Presentation on

A.M Naik
By Darshil Khadkhad(24)
A.M NuIk
Chairman and Managing Director, Larsen & Toubro, A.M.
Naik`s passion and commitment enabled him to grow the
company`s revenue Irom Rs. 109 billion to Rs. 46,108 billion.
He believed in 90 pIIosop oI 'cung0 Is u wu oI III0
He basically had 3 objectives in mind:
1. to align our growth to the growth oI the nation
2. global competitiveness
3. to bring prosperity to all stakeholders. For this he brought
the concept oI stock option which was not considered
intially but later proved beniIicial
$97u90gI0s udop90d b Im when he took over
create a new vision and a new strategy
AIter implementing this study various business
Sell businesses that contribute little to revenues, proIits, market share or
brand. This could range Irom businesses such as valves to construction to
road building equipment
Restructure to scale up and sell. Example: buy out competition in a
business such as plastic machinery; and sell. Naik has used this strategy in
cement and readymix concrete with brilliant returns
Streamline business arrangements that are large (upwards oI Rs 2,000
crore) like the venture with construction and mining equipment maker
Komatsu
Grow businesses with big potential Ior growth. Realty, Ior instance, which
Naik believes can add Rs 500 crore to L&T's net proIit in a Iew years
%:rnuro:nd strutegies ut L&%
":est for excellence: There is a continuous and unstoppable drive to
seek excellence in everything.
%hinking tomorrow today:There is a constant Iocus on identiIying
issues and challenges, and thus, they prepare themselves in anticipation
oI the imminent changes. There is an active thrust on thinking global
oc:sed growth strategy and val:e creation:There was an active
thrust on value creation through divestment, portIolio restructuring,
building cost and quality competitiveness, along with customization,
innovation, speed oI response, and people power
$5eed:. L&T was transIormed Irom being a sleeping giant` into a
sprinting giant` with the introduction oI speed, urgency and quick
response to move ahead oI competition
%:rnuro:nd strutegies ut L&%
con9d..)
m5owerment:The company reaped the Iruits oI nurturing a highly
empowered work culture by enabling tremendous amount oI
togetherness, loyalty and sense oI belongingness amongst its employees.
ntre5rene:rial innovation: The company believed in
enterpreneurial innovation to avoid the trap oI inertia
thical organization:L&T-ites take great pride in the ethical
orientation oI their company, and this is driven by their values oI
transparency, ethics and integrity
:stomer foc:s:They believe that the organization exists because oI
its customers and so, Iollow a customer-centric approach Ior creating a
winning organization
%:rnuro:nd strutegies ut L&%
con9d..)
aring organization:. The culture oI L&T demonstrates a high
degree oI concern towards employee welIare and spends adequate
time to understand the needs and expectations oI employees through
continuous interactions.
ontrib:tion-centric meritocracy: L&T being a proIessional
company, perIormance is oI prime importance. There is direct
relation between reward and perIormance which is considered by
L&T
N:rt:ring talent: The HR techniques like 360 degree appraisal,
assessment centers, mentoring, and counseling aim to build a
leadership bank at L&T. There is emphasis on younger people
holding higher positions.