality education and research in project management in consonance with the vision of L&T by providing state-of-the-art infrastructure and learner friendly atmosphere with innovative pedagogy thereby creating a pool of world-class and socially responsible project professionals."

Larsen & Toubro - Business Model

• Customer Segments: L&T has a niche market business model, with a specialized customer segment. The company targets its offerings at firms that operate in the industrial sector.
• Value Proposition: The company creates accessibility by offering a wide variety of options. It is a multinational, diversified conglomerate, operating in numerous product/service categories including technology, engineering, construction, manufacturing, and financial services. The company has established a strong brand due to its success. It is one of the five biggest fabrication companies in the world, with more than 130 subsidiaries and 15 associate firms. It bills itself as India’s largest engineering and construction company and one of its largest multinational firms.
• Channels: L&T’s main channel is its business development team. The company promotes its offerings through its website, social media pages, advertising, and participation in conferences.
• Customer Relationships: L&T’s customer relationship is primarily of a personal assistance nature. The company provides comprehensive training to customers as well as extensive phone and email support.
• Key Activities: L&T’s business model entails designing, developing, and manufacturing its products, as well as offering services to customers.
• Key Partners: L&T company maintains technology alliances (e.g., joint ventures) with various firms to provide best-in-class services for its customers. The firms represent various sectors, including Power, Construction, and Hydrocarbon. Specific partners are GULF Interstate Engineering, Chiyoda Corporation of Japan, Mitsubishi Hitachi Power Systems (MHPS), Sargent & Lundy, and Valdel.

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Larsen & Toubro - Revenue

Larsen & Toubro (L&T) generates money from different revenue streams:

1. Engineering and Construction: L&T earns significantly from building large-scale projects like roads, bridges, power plants, and water systems.
2. Technology Services: Through L&T Technology Services (LTTS), it provides tech and research services to clients in sectors like automotive, aerospace, and telecom.
3. Financial Services: L&T Finance offers loans, insurance, and investment products to people and businesses.
4. Manufacturing: L&T makes machines and other heavy products for industries like energy, chemicals, and defense.
5. Real Estate: The company also makes money from building and managing properties.

This helps L&T stay strong financially, even when the economy changes.

Larsen & Toubro - Investments

As per reports on January 2025, L&T Semiconductor Technologies (LTSCT), a fully owned subsidiary of Larsen & Toubro, plans to invest over $10 billion in a silicon fabrication plant. This investment will proceed once the company gains clear visibility by 2026-27 of achieving a revenue run rate of at least $1 billion per year from selling its own patented chips and semiconductor products, which will be manufactured by third parties, in both Indian and global markets.

Larsen & Toubro Limited invested in City Union Bank on Dec 1, 2006. This investment - Post-IPO Equity - City Union Bank - was valued at INR 45 crore.

Larsen & Toubro - Acquisitions

Larsen & Toubro Limited has acquired 2 organizations. Their most recent acquisition was Intelliswift in November 2024.

Larsen & Toubro - Competitors

L&T's top competitors are Reliance, Aditya Birla Group, Tata Projects, GMR Group, LANCO Group, SPCL, PEL and Afcons.

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Larsen & Toubro - Challenges Faced

Labor shortage: L&T Group Chairman S N Subrahmanyan revealed that the company is currently facing a shortage of over 45,000 workers and engineers across its various businesses. The flagship engineering, procurement, and construction sector is dealing with a shortage of 25,000 to 30,000 laborers, while the IT and IT-enabled services division is short of 20,000 engineers, he shared with reporters.

The company faced this challenge after COVID-19 too.

When asked for comments about the migrant labours crisis, S N Subrahmanyan, MD and CEO, L&T, told, “We had 2.25 lakh labourers working with us pre-Covid; now we have 1.2 lakh people with us. We need to get back one lakh people to resume operations.”

L&T is also banking on onboarding numerous laborers coming from the Gulf region who have been laid off due to the significant fall in oil prices.

Larsen & Toubro - Future Plans

Larsen & Toubro (L&T) plans to invest in sustainable construction, digital technologies, and oil-to-chemicals projects.

• Sustainable Construction: L&T is teaming up with Komatsu to create construction and mining equipment that can run on biodiesel. The company is also adding renewable energy, like solar panels and wind turbines, into building designs.
• Digital Technologies: L&T is using digital tools to improve how buildings are designed, built, and managed. It has also introduced a Smart Construction solution to make the process more efficient.
• Oil-to-Chemicals Projects: L&T plans to invest in oil-to-chemicals projects in the Middle East to expand its reach in the energy sector.

Larsen & Toubro - Conclusion

L&T is engaged in core, high-impact sectors of the economy, and our integrated capabilities span the entire spectrum of ‘design to deliver’. With 8 decades of a strong, customer-focused approach and a continuous quest for world-class quality, they have unmatched expertise across Technology, Engineering, Construction, Infrastructure Projects, and Manufacturing, and maintain leadership in all our major lines of business.

FAQs

What is L&T?

Larsen & Toubro Limited (‘Larsen & Toubro’ or ‘L&T’) is a USD 17 billion technology, Indian technology engineering, construction, projects, manufacturing, and financial services conglomerate, with global operations.

Who is L&T founder?

Larsen & Toubro was founded in 1938 in Mumbai by two Danish engineers, Henning Holck-Larsen and Søren Kristian Toubro.

Is L&T Indian company?

Yes, L&T is an Indian company.

What is L&T company full form?

L&T full form is Larsen & Toubro.

Who is the L&T owner?

S N Subrahmanyan is the chairman and managing director of L&T.

Which is L&T company owner country?

Larsen & Toubro (L&T) is an Indian multinational company, and its ownership is primarily held by Indian shareholders. The company was founded in India and is headquartered in Mumbai, Maharashtra. It is listed on the Indian stock exchanges.

What is Larsen and Toubro business model?

Larsen & Toubro (L&T) has a diversified business model, earning revenue from sectors like engineering, construction, technology, manufacturing, and financial services. It handles large infrastructure projects, offers tech solutions through L&T Technology Services, manufactures products for defense and energy, and provides financial services through L&T Finance. This wide-ranging approach ensures stability and growth.