L T Annual Review 2011-12-Spread

Annual Review
2011-2012
Mr Naik receives the prestigious CNBC TV 18 Infrastructure Leader Award in May 2012
Contents
Company Profile Balance Sheet and Profit & Loss Account L&Ts Domestic and International Network Hydrocarbon Power Heavy Engineering Shipbuilding - Merchant & Naval Buildings & Factories Infrastructure Water Projects & Solar Energy Metallurgical & Material Handling Power Transmission & Distribution Electrical Systems & Automation Solutions Machinery & Industrial Products Information Technology L&T Technology Services Limited Infrastructure - Development Corporate Sustainability 2 3 4-5 6 16 22 32 34 40 46 48 52 56 60 66 68 70 72
Leadership Team
A. M. Naik Executive Chairman & Managing Director
K. Venkataramanan CEO & Managing Director
V. K. Magapu President (IT, Engineering Services & Corporate Initiatives)
M. V. Kotwal President (Heavy Engineering)
S. N. Subrahmanyan Sr. Executive Vice President (Infrastructure & Construction)
R. Shankar Raman Chief Financial Officer
S. N. Roy Sr. Executive Vice President (Power Development, Corporate Affairs)
S. Raghavan Sr. Vice President (Machinery & Industrial Products)
S. C. Bhargava Sr. Vice President (Electrical & Automation)

As on 12.12.2012 1
L&T is a technology, engineering, manufacturing, construction and financial services conglomerate. The L&T Groups consolidated turnover exceeds USD 12.8 billion. It is engaged in key sectors of the economy infrastructure, hydrocarbon, power, defence, aerospace, construction, shipbuilding, electrical & automation, mining and metallurgy. L&Ts integrated capabilities span the entire spectrum of design-to-deliver, and it offers turnkey EPC solutions in its major business lines. Its track record covers products, projects and processes executed to international benchmarks. Every aspect of L&Ts businesses is characterized by professionalism and high standards of corporate governance. Sustainability is embedded into its long-term strategy for growth. The Company has a global presence, with manufacturing facilities in seven countries besides India. In addition to a nationwide domestic network, L&T has several international offices and a supply chain that extends across the globe.
BALANCE SHEET AS AT MARCH 31, 2012
` MILLION As at 31.3.2012 EQUITY AND LIABILITIES: Shareholders' funds: Non-current liabilities: Current liabilities: TOTAL 252230 61142 363558 676930 218462 59634 293004 571100 As at 31.3.2011
ASSETS: Non-current assets: Fixed assets Non-current investments Other non-current assets 83637 90847 41699 216183 Current assets TOTAL
Note: Figures in the previous year have been regrouped / reclassified wherever necessary.
74155 74008 33179 181342 389758 571100
Record of Achievements
L&Ts signature of excellence is evident on: Hydrocarbon projects executed in India, the Middle East and South East Asia Power projects executed in India, the Gulf and Sri Lanka. The worlds largest coal gasifier made in India and exported to China The worlds biggest EO reactor for a petrochemical complex in the Gulf The worlds largest FCC regenerator for a refinery Asias highest viaduct Infrastructure projects in Jordan, U.A.E. and South East Asia The worlds longest limestone conveyor Indias widest range of switchgear A wide range of construction and mining equipment L&T played a critical role in building Indias first nuclear powered submarine Indias maiden moon mission In response to changing market dynamics, L&T has gone through a phased process of redefining its organization model that facilitates growth through greater levels of empowerment. The new structure is built around multiple businesses designated Independent Companies or ICs. The following pages review the operations and highlight the capabilities of the Companys multiple businesses.
460747 676930
STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2012 ` MILLION 2011-2012 Revenue from operations (net) Other income Total revenue Less: Expenses: Manufacturing, construction and operating expenses Employee benefits expense Sales, administration and other expenses Finance costs Depreciation, amortisation and obsolescence Profit before exceptional and extraordinary items and tax PBDIT before exceptional and extraordinary items at ` 76209 million in CY as against ` 67870 million in PY - up by 12% PAT excluding exceptional and extraordinary items ` 44134 million in CY against ` 36757 million in PY - up by 20% Gross Debt:Equity ratio of 0.39:1 (previous year: 0.33:1) L&T Group Gross Revenue from operations at ` 649601 million in CY as against ` 524702 million in PY - 24% growth over 10-11 PAT excluding extraordinary and exceptional items at ` 46488 million in CY as against ` 42379 million in PY Exceptional items Profit before extraordinary items and tax Extraordinary items Profit before tax Tax expenses Profit after tax Basic earnings per equity share before extraordinary items (`) Diluted earnings per equity share before extraordinary items (`) Basic earnings per equity share after extraordinary items (`) Diluted earnings per equity share after extraordinary items (`) Face value per equity share (`)
Note: Figures in the previous year have been regrouped / reclassified wherever necessary. 3
2010-2011 439059 11474 450533
531705 13383 545088
410201 36635 22043 6661 6995 482535 62553 550 63103 0 63103 18538 44565 72.92 72.23 72.92 72.23 2.00
334682 28301 19680 6192 5992 394847 55686 2621 58307 708 59015 19436 39579 64.16 63.20 65.33 64.35 2.00
Year 2011-12 at a Glance

L&T Order Book as at March 31, 2012: ` 1457230 million as against ` 1309486 million as at March 31, 2011: 11% growth y-on-y Gross Revenue from operations at ` 537378 million in CY as against ` 442961million in PY: 21% growth over 10-11 Segment-wise composition of gross revenue: Engineering & Construction Segment: 86.4 % in CY as against 85.2% in PY Electrical & Electronics Segment: 6.6% in CY as against 7.1% in PY Machinery & Industrial Products Segment: 5.2% in CY as against 6.2% in PY Others: 1.8% in CY as against 1.5% in PY
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This publication does not purport to be the statutory Annual Report of the Company. For an electronic version of the Annual Report, please visit Corporate Publications at www.Larsentoubro.com
Hydrocarbon Upstream
L&T Hydrocarbon
L&T Hydrocarbon delivers design-to-build world-class solutions in the Engineering & Construction space for the oil and gas sector. In-house expertise and experience, synergized with strategic partnerships enable it to deliver a single-point solution for every phase of the project from front-end design through engineering, fabrication, project management, procurement, construction and installation right up to commissioning. The Company ensures ontime delivery, cost-competitiveness and high quality standards with a focus on best-in-class HSE and IT security practices. Capabilities include in-house engineering, R&D centres, engineering joint ventures with reputed international companies, offshore installation, world-class modular fabrication, experienced and competent project execution and a safety-oriented work culture.
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L&Ts heavy-lift-cum-pipelay vessel LTS 3000 installing a topside for Newfield Peninsula in Malaysia. L&Ts capabilities cover total solutions for oil & gas production, processing and transportation.
Geographical Spread: Major work centres in India are located at Mumbai (Powai), Vadodara, Chennai, Bangalore, Faridabad, Hazira and Kattupalli, near Chennai. Internationally, the Company has a presence in key markets through manufacturing facilities in Oman (Sohar), project execution capabilities in UAE (Abu Dhabi and Sharjah), Qatar (Doha) and Saudi Arabia (Al-Khobar) and business development offices in Houston, London, Singapore, Kuala Lumpur, Rio de Janeiro, Perth, Jakarta and Istanbul. The Company has been pre-qualified for major projects in Saudi Arabia, UAE, Australia, South East Asia and Kuwait. In order to venture into newer product lines like subsea systems and FPSO/MOPU, and to strengthen its position in areas like fertiliser, it has formed strategic alliances/ collaborations with world-class technology providers. The Company is geared to address high-value projects in the GCC through a
consortium model with leading EPC players. L&T Hydrocarbon is structured into three Strategic Business Groups (SBGs): Hydrocarbon Upstream Hydrocarbon Mid & Downstream Hydrocarbon Construction & Pipelines. Hydrocarbon Upstream provides EPIC (Engineering, Procurement, Installation and Commissioning) solutions covering the entire value chain of offshore oil & gas, encompassing drilling rigs, offshore platforms and subsea pipelines. Its business portfolio includes well-head platforms, process platforms and modules, subsea pipelines, brown-field development, floating systems and deepwater subsea systems.
Jack-up rig FD VII refurbished for Lynemouth Drilling SA at L&Ts Modular Fabrication Facility at Sohar, Oman.
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Hydrocarbon Upstream
Booster compressor platform with an interconnecting bridge, built by L&T for Oil & Natural Gas Corporation (ONGC) in South Basin Gas Fields. The project won the PMI Distinguished Project Award from Project Management Institute, USA.
Hydrocarbon Upstream has executed large-size projects off the east and west coasts of India, the Gulf and Africa. The client base comprises companies such as ONGC, GSPC, Songas, Qatar Petroleum, Maersk Oil Qatar, Bunduq, PTTEPI, ADMA OPCO. Breakthrough orders for major jack-up rig refurbishment have also been executed. Hydrocarbon Upstream has three state-of-the-art fabrication facilities offering round-the-year delivery in strategically important regions. These include Hazira near Surat on the west coast of India, Kattupalli near Chennai on the east coast of India, and Sohar in the Gulf of Oman with a combined capacity in excess of 150,000 MT per year, catering to fabrication of large oil & gas modules and heavy offshore and onshore structures. In addition,
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the yards at Sohar and Kattupalli can execute construction / refurbishment of jack-up rigs and semis, FPSOs and integrated decks weighing in excess of 20,000 MT and have water depths of over 12 metres at the quay wall. Capabilities are further augmented with a heavy lift-cum-pipelay installation vessel LTS 3000. Hydrocarbon Upstream recently completed installation of the countrys largest project order secured in 2009 the US $ 1.2 billion Mumbai High North complex. Here, it achieved several firsts for Indian offshore such as the largest jacket, heaviest loadout, heaviest offshore lift, largest offshore living-quarters module and largest process platform. The engineering and fabrication for the project was carried out in-house, achieving an end-to-end delivery capability for such mega projects. The installation vessel, LTS 3000,
was used for installation of jackets, including one weighing 13,500 MT. The project involved a total of 80,000 MT of fabrication. The Company is pre-qualified by major clients such as Shell, ConocoPhillips, ExxonMobil, Chevron, Petronas, Saudi Aramco, Total, Carigali Hess, Apache and Chrysaor for offshore oil & gas projects in India, the Middle East, South East Asia, Australia, Africa, North Sea and the Caspian Sea region. Major well-head platform orders were secured from international clients like PTTEPI, Thailand and ADMA OPCO, Abu Dhabi.
2000 MT wellhead platform for Gujarat State Petroleum Corporation sailing out of L&Ts Modular Fabrication Facility at Kattupalli (near Chennai) on the east coastof India.
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Hydrocarbon Mid & Downstream
Lube-base oil project built by L&T on an EPC basis for Petronas Penapisans refinery at Melaka, Malaysia.
Hydrocarbon Mid & Downstream offers turnkey solutions encompassing engineering, procurement, construction and commissioning (EPCC) to the petroleum refining, petrochemical, fertiliser and onshore gas processing sectors. The Company has experience in project execution involving diverse technologies from process licensors like UOP, Axens, Haldor Topse, CB&I Lummus, Black & Veatch, Ortloff, ExxonMobil, BOC Parsons, DuPont (Invista) and Davy Process Technologies. The Company has the capability and resources to simultaneously execute multiple, large-value, complex projects meeting stringent delivery schedules and safety norms.
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The multi-locational centres of engineering excellence comprising L&T Chiyoda and in-house design and engineering centres have over 1500 experienced engineers, equipped to address the complete spectrum of process and detailed engineering. The Company operates from Mumbai and Vadodara in India. In the Gulf, it has established execution capabilities in Sharjah and Al-Khobar. L&T is pre-qualified with major state-owned oil & gas producers in the Middle East and North Africa and South East Asia, including PDO, ORPIC, ADNOC, ADMA OPCO, KOC, KJO and Saudi
ARAMCO for upcoming large-value projects. The Companys track-record covers execution of hydrogen generation and synthesis gas-generation projects. Several fast-track refinery projects have also been executed, including diesel hydro-desulphurisation / hydrotreating units and sulphur recovery units. During the year, a greenfield gas processing project was secured from PDO Oman.
Cracking furnaces & associated units for IOCL at Panipat Naphtha Cracker Project (Capacity: 800,000 TPA of polymer grade ethylene & 504,834 TPA of polymer grade propylene).
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Hydrocarbon Mid & Downstream
Fertilizer plant at Kakinada in South India built by L&T for Nagarjuna Fertilizers & Chemicals Limited. L&T offers turnkey EPCC solutions to the fertilizer industry.
In the domestic gas-processing segment, two projects are under execution for additional gas-processing facilities for ONGC at Hazira and Uran. The Company has actively participated in almost all the fertiliser projects in India. Strategic alliances with internationally renowned companies provide access to world-class technologies for manufacture of ammonia and urea. The Company is executing three ammonia plant modernisation projects at Bharuch for Gujarat Narmada Valley Fertilizers Company, and at Panipat and Bhatinda for National Fertilizers Limited.
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Major jobs completed during the year include commissioning of hydrogen generation units for GGSR of HMEL at Bhatinda, lube base oil stock quality upgradation project for HPCL at Mumbai and mechanical completion of a diesel hydrotreating unit and hydrogen generation unit for MRPL at Mangalore. A grassroot paraxylene plant for the aromatic complex of OMPL at Mangalore and a reactor regenerator package for IOCL at Paradip are in an advanced stage of completion. Leveraging its modular fabrication facilities, the Company is in the process of expanding its reach to capitalise on emerging
business opportunities for supplying onshore process modules in international markets.
Lube base oil stock quality upgradation project (200,000 MTPA) executed by L&T on LSTK basis for HPCL, Mumbai.
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Hydrocarbon Construction & Pipelines
Lowering of 36dia. gas pipeline for Qatar Petroleum at Ras Laffan. L&Ts EPC scope also included civil, mechanical, electrical and instrumentation works for three metering stations.
Hydrocarbon Construction & Pipelines (HCP) undertakes turnkey construction of refineries, petrochemical, chemical and fertiliser plants, gas gathering stations, crude oil & gas terminals as well as underground cavern storage systems for LPG covering civil, structural, piping, equipment and heavy lift works. It also undertakes cross-country pipelines on lump-sum turnkey basis. Major capabilities include engineering design centres, heavy lift competency and stringent adherence to HSE and quality. L&T Gulf Private Limited, a joint venture with US-based Gulf Interstate Engineering provides engineering for cross-country pipelines. L&Ts capability to meet global standards in pipeline construction in the EPC mode has been proven in Cairns Barmer-Salaya pipeline
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project the worlds longest heated and PUF-insulated pipeline for waxy crude. The Companys cluster headquarters at Sharjah and Al Khobar are supported by plant and machinery, a fleet of key construction equipment including all-terrain cranes, the entire range of pipeline spreads and earthmoving equipment. To service clients in the MENA region, the Company has joint ventures with reputed local partners in Oman, Kuwait and Saudi Arabia. Various projects have been executed, directly as well as through other EPC contractors, for key clients such as Saudi ARAMCO and SABIC in Saudi Arabia, KOC and KAFCO in Kuwait, ADNOC and ENOC in UAE, Qatar Petroleum in Qatar, and Oil Tanking Odfjell Terminals & Co. in Oman.
An EPC contract was secured from GASCO, UAE for a 52dia x 123 km pipeline. An order was received for CMIE construction of a polyethylene plant in Saudi Arabia from Sadara Chemicals (a JV of Saudi Aramco & Dow Chemical Company).
Pan-L&T Hydrocarbon Safety Initiatives

The Company has engaged DuPont to strengthen the safety culture within the organization and lead its safety initiatives. The safety governance structure has an Apex Safety Committee comprising senior management personnel. Eight standards on high-risk activities have been formulated and approved by the Committee for implementation across the facilities. A Safety Innovation School has been set up in Hazira to provide training in various safety competencies.
New aviation fuel depot and pipelines project executed by L&T on EPCC basis for Kuwait Aviation Fuelling Company (KAFCO) in Kuwait.
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Power
L&T Power
L&T offers turnkey solutions for the power sector in India and overseas with a capability spectrum embracing coal-and gas-based projects. The Companys integrated capabilities and in-house expertise encompass virtually every aspect of design, engineering, manufacture, construction and project management. L&T Power builds technologically advanced ultra-supercritical and supercritical coal-fired power plants. The Companys integrated manufacturing facility based in Hazira near Surat in Gujarat is among the most advanced in the world for manufacturing state-of-the-art equipment for power plants boilers, steam turbines, pulverizers, pressure piping, coaxial fans, air-pre-heaters and electrostatic precipitators. This flagship
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L&Ts integrated capabilities cover every phase of the power value chain. Supercritical technology offers multiple economic and environmental advantages.
manufacturing hub also includes a modern casting and foundry shop. Manufacturing facilities for ESP and coaxial fans and airpre-heaters were commissioned this year with technology from Clyde Bergemann and Howden respectively. Cumulatively, L&Ts manufacturing shops in Hazira and its service, engineering and construction arms around the country cater to 85% of a power plants value chain. L&Ts considerable internal strengths are complemented by its strategic tie-ups with global leaders: Mitsubishi Heavy Industries, Mitsubishi Electric Corporation, Sargent & Lundy, CMI, Clyde Bergemann and Howden.
Review
In 2011-2012, given market conditions, the Companys prime focus was on timely execution of projects in hand. Most projects entered their critical phase. Phase 2 of the GMR Vemagiri gas-based combined cycle power plant progressed substantially, with Unit 2 being commissioned in a record 24 months. Mechanical completion of Unit 3 was also achieved. A significant milestone in power projects, Ceiling Girder Final Jackup was completed for two units of the JPVL Nigrie project (Madhya Pradesh), for one unit of the Nabha Power project (Rajpura, Punjab), as well as at Koradi where L&T Power is building a plant for Mahagenco.
Supercritical turbine being assembled at L&Ts Hazira Campus.

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Power
L&Ts joint venture with Mitsubishi Heavy Industries introduces world-class supercritical technology to India. L&T is rapidly building references in India in pursuit of its mission to become the most preferred provider of equipment, services and turnkey solutions for fossil-fuel-based power plants in the home market.
The year also saw the despatch of ODC consignments and critical supplies for boilers at the Koradi and Nigrie projects, notably the generator stator and related assemblies. A 392 MT generator stator was erected for the project of Andhra Pradesh Power Development Corporation Limited. Currently, three Balance of Plant projects are under execution. These will enter the critical phase of completion in the year 2012-2013. The gas-based project at Dhuvaran for Gujarat State Electricity Corporation Limited set a record in rapid project execution. The primary structures of the heat recovery steam generators were set up in just 14 days.
Significant Initiatives
The Company has taken steps to expand its horizons beyond India for gas-based power projects. It is exploring opportunities in Asia (Bangladesh, Sri Lanka, Malaysia, Indonesia and Thailand), the Middle East (Saudi Arabia, Oman, Qatar) and Africa (primarily Gabon). Many of these countries have proven gas reserves, and fairly good gas transportation networks. The move to explore new frontiers will enable the company to diversify its project profile and ride on the growth expected in these markets.
A Technical Services Support Agreement was entered into with Mitsubishi Heavy Industries to form an Engineering & Technology Group that would assimilate the best practices of MHI in interface engineering of boiler, turbine generator, Balance of Plant and for commissioning projects.
Augmenting Strengths
L&Ts strengths in project execution and management are widely acknowledged across industry. A highlight of L&Ts mode of operations is the adoption of innovative construction technology, evident this year at the Vemagiri, Krishnapatnam and Rajpura project sites.
Supercritical boiler manufactured at L&Ts state-of-the-art manufacturing facilities at Hazira.
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Power
388.5 MW natural-gas-fired combined-cycle power plant built by L&T at Vemagiri in Andhra Pradesh.
L&T has the distinction of being the first company in India to use the strand jack method for generator stator erection at the Krishnapatnam project and boiler erection in the Rajpura project. Such superior techniques in execution and construction should continue to sharpen the companys competitive edge. Advanced systems are in place to integrate all execution processes, providing clients with unique access to information at all stages from proposal to handover. With a view to augmenting the pool of talented professionals with sound knowledge of the power industry, technologies and capabilities, L&T has set up a Power Training Institute at Vadodara.
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L&T Power has in place an expert group that handles supply chain management. Its procurement window is global, and includes Best Cost Country Sourcing (BCCS), backed by project logistics. During the year, with the objective of developing and sustaining a strong and reliable vendor base, the Company organized its first-ever vendor meet to identify, discuss and understand the specific needs of suppliers.
backlog and the expected timely execution of all projects should ensure sustained growth in sales and profitability in 2012-2013. With all its factories commissioned, the capability to offer energy efficient solutions, and a robust technology and manpower base, the Company is poised to capitalize on the opportunities of the future.
Prospects
The focused initiatives of the Company in overseas markets should help in securing contracts in Asia for gas-based projects. The Company also expects orders for civil packages in power plants from both the private and public sector. The existing order
Shroud machining of HIP rotor at MHI-Nagasaki for 800 MW turbine for Andhra Pradesh Power Development Company.
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Refinery Equipment
Heavy Engineering
L&T Heavy Engineering is globally acknowledged as one of the top five companies in its domain. The scale and sophistication of its capabilities are on par with industry worldwide. Its track record includes successful handling of assignments of unprecedented magnitude and extreme complexity under very stringent schedules. The Companys Process Plant and Nuclear Strategic Business Group manufactures and supplies custom-designed equipment and systems for Refinery, Oil & Gas, Fertiliser & Petrochemicals, Coal Gasification & Thermal Power and Nuclear Power. The Companys Defence & Aerospace Strategic Business Group offers Marine Special Projects & Equipment, Weapon and Land Systems, Flight Systems and Strategic Electronics.
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Cr-Mo-V forged reactors being despatched by barge from L&Ts captive jetty at Hazira (near Surat, India) for Kuwait National Petrochemical Corporations Clean Fuels Project. The order for 22 reactors includes one weighing as much as 1540 MT.
State-of-the-art manufacturing facilities geared to meet the challenges of technology, quality conformance, delivery and cost competitiveness are based at the following locations: Mumbai (Powai), Maharashtra: L&Ts nodal complex integrates design, manufacture and R&D and incorporates a technology base on par with the best in the industry worldwide Hazira, Gujarat: A major heavy manufacturing complex with captive Load-on and Ro-Ro jetties. Its mega-sized capabilities, its water front facility and relative proximity to the Gulf has meant that most of L&T Heavy Engineerings over-dimensioned equipment has been shipped out from Hazira. This includes the worlds largest Ethylene Oxide reactor, shipped to Kuwait.
Baroda, Gujarat: An advanced composite facility that handles exotic materials Vishakhapatnam, Andhra Pradesh: A bay, leased by the Indian Navy, enables L&T to build strategic vessels Talegaon, Maharashtra: Strategic Systems Complex for integration and testing of weapons systems, sensors and engineering systems Coimbatore, Tamil Nadu: Precision Manufacturing Facility caters to the needs of precision-machined/manufactured components and assemblies
The worlds largest coke drum, weighing 630 MT, for Indian Oils refinery at Paradip (Orissa, India).
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Coal Gasifier & Power Plant Equipment
A coal-gasifier component being exported to Vietnam from L&Ts Hazira Works. There are opportunities for coal gasification in countries like Vietnam, Indonesia and Australia.
Sohar, Oman: This is one L&Ts newest facilities and is part of L&Ts joint venture with The Zubair Corporation. Located at the Sohar Industrial Port area, it has a 300-metre jetty and is capable of handling loadouts heavier than 10000 MT. The facility is expected to augment the capabilities of L&T Heavy Engineering to serve the GCC region and North Africa.
(thermal and nuclear) plant sector. Dedicated production engineering and manufacturing process development centres support manufacturing at each location. Detailed design and engineering centres support Project Management teams at all locations. The Company has three Technology Development Centres that operate from Powai for new product development in process plant equipment and for strategic equipment and systems, as well as one focused on electronic systems/sub-systems. Defence Electronics Systems design and engineering is supported through a dedicated Strategic Electronics Centre including a new Product Development Centre at Bangalore in Karnataka.
The Companys Warship Design Centre is equipped with the latest software tools and know-how. Its in-house talent has developed designs for surface ships such as fast-speed boats, attack craft, offshore patrol vessels and corvettes. A heavy fabrication facility at Sohar, Oman manufactures a range of equipment for the hydrocarbon and power sectors. L&T has set up a joint venture company for the manufacture of heavy forgings for the hydrocarbon and nuclear power sectors.
Capabilities
The workshops of L&T Heavy Engineering are equipped to manufacture and supply equipment and systems made of various materials such as Cr-Mo-V, stainless steel and different types of non-ferrous materials including Ni and Cu-based alloys, such as monel and inconel, to the hydrocarbon industry, including oil and gas, refinery, petrochemical, fertiliser, chemical and the power
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In the pursuit for excellence in productivity and working efficiency, a number of initiatives have been undertaken by the Company
Condensers for Tata Mundra UMPP project.
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Fertiliser & Petrochemical Equipment
Critical equipment for a petrochemical plant being despatched from L&Ts Sohar complex, Oman.
through a campaign titled Udaan which signifies flight or breaking free from existing mindsets to scale new heights. This campaign has been initiated with the objective of achieving an exclusive position in the global process plant equipment markets, and to fortify our lead position as supplier of defence equipment and systems from the private sector. Major initiatives under Udaan include: Implementation of Theory of Constraints Lakshya Enterprise-wide Collaboration for Alignment with Strategy Employee Engagement Innovation Sustainability
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To improve execution and delivery performance, L&T Heavy Engineering has been using the Critical Chain Project Management methodology of the Theory of Constraints. It has also undertaken the implementation of the Strategy and Tactic (S&T) Tree in order to achieve operational excellence. Lakshya is the 5-year strategic plan for identifying strategies and action plans for their implementation to drive growth during the plan period. Enterprise-wide Collaboration for Alignment with Strategy (ECAS) aims at enhancing Organisational Excellence for improved performance and alignment of operations to the strategy of Customer Intimacy through a collaborative culture.
An Employee Engagement initiative by L&T Heavy Engineering helps in seeking an unbiased employee perception on numerous dimensions, creating a healthy, customer-focused and productive work environment. A culture of innovation through collaboration and creative thinking helps in seeking newer and better ways of designing, manufacturing and execution. Safety: L&T Heavy Engineering believes that safety is an integral part of the process of good manufacturing. The Company attributes its positive safety culture and low accident rate to its on-going personnel development programmes. A behaviour-based training approach infuses safety into every aspect of operations. These
One of the worlds largest acrylonitrile reactors being despatched to a petrochemical plant at Thailand from the roll-on-roll-off jetty at L&Ts Hazira manufacturing complex.
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The photograph is for representation purposes only, and does not purport to be a photograph of the actual nuclear-powered submarine built by L&T.
Defence & Aerospace Equipment
L&T made a critical contribution to Indias first nuclear-powered submarine INS Arihant. L&T offers a wide range of equipment and systems for the defence forces, encompassing sea, air and land.
programmes highlight the good practices followed in material handling, hydro-test procedures, maintenance and personal protection on the shopfloor. They equip employees with relevant knowledge on how to stay safe and healthy at the workplace, while contributing to the quality of the entire manufacturing process.
stress analysis, microwave and RF technologies, embedded systems and drives technologies. A large part of the current revenues in the Defence and Aerospace businesses are the outcome of sustained development of products in-house in these centres over the years. The current efforts of these centres would lead to a quantum leap in business volumes in the future.
Vietnam, Taiwan, Latin America, Russia and CIS countries are likely to come up in 2012-2013. Major oil & gas investments, including LNG, are also slated in Australia, Qatar and Russia. The Urea Investment policy cleared recently by the Government of India and widely welcomed by the fertiliser sector is expected to provide a major impetus to investment in the domestic market. Some brown-field projects are likely to be finalised in the near future. Fertiliser projects are expected in gas-rich regions like Africa, Brazil, the Middle East, Azerbaijan, Argentina and China. Indian fertiliser companies are also exploring the possibility of setting up projects in some of these regions. The Company sees good potential for
Technology & New Product Development

L&T maintains its leadership position through its multiple Technology and Product Development Centres which are focused on process technologies, manufacturing technologies, mechanical systems technologies and ship and submarine designs. These centres provide specific emphasis on welding and metallurgy, composite materials, heat transfer, computational fluid dynamics,
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Outlook
In the hydrocarbon sector, business is expected to look up in the medium term, with expected investments in refinery upgrade and revamp / modification projects. New value-added petrochemical products, grass root refinery projects in the Middle East, Turkey,
Indias PSLV C-19 takes off from SHAR, Sriharikota. L&T has been associated with the ongoing programme of the Indian Space Research Organisation (ISRO). (Photo: Courtesy ISRO).
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Nuclear Power Plant Equipment
End shields for a nuclear power plant being machined by CNC floor-mounted horizontal boring machines at L&Ts Heavy Engineering Workshop at Hazira (near Surat, India).
EO/EG and Methanol plant equipment in China. In the backdrop of rising coal prices vis--vis the lower price of gas, the Company sees prospects in the GTL market. In the Nuclear Equipment business, post-Fukushima, there is likely to be a demand spurt for Spent Fuel storage equipment and increased opportunities for decommissioning of Generation II plants. In view of the enhanced budget allocation for Defence and the first wave of Make programmes and Buy & Make Indian programmes in Defence, the Company sees major opportunities in co-development to be followed by co-production over the medium to long term. The recent Government guidelines for establishing
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joint ventures by Defence Public Sector undertakings in the PublicPrivate Partnership mode usher in a range of opportunities for the Company. The decision by the Government of India to allow participation of private players in Defence manufacturing was encouraging. L&T seeks to leverage its 30-year relationship as a trusted technology partner for Indias armed forces, and meet the challenge of capability building within India. L&T is also actively seeking to enlarge its global footprint. Various opportunities are being identified and pursued in South East Asia, the Middle East, South America and Africa. The Companys potential offerings range from complete platforms such as naval ships and fast patrol boats to engineering equipment such as stabilization systems for ships, air-drop platforms for the army
and weapon delivery systems. L&T Heavy Engineering is also targeting modernization and obsolescence management programmes globally. With superior technology and state-of-the-art manufacturing facilities, L&T Heavy Engineering is well-poised to tap upcoming business opportunities.
Steam generators for pressurized heavy water reactors.

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Shipbuilding - Merchant & Naval
L&Ts shipyard at Kattupalli, near Chennai on Indias east coast. The shipyard is part of an integrated complex that includes a port, a modular fabrication facility and heavy engineering works.
L&T has identified shipbuilding as a major thrust area in the heavy engineering sector. L&T offers total solutions in shipbuilding from concept and design to construction and lifecycle management. L&T builds specialized commercial ships (multi-purpose heavy lift roll-on-roll-off, semi-submersibles, container ships, LPG/LNG vessels, chemical tankers, dredgers, reefers, cable-layers, etc.), as well as defence vessels (warships, submarines and auxiliary vessels). Marine systems and equipment offered include steering gear, fin stabilizer systems, propeller shafts, electrical distribution network components, helicopter hangar equipment, heat exchangers and weapon-launch platforms and sensor systems. L&T also undertakes repair, refit and conversions.
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L&T undertakes shipbuilding operations at its Hazira Campus on Indias west coast and at its upcoming facility at Kattupalli near Chennai in Tamil Nadu on Indias east coast. L&Ts Hazira facility is located on the banks of the river Tapti in Gujarat, with unimpeded access to the Arabian Sea. It has manufactured several vessels, and has received repeat orders. L&Ts Kattupalli facility is a shipyard-cum-minor-port developed and operated by a subsidiary set up for this specific purpose L&T Shipbuilding Limited (LTSB), which has a joint venture with the Tamil Nadu Industrial Development Corporation (TIDCO).Construction of the facility is on schedule. A license and collaboration agreement with Mitsubishi Heavy Industries Ltd.,
Japan will help LTSB to seize new business development opportunities. The shipyard has one of the worlds few shiplifts and a ship transfer system. Commitment to global standards and on-schedule delivery characterise L&Ts offerings in this sector. The shipyards are committed to meeting or exceeding the quality, health, safety and environment requirements of its clients. L&Ts shipbuilding operations are eco-friendly and energy-efficient. The Companys quality and HSE procedures and accreditation will ensure that all the required tools are in place to control the processes and conditions during operations.
Shipbuilding at L&Ts Hazira Manufacturing Complex.

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Buildings & Factories

L&T Construction
L&T Construction is a business brand that encompasses four related businesses Buildings & Factories, Infrastructure, Metallurgical & Material Handling, and Power Transmission & Distribution, including a Strategic Business Group for Water & Solar. On a global scale, L&T Construction ranks among the worlds top 30 leading contractors. L&T Construction has consistently improved upon its rankings across the last five years. The following pages highlight the capabilities, the performance record and the prospects of each of the individual businesses.
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L&T builds state-of-the-art airports in India and abroad. In India, L&T has been involved in the construction of modern airports, including at New Delhi, Bangalore, Hyderabad and Mumbai. Currently, L&T is executing the Salalah International Airport at Oman.

L&T Buildings & Factories is recognized as Indias premier company for the successful, rapid-paced construction of landmark projects that dominate city skylines. Increasingly, its capabilities are also winning recognition in international markets such the Middle East and North Africa. Its focus on expanding both segment and customer base with Concept to Commissioning solutions has enabled it to sustain leadership position, retain key customers and secure major orders. The Companys capability spectrum is wide. It covers engineering, design and construction of airports,IT office spaces and institutional buildings, malls, hypermarts and mixed-use developments, hospitals, hotels, residential buildings, factories and cement
plants. L&T has built virtually everything urban planners would need high-rises, low-cost houses, industrialized system housing, condominiums and entire townships, complete with infrastructure facilities.
Growth Record
L&Ts Buildings & Factories business recorded significant growth, with multiple major orders, including an order for the expansion of the prestigious Terminal 1 of Bangalore International Airport Limited, to be executed by L&T on a Design-and-Build model. IT Parks are the nurseries of the new-age economy. They need an enabling environment to grow, and L&T has established itself as a major builder of the infrastructure that drives the IT revolution.
In the heart of Chennai, L&T has constructed ITCs 600-room five-star hotel one of Indias largest.
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L&T is changing the skylines of urban spaces in India and abroad. The Dubai Marina showcases L&Ts capability in executing office, commercial and residential projects, globally.
In 2011-12, L&T continued to dominate the IT Parks and offices sector. Orders were received from IT majors such as TCS, Cognizant and HCL at Kochi and Chennai. The Company received mixed-use development orders from DLF and RMZ at Noida and Bangalore. Gaining a strong foothold in the hypermart sector, the Company obtained pan-India orders from Reliance Industries. Strengthening its presence in Mumbais booming residential segment, it is slated to execute projects for a host of marquee names in the real estate space Omkar, Oberoi Realty and Lodha Crown Build Mart. Many of these buildings are certain to emerge as iconic landmarks for Indias commercial capital. L&T is executing residential projects in Chennai, Mumbai, Bangalore
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and Mangalore for organisations such as DLF, Prestige Estates Projects, Essar and SKS Netgate. The Companys factories segment secured orders from Renault Nissan, Birla Suriya and Arshiya. Repeat orders from organisations such as Cognizant, TCS, Omkar, DLF, Apollo, MIOT, JIPMER and ESIC affirm the Companys capability to undertake projects to the satisfaction of its customers. The track record of completed projects increased significantly during the year. Key projects completed include the Punjab War Memorial and the airside work of the Mumbai airport for Mumbai International Airport Limited. The completion of these prestigious projects within stringent timelines demonstrates our superior capabilities in the areas of project management and project
execution, which enable the Company to handle large-design build and turnkey projects. The elite and luxury housing segment in the metro cities, commercial complexes for retail and the IT industry provided promising opportunities to the business during 2011-2012. On the technology front, L&Ts Buildings & Factories business is fully geared to undertake projects adopting new trends in civil engineering and construction technology. These projects include high-rise towers, green buildings, maintenance, repair and operations (MRO) facilities and precast housing. Various initiatives, including technology tie-ups, have been implemented to improve the execution and delivery capabilities for complex and largevalue orders.
Automobile factory of Maruti at Manesar, Haryana. L&T has built plants for virtually every automobile brand in India.
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Asias largest software development campus for Tata Consultancy Services in Chennai, constructed by L&T Indias largest builder of IT infrastructure.
Green Capabilities Green buildings represent a thrust area for the Company, and equally for the conglomerate of which it is a part. L&T views its expertise and experience in this domain as a prime value proposition, and critical to sustaining its position as a leader in the construction space. L&T Buildings & Factories has constructed over 10 million square feet of certified green building space the largest by any engineering and construction company in India. Recognising that a holistic approach is essential for any successful endeavour in environmental protection, the Company is forging tieups with green building material manufacturers and suppliers.
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Several of the buildings in L&Ts campuses across the country are green. These work spaces are designed to utilize natural resources to a significantly lesser degree. They also generate less waste and provide a safer and healthier environment for the Companys employees and those with whom it does business.
The construction market is also expected to remain attractive in countries in the Middle East and North Africa. L&Ts Buildings & Factories business is poised to register satisfactory growth in revenues during the year 2012-2013 as a result of its healthy order book and its track record.
Prospects
In the future, key drivers for the growth for L&Ts Buildings & Factories business will emerge from opportunities in airports through domestic expansions and international projects, IT campus development, the Governments thrust on healthcare, retail, the ever-increasing demand for housing, factories and cement plant expansion plans of major players.
Iconic venue of exciting cricket matches, Mumbais Wankhede Stadium was refurbished by L&T.
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Infrastructure
L&T is constructing Indias first monorail corridor in Mumbai Indias commercial capital. The project involves design, construction, installation, testing and commissioning the 19.7-km corridor on a turnkey basis. This includes project management, civil works, DC traction systems, interface management, automatic fare collection system, as well as E&M services.
Infrastructure is widely acknowledged as a key enabler of economic development. In the Indian context, the gap between supply and demand is proving to be a growth deterrent of wide-ranging impact. Further, the quality of existing infrastructure needs significant and sustained upgradation to meet global norms. L&T Constructions Infrastructure business is participating in this challenge. Its successful efforts in constructing critical infrastructure projects around the country have led to it being described by the media as the builder of the India of the 21st century. In addition to being the dominant domestic construction company, L&T has also secured international recognition through a host of projects extending from the Caribbean Islands, through Jordan, the Gulf and South East Asia.
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The Companys capabilities include design, engineering and construction of projects in the sectors of roads and runways, elevated corridors, metros, tunnels, ports, special bridges, hydropower, nuclear power, defence and railway infrastructure.
proximity to the mineral belt of Orissa, Jharkhand and West Bengal make it the most cost-effective port on Indias east coast, with minimal environmental impact. L&Ts earlier record in this space includes construction of a breakwater for a prestigious naval project on Indias east coast, ports at Adani (Gujarat) and Indias first open sea jetty at Ratnagiri.
Heavy Civil Infrastructure Ports

L&T constructed its own port at Kattupalli near Chennai on Indias east coast. It is part of a larger complex Indias largest integrated marine facility that includes a shipbuilding and repair yard, a modular fabrication facility and a heavy engineering workshop. L&T built a port at Dhamra in Orissa on the BOOST (Build-OwnOperate-Share-Transfer) basis in a joint venture with a leading corporate, Tata Steel. The ports deep draft, coupled with its
Metros
Indias prestigious Delhi Metro is widely acknowledged to have changed the way Indias capital commutes. Large sections of the Delhi Metro were constructed by L&T, meeting stringent standards and schedules.
L&T constructed key sections of the prestigious Delhi Metro, and is building sections of the Chennai and Bangalore Metros, and all sections of the Hyderabad Metro.
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Infrastructure
Artists impression of the Sheikh Khalifa Interchange a major infrastructure project linking the emirates of Abu Dhabi and Dubai being built by L&T. The project involves construction of four bridges and a 63-m tunnel.
In Andhra Pradesh, L&T is currently poised to display its ability to execute projects of large magnitude with the Hyderabad Metro. This mass rapid transit system will provide the people of the IT hub of Hyderabad with a speedy, green intra-city transport alternative. The 71.16-km Phase I of the project is on schedule, and substantial completion of Stage 1 (approx. 8 km) is expected by the end of the next fiscal. L&T is also executing various underground and elevated metro projects in Chennai, Bangalore, Kolkata, and Phase II packages in Delhi.
hydel power projects with a capacity of 8092 MW and is currently executing complex projects under extreme weather conditions Srinagar, Punatsanchhu (Bhutan), Singoli-Bhatwani, Subansiri, Tapovan Vishnugad, Parbati and Sawalkote hydro-electric projects.
Nuclear Construction
In affirmation of its expertise in executing nuclear power projects, L&T secured orders for common service packages for Kakrapar and Rajasthan Atomic Power Projects.
model. L&T recently secured major orders for road projects, including the sectors of Hosur-Krishnagiri, Bewar-Pindwara, Kishangarh-Ahmedabad, Shivpuri-Dewas projects, MaharashtraKarnataka border to Sangareddy and VIP flyover in Kolkata. Key projects completed include Halol-Godhara-Shamlaji and the RajkotJamnagar-Vadinar sectors.
International Infrastructure
Two orders for construction of roads in the Sultanate of Oman have been secured.
Hydel
The hydropower sector has good potential in India for renewable energy. L&T has a significant presence in this sector, and has played a key role with its EPC services. L&T is involved in construction of
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Transportation Infrastructure
Roads & Elevated Corridors The National Highway Authority of India remains the prime driver of growth in this vital sector through the Public-Private Partnership
Railways
Key projects completed during the year include railway electrification of the Moradabad-Roza and Barauni-Chappra
L&Ts capabilities in bridge-building cover design and construction of many types of bridges in different span lengths using innovative techniques and construction methods.
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Infrastructure
Natural draft cooling towers executed by L&T for Rajasthan Atomic Power Plant. L&T supplied critical equipment and built virtually every nuclear power plant in India.
sections, gauge conversion of the Nagore-Karaikal section and port connectivity for the Bharuch-Dahej section.
Several initiatives were undertaken with a clear focus on the areas of supply chain management, cost competitiveness, operational excellence, value engineering and improved capacity utilisation. Attracting and retaining talent with requisite competencies and focus on training and development to enhance productivity are also being done continuously to support business needs.
Infrastructure and economic development are always inter-linked. Progress in the latter has to be preceded, accompanied and followed by progress in the former. L&T Infrastructure is focussing on capitalising on the current market trend. With a specific and continuous thrust on business development, L&Ts Infrastructure business is looking at new opportunities. A healthy Order Book gives it the confidence of registering good growth in revenues during the year 2012-2013.
Mass Transit Systems

Mumbai Indias commercial capital, and economic nerve centre has had to contend with a transportation system that is inadequate to meet the needs of its burgeoning population. A key project initiated by Mumbais civic authorities is Indias first monorail system, being built by L&T. Other cities are likely to adopt similar transit systems that deliver high utility on a small footprint. After completion of Phases 1 and 2, the monorail will be the worlds second-longest. A feeder service to the citys arterial suburban rail network, the 19.54-km monorail is slated to become operational during this fiscal.
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The Future
Given the huge gap between infrastructure demand and supply in a growing economy like India, all businesses relating to urban infrastructure, power, roads and water are expected to witness significant growth over a sustained period. The Union Budget 20122013 also lays greater emphasis on infrastructure development.
Geo-technical Services
L&Ts capabilities in infrastructure construction are complemented by its offerings in geo-technical services which give clients the assurance of single-point responsibility.
192 MW Alain Duhangan Hydroelectric Power Project in Himachal Pradesh. L&Ts capabilities encompass construction services for hydropower and irrigation projects.
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Water Projects & Solar Energy
Water treatment plant executed by L&T at Okhla near Delhi. L&T has extensive experience in offering design and construction services for water processing, transmission and distribution facilities.
L&Ts Water & Solar business caters to the entire value chain of water and solar EPC businesses. The water and effluent treatment business covers water intake, transmission, treatment and distribution including industrial waste water treatment & disposal and ordinary waste water treatment & reuse segments. The water technology business uses advanced water treatment technologies for complex treatment projects largely in the Middle East. L&Ts solar EPC business comprises solar photovoltaic (PV), concentrated solar power (CSP).
Infrastructure Limited; utility development works of Kamal Vihar for Raipur Development Authority, Chhattisgarh; utility development works of Aerocity for Greater Mohali Area Development Authority, Punjab; and Halyal Lift Irrigation Scheme for Karnataka Neeravari Nigam Limited. Solar: Orders were won for construction of a 125 MW solar CSP power plant at Pokhran, Rajasthan for Reliance Infra; a 23 MW solar PV power plant in Rajasthan; and a 5.75 MW solar PV trackerbased power plant in Gujarat.
Major orders
Water: Orders secured by the Company include the combined water supply scheme to Attur, Melur & Vellore Package for Tamil Nadu Water Supply & Sewerage Board, a pipeline for Gujarat Water
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Orders executed
Water: Orders completed were water supply scheme for 392 villages for Ananthapur Phase III Water Supply Project, a water supply scheme for Jindal Steel Plant at Bellary in Karnataka, and a
pumped water supply scheme for NC 24 Water Supply Project, Gujarat. Solar: The business set a record by putting up the largest solar power plant in India, and emerged as the top EPC player, providing solutions for various solar technologies. L&Ts Solar business is rated SP1 A by CARE, and MNRE has certified it as a channel partner under RESCO and System Integrator categories. Major orders executed include a 40 MW solar PV power plant for Reliance Power at Pokhran in Rajasthan, a 10 MW solar PV tracker-based power plant for Millenium Synergy at Dhama, Surendranagar in Gujarat, a 25 MW solar PV power plant for SunEdison at Charankha in Gujarat, and a 20 MW solar PV power plant for Kiran Energy at Charankha in Gujarat.
Indias largest solar plant, executed by L&T in Rajasthan. L&Ts capability spectrum covers development of economically viable and technically superior solutions of solar energy projects on Engineering, Procurement and Construction (EPC) basis.
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Metallurgical & Material Handling
Open stockyard equipped with rail-mounted stacker-reclaimers at Indias multi-purpose river valley project for Damodar Valley Corporations Koderma Thermal Power Project in Jharkhand.
The Company is Indias market leader in Engineering, Procurement & Construction of projects in the ferrous (iron & steel making) and non-ferrous (aluminium, copper, lead & zinc) sector, as well as bulk material & ash-handling systems in the power, port, steel and mining sectors. Its fabrication unit at Kancheepuram (Chennai) is geared to meet the specific needs of a large customer base.
Nippon Steel for coke-dry-quenching and continuous annealing and processing line METSO for iron ore beneficiation Alliances have been entered into with the following global technologists to avail of new concepts and technologies for increased capacity in the material handling sector: Ashton Bulk, U.K. for crescent type wagon tipplers, high capacity side-arm-chargers and ducking tripper type stacker reclaimers Norwest, U.S for coal washeries FLCE, France for long belt conveyors UCC, U.S for ash-handling systems
Growth Record
The Companys slew of significant orders includes: Blast furnace, coke oven, raw material handling system, civil & structural work for steel melt shop, hot strip mill and power distribution system at Kalinganagar, rebuild of blast furnace F&G at Jamshedpur from Tata Steel Civil and structural works for coke dry quenching and direct reduction of iron plant at Bellary from JSW Steel Civil and structural works for alumina refinery (1.5 mtpa) at Rayagada from Utkal Alumina Civil and structural works for basic oxygen furnace, slab caster for Phase III at Angul from Bhushan Steel Civil and structural works for Phase II at Amravati and Nashik from Indiabulls
Strategic Alliances
L&T has strategic alliances with leading global technologists as part of business-line diversification in the ferrous segment: Paul Wurth for blast furnace, coke oven and by-product plant SMS Siemag for steel melt shop and thin slab caster Outotec for sinter plant and pellet plant
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Coal-handling plant for National Thermal Power Corporations Simhadri Power Plant (Stage II).
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Metallurgical & Material Handling
One of Indias largest blast furnaces, commissioned by L&T. The Company undertakes detailed engineering, procurement, manufacture, supply, construction, erection and commissioning of projects in the areas of ferrous and non-ferrous metals and mineral beneficiation.
Raw material handling system at Tuticorin from Sterlite Coal handling plant at Bara from Jaypee Supply and erection of coal handling plant at Parsa-Kente Mines from Adani L&T completed Indias largest pellet plant (6 MTPA), LD-3 and thin slab caster rolling mill at Jamshedpur, bedding and blending system for iron ore mines at Noamundi, yard machines at Joda Mines for Tata Steel, Blast Furnace-4 at Bellary for JSW Steel, coal handling plant for stage II at Simhadri for National Thermal Power Corporation, coal handling plant at Koderma for DVC and at Tiroda for Powergen Infrastructure.
The Company is currently executing iron-making and steel-making facilities for Tata Steel at Kalinganagar, for Steel Authority of India Limited at Bhilai, for Bhushan Steel at Angul, for JSW Steel at Bellary, an alumina refinery for Utkal Alumina at Rayagada, and 13 coal-handling plants concurrently a landmark achievement. The Company is also involved in the fabrication of coke oven battery equipment including primary gas cooler for Tata Steel and Bhushan Steel; blast furnace shell, lower tower structures and hot stove shell including dome for SAILs Bhilai Plant; surface condensers for power plants; N2 vessels for the steel plants of SAIL (at Bhilai) and Tata Steel (at Jamshedpur); wagon shifter for Indiabulls and pot shells for Hindalco.
Outlook
L&T is confident that its high degree of customer retention, operational efficiency and consistent performance will sustain its growth trajectory in this business. Developments in the field of ferrous and non-ferrous, the power sector and government commitment towards infrastructure spending are regarded as key drivers for the Company. A healthy order book gives L&T Metallurgical & Material Handling the confidence of achieving revenue growth for the year 2012-13.
Sinter plant project for Steel Authority of Indias Rourkela Steel Plant.
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Power Transmission & Distribution
Industrial electrification at Hindustan Zinc at Chanderiya. L&T offers complete project electrification solutions covering plant electrification, instrumentation and extra-high-voltage cabling works for the whole gamut of industries.
L&Ts Power Transmission & Distribution business, with a footprint in India and GCC countries, is one of the major players in the EPC space for high-voltage substations, industrial electrification and power transmission lines. The industrial electrification business provides turnkey electrical, instrumentation and communication solutions for major power plants including thermal and nuclear plants, process plants and infrastructure projects. The substation and transmission line businesses cater to the needs of power transmission and distribution in domestic and international markets, boosted by its state-of-the-art tower testing facility at Kancheepuram and tower manufacturing units at Puducherry and Pithampur, with an installed capacity of 1,00,000 tpa.
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Over the last few years, the Company has established a strong presence in the GCC countries, and is now set to expand across Africa.
Company and EHV substation from the Ministry of Electricity & Water, Kuwait. L&T commissioned Indias first 765 kV substation for Uttar Pradesh Power Transmission Corporation Limited at Unnao, charged 1200 kV transformer for PGCILs Bina test station (the first of its kind). Other completed projects include a 400 kV GIS substation for PGCIL at Gurgaon, 15 EHV substations at various locations, synchronization of Unit-1 of 2 x 500 MW thermal power plant for NTECL at Vellore, electrical works of a 330 MW power project for Adani Power Limited, Mundra-Shandong Electric Power Construction Corporation.
Major Orders
Major orders secured include transmission lines projects from PGCIL for the Varanasi-Kanpur, Raipur-Wardha, and WardhaAurangabad sectors; substation projects at Phagi from RRVPNL; E-BOP for 2 x 660 MW thermal power plant for Abhijeeth Power in Bihar. International orders include EHV substations and cabling projects from Qatar General Electricity & Water Authority, Abu Dhabi Transmission & Dispatch Company, substation for Abu Dhabi Port
Tower testing at L&Ts own Transmission Line Testing & Research Station one of Indias largest testing stations at Kancheepuram, near Chennai. It is accredited by the National Accreditation Board for Testing & Calibration Laboratories.
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Power Transmission & Distribution
Transmission line towers designed and installed by L&T traverse the deserts of the Gulf. L&T provides comprehensive engineering and construction services for power transmission and distribution projects in domestic and international markets.
L&T also commissioned the 400 kV D/C Karcham WangtooAbdullapur transmission line in the toughest terrain of Himachal Pradesh, as well as 34 substations/package units and 89 km of overhead transmission lines in the Gulf. The business demonstrated an impressive growth of about 60% in order intake this financial year, and is well-positioned to continue the momentum next year, owing to the increased private player participation, domestic demand for power transmission and opportunities overseas. L&T is also ambitious about its GCC operations where T&D investments in strengthening of transmission grids provide significant business opportunities.
L&T took several initiatives to improve operational excellence, retain competitiveness and improve their market share. Dedicated Business Initiative cells have been established at strategic locations and to improve proximity to customers with cluster operations. The Right of Way (ROW) team at the cluster level, especially for transmission line business, has been strengthened for speedy project execution. The business is targeting portfolio expansion in the GCC countries along with forays into new geographies and new lines of business.
Indias power shortage scenario is expected to intensify the Governments focus on improving power transmission and distribution. Utilities like PGCIL, NTPC and State Electricity Boards are likely to proceed with their investments in power transmission and distribution. With high crude oil prices, GCC public finances will remain reassuringly strong. The focus on infrastructure development and boost to tourism in most of the Middle East countries augur well for business expansion.
One of the many gas-insulated substations installed by L&T in Dubai and Abu Dhabi.
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Electrical Systems & Automation Solutions
Indias widest range of switchgear, offered by L&T. Switchgear is part of L&Ts broad range of electrical and electronic systems, widely used in industrial, agricultural, building and commercial sectors.
L&Ts Electrical and Automation business comprises two Strategic Business Groups: Products and Projects. The Product Group has two Business Units Electrical Standard Products (ESP) and Metering & Protection Systems (MPS). The Projects Group comprises Electrical Systems & Equipment (ESE) and Control & Automation (C&A). L&Ts Electrical & Automation business includes low and medium voltage switchgear products, electrical systems, energy meters, automation solutions and a stand-alone Strategic Business Unit Medical Equipment & Systems. A major strength is its in-house design and development centre for switchgear as well as a tooling facility that designs and manufactures a wide range of high precision tools a pre-requisite
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for high quality products. The Medical Equipment & Systems Business Unit offers equipment for the critical care segment such as patient monitors, surgical diathermy, ICU ventilators, syringe pumps and anaesthesia workstations. Manufacturing facilities incorporate state-of-the-art technology and best-in-class practices. They are located at Mumbai (Powai), Navi Mumbai, Ahmednagar, Coimbatore, Vadodara and Mysore. Facilities in Saudi Arabia, UAE (Jabel Ali, Dubai), Malaysia, Indonesia and Australia give the company an international footprint.
in the previous year. In the medium-voltage category, domestic sales more than doubled. The Companys South Eastern subsidiary, Tamco Malaysia, qualified for Achilles (UK) certification, made an entry into the Philippine and Vietnamese markets, qualified in Kuwait and Iraq, received Petronas approval for its MV products, and executed its first order for 31.5kA AIS at Lusail City in Qatar. The switchboards and automation teams bagged an order of US $ 22 million for supply of switchboards and a telecommunications package for an inter-refinery pipelines project in Abu Dhabi.
Market Milestones
The manufacture of meters touched a new high as production of single-phase meters touched 3.1 million as against 2.45 million
R&D for Product Development

The Company launched a number of products and variants in
A section of L&Ts range of electronic meters and relays.

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Electrical Systems & Automation Solutions
L&Ts custom-engineered switchboards are equipped with both conventional and intelligent protection, control and communication systems.
Controlgear, Powergear, Industrial Automation and Building Automation categories, with a focus on aspects of safety, environment and innovation. In 2011-2012, ESP launched Moulded Case Circuit Breakers (MCCBs) with Matrix release which offers a wide range of flexibility in protection and current metering with add-on modules for display. Compact and cost-effective versions of MCCBs, viz., DN0, DN1 and DU250 were also added to the ESP basket during the year. In the industrial automation category, ESP launched the A1000 AC drive with embedded crane control software. In residential and commercial segments, L&Ts ORIS range of modular switches uses high-quality fire-retardant polycarbonate
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and high-performance electrical components. The Company introduced the T-ERA range of switchboards that highlighted safety and reliability through a compact, space-saving design. A new, indigenously developed motor protection relay, MCOMP, with the capability of protecting all motors from low to the highest ratings, was launched. The Company introduced a software-based Resource Management Solution i VisionmaxResourze that would help facilities to monitor measures for energy, water, electricity and gas. In the field of renewable energy, it developed new product solutions for solar thermal and photo-voltaic systems. Other software based solutions such as i Visionmax PMS for Power Management and i Visionmax
I-TAS for Terminal Automation were successfully implemented at various sites. In the medium-voltage category, Tamco developed 33 new products, completed the type test for 40kA AIS family (lowest width), successfully tested the most compact 12/24kV GIS and the cost-competitive design of 36kV AIS.
Intellectual Property (IP) Rights

In 2011-2012, the Company filed 162 patent applications, 16 trademark applications, 10 design registrations and 9 copyrights as well as 10 international patent applications through PCT (Patent Cooperation Treaty). This was the 5th consecutive year that the Company has filed more than 100 patent applications.
Control hub of a process plant. L&Ts control and automation systems reflect the convergence of electrical, communication and automation technologies.
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Machinery & Industrial Products
An L&T-Komatsu hydraulic excavator at a construction site.
L&Ts Machinery & Industrial Products business comprises three Strategic Business Groups (SBGs) Construction Machinery, Industrial Machinery and Industrial Products.
Industrial Machinery
The range of offerings includes machinery for crushing, mining and mineral processing industries, paper and pulp, steel, rubber and plastic processing industries and castings for wind power and other engineering sectors. At its Rourkela (Kansbahal) facility in Orissa, L&T designs, manufactures and markets mineral crushing solutions, surface miners, specialised steel plant equipment and machinery for paper & pulp. L&T has two foundries at Coimbatore and Kansbahal. A 30,000 TPA Casting Manufacturing Unit at Coimbatore
manufactures 3T to 28T SG iron and special iron castings for wind power and other engineering sectors. The Kansbahal foundry manufactures steel, alloy iron, SG iron and grey iron castings and large wear and abrasion resistant castings for power and cement. The LTM Business Unit manufactures and markets rubber processing machinery for the global tyre industry at its facilities at Kancheepuram and Manapakkam in South India. Larsen & Toubro (Qingdao) Rubber Machinery in China develops and supplies tyre curing presses and other rubber processing machinery on par with the quality of the products that LTM supplies globally. L&T Kobelco Machinery manufactures internal mixers and twin screw roller head extruders for the tyre industry at its own plant at Kancheepuram.
Construction Machinery
L&T markets construction and mining equipment and offers service support. Its Construction & Mining Business Unit (CMB) markets equipment manufactured by L&T-Komatsu, India and also offers Komatsus worldwide range. L&T represents Scania, Sweden, for mining tipper trucks. L&T-Komatsu manufactures hydraulic excavators and hydraulic components at its plant at Bangalore.
L&T-designed surface miner - ideal for limestone and coal mines.

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L&T offers flow-control solutions for the hydrocarbon and power sectors worldwide. High-pressure valves for supercritical and nuclear power plants comprise a vital share of its product portfolio.
Injection moulding machines and auxiliary units for the plastics industry are manufactured and marketed by L&T Plastics Machinery at its unit at Chembarambakkam near Chennai.
specification grade electrodes, flux-cored welding wires, wear plates/parts, welding and cutting equipment. L&Ts Industrial Cutting Tools business provides metal cutting solutions manufactured by ISCAR to the automobile, engineering and machine tool segments.
Industrial Products
L&T markets valves and allied products manufactured by L&T, its joint venture Audco India Limited, Larsen & Toubro (Jiangsu) Valve Company, China and other Indian and overseas manufacturers. At Coimbatore, L&T manufactures valves for the power sector and provides technology support for new product development. EWAC Alloys manufactures a wide range of maintenance and repair consumables at its plant at Ankleshwar. The principal products and services comprise Maintenance & Repair (M&R) consumables,
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in the Indian steel industry increased demand for torpedo ladle cars. Renewed State Government focus on non-conventional energy favoured investment in wind turbines. EWAC and the Cutting Tools businesses benefitted from growth in the automotive and engineering sectors. The domestic market experienced greenfield investment in off-theroad tyres (OTR). A large order was secured for OTR tyre curing presses against tough Chinese competition. Orders were also received from Japanese and European tyre companies for supplies to Brazil and Russia. The valves business benefitted from sustained oil & gas projects in the Middle East, North Africa and Australia. Long-term relationships with key end-users and EPCs in the Middle East and Far East enhanced our market presence. Renewed thrust
Business Environment
Road and general construction activities have sustained the construction equipment business. L&Ts foray into large mining equipment has been well-received. Capacity additions in Indias cement and power sector realised revenue growth for Kansbahals Industrial Machinery business through the supply of limestone and coal-crushing plants. Adoption of more energy-efficient processes
L&T ball valves for critical applications in the oil & gas industry meet international systematic integrity requirements (SIL-3 Safety Integrity Level).
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Hydraulic tyre-curing press part of L&Ts wide range, manufactured and supplied to tyre manufacturers in India and overseas.
in the projects helped us achieve targets by closely working with EPCs. L&T obtained a breakthrough order for ultra-high pressure valves for a supercritical power plant in India. While the business expanded into defence, the fertiliser and power sectors also offered potential. L&T maintained its leadership position in construction and mining equipment, and supplied over 100 dump trucks of various sizes.
companies. Personnel were added in key growing overseas markets (e.g. the Middle East and South Africa) and domestic channels. Critical products were certified for Safety Integrity Level as per international standards. Designed, manufactured and tested prototypes of new-generation ball and butterfly valves that replace conventional products and orders have been secured. Efforts towards developing new products continue at the Product Development Center at Coimbatore. New cutting-tool products for drilling, milling and turning were launched successfully.
the demand for hydraulic excavators. The Mining Equipment business will continue growing as a result of investments to augment coal production and the demand for metals like iron ore and zinc. Mining prospects hinge on the Governments resolution of environmental concerns and land acquisition issues. L&T is wellpositioned to supply large mining equipment to coal companies. The demand for industrial machinery from the mineral-processing and infrastructure segments should benefit our Crushing & Screening segment and wheel loaders. Moderate improvement in industrial growth indices is expected to enable our businesses to register better growth trends.
A joint venture was formed to provide world-class internal mixers and twin screw extruders. A new range of tyre-building machines was introduced which catered to the truck and OTR tyre markets. L&Ts Valves obtained increased approvals from key international oil
64
Outlook
Renewed focus on infrastructure development in India will augment
Limestone crusher manufactured at L&Ts Kansbahal Works.

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Information Technology
L&T INFOTECH
Larsen & Toubro Infotech Limited, one of the fastest growing IT services companies, is a wholly-owned subsidiary of L&T. Ranked by NASSCOM as the 9th-largest software and services exporter from India and among the top 20 IT BPO employers in 2010-2011, L&T Infotech provides end-to-end solutions and services in the following verticals: Banking & Financial Services, Insurance, Energy & Petrochemicals, Manufacturing (CPG/retail, high-tech, industrial products, automotive), and Product Engineering Services (Telecom). L&T Infotech is also well-positioned in the Media & Entertainment, and Life Sciences & Healthcare space. L&T Infotech has introduced new and cutting-edge offerings in the technology space including an end-to-end cloud computing adoption toolkit and cloud advisory consulting services as well as enterprise mobility solutions covering a smart access platform, big data advisory services and in-memory computing. L&T Infotech has developed intellectual properties (IPs) in all the vertical and horizontal service lines and leverages them to provide IP-led solutions. L&T Infotech also delivers business solutions to its clients in the following horizontals/service lines: SAP, Oracle, infrastructure management services, application outsourcing (testing, application
Global headquarters of L&T Infotech at Powai, Mumbai. This L&T subsidiary offers domain-led solutions to global clients in BFSI, Manufacturing and Energy & Petrochemicals industry verticals.
development, maintenance & support, legacy modernization, BI/DW), domain services, architecture consulting, EAI & SI, serviceoriented architecture, software-as-a-service (SaaS), and Product Lifecycle Management. An innovative CIO-thought partnership programme gives clients a value-driven edge. Headquartered in Mumbai, India, L&T Infotech has a global presence across continents. A culture of training and mentoring, coupled with a work ethos that encourages innovation ensures that L&T Infotech lists high among the best companies to work for. L&T Infotech is differentiated by its unique Business-to-IT Connect which emerges out of its rich corporate heritage.
L&T Infotechs Bangalore facility.
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L&T Technology Services Limited
Knowledge City at Vadodara. The campus houses the global headquarters of L&T Technology Services Limited.
L&T Technology Services Limited provides leading-edge engineering solutions to multiple industry sectors like automotive, aerospace, consumer electronics, consumer packaged goods, marine, medical devices, off-highway equipment, railways, pharmaceuticals, oil & gas, utilities, infrastructure and industrial products. With its global headquarters at Vadodara, India, the Company operates from dedicated offshore engineering centres at Vadodara, Mysore, Mumbai, Chennai and Bangalore in tandem with onsite teams worldwide to cater to the engineering requirements of global giants. Its client base includes several Fortune 500 Companies. Over 4,000 dedicated associates deliver high-quality engineering and technology solutions.
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The Company has taken multiple initiatives in the domains of consumer electronics, medical devices, aerospace, process engineering (pharmaceutical, chemical, energy and infrastructure), transportation and off-highway and industrial products to tap emerging opportunities and register a significant increase in revenues and margins. Recent initiatives include: Integration of portfolios, which position the organisation as a single-point solution for customers Exploring new markets in Europe, the Middle East, Africa and Asia Focused attention leading to enhanced global brand recognition
Augmenting the capability portfolio by adding services like railway engineering, manufacturing engineering, technical publication and design consultancy
Engineering talent is drawn from Indias premier academic institutions.

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Infrastructure - Development
Artists impression of the Hyderabad Metro Rail Project being developed by L&T IDPL in partnership with the Andhra Pradesh Government. This project will drastically cut down commuting time and enhance the quality of life in Hyderabad.
L&T leverages its established domain expertise in infrastructure project execution and financial services to develop major projects in key sectors. The Company was among the first to take part in a road project executed in India on BOOT (Build, Own, Operate and Transfer) basis, and has since been an active participant in many such projects involving the Government of India, State Governments and private players.
India. The Company has nineteen road projects, one metro rail project and two port projects in its portfolio.
Roads & Bridges

In 2012, L&T IDPL commenced tolling operations on two road projects in Tamil Nadu and Gujarat, formed two new SPVs for implementing projects in Rajasthan, Andhra Pradesh and Karnataka, and won two new projects in Maharashtra. Ten SPVs in the road sector are operational and nine are under implementation. Major projects are under implementation in Maharashtra, Gujarat, Rajasthan, Andhra Pradesh, Karnataka and Tamil Nadu.
of the Hyderabad Metro rail project in six stages. Construction of the elevated corridor for the first two stages totalling 15 km has commenced. The finalisation of suppliers for major systems is at an advanced stage. The entire project is scheduled to be commissioned by November 2016.
Ports
Dhamra Port Company Limited a joint venture of L&T IDPL and Tata Steel has built a deepwater all-weather port at Dhamra on BOOST basis, with a 34-year concession. The port can accommodate cape-size vessels of up to 1,80,000 DWT. The project includes 62.5 km of rail connectivity. It commenced commercial operations in May 2011.
L&T Infrastructure Development Projects Limited (L&T IDPL)

This subsidiary of L&T identifies, develops, operates and maintains infrastructure projects such as roads & bridges, ports, metro rail, transmission lines and water treatment plants. It holds leadership position in the development of transportation infrastructure in
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Metro Rail
L&T Metro Rail (Hyderabad) Ltd. has envisaged the completion
L&Ts marine capabilities cover construction of ports and harbours.

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Corporate Sustainability
Since the economic performance of the Company is highlighted in other sections of this publication, this section focuses only on the environmental and social aspects of sustainability.
A Company with a Social Conscience

L&Ts social interactions take place at many levels, and through multiple initiatives. These cover: Construction Skills Training Institutes: Eight such units have been set up by L&T on its own, and six by L&T in collaboration with different State Governments. Each institute provides training free of cost in basic trades such as masonry, carpentry, bar bending, etc. Health Care: Health Centres in Mumbai (at Andheri and Thane), Ahmednagar, Chennai, Surat (Hazira), Kansbahal (near Rourkela) and Coimbatore provide diagnostic services free of charge to the community. Education: L&T assists schools around its facilities with teaching aids. A growing number of L&T-ites volunteer to teach pupils. L&T Public Charitable Trust: It functions as an apex body for several NGOs and assists them in several areas including (apart from those listed above) in building check dams and rural uplift.
(Details of initiatives undertaken this year and information about L&Ts green portfolio are published in our Sustainability Report. For the e-version of the Report, please visit www.Larsentoubro.com)
One of L&Ts many certified green buildings, its LEED-certified (platinum-rated) technology block at Hazira.
At L&T green thinking is part of the Companys business agenda. We are going green in multiple ways. Equally important, we are enabling other companies and the community along on the green march. Aligned with the Indian Governments National Action Plan on Climate Change (NAPCC), L&Ts energy-efficient initiatives have enlarged its green footprint. Our green portfolio ranges from supercritical power plant equipment through refinery systems to switchgear products. We have reduced carbon emission to less than 22,000 tonnes since 2008 More than 12 per cent of our energy requirement is sourced from renewable energy Several of L&Ts buildings are certified green buildings. Over half of L&Ts locations are zero-wastewater-discharge units. 15 of our campuses have achieved zero-wastewater- discharge status Total water consumption reduced by 5 per cent by L&T units L&T nurtures over 150,000 full-grown trees across its campuses Additionally, L&T helps sustain the fragile Himalayan ecosystem by planting saplings on the slopes
Spreading smiles through social interventions.
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Information given in this publication has been excerpted from an analysis of the performance of the Company as stated in L&Ts Annual Report 2011-12. For more exhaustive information, please refer to the Annual Report.
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Annual Review

A. M. Naik Executive Chairman & Managing Director

K. Venkataramanan CEO & Managing Director

V. K. Magapu President (IT, Engineering Services & Corporate Initiatives)

M. V. Kotwal President (Heavy Engineering)

S. N. Subrahmanyan Sr. Executive Vice President (Infrastructure & Construction)

R. Shankar Raman Chief Financial Officer

S. N. Roy Sr. Executive Vice President (Power Development, Corporate Affairs)

S. Raghavan Sr. Vice President (Machinery & Industrial Products)

S. C. Bhargava Sr. Vice President (Electrical & Automation)

BALANCE SHEET AS AT MARCH 31, 2012

74155 74008 33179 181342 389758 571100

2010-2011 439059 11474 450533

531705 13383 545088

Year 2011-12 at a Glance

Hydrocarbon Mid & Downstream

Hydrocarbon Mid & Downstream

business opportunities for supplying onshore process modules in international markets.

Hydrocarbon Construction & Pipelines

Pan-L&T Hydrocarbon Safety Initiatives

Supercritical turbine being assembled at L&Ts Hazira Campus.

Coal Gasifier & Power Plant Equipment

Fertiliser & Petrochemical Equipment

Defence & Aerospace Equipment

Technology & New Product Development

Nuclear Power Plant Equipment

Steam generators for pressurized heavy water reactors.

Shipbuilding - Merchant & Naval

Shipbuilding at L&Ts Hazira Manufacturing Complex.

Buildings & Factories

Buildings & Factories

Buildings & Factories

Buildings & Factories

Heavy Civil Infrastructure Ports

Mass Transit Systems

Water Projects & Solar Energy

Metallurgical & Material Handling

Metallurgical & Material Handling

Power Transmission & Distribution

Power Transmission & Distribution

Electrical Systems & Automation Solutions

R&D for Product Development

A section of L&Ts range of electronic meters and relays.

Electrical Systems & Automation Solutions

Intellectual Property (IP) Rights

Machinery & Industrial Products

An L&T-Komatsu hydraulic excavator at a construction site.

L&T-designed surface miner - ideal for limestone and coal mines.

Machinery & Industrial Products

Machinery & Industrial Products

Limestone crusher manufactured at L&Ts Kansbahal Works.

L&T Technology Services Limited

Engineering talent is drawn from Indias premier academic institutions.

Roads & Bridges

L&T Infrastructure Development Projects Limited (L&T IDPL)

L&Ts marine capabilities cover construction of ports and harbours.

A Company with a Social Conscience

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