Ad Here  
March
April
May
June
July
August
 
 
CSR and CMI: promise of another Srinivasan Ramanujan... Build close rapport with business leaders Lalu’s envy, India’s pride Diamond jubilee of Egmore Samskrt School Where a state respects its litterateurs… Adharma of opposition politics Strengthen the base... Moily’s bold thrust Tribute – Manikam Ramaswami Five star activism stalls development activity Revive development banks... The balancing act Parliament in paralysis... Air Asia India will set new benchmarks for budget travel Sri Lanka votes for change Lesson from Chandrababu Naidu Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Waning interest in public discussions… Tatas moving out of urea production... Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Limit foreign borrowings to hi-tech, export potential projects... Put expensive assets created to use... The rise and fall of Annamalai University Delhi is distant… Small units prefers to remain small... Like Hinduism: many paths to reach God... Preserving for the future Of course, Gujarat is vibrant to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Naidu will soon build a new Hyderabad How Air-India loses customs... A Grand Finale for SN’s MS centenary at the US… The sea- saw battle continues... Multi-faceted Venkat Pharma – overdose of copying The nuclear option Solar, solar everywhere … Towards speedy justice Convulsions in The Hindu TELANGANA at last…BUT Computation of GDP – conundrums continue Shaming of Tamils by Tamil farmers at Delhi A think tank for Chennai Modi storms Silicon Valley IPL - no surprise this scam Delhi is distant Dr C Rangarajan returns to Chennai Fall in crude prices help in oil sector reform TN accounts for the largest recruits by the IT sector Auto components surge… MHC should not return to its old indisciplined ways Focus on quality of power - its only around 170-180V Editor's Notes Why land prices zoom in TN? When online building permits work…. Cement prices continue to rise… Welcome thrust on trade in Modi’s foreign visits... He continues the focus on social amelioration Quality education through the PPP mode The why of tax incentives The few handicaps... Funding the un-funded Poor representation for Kerala and TN in Cabinet Insurance companies bleeding, yet no decision on increasing FDI limit! Another Indian music maestro at the UN Rahman at CIC London, London Narayan Vibrant Gujarat Tribute – M V Murugappan CII projects higher growth… SoA @ 80 More heat than light Tihar, Puzhal not different from Parappana Agrahara Rs.1600 crore paper board plant of TNPL More Shakthi to Das’ elbow Excel Generators provide the vital back-up EEC at the National Media Centre The Ports’ Pasha expands into Tamil Nadu Cleaning Ganga – relocate tanneries and install electric crematoria Music happens Naidu’s return augurs well for Seemandhra Kudos to NDTV... Fuel for thought Polls and promises Where is Rajaji? TGS- The king storyteller R Sridhar steps down as CEO of Shriram Capital Protest masters... Welcome focus on core competence Valli, they are more marginalised Eternal support for capitalisation of PS banks Gay abandon in pricing Increasing non co-operation of state leaders A rich pool of talent not utilised…. Fortune 500 review Cutting the nose to spite the face Poor quality of university VCs Colour-Chem’s colourful KRVS L&T- the specialty of special purpose vehicles A professional at the helm of IRDA... Come elections, come advertisements... Kulandai was a giant Infrastructure funding – lessons learnt Fortune for Indian Airlines IAS invades NDDB... Liberal imports idling indigenous capacities Mersal magnified Wanted: a second airport for Chennai China invests in India The Swadeshi Trump Adapt Vajpayee dinner diplomacy Whistle-Stop Tour of Raghuram Rajan The ‘Ayyo-yes’ is no more A yen for wastage… No engine for this car ONGC at KG Basin When nations steal growth from one another… For whom the MIDS bell tolls? …and of a popular trade leader Tough task taking states together The power-full Hindujas WTO Meet: resolved to meet again Welcome GST Discoms deserve better… B H Kothari - a tribute Airlines in India: cost and space Odisha: spectacular win by Naveen Patnaik A welcome initiative by the judiciary Sweeter prospects for sugar A Grand Finale for SN’s MS centenary at the US… Not just in-laws (and outlaws); they’ve renowned academics at the helm! S Ramanathan – a versatile musician, musicologist Recognition to role of NBFCs.... Tribute – UCAL Selvan… Shanti and Sadhana through Music Engineering seats go abegging Permanent secretariat for TN GIM Maximising the micro pricing … Demise of a media baron... There was flood of milk. Reason: no milk commissioner! More tributes to GR Shipping woes of Chennai companies Things happen by accident and not by design... The rise and rise of KCP Bihar – Nitish Kumar adopts the Lalu model A friendly business group Revving up the manufacturing sector An inexplicable neglect TN-leverage strength of BHEL, NLC... Return to king coal for urea... Plummeting profits of PSBs Remembering Indira Sivasailam... Telangana in top gear… Which side are you, Montek? A proud Madrasi The ‘Jayanthi Tax.’ Russi Mody – a tribute Contrarian cousins More Shakti to resource mobilisation... Medical costs hit the roof... GM Technology at last! Making ‘my Amaravati’... Noble nonagenarians... Muffled voices for merit… TIAM turns a full cycle New IT products of Ramco in the pipeline… Road development slows down CIPET hqrs to stay at Guindy – for the present? L&T: focus on infrastructure and more infrastructure… Measuring roof tops in terms of KW/MW Mu Sigma – is no more No mega rail project for Tamil Nadu When the President was rendered homeless… Kinetic Karnataka Welcome changes that testify to Jayalalithaa’s return to health Alexa – Talking Wikipedia Scientists urged to take up farmer-oriented research CRS, a jewel among managers, is no more. Gas is the way forward PPP mode for upgrading Corporation Hospitals Robber barons everywhere Tatas moving out of urea production... GNS - 100: our first subscriber Nuclear power at the nucleus Tribute Breaththrough in malaria control Shale gas and its shallow future S V Raju – a ‘good’ true liberal Marketing expert Balagopal is no more Delhi returns to BJP Streamlining mandatory third party cover This scant respect for Law Inflation: are we emulating Argentina and Brazil? Reliance’s TV – 18 ready to launch Tamil News Channel The Jan Dhan bonanza Tax agriculture A more liberated TN… All eyes on Sankara Nethralaya Why this malaise in medical education? Paytm karo... Roaring Ro-Ro facility Delhi Chalo... Intellectual of rare qualities Solar thermal shines… Bihar elections - the Rajaji formula worked Should we change the official year? When TN politicians can emulate Kerala's PC’s preference for professionals The Gulf aviation boom Haul over the coal Wise Presidents EVM is tamper-proof Readers' Mail Building loyalty through the stomach Modi and the lady Editor's Says Make standards certification mandatory... He saved millions from starvation... F C Kohli - his concerns all embracing Silver Years of Madras Musings TN – agglomerate land holdings without alienating ownership The star of Spencers is no more An informal presentation - analytical, forward locking... An enemy’s enemy is a friend Don’t seem to feel the pulse… Boy, can you beat these? When Ratan Tata visited SRM No Maha Koottani in TN... Padma Bhushan for A Ramakrishna A C Muthiah – his munificent bequeaths to science Banning booze... Secularism and anti-Hinduism Land reclamation from sea appears cheaper! Align crops to agro climate endowments… West Bengal: mindless malignancy Sweet news for TN sugar mills For whom the bell tolls? Online not in line with brick and mortar businesses... Godspeed, Chief Minister JJ Quality silica from Neyveli When small is no larger beautiful.. The brown list of Venkitaramanan A glass full of corruption IPL type auction for VCs?
 
L&T- the specialty of special purpose vehicles

A decade ago, engineering and construction giant Larsen & Toubro conceived a bold, new plan: to form separate subsidiaries or special purpose vehicles to focus on new projects. This enabled the company to access and acquire expertise in new areas such as toll roads and bridges, airports, seaports, metro and rail systems.  I remember the foresight and passion with which A Ramakrishna (AR) explained this foray.

Of course, such a pioneering effort, involved certain business risks. AR took efforts to explain the benefits of the toll road concept, which found resistance in the initial period. In quick time, the concept gained acceptance and opened the floodgates for massive expansion of quality road network. With handsome funding by the private sector, road construction recorded growth as never before.

Equally innovative was the lead taken by L&T ECC to form a separate company for the construction of the Bengaluru airport. Its reputation and record were helpful in ensuring participation by reputed global companies. This experience was a big stepping-stone for taking up construction of the much larger airports at Delhi and Mumbai.

Such enterprise extended to form more such companies. The large Dhamra Port in Odisha in partnership with the Tatas is another major venture. K V Rangaswamy who headed the construction division pointed to L&T gaining rich expertise in such diverse fields for engineering and construction, build value and sell its share in such projects to good profit. The company thus derives twin advantages: getting  orders for constructing such large projects and on completion, to sell these at profit.

The L&T Shipbuilding Ltd on which L&T has invested around Rs 4000 crore is another example of a handsome diversification. This project has three components: an engineering unit, shipbuilding cum repair facility and a container port. The present recessionary conditions come in the way of full utilisation of the niche facilities created. With the expected turn around of the economy, the operations would become profitable.

 The construction division had been accounting for around half the revenues of the giant corporation. With the slowdown in the economy affecting the manufacturing sector in the current year, the construction division may account for larger share, of around 75 per cent, of the revenues of the corporation.

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com