Larsen & Toubro

Larsen
&
Toubro
Limited,
also
known
as L&T,
is
an
Indian multinational conglomerate headquartered in Mumbai, Maharashtra, India. It was
founded by Danish engineers taking refuge in India, as well as an Indian financing
partner. The company has business interests in engineering, construction,
manufacturing goods, information technology, and financial services, and also has an
office in the Middle East and other parts of Asia.
L&T is India's largest engineering and construction company. Considered to be the
"bellwether of India's engineering & construction sector". L&T was recognized as
the Company of the Year in Economic Times 2010 awards.
History
1946
- On 7th February, the Company was incorporated. Larsen & Toubro carries on business
as civil mechanical electrical chemical & Agricultural engineers as manufacturers as
importers & exporters & as contractors. The Company represents a large number of
overseas manufactures, notably manufacturers of tractors, agricultural machinery, dairy
machinery, film cooling towers and general industrial and engineering plants and coal
mining machinery.
1969
- With effect from 1st Oct., Alu Capsules Ltd & India, Crown Cork, Co. Ltd, both wholly
owned subsidiaries were amalgamated with the company. And a new division was
formed like Bottle Closure Division.
1975
- During the year, the company commissioned a plant at Bangalore for the manufacture
of multipurpose hydraulic excavators and high pressure hydraulic system in
collaboration with Poclain, S.A. France.
1977
- During the year Faridabad Factory become operative and commenced the
manufacture of switchboards.

L&T Submitted by Vishal Jhaveri, 2215Page 1

1979
- With effect from 1st April, Wilcox Buckwell India, Ltd another subsidiary, was merged
with the company.
1981
- Utkal Machinery Ltd was amalgamated with the company with effect from 1st April.
- During the year, the company signed an agreement with Hong kong ship-owners for
the purchase of two bulk carriers of 27,000 DWT capacity each built in Japan at a
contractual price of U.S $ 18.3 million each.
- During the year company made a right issue of 13.5% convertible debentures of
Rs.100 each for Rs.6 crores. 1982
- The Company's subsidiary Engineering Construction Corporation, Ltd was merged
with the company with effect from 1st Oct.
1983
- During the year, the company established a cement plant with an installed capacity 1
million tonnes per annum in Chandrapur district in Maharashtra and commenced
commercial production of cement.

1984
- During the year, the company signed collaboration agreement with Y.E Data, Japan for
floppy disc drives, with honeywell information systems, India for dot matrix printers and
with Jeumont Schneider, France for electronic PABX. Another collaboration agreement
was signed with potain Poclain Material, France for manufacture of mobile cranes at
Kansbahal works. The company also signed collaboration agreement with
Oesterreichische Doka Schalungs-und Geruestungstechnik GmbH, Austria for farmwork
systems used in the construction industry.
- During the year, the company issued 55,00,000 -15% non convertible debentures of
Rs.100 each for an aggregate amount of Rs.55 crores.

L&T Submitted by Vishal Jhaveri, 2215Page 2

1985
- During the year, the Company manufactured and delivered two-end shields for
Kakrapara Atomic Power Project.
1986
- During the year, the company commissioned a new factory in Hebbal Industrial Estate
near Mysore in Karnataka for the manufacture of computer peripherals such as dot
matrix printers and floppy disc drives.
1987
- During, the company diversified into the field of 400 KV transmission lines.
1988
- During the year company entered into collaboration agreements with Sundstrand
Sauer, USA for the manufacture of axial piston units, with case vibromax, W. Germany
for manufacture of vibratory compactors and with JI Case, USA, for the manufacture of
wheel loaders. Also a memorandum of understanding was signed between the company
and Colas S.A of France for setting up a joint venture company for production of asphalt
emulsion.
1989
- A new project was commissioned at Mysore in Karnataka for the manufacture of
medical electronics products. During the year the Company received industrial licences
for the manufacture of ship auxiliaries and components of mechanised sailing vessels
and rail track laying, track maintenance and renewal equipment.
- During the year the company entered into a technical collaboration agreement with
MPSI of USA for the manufacture of ring hammer mills and rotary breakers required for
sizing of coal.
- During the year company issued 30,000 - 13.5% debentures of Rs.1000 each to
financial institutions with an option for conversion into equity shares of the company.

L&T Submitted by Vishal Jhaveri, 2215Page 3

1990
- During, the company entered into an agreement to take over the tractor unit of
Kirloskar Pneumatic Co. Ltd.
- During the year company completed construction of 200 flats for Sai Central Trust,
Puttaparthy. The company also commissioned a sponge iron plant of 8,80,000 tonnes
per annum capacity for Essar Steel at Hazira.
1991
- During the year a major contract was signed for augmentation of the Trisuli Hydro
Power Project in Nepal.
1992
- A carbonate condenser for IFFCO, Kalol was manufactured to Stami Carbon Process
for the first time with the stringent requirements of ultrasonic testing for each tube-totube sheet joint. The company also developed ethylene oxide reactor for SM Dyechem.
1993
- L&T - Gould Ltd. was amalgamated with the Company effective from 1st January.
During the year a new model 90 CK -111 was launched. A methanol cometics for
Deepak Fertilizers and test separation for ONGC platform were delivered. A pair of
endshields was also fabricated and supplied for the 235 MW Karga Atomic power
project. Also the company commissioned the Max-L telephone exchange of 2000 lines
extendible upto 1,10,000 lines at Chittorgarh, Rajasthan.
- During the year, EWAC Alloys Ltd., on issuing further shares to collaborators and
increasing their holdings to 50% ceased to be a subsidiary of the company.
1994
- During November, the company offered 80,83,832 GDR shares at a issue price of US
$ 8.35 per GDR representing shares 161,67,664 equity shares at a price equivalent to
262 (at an exchange rate of Rs.31.37=US $ 1.). All the GDR were fully subscribed. The
Company along with Energy Alternatives Inc., U.S.A signed a MOU with SAIL for
promoting & developing 2 x 250 MW Coal based power plant at Bhilai in M.P.

L&T Submitted by Vishal Jhaveri, 2215Page 4

1995
- During the year an international scale glass container plant employing the state-of-the
art technology was being set up in technical collaboration with Vetropack, Switzerland.
During the same year, the company signed of memorandum of intent with Samsung
Electronics Co. Ltd. of South Korea to form a joint venture for the manufacture and
marketing of a vide spectrum of telecom products including large switches, transmission
products, paging systems and PABX. Also signed an MoU with Orissa govt. for setting
up a integrated steel plant at Gopulpur.
- During the year a new cement plant at Kovaya in Gujarat with annual capacity of 15
lakh tonnes was commissioned.
1996
- During the year, the Company has two subsidiary companies namely, L&T-McNeil
Limited and L & T Finance Limited, and seven associate companies namely, Audco
India Limited, Ewac Alloys Limited, Tractor Engineers Limited, L&T- Niro Limited, L&TChiyoda Limited, L&T-Sargent & Lundy Limited and Larsen & Toubro (Oman).
1997
- The Company is also putting up captive power plants at Awarpur and Gujarat so as to
ensure continuous availability of equity power at reasonable cost.
- The Larsen and Toubro (L&T) Employees Association has launched an indefinite strike
from January 21 protesting against the alleged harassment and victimisation of workers
by the management, even as the management termed the strike illegal and contended
that it had only initiated disciplinary action against some employees for misconduct and
non-performance.
- L&T-McNeil Limited, a subsidiary of Larsen & Toubro Limited, has been awarded the
All India Special Shield for 1995-96 in the category of non-SSI New Product Exporters
by the Engineering Export Promotion Council.
- Larsen and Toubro Limited (L&T) has been awarded a railway electrification contract
for the Vallathol Nagar Ernakulam section in Kerala.

L&T Submitted by Vishal Jhaveri, 2215Page 5

1998
- The joint venture has been set up for the manufacture of earthmoving equipment and
has a paid-up share capital. Both L&T and Komatsu are chipping in with 50 per cent
each of the equity base.
- Diversified industrial giant, Larsen and Toubro (L&T) has entered into a joint venture
with Dear and Co., a leading international agricultural machines company, to
manufacture tractors.
- Larsen and Toubro Ltd (L&T) has been conferred the Indian Chemical Manufacturers
Association (Icma) award for excellence in chemical plant design and engineering for
1999
- Engineering major Larsen & Toubro has bagged the EPC contract for the Rs 135 crore
captive power plant being set up by Usha Martin Industries, currently known as Usha
Beltron, of the Jhawars.
- The promoters of HPL Cogeneration, a joint venture between Larsen & Toubro (L&T)
and Haldia Petrochemicals Ltd (HPL), have converted their loans into equity shares. As
a result of the conversion, which was done at a part value of Rs 10 per share, the
company's equity capital has jumped from Rs 5 crore to Rs 122 crore.
2000
- Cement giants Larsen & Tubro (L&T) and Gujarat Ambuja Cements have entered a
unique agreement to reduce transportation costs in despatching bulk cement in Gujarat.
- Crisil has assigned the highest safety rating to engineering and construction major the
company's Rs 100 crore debenture issue.
- The Company its Nashik Glass Work, an accidental leakage of molten glass from
furnace took place on 12th March.
- Larsen and Toubro announced a "strategic partnership" with SAP India.

L&T Submitted by Vishal Jhaveri, 2215Page 6

- The Company is to set up a wholly-owned subsidiary -- `L&T Capital Company Ltd' -to focus on business opportunities in the capital market.
- L&T has formed a new company, L&T Equipment Leasing Co. Ltd., to which will be
transferred the construction equipment owned by ECC-operating division.
- L&T Information Technology Ltd., a wholly-owned subsidiary of Larsen and Toubro
Ltd., has been awarded the National Export Award for 1998-99.
- Larsen and Toubro (L&T) has floated a 26:74 joint venture with Japanese major Sharp
Corporation which will absorb the company's existing distribution business of electronics
office equipment.
- The Company, India's largest cement producer with an installed capacity of over 14
million tonne, is setting up a 1mt grinding unit at Durgapur in West Bengal.
2001
- The Company has informed BSE that the company has entered into a joint venture
with Demag Ergotech of Germany.
- Larsen & Toubro has formed a separate company L&T EMSYS (L&T Embedded
Systems) for embedded software development.
- L&T Information Technology Ltd a subsidiary of Larsen & Turbro Ltd, and Sun
Microsystems Pvt. Ltd. have signed a memorandum of understanding to jointly offer ebusiness solutions to their customers.
- Larsen & Toubro Ltd (L&T) has bagged the Rs 121.5-crore contract to construct a
36.89-km stretch of the National Highway Four between Kanchipuram and Walajahpet
along the Chennai-Bangalore highway.
2002
-Buys over the shareholding of Caterpillar, USA, in its joint venture Tractor Engineers
Ltd. (TENGL), makes it wholly owned subsidiary
L&T Submitted by Vishal Jhaveri, 2215Page 7

-Larsen & Toubro (L&T) has won a contract for coal gasification equipment from China
valued at Rs 95 crore
-Cement division demerged, new company carved out in the name of Ultra Tech
CemCo, Grasim Industries Ltd. takes majority control in Ultra Tech CemCo
-Engineering major Larsen & Toubro Ltd. has won an order worth $52.5 million from the
United Arab Emirates to develop a platform in an oil field in the Gulf
-Launches new 35 HP tractor
-L&T and BEL join hands to develop radar for Army
-Tata Steel and Larsen & Toubro (L&T) signs definitive agreement to form a 50:50 joint
venture for setting up a port at Dhamra in Orissa on October 29,2004
-L&T join hands with Dubal to set up alumina plant

2005
- L&T John Deere Private Ltd launches 40 HP tractor 5103 models on January 8, 2005,
--L&T enters into MoU with DSL, Nashik for a merger of DSL with the Company under a
scheme to be approved by BIFR
2006
-L&T bags a Rs 440-crore order from Zadeko Ship Management CV
-L&T Wins Rs 7500 mn BOT Highway Contract in Gujarat
-Mumbai: Larsen & Toubro has forged technological alliance with Mitsubishi Heavy
Industries for manufacture of equipment for mega power projects being planned in the
country.
-L&T Wins Rs 5400 crore Delhi Airport Contract.

L&T Submitted by Vishal Jhaveri, 2215Page 8

2007
-The Boeing Company on February 08, 2007 has signed a Memorandum of
Understanding (MoU) with the Larsen & Toubro Ltd , for the joint exploration of business
opportunities in India's defense sector.
-Larsen & Toubro Ltd (L&T) has informed that the Board of Directors of the Company at
its meeting held on July 19, 2007, has appointed Mrs. Bhagyam Ramani as a Nominee
Director of the Company representing equity interest of General Insurance Corporation
of India with effect from July 19, 2007 in the vacancy caused by the resignation of Mr. B
P Deshmukh.

2008
- Larsen & Toubro said that its electrical and electronics division has got Rs 74.7-crore
contract from the Oil and Natural Gas Corporation for a SCADA system for onshore
control centres (OCC).
-The Company has issued Bonus Shares in the Ratio of 1:1.
2009
- Larsen & Toubro has received a Rs 2,000-crore order from GMR Energy for
commissioning a 2x384 MW gas-based power plant at Vemagiri near Rajahmundry,
Andhra Pradesh.
- Larsen & Toubro's buildings and factories operating company, part of its construction
division, has bagged new orders aggregating Rs. 1513 crore for the construction of high
rise tower, luxury hotel, hospital and factory building projects from DB Hospitality, ITC
group, NBCC and Arshiya International.
2010
- Larsen & Toubro has secured orders worth Rs. 581 crore from Powergen
Infrastructure and Bangalore Water Supply and Sewerage Board during the third quarter
of 2009-10. According to a release, the projects will be executed by the metallurgical,
material handling and water operating company of L&T construction division.

L&T Submitted by Vishal Jhaveri, 2215Page 9

2012
- Engineering and construction major Larsen and Toubro said it has bagged new orders
worth over Rs 2,056 crore across various business segments during December 2011.
- Larsen & Toubro (L&T) today said that it has bagged Rs 1,937 crore order for 4-laning
of a major portion of Shivpuri-Dewas section of NH-3 in Madhya Pradesh from GVK
Group.
- Engineering and construction giant Larsen & Toubro (L&T) today said that its financial
arm L&T Finance Holdings Limited (LTFH) has entered into the housing finance
business by acquiring Indo Pacific Housing Finance Ltd (IPHF), a small sized housing
finance company.
- L&T - "L&T Construction bags Order Worth Rs. 1700 Cr
- Larsen &Toubro (L&T) and Samsung Techwin have joined hands to cooperate in the
Indian Armys Tracked Self Propelled Artillery programme.
- L&T and Nexter Systems join hands for Indian army artillery programme
- L&T Mutual Fund launched a new close ended income scheme named L&T FMP VI
(April90D A) with maturity time of 90 days.
- L&T Joint Venture firm bags contract from Sadara Chemical Company
-- L&T - L&T led Joint Venture wins Rs. 1252 Cr Delhi Metro Contract
- Larsen & Toubro bags $250mn EPC contract in Ras Laffan, Qatar

L&T Submitted by Vishal Jhaveri, 2215Page 10

Financial Performance of L&T

Parameter
Gross Sales
Less :Inter divisional
transfers
Less: Sales Returns
Less: Excise
Net Sales
EXPENDITURE:
Increase/Decrease in Stock
Raw Materials Consumed
Power & Fuel Cost
Employee Cost
Other Manufacturing
Expenses
General and Administration
Expenses
Selling and Distribution
Expenses
Miscellaneous Expenses
Expenses Capitalised
Total Expenditure
PBIDT (Excl OI)
Other Income
Operating Profit
Interest
PBDT
Depreciation
Profit Before Taxation &
Exceptional Items
Exceptional Income /
Expenses
Profit Before Tax
Provision for Tax
PAT
Extraordinary Items
Adj to Profit After Tax
Profit Balance B/F
Appropriations
Equity Dividend (%)

MAR'14
( Cr.)
57,163.85

MAR'13
( Cr.)

Change %
52,195.70

9.52%

0.00

0.00

0.00%

0.00
564.93
56,598.92

0.00
584.74
51,610.96

0.00%
-3.39%
9.66%

110.20
23,898.51
656.73
4,662.37

-1,097.14
23,565.16
615.14
3,860.93

110.04%
1.41%
6.76%
20.76%

16,890.04

15,704.14

7.55%

2,933.40

2,492.45

17.69%

161.80

184.52

-12.31%

710.39
0.00
50,023.44
6,575.48
2,104.67
8,680.15
1,208.32
7,471.83
792.42

850.13
0.00
46,175.33
5,435.63
2,804.81
8,240.44
1,055.90
7,184.54
727.74

-16.44%
0.00%
8.33%
20.97%
-24.96%
5.34%
14.44%
4.00%
8.89%

6,679.41

6,456.80

3.45%

588.50

254.35

131.37%

7,267.91
1,774.78
5,493.13
0.00
0.00
285.75
5,778.88
712.50

6,711.15
1,800.50
4,910.65
0.00
0.00
152.39
5,063.04
925.00

8.30%
-1.43%
11.86%
0.00%
0.00%
87.51%
14.14%
-22.97%

L&T Submitted by Vishal Jhaveri, 2215Page 11