L&T aims to double sales

in 5 years
Engineering and construction company Larsen & Toubro (L&T) has set a
target of almost doubling its sales to Rs 2 lakh crore by 2020-21, chairman
A.M. Naik said at the annual general meeting here today.
By Our Special Correspondent in Mumbai
• Published 27.08.16
• 







 
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Mumbai, Aug. 26: Engineering and construction company Larsen &

Toubro (L&T) has set a target of almost doubling its sales to Rs 2 lakh
crore by 2020-21, chairman A.M. Naik said at the annual general meeting
here today.
The company's consolidated revenues during 2015-16 stood at around Rs 1
lakh crore.

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Naik, who will be retiring next year, pointed out that the targeted revenues
would be achieved without hitting the margins.

"I would like to take this opportunity to share my vision of the L&T of
tomorrow. Our goal is to achieve a revenue of Rs 2 trillion by 2020-21
without compromising on our margins and achieving an order inflow in
excess of Rs 2.5 trillion per annum," he said.

The L&T chief said the economic conditions were beginning to turn in the
company's favour. "Combined with the right strategy and on-ground
execution, our target, though ambitious, is achievable. India is at the cusp
of a turnaround. All indicators are positive. The government's thrust on
infrastructure and its 'Make in India' initiatives provide a range of
opportunities for your company," he added.

L&T, considered a proxy for the economy, is also sharpening its business
focus and has identified select growth businesses that include IT,
technology services, defence, smart world and water management.

Naik said the opening up of the defence sector would alone lead to
business opportunities worth Rs 13 lakh crore over the next 10 years.
"Our strategic plan involves the re-allocation of resources - both talent and
capital - to businesses with visible value creation potential. As most of
these are also asset-light businesses, the initiative will be in line with our
larger objective of building an asset-light organisation," he said.

Naik, who has been associated with the company for over four decades,
said group companies L&T Infotech and L&T Technology Services would
play a key role.

As one of the largest players in nuclear energy, L&T stands to gain from
this sector as the issues relating to fuel supply and nuclear liability have
been sorted out. The estimated business opportunity from this sector is
around Rs 50,000 crore over the next 10 years.

"One of the objectives of our strategic plan is the need to extend

operational excellence across the company. A major step in this direction
has been the setting up of a separate digital group, which will ideate and
implement solutions across functions," Naik said.

The L&T chairman said over 1,000 projects worth over Rs 14 lakh crore
are in the pipeline in areas such as roads, ports, airports and railheads.

"L&T has both the expertise and the track record to make the most of each
of these opportunities. Over the years, we have set benchmarks, only to
surpass them ourselves," he said.