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Background
Largest Engineering Company in Indian Private Sector. Established by Two Danish Engineers Henning Holck Larsen & Soren Kristian Tubro in 1983. Headquartered in Mumbai.

Products and Brands.

Core Business Engineering & Construction - 75% Electrical & Electronics - 10% Machinery & Industrial Products 10% Other Business 5% Information & Technology. Infrastructure Development Project. Financial Services

Facts & Figures

Leading engineering, construction, manufacturing and services company in India Market cap of Rs1219 Billion (as of October 31, 2007) Order book of Rs440 Billion (as of September 30, 2007) Professionally managed, with 30457employees# (Sep 07) FY07 Revenues: Rs213.42 Billion(3 year CAGR: 19 %) FY07 Net profit:Rs22.40 Billion(3 year CAGR: 46%)

CAGR-Compounded Annual Growth Rate

The Strategy
Maintaining leadership position in domestic markets Human resources development Strengthening International presence Sustaining profitable growth Value realization

Leader in Domestic Markets - Steps

Largest player in domestic infrastructure sector Leading heavy engineering units in the world Short listed for Raksha Udyog Ratnastatus for prequalification with Ministry of Defense, Govt. of India MOU with Boeing for aerospace business Commenced shipbuilding at Hazira facility, with plans to set up a large shipyard to build high-end vessels Foray into manufacture of super critical boilers, steam turbine & generator in partnership with Mitsubishi Heavy Industries

Leader in Domestic Markets - Figures

Order booking growing at a CAGR of 42% over past 2 years in engineering and construction Market leader in low tension switchgears in India, with 40% share L&T operating profit margin (OPM) has improved across segments.
Electrical and Electronics up by 300 basis points Engineering and Construction up by 80 basis points Company's Plans to shift the business mix in favour of highmargin manufacturing from relatively low- margin construction business.

Why L&T is Leader in Domestic Markets

World's largest coal gasifier made in India and exported to China Indias first indigenous hydrocracker reactor Oil and gas platform projects executed to global benchmarks Worlds largest Continuous Catalyst Regeneration reactor Simultaneous execution of clean fuel projects at eight refineries around India Worlds biggest Fluid Catalytic Cracking regenerator Worlds longest product splitter Asias highest viaduct built for the Konkan Railway Worlds longest gas pipeline Worlds longest coal conveyor Building an international class football stadium in 260 days

Lakshya -Becoming an Indian MNC

LAKSHYA is the strategic plan that the company has laid out for 2005-10 It seek to diversify its portfolio Growth targets for each business Compete effectively in the wake of global challenges.

Moving Towards Lakshya 2005-10

Revenues from exports now amount to 18% of its total revenues against a target of 25% by 2010 Actively pursuing business opportunities in China, Middle East and Africa where it sees immense potential. Initiated steps to identify and groom global managers who would be well trained and better equipped to deal with the global challenges A presence in over 30 countries either through wholly owned subsidiaries or joint ventures or alliances in Asia, America, Middle East etc. Alliances with global leaders give it the access to the latest in technology as well as the strength to execute even larger turnkey projects, thereby adding to its expertise levels. Some of the important joint ventures are L&T Sargent & Lundy, L&T Oman LLC, Audco India Ltd.

Lakshya Contd

Moving Towards Lakshya 2005-10

L&Ts strategy of establishing offices and factories across several countries has led to the creation of a distribution network that complements its operations Each business division of the company has a cell that it dedicated to coming up with initiatives to boost exports. It also has several agents abroad to boost its exports. The company regularly participates in several international exhibitions, besides also initiating direct mail campaigns and market surveys. It also expands the reach of some of its new products through the synergy with existing product.

Lakshya Contd

Moving Towards Lakshya 2005-10

The Middle East & China identified as prime centers for expansion for manufacturing and projects businesses. Middle East economies consciously reducing their dependence on oil and gas and diversifying into petroleum and other industries power and infrastructure sectors. Global sourcing policy. with a steady rise in material costs, the company has placed sourcing teams in China, Europe and Russia. Its resource base of experienced people gives it the ability to offer integrated solutions in the market.

Score Card
Parameter
Net Sales PBDIT Net Profit

H1 FY07 H1 FY08 Rs Bn Rs Bn
72.07 6.49 3.4 100.05 12.45 7.25 174.28 440.29

% Growth
39% 92% 113% 30% 44%

Order 134.48 Inflow Order Book 306.76

Thank you

Its all about Imagineering