MIRA
INFORM REPORT
|
Report Date : |
17.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
LARSEN AND TOUBRO LIMITED |
|
|
|
|
Registered Office : |
L and T House,
Ballard Estate, Mumbai – 400 001, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
07.02.1946 |
|
|
|
|
Com. Reg. No.: |
11- 4768 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L99999MH1946PLC004768 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04455D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACL0140P |
|
|
|
|
Legal Form : |
Public Limited Liability Company Company’s
Shares are Listed on the Stock Exchange |
|
|
|
|
Line of Business : |
Manufacturers and
Sellers of earthmoving machinery including bulldozers, dumpers, scrappers,
loaders, shovels, vibratory compactors and drag lines. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
Maximum Credit Limit : |
USD 470000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a
well-established, diversified and highly respectable company. It is a
professionally managed company having fine track records. Fundamentals of the
company are very strong. Trade relations are fair. Financial position is healthy
and comfortable. The company is progressing well. The company's payments are
always correct and as per commitments. The company can
be considered for any normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
L and T House,
Ballard Estate, Mumbai – 400 001, Maharashtra, India. |
|
Tel. No.: |
91-22-22618181/
22618182/22685656/ 67525656 |
|
Mobile No.: |
91-9820078364 |
|
Fax No.: |
91-22-22620223/22617480/22685893/67525858/
67525893 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1 : |
C Block, Gate No.
1, L and T Powai Campus, Saki Vihar Road, Powai, Mumbai – 400072,
Maharashtra, India |
|
Tel. No.: |
91-22-67052589 |
|
|
|
|
Corporate Office 2 : |
Kiadb Industrial
Area, Hebbal Hootagalli, Mysore – 570018, Andhra Pradesh, India |
|
Tel. No.: |
91-821-2405331 |
|
|
|
|
Corporate Office 3 : |
EPC, 3rd Floor, Gate
1, Saki Vihar Road, Powai, Mumbai – 400072, Maharashtra, India |
|
Tel. No.: |
91- 22- 28581091 |
|
Fax No.: |
91- 22- 28581951 |
|
Email : |
|
|
Website : |
|
|
|
|
|
Regional Office/ Headquarter / Holck-Larsen and EDRC Centre : |
Mount Poohamallee
Road, Manapakkam, P. B. No. 979, Chennai - 600 089, Tamilnadu, India Tel. No. :
91-44-2232 6348 Fax No. :
91-44-2234 2317 E-mail : itcg@giasmd01.vsnl.net.in |
|
|
|
|
EDRC Centre : |
Kanak Building, 41, Jawaharlal Nehru Road, Kolkata 700 071, West
Bengal, India Tel. No.: 91-33-22882601 Fax No.: 91-33-22881225 Email : indranil_r@lntecc.com |
|
|
|
|
Division : |
ECC Division, Mial Project Office – North Block II, 6th Floor, Gate
No. 1, Powai – 400072, Maharashtra, India |
|
|
|
|
Regional Offices
: |
· NCL Bandra Premises, Plot No. C/6, Bandra – Kurla Complex, P. O. Box No. 8119, Bandra (East), Mumbai - 400051, Maharashtra, India · 2, Saki Vihar Road, P. O. Box No. 8901, Mumbai – 400072, Maharashtra, India · 1/FL, Laxminarayan Complex, 10/1, Palace Road, P. O. Box 122, Bangalore – 560002, Karnataka, India Also located at New Delhi, Lucknow, Kolkata, Vadodara, Ahmedabad,
Arakkonam Pune and Hyderabad, Chennai, Tamil Nadu, India |
|
|
|
|
Overseas Offices : |
v
Japan v
Nepal v
Sultanate of Oman v
Bangladesh v
Malaysia v
Sweden v
Russia v
UK v
USA v Dubai v Abu Dhabi v Sharjah v Saudi Arabia v Bahrain v Qatar v Oman v Kuwait v Kenya v Bhutan v West Indies v Jordan v Kazakhstan v Sri Lanka |
|
|
|
|
Factory : |
TLT Works, Plot No. 158-B, Sector III, Pithampur, Dhar District,
Madhya Pradesh 454 774, India Tel. No.: 91-7292-256317/ 256431 Fax No.: 91-7292-256316 Email : sg-pith@lntecc.com
TLT Works, Mailam Road, Sedarapet, Pondicherry 605 111, India Tel. No.: 91-413-2672500 Fax No.: 91-413-2677727 Email : asa@lntecc.com
167, Neervalur Village, Kancheepuram 631 502, India Tel. No.: 91-4112-27248383, 93 and 94 Fax No.: 91-4112-27248383 and 290 Email : kasokkumar@lntecc.com Also located at : v
Faridabad, v
Kandla v
Vadodara v
Ankleshwar v
Hazira v
Jafrabad v
Kovayya v
Nashik v
Pune v
Ahmednagar v
Ratnagiri v
Tadipatri v
Bangalore v
Mysore v
Awarpur v
Jharsuguda v
Kansbahal v
Ranoli (Baroda) v
Visakhapatnam v
Haldia |
|
|
|
|
Office Network : |
Located at: v Ahmedabad v Bangalore v Chandigarh v Chennai v New Delhi v Kolkata v Lucknow v Pune |
|
|
|
|
Branches : |
Located at v Jaipur v West Bengal v Guwahati v Bhopal v Nagpur v Durgapur v Jamshedpur v Guwahati v Bhubaneswar v Vishakhapatnam v Coimbatore v Kochi v Madurai v Surat |
|
|
|
|
Railway Business
Unit: |
12/4, Delhi -Mathura Road, Near Sarai Khawaja Chowk, Faridabad –
121003, India |
|
Tel No.: |
91-129-4291000, 91-129-4291651 |
|
Fax No.: |
91-129-4291650 |
|
Email: |
DIRECTORS
|
Name : |
Mr. A. M. Naik |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Jagadish
Pandurang Nayak |
|
Designation : |
Whole-time Director and President – Operations |
|
|
|
|
Name : |
Mr. K.
Venkataramanan |
|
Designation : |
Whole-time Director and President – Operations |
|
|
|
|
Name : |
Mr. Y. M.
Deosthalee |
|
Designation : |
Whole-time Director and Chief Financial Officer |
|
|
|
|
Name : |
Mr. R. N. Mukhija |
|
Designation : |
Whole-time Director and Senior Vice President – Operations |
|
|
|
|
Name : |
Mr. K
V Rangaswami |
|
Designation : |
Whole-time Director and President |
|
|
|
|
Name : |
Mr. Subhodh Bhargava |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Thomas Mathew |
|
Designation : |
Nominee (LI)C) |
|
|
|
|
Name : |
Mr. A K Jain |
|
Designation : |
Director, Nominee (Axis) |
|
|
|
|
Name : |
Mr. V. K. Magapu |
|
Designation : |
Whole Time Director and Senior Executive Vice President |
|
|
|
|
Name : |
Mr. U Sundararajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A B Saharya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Surinder Nath |
|
Designation : |
Director |
|
|
|
|
Name : |
Gen. Surinder Nath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M M Chitale |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M V Kotwal |
|
Designation : |
Whole time Director and Senior Executive Vice President |
|
|
|
|
Name : |
Mrs. Bhagyam Ramani |
|
Designation : |
Director (Nominee GIC) |
KEY EXECUTIVES
|
Name : |
Mr. S
Rajgopal |
|
Designation : |
Nominee
(Axis) |
|
|
|
|
Name : |
Mr. S
N Talwar |
|
Designation : |
Nominee
(LIC) |
|
|
|
|
Name : |
Mr. N. Hariharan |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. N Mohan Raj |
|
Designation : |
Nominee (LIC) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on
30.09.2008)
|
Category
of Shareholder |
No. of Shares |
Percentage of Holding |
|
Public
shareholding |
|
|
|
|
|
|
|
Institutions |
|
|
|
Mutual Funds/ UTI |
42494070 |
15.09 |
|
Financial
Institutions / Banks |
50609806 |
17.97 |
|
Insurance
Companies |
16611326 |
5.90 |
|
Foreign
Institutional Investors |
42966705 |
15.26 |
|
Foreign
Bank |
3004 |
0.00 |
|
|
|
|
|
Non-institutions |
|
|
|
Bodies
Corporate |
14250883 |
5.06 |
|
Individuals |
|
|
|
Individuals
-i. Individual shareholders holding nominal share capital up to Rs 0.100
Million |
69699950 |
24.75 |
|
ii.
Individual shareholders holding nominal
share capital in excess of Rs. 0.100 Million |
1927937 |
0.68 |
|
Any
Other (specify) |
|
|
|
Foreign
Nationals |
135100 |
0.05 |
|
Non-Residents
|
2456597 |
0.87 |
|
Trust
|
37202058 |
13.21 |
|
Directors
and Relatives |
3232621 |
1.15 |
|
Foreign
Companies |
2459 |
0.00 |
|
|
|
|
|
Share
held by custodians and against which depository receipt have been issued |
10999538 |
-- |
|
|
|
|
|
GRAND
TOTAL (A)+(B) |
292592054 |
100.00 |
Statement showing Shareholding of persons belonging to the category
“Public” and holding more than 1% of the total number of shares.
|
Name of Shareholder |
No. of Share |
Percentage of Holding |
|
LIC |
49767416 |
17.00915 |
|
L and
T Employees Welfare Foundation |
37202058 |
12.71465 |
|
UTI |
26317279 |
8.99453 |
|
General
Insurance Corporation of India |
7138930 |
2.43989 |
|
New
India Assurance Co. Limited |
3990144 |
1.36372 |
|
Total |
124415827 |
42.5219 |
Statement showing details of locked in share
|
Name of Shareholder |
No. of Locked –
in Share |
Percentage of Locked – in Share |
|
L and
T Employee Welfare Foundation (The Employee Welfare Trust does not exercise “CONTROL”
as defined under SEBI’ s Takeover Regulations as amended) |
37202058 |
12.71 |
Statement showing details of Depository Receipts (DRs)
|
Types of outstanding DR (ADRs,
GDRs, SDRs, etc.) |
No. of
outstanding DRs |
Percentage of outstanding DRs |
|
GDRs |
10999538 |
3.76 |
Statement showing holding of Depository Receipts (Drs), where underlying
share are in excess of 1% of the total number of shares.
|
Name of the DR Holder |
No. of shares
underlying outstanding DRs |
Percentage of shares underlying outstanding DRs |
|
Citibank
N.A. (Custodian) |
10999538 |
3.76 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and
Sellers of earthmoving machinery including bulldozers, dumpers, scrappers, loaders,
shovels, vibratory compactors and drag lines. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION
STATUS (As on 31.03.2007)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Scrapper,
bulldozer, ripper and loader attachments |
Nos. |
250 |
250 |
-- |
|
Road Rollers, hot
mix plants and other road construction and bridge construction machinery |
Nos. |
150 |
150 |
-- |
|
Dairy machinery
and equipment – various items in aggregate |
Nos. |
35584 |
35584 |
-- |
|
Chemical plant and
machinery including pharmaceutical, dyestuff, distillery, brewery and solvent
extraction plants, evaporators and crystalliser plants and pollution control
equipment in aggregate |
Tones |
6067 |
6567 |
5052 |
|
Equipment for
food processing industry |
Tones |
65 |
65 |
-- |
|
Complete cement
making machinery including rotary kilns and fluxo packers in aggregate |
Nos. |
2 |
2 |
-- |
|
Sugarcane and
beet diffusion, beet preparation and beet pulp dehydration plants |
Nos. |
2 |
2 |
-- |
|
Nuclear purpose equipment,
deaerators, ultra high pressure vessels including multiwall vessels, high
pressure heat exchangers and high pressure heaters in aggregate |
Tonnes |
5000 |
3950 |
22 |
|
Plant and equipment
and modules for nuclear power projects, heavy water projects, nuclear and
space research and allied projects including items for chemical, oil and gas,
etc., industries |
Tones |
10000 |
10000 |
21457 |
|
Complete high
speed bottling plants |
Nos. |
6 |
6 |
-- |
|
Pulp and paper
making plants |
Nos. |
2000 |
800 |
-- |
|
Suspended
particles drying plants |
Nos. |
6 |
6 |
-- |
|
Containers for
liquefied gases and chemicals |
Nos. |
Not Applicable |
1000 tones carrying capacity |
-- |
|
Steel plant valves |
Nos. |
40 |
40 |
-- |
|
Ship auxiliaries
and components of mechanised sailing vessels |
Tones |
1000 |
1000 |
-- |
|
Rubber Processing
Machinery |
Nos. |
109 |
109 |
211 |
|
Switchgear, all
types |
Nos. |
2678500 |
3174750 |
4403446 |
|
Miscellaneous electrical
items |
Nos. |
1049100 |
1039100 |
-- |
|
Petrol dispensing
and metering pumps |
Nos. |
4800 |
4800 |
7898 |
|
Press tools,
jigs, fixtures, dies for pressure, castings, moulds for plastic injection and
bakelite |
Rs./Nos. |
22.00 millions |
29.50 millions |
226 NOS. |
|
Glass bottles and
jars |
Nos. in Million |
Not Applicable |
[400] |
[107.9] |
|
Industrial
Machinery |
Tones |
12000 |
12000 |
11953 |
|
Industrial
Electronic Control Panels |
Nos. |
2500 |
2500 |
559 |
|
Electronic
Devices |
Nos. |
30000 |
30000 |
6930 |
|
Electro surgical
unit and accessories |
Nos. |
Not Applicable |
1250 |
492 |
|
Ultrasound
equipment and accessories |
Nos. |
Not Applicable |
1000 |
658 |
|
Patient
monitoring system and accessories |
Nos. |
Not Applicable |
7000 |
6872 |
|
Relays |
Nos. |
Not Applicable |
60000 |
58341 |
|
Control and relay
panels |
Nos. |
Not Applicable |
100 |
-- |
|
Electricity
meters |
Nos. |
Not Applicable |
700000 |
660383 |
|
Transmission line
tower |
Tones |
51000 |
51000 |
54615 |
|
Steel structural
fabrication |
Tones |
12000 |
12000 |
36223 |
|
Steel re-rolling |
Tones |
40000 |
40000 |
14101 |
|
Ready mix
concrete |
M3 |
4166600 |
4166600 |
2737523 |
GENERAL
INFORMATION
|
No. of Employees : |
22922 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Sharp and Tannan Chartered
Accountants |
|
|
|
|
Memberships : |
v
Confederation
of Indian Industry |
|
|
|
|
Joint
Venture Companies : |
|
|
|
|
|
Subsidiary Companies: |
|
|
|
|
|
Associates: |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1625000000 |
Equity Shares |
Rs.2/- each |
Rs.3250.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
292327390 |
Equity Shares |
Rs.2/- each |
Rs.584.700 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
584.700 |
566.500 |
274.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
93822.200 |
56602.800 |
45777.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
94406.900 |
57169.300 |
46051.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3085.300 |
2454.000 |
4657.900 |
|
|
2] Unsecured Loans |
32754.600 |
18323.500 |
9877.800 |
|
TOTAL
BORROWING
|
35839.900 |
20777.500 |
14535.700 |
|
|
|
|
|
|
|
|
DEFERRED TAX LIABILITIES |
2443.300 |
2048.800 |
2097.900 |
|
|
Employee Stock options Outstanding |
1143.900 |
515.000 |
349.900 |
|
|
|
|
|
|
|
TOTAL
|
133834.000 |
80510.600 |
63035.300 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block]
|
28544.300 |
17052.600 |
12927.000 |
|
Capital
work-in-progress
|
6990.000 |
4387.800 |
2585.200 |
|
|
|
|
|
|
|
Fixed asset held for sale
|
0.000 |
0.000 |
1.000 |
|
|
|
|
|
|
|
INVESTMENT
|
69222.600 |
31044.400 |
19195.200 |
|
|
|
|
|
|
|
DEFERREX TAX ASSETS
|
1829.600 |
1646.900 |
1325.100 |
|
|
|
|
|
|
|
INTANGIBLE ASSETS
|
920.100 |
806.500 |
533.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS
& ADVANCES
|
|
|
|
|
|
|
Inventories
|
43059.100 |
30011.400
|
22102.700 |
|
|
Trade Debtors
|
73650.100 |
55046.400
|
48141.600 |
|
|
Cash & Bank
Balances
|
9644.600 |
10944.300
|
5832.000 |
|
|
Other Current Assets
|
0.000 |
0.000
|
0.000 |
|
|
Loans & Advances
|
36638.200 |
22579.300
|
19105.600 |
|
|
Interest accrued on
Investment
|
143.200 |
265.200
|
172.600 |
Total Current
Assets
|
163135.200
|
118846.600
|
95354.500 |
|
Less : CURRENT LIABILITIES &PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
116484.200 |
81571.300
|
58889.000 |
|
|
Provisions
|
20354.200 |
11801.300
|
10216.500 |
Total Current
Liabilities
|
136838.400 |
93372.600
|
69105.500 |
|
Net Current
Assets
|
26296.800 |
25474.000
|
26249.000 |
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES
|
30.600 |
98.400 |
219.800 |
|
|
|
|
|
|
|
TOTAL
|
133834.000 |
80510.600 |
63035.300 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
248547.000 |
175788.400 |
147348.000 |
|
|
Other
Operational Income |
231.500 |
353.200 |
292.300 |
|
|
Other Income |
6519.500 |
4269.700 |
4346.000 |
|
|
Total Income |
255298.000 |
180411.300 |
151986.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
31554.700 |
20048.900 |
13136.500 |
|
|
Provision for Taxation |
9820.500 |
6018.700 |
3015.100 |
|
|
Profit/(Loss) After Tax |
21734.200 |
14030.200 |
10121.400 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing construction and operating
expenses |
191170.100 |
130782.400 |
115603.400 |
|
|
Staff expenses |
15354.400 |
12582.100 |
8925.400 |
|
|
Sale , administration and other expenses |
13855.900 |
14991.500 |
12410.500 |
|
|
Interest and Brokerage |
1226.600 |
339.300 |
750.700 |
|
|
Depreciation, Obsolescence and impairment |
1979.700 |
1568.300 |
1086.100 |
|
|
Amortization of intangible assets |
156.600 |
98.800 |
73.700 |
|
Total
Expenditure |
223743.300 |
160362.400 |
138849.800 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Type |
|
2nd
Quarter |
1st
Quarter |
|
Sales
Turnover |
|
69014.300 |
76863.500 |
|
Other Income |
|
2018.300 |
1559.100 |
|
Total
Income |
|
71032.600 |
78422.600 |
|
Total Expenditure |
|
62440.700 |
70095.200 |
|
Operating
Profit |
|
8591.900 |
8327.400 |
|
Interest |
|
382.400 |
690.000 |
|
Gross
Profit |
|
8209.500 |
7637.400 |
|
Depreciation |
|
658.700 |
730.600 |
|
Tax |
|
2416.700 |
2148.600 |
|
Reported PAT |
|
5024.400 |
4602.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity
Ratio |
0.37 |
0.34 |
0.42 |
|
Long
Term Debt-Equity Ratio |
0.27 |
0.25 |
0.31 |
|
Current
Ratio |
1.14 |
1.23 |
1.35 |
|
TURNOVER
RATIOS |
|||
|
Fixed
Assets |
7.17 |
7.01 |
6.90 |
|
Inventory |
6.90 |
6.88 |
6.71 |
|
Debtors |
3.92 |
3.48 |
3.39 |
|
Interest
Cover Ratio |
19.17 |
15.56 |
7.85 |
|
Operating
Profit Margin (%) |
13.98 |
12.83 |
9.74 |
|
Profit
Before Interest And Tax Margin (%) |
13.20 |
11.94 |
9.02 |
|
Cash
Profit Margin (%) |
9.40 |
8.72 |
6.35 |
|
Adjusted
Net Profit Margin (%) |
8.62 |
7.82 |
5.64 |
|
Return
On Capital Employed (%) |
31.82 |
30.92 |
24.16 |
|
Return
On Net Worth (%) |
28.47 |
27.11 |
21.27 |
LOCAL AGENCY
FURTHER INFORMATION
OTHER
INFORMATION:
DISPOSAL OF READY MIX CONCRETE
BUSINESS
Approval of the shareholders as required by Section 293(1) (a) of the Companies
Act, 1956 was obtained on February 6, 2008 through Postal Ballot conducted
in accordance with Section 192A of the said Act, read with the Companies
(Passing of Resolution by Postal Ballot) Rules, 2001, to dispose of the Ready
Mix Concrete (RMC) business unit of the Company. The result of the Postal
Ballot was widely published in the newspapers, besides Stock Exchange websites
etc.
On May 14, 2008, the Company entered into a definitive agreement for sale of
RMC business to Lafarge Aggregates and Concrete India Private Limited for an
enterprise value of Rs.14800.000 Millions. The financial effect of this sale
will be given in the year 2008-2009, on conclusion of the transaction.
SUBSIDIARY
COMPANIES
During the year, the Company subscribed to the following equity shares in
various Subsidiary Companies:
v 62500000 equity shares of Rs.10/- each in L and T Finance Limited at a premium of Rs.30/- per share.
v 564 equity shares of Dhs. 550500 each in Larsen and Toubro International FZE for Rs.3363.900 Millions at par.
v 10451,000 equity shares of Rs.10/- each in L and T Power Projects Limited at par.
v 21626 equity shares of Rs.10000/- each in International Seaport Dredging Limited at par.
v 25,70,00,000 equity shares of Rs.10/- each in L and T Infrastructure Finance Company Limited at par.
v 589500 equity shares of Rs.10/- each in L and T-Valdel Engineering Limited for a consideration of Rs.161.999 millions (acquired from the joint venture partner).
v 29000000 equity shares of Rs.10/- each in L and T Power Development Limited at par.
v 10,000 equity shares of Rs.10/- each in L and T Infra and Property Development Private Limited at par.
v 47160700 equity shares of Rs.10/- each in L and T Realty Private Limited at par.
v 10,000 equity shares of Rs.10/- each in L and T Concrete Private Limited at par.
v 50000 equity shares of Rs.10/- each in L and T Shipbuilding Limited at par.
v 50000 equity shares of Rs.10/- each in L and T Strategic Management Limited at par.
v 10,000 equity shares of Rs.10/- each in L and T-Gulf Private Limited at par.
v 10,000 equity shares of Rs.10/- each in L and T Transco Private Limited at par.
v 50000 equity shares of Rs.10/- each in Hi-Tech Rock Products and Aggregates Limited at par.
The Company paid the first call of Rs.90/- per share (including premium of
Rs.89/-) on 2250000 equity shares of Larsen and Toubro Infotech Limited
aggregating to Rs.202.500 Millions. (Total paid up value per share is Rs.3.20
at a premium of Rs.322.355 per share).
The Company sold its 10 % stake in International Seaport Dredging Limited to
Dredging International India Private Limited. Accordingly, 1.410 equity shares
were sold at a consideration of Rs.15.100 Millions and 1,847 preference shares
were sold at par for Rs.18.470Millions.
The Company also divested its 51% stake in H PL Cogeneration Limited.
Accordingly 31212000 equity shares and 31212000 preference shares were sold for a consideration of Rs. 1496.557 Millions.
The statement pursuant to Section 212 of the Companies Act, 1956, -containing
details of subsidiaries of the Company, forms part of the annual Report.
FUTURE PLAN OF ACTION:
· Development of new/upgraded products in defence equipment.
· Development of technology for critical equipment of aviation industry.
· Use of eco-friendly and green products in construction.
· Promoting suitable techniques for Conservation of natural resources.
· To develop Road Miller to enhance the quality of road repair work and to reduce the time for repair work.
· Process technology - coal gasification.
· Alternative fuels for use in cement plants.
· Low-NOx Burners.
· Simulation of Combustion Chamber.
· Design/simulation of Hydrogen and Ammonia processes.
· Study on Gas Processing techniques.
· Study of Synfuels Technology.
· Capability development in advanced composites technology.
· Applications of Nano Technology, development of nanomaterials and coatings.
· Application of electrochemical noise method for characterization of Stress Corrosion Cracking (SCC).
· Carbon-fibre from polymeric fibres.
· Dynamic Simulation and Performance Analysis of Combined Cycle Power Plants.
· Technology Analysis of Super Critical Boilers.
· Thermo-hydraulic design of Once-Through Steam Generator (OTSG).
· Capability development in machinery design involving Contact Stress problems.
· Study of acoustic pulsation phenomena in reciprocating compressors.
· Application of Statistical Energy Analysis (SEA) in machinery noise control.
· FE analysis of Floating Structures.
· Design/Analysis of FPSO Topsides.
· Design/Analysis of Jack-up Rigs and Semi-submersible Drilling Rigs.
· Design and analysis of Jacket and Deck Installation.
· Design and Analysis of Sub-sea pipeline installation.
· Capability development for Pile Drivability analysis.
· Capability development for motion response analysis of offshore vessels.
· Design of Membrane Bio Reactors.
· Thermal Desalination techniques.
· Recycle, Reuse and Zero-discharge Technologies.
· Finetune design capability of plastic concrete for dam cut-off walls.
· Application of Pile Driveability Analysis (PDA) in all future projects.
· Capability enhancement to increase market share in multipurpose driven cast-in-situ piling rigs.
· Develop capability in diaphragm wall construction in rock.
· Extend implementation of mechanised pile head breaker to all piling sites.
· Implement automation in driven cast-in-situ piling in all piling equipment.
CORPORATE GOVERNANCE
Corporate Governance is the
application of best management practices, compliance of law and adherence to
ethical standards to achieve the Company’s objective of enhancing shareholder
value and discharge of social responsibility. The Corporate Governance
Structure in the Company assigns responsibilities and entrusts authority among
different participants in the organization viz. the Board of Directors, the
senior management, employees etc. The Company had infact adopted Corporate
Governance and disclosure practices much before these were mandated by
legislation.
MANAGEMENT DISCUSSION AND ANALYSIS
REVIEW OF THE ECONOMY:
The Eleventh Five Year Plan
(2007-2008 to 2011-2012) has set a healthy target of average 9% growth in GDP,
following average 8.6% growth achieved in the last 4 years. The Indian economy
has confidently moved to a higher growth plane in the current fiscal year
2007-2008 by recording growth 'over 8.5%. Macro economic fundamentals continue
to inspire confidence of the industry plays and are likely to support the
investment momentum in the economy. The industrial sector, particularly the
manufacturing and construction sectors have surpassed growth expectations set
in the Tenth plan. While manufacturing sector has grown at an average rate of
9.1% during the last 5 years, the construction sector recorded an impressive
10.8% growth during the same period.
While continued lower growth in
agriculture is a matter of concern for the nation, inflationary tendencies in
the economy are also impacting the business sentiments. With a shortfall in
domestic supply and hardening of oil prices, the prices of commodities including
food have risen sharply, contributing to the present spurt in inflation.
There are tell-tale signs of a slow down in the US and the EU economies. While
the growth in the US economy is expected to be lower and negative in some
quarters, the EU economy is likely to witness a 1% drop in the growth to 1.6%
in 2008. The slow down in these economies is expected to impact the Asian
economic growth moderately.
Oil rich economies, particularly those in the Middle-East have ramped up
investment in the oil producing facilities and general infrastructure, on the
back of sustained rise in the oil prices. Riding on this boom, the country's
international trade with this region has risen over the years consistently and
is expected to strengthen further with the joint efforts of India and oil
producing nations.
INFRASTRUCTURE and CAPITAL GOODS INDUSTRY
Indian industry had a higher
share of 30% in the annual average growth achieved in GDP during the last 5
years. A notable feature of this growth phase is the significant uptrend seen
in the manufacturing, construction, transport and communication sectors. The
capital goods sector has grown at an accelerated pace, over a high base
attained in the previous year. It is heartening to note that foreign direct
investment during the fiscal year 2007-2008 increased to USD 25 billion and is
expected to scale up with further opening up of core and infrastructure
sectors.
Inclusive development of the
economy, supported by a strong infrastructure is a pre-requisite for sustaining
the growth momentum and improving an all-round quality of life. The challenges
in realising this goal are quite immense, ranging from physical process of land
acquisition for rapid industrialisation to more complex challenges of project
financing and environment management. With the Government commitment to a
faster pace of reform and creating a slew of world class infrastructure, the
industrial outlook remains encouraging.
As a positive indication towards
this, the country has witnessed a rapid increase in private investment in
infrastructure over the last five years.
The estimated investment in
infrastructure has now been pegged at USD 500 billion by the end of the
Eleventh Five Year Plan. This is both a challenge and an opportunity for the
Government as well as for the private sector.
BUSINESS PERFORMANCE
On the back of a very healthy
order book, the Company delivered impressive results for the year 2007-2008.
Revenues registered a robust growth of 41%.
All the business segments have
reported smart increase in both revenues and profitability, despite continued
input cost hikes and a sharp appreciation of rupee vis-a-vis US Dollar by over
10% during the year. The upturn in the performance is largely attributed to
judicious selection of project orders and many strategic initiatives undertaken
in improving operational and cost efficiencies. The ramp up of the scale of
operations through larger size project order execution also enabled the turnkey
and construction businesses to improve the profitability.
With the current pace of
infrastructure development in the country and in the neighbouring regions, and
the nation emerging as the favoured destination of the multi-national companies
to establish their manufacturing hubs, the future growth of capital goods
industry appears promising. The company's businesses are geared up to harness
these challenging opportunities in the near to medium term.
STRATEGIC INITIATIVES
Under the current Strategic Plan
'Project Lakshya 2010', the Company has identified and implemented various
strategic initiatives encompassing development of product/ technology
capabilities, risk management, M and A and HR functions of the Operating
Divisions. Various operational excellence initiatives undertaken by these
businesses have helped not only in improving market reach and reducing cost of
operation but also in streamlining business processes. Rigorous implementation
of the above initiatives has enabled the company to achieve ambitious growth
targets set at the inception of plan and meet the growing aspirations of the
stakeholders.
PERSPECTIVE PLAN 2015
Due to encouraging changes in
the opportunity landscape, the Company has embarked on a project to look beyond
2010 and formulate a Perspective Plan till 2015. This exercise is critical
since it will align the Company's investments (capital and manpower) to the
long-term trends, while addressing emerging opportunities and unseen
challenges. This planning process is in an advanced stage and when completed
and implemented, will help in creating greater value for the
shareholders.
LEADERSHIP DEVELOPMENT
The Company recognises the
importance of human leadership in realising its growth ambitions. Towards
achieving this, the Company has initiated a structured leadership development
program to identify leaders and develop them. This exercise is expected not
only to meet short-term operational challenges but also create a band of
leaders to take on larger responsibilities in future.
GOVERNANCE STRUCTURE
During early stages of Project
Lakshya, the Company had envisioned an organisation structure with greater
alignment towards industry/customer segments. This vision is now being realised
by the creation of 12 Operating Companies (non legal entities), each of which
will be governed by a board responsible for its strategic/operational decisions
and performance. To ensure greater empowerment, each Operating Company will
have independent support functions such as F and A, HR, Supply Chain Management,
Corporate Centre, etc. This new structure will provide a platform for sustained
value creation envisaged in the strategic plan.
ACQUISITION / NEW BUSINESS FORAYS
Apart from the growth through
organic route by way of new capacity creation for product manufacturing, the
Company has been exploring opportunities of growth through inorganic route as
well. During the year, the Company successfully acquired TAMCO Corporate
Holdings Malaysia, and its 3 international subsidiary companies, whose products
in the medium voltage (MV) switchgear segment are already accepted world wide.
The acquisition will provide an ideal platform to pursue the Company's domestic
and international ambitions in the MV switchgear products even as the brand is
already established in 30 countries including the Middle East.
The Company also finalised the
new location of its proposed Shipyard, signaling its long-term commitment for
ship building, which started at its Hazira yard manufacturing light commercial
vessels. Recently, a Memorandum of Understanding was signed with the Tamil Nadu
Industrial Development Corporation for commencing the new Shipyard project at
Kattupalli, Thiruvallur, under a joint venture arrangement with TIDCO. The
Company plans to build large ships of up to three lakh DWT and expects to sail
out its first ship from this venture in 24 to 30 months time.
Capitalising on its core
strengths in the construction of large commercial properties, he Company bagged
one of the largest contracts for building an integrated commercial complex at
Seawoods Station, Navi Mumbai. The world class complex will be designed with
innovative and unique curvatures and vents so as to utilise eco-friendly
natural light, and will have commercial offices, hospitality, retail properties
and ultra modern railway station.
With the opening up of
infrastructure development to private sector, the financing of mega and complex
projects has emerged as one of the major business opportunities. Realising this
potential, the Company has entered into infrastructure project financing,
through a wholly owned subsidiary.
This is another step in its
endeavor to vertically integrate the entire chain of infrastructure business.
The venture is expected to focus on mid to large infrastructure projects with
an annual target of Rs.20000.000 Millions disbursements.
Power has emerged as a thrust
area for not only the country, but also for an engineering giant like L and T,
which has over the years, built expertise in power plant construction and
erection. In order to establish a strong presence in the power space, the
Company has entered into a joint venture for manufacture of super critical
boilers and turbines with Mitsubishi of Japan. The process of land acquisition
for construction of the manufacturing plants at Hazira, Gujarat is at an
advanced stage of completion.
ENGINEERTING, CONSTRUCTION AND CONTRACTS
DIVISION
OVERVIEW
Engineering, Construction and Contracts Division (ECCD) undertakes engineering design
and construction of infrastructure and industrial projects covering civil,
mechanical, electrical and instrumentation engineering disciplines. With many
of the Country's prized landmark constructions to its credit, ECCD, India's
largest construction organisation, uses state-of-the-art design tools and
project management techniques. Supported by a track record of over sixty-five
years, covering all industrial sectors and infrastructure projects, ECCD has
the expertise to undertake lumpsum turnkey construction with single-source
responsibility. The Division takes pride in announcing that it has secured the
47'' rank amongst all the Construction Companies across the globe [source:
Engineering News Record (ENR)]. The current year's robust performance of the
Division reiterates the Company's global stature in construction.
BUSINESS ENVIRONMENT
The Indian Construction Sector
is slowly and surely evolving into a strong, mature and industry-driven engine
to achieve sustained economic growth.
Reflecting the buoyancy in the
overall economy, the Indian construction sector has been growing at more than
12% p.a. in the last four years, i.e. almost 1.5 times the country's overall
growth. The organised segment is growing even faster as construction industry
consolidates with large project sizes.
However, relatively higher
inflation levels in the country and slowdown in global economic growth,
especially in the US seems to dampen the favorable economic climate.
Notwithstanding such factors, the growth momentum in India is set to continue
during 2008-2009 and beyond, which augers well for the construction
sector.
Going forward, the construction
boom which is in the initial phase, in India would further help accentuate the
economic growth, once the regulatory framework and financial markets stabilise.
The sector is slated to grow at an average of around 10-12% in the next five
years.
OPPORTUNITIES and CHALLENGES
Out of the investments of USD
500 billion estimated under the Eleventh Five Year Plan in the Infrastructure
Construction business, the construction component is expected to be around USD
250 - 275 billion. Presently, most of the core industries are functioning at
their peak capacity. New capacity creation in the major industries viz; steel,
cement, petrochemicals, etc. would benefit the construction industry. With
rapid urbanisation and the commercialisation of the retail industry, demand for
housing/ commercial space is expected to emanate from new areas/regions beyond
the established metropolitan cities.
As in India, the global
construction market has also flourished in the last 3 years. The ENR 225 top
global construction and engineering firms aggregated $651.15 billion in revenue
in 2006 (15.7% growth) and this momentum is expected to have continued in 2007.
However, in 2008 the growth may witness moderation and squeeze in margins given
the slowdown in the US and European housing markets, increasing construction
and wage costs. Given the inherent cyclical nature of the construction market,
the global c-onstruction majors usually de-risk their revenue model by (i)
diversifying across geographies and product lines; and (ii) adopt the
concession-construction business model, where the more credictable inflows from
concession projects even out cyclical fluctuations in construction. It is
expected that the global construction firms will aggressively diversify into
new growth centers like India and the Middle East. The construction Industry in
the Gulf Co-operation Council
(GCC) countries is expected to
witness strong growth with huge investment in social and industrial
infrastructure. The boom in the economy and the construction industry in the
last few years have also led to the growth of the domestic competitors. ECCD
has successfully strengthened its pre-eminent position in the construction
industry both in terms of market share and profitability. The Division is
operating across different business lines and geographies which give it a
unique edge both in terms of its organisation and operations over its competitors.
The construction industry in
India is surely on a high growth path, though at times showing a cyclical
trend. Thus, sustained success would crucially hinge on the Division's capacity
to capitalise on the emerging opportunities and scale-up each business line to
adjust to the demands for execution/management of bigger and more complicated
projects. Improvement of operational efficiency through better resource
allocation and utilisation and technological up-gradation and innovation would
be crucial for strengthening the profitability while sustaining relative
advantage with respect to the existing and potential competitors.
BUSINESS OVERVIEW FOR THE MAJOR SECTORS OF THE DIVISION IS
PRESENTED BELOW:
INDUSTRIAL PROJECTS and UTILITIES
The Sector continued its success
story in the year 2007-2008 bagging large value orders in Minerals and Metals
and Bulk Material Handling segments and executing them well ahead of
contractual completion schedule. The sector is currently executing the highest
number of
Blast Furnace and Sinter Plants
for the Country. A unique and complex project of 17 KM long conveyor system for
Lafarge in Bangladesh was completed during the year 2007-2008.
The outlay towards providing
water to the common public by Central and State Governments is on the rise.
This provides an ample opportunity for the project business growth of Water and
Effluent Treatment. Huge grants by foreign funding agencies like JBIC and ADB
for water supply and sewerage projects has added fillip for a positive outlook in
this business.
Volatility in the input cost
(mainly steel products) and the need for developing engineering skills are the
key risks for the sector, which are adequately addressed by way of appropriate
escalation clauses in the contracts and periodic up-gradation of skills through
lateral recruits.
POWER TRANSMISSION and DISTRIBUTION
The efforts of the Government in
bridging the gap between demand and supply for power cannot be fruitful unless
the distribution of the same to the end users is achieved. This provides an
excellent opportunity for the Electrical and Instrumentation and the
Transmission Lines businesses for furthering the growth prospects. The sector
has also achieved the technical improvements in the methodology of track laying
for Railway Electrification and Signaling. The Transmission Line business is
expected to focus in the coming years on execution of projects through BOOT
route. The Sector has successfully explored the GCC market and has shown a
significant growth in the revenues. The key success factor for this business is
managing the working capital, as most of the clients are State Electricity
Boards and PSUs, and are prone to liquidity crunch.
BUILDINGS AND FACTORIES (B and F)
During the year 2007-2008, B and
F Sector continued its growth trend by bagging large value turnkey, Design and
Build orders in the Airports, IT Park and commercial space, health and leisure
structures and residential and factory building segments. Thrust has been given
for securing negotiated contracts, key accounts and mega projects management
with focus on providing total building solutions to the customers at a single
point. During the year, this Sector successfully completed the Hyderabad
International Airport and the Bangalore International Airport projects. It also
bagged large order for Design, Engineering and Construction of Mumbai
International Airport. The execution of Delhi International Airport is
underway.
TRANSPORTATION INFRASTRUCTURE
The Sector has shown a robust
growth in its revenues in the year, particularly in BOT projects. With the
thrust in providing infrastructure facilities by the Centre and State
Governments, the growth potential of the sector is encouraging. The Sector has
completed Runways for Hyderabad and Bangalore International Airports. The
Runways for the Delhi International Airport is on schedule. Panipat Flyover and
Second Vivekananda Project across River Hoogly have been completed successfully
during the year. The Government's continued thrust on developing Roads in
Public Private Partnership (PPP) mode, significant private investment in
Container Terminals, development of green field ports expected along the coasts
of Gujarat and Maharashtra and development of greenfield Shipyards and Metro
Rail Projects assure ample business opportunities for this Sector.
HYDEL AND NUCLEAR
The sector is heavily equipment
oriented and concentrates on large value orders from PSU clients like NHPC, NPC
and NTPC. The Indo-US Nuclear Treaty is expected to give a thrust to growth in
the nuclear business of the
Division. Many IPPs are being
offered in States like Arunachal Pradesh, Himachal Pradesh and Meghalaya.
Considerable thrust is expected also on Irrigation Projects of both Govt. of
India and State Governments, which will augur well for the growth of the
sector. An exclusive Engineering and Design Centre has been set-up to meet the
Government's plans to establish 18000 MW proposed in the Eleventh Five Year
Plan. The sector has performed well in terms of growth in revenues.
SIGNIFICANT INITIATIVES
The Division continues to target
large value projects to be able to harness the full potential of its
engineering and execution capabilities. It has a selective geographical
approach and has successfully institutionalised and put in place proper documentation
process for pre and post bid risk reviews. It has launched the verticalisation
process within the Division.
Each Vertical is expected to
upgrade as an independent Company with end-to-end responsibility for business development,
sales and profits. The Division has established Skilled Training Institute
across the Country to meet the huge requirement of skilled category workmen to
meet its growth ambition.
OUTLOOK
The current Order Book gives sufficient confidence for the growth in revenues
in the year to come. The policies of the Government to build international
standard infrastructure facilities and the capital outlay by industrial houses
in core sectors have opened up adequate opportunities for a sustained growth of
the Division in the near horizon. The buoyancy in the oil prices augurs well
for the Division's expansion opportunities in the Gulf. The Division therefore
is upbeat on growing opportunities for all its businesses in the medium
term.
FIXED ASSETS:-
v
Land – Freehold
v
Shops
v
Buildings
v
Plant and machinery
v
Furniture and fixtures
v
Vehicles
v
Aircraft
v
Plant and machinery
Website
Details:
Profile:
Subject is a technology, engineering, construction and
manufacturing company. It is one of the largest and most respected companies in
India's private sector.
Seven decades of a strong, customer-focused approach and the
continuous quest for world-class quality have enabled it to attain and sustain
leadership in all its major lines of business.
Subject has an international presence, with a global spread
of offices. A thrust on international business has seen overseas earnings grow
significantly. It continues to grow its overseas manufacturing footprint, with
facilities in China and the Gulf region.
The company's businesses are supported by a wide marketing
and distribution network, and have established a reputation for strong customer
support.
Company believes that progress must be achieved in harmony
with the environment. A commitment to community welfare and environmental
protection are an integral part of the corporate vision.
Operating
Divisions:
v
Engineering and Construction Projects (E and C)
v
Heavy Engineering (HED)
v
Engineering Construction and Contracts (ECC)
v
Electrical and Electronics (EBG)
v
Machinery and Industrial Products (MIPD)
v
Information Technology and Engineering Services
Hydrocarbon:
Company offers design, engineering, project management, procurement, construction
and commissioning services to the hydro carbon industry, notably the oil and
gas upstream, oil and gas mid and downstream (Refinery, Petrochemicals,
Fertilizer, Chemical projects and unit systems).
Company executes projects for the fertilizer industry
(ammonia and urea complexes) including revamp, expansions and fully integrated
grassroots plants, on turnkey basis with single-point responsibility. Company
plays a major role in the petrochemical sector as a 'Total Solutions Provider',
offering comprehensive services. It undertakes projects on an LSTK/EPC basis
with full compliance to international standards including technology, from
process licensors.
Company offers the full range of facilities and equipment
for unit systems and oil and gas production, processing and transportation. One
of the largest in South Asia, its Modular Fabrication Yard (MFF) is capable of
manufacturing several large modules simultaneously. Fabricated modules are
tested and pre-commissioned onshore to ensure rapid and trouble-free hook-up at
site.
Hydro Carbon Business Sector consists of the following:
v Oil
and Gas Upstream
v Oil
and Gas Mid and Downstream
v Modular
Fabrication Facilities (MFF)
v Hydrocarbon
Construction and Pipelines
Power:
Company sets up large utility
power generation projects / independent power plants with full compliance
to international standards. It also offers a comprehensive range of services to
the nuclear power sector. This includes design, engineering, supply, erection
and commissioning of various equipments and structures.
Power
Business Sector consists of the following:
- Utility and Cogeneration and Captive Power Plants (Cogen and
Captive Power).
- Nuclear power
- Thermal Power Plant Construction
Water:
Company takes the total water management of an industrial or
municipal unit into account and provides integrated solutions involving both
water and wastewater treatment with desalination and recycling needs and aims
to provide end to end solutions.
Company has established as a leading player in the water
sector over the last 20 years. The company is focused on conventional water and
waste water treatment technologies and systems like municipal water supply,
effluent treatment, sewage treatment and pre-treatment of water for industries.
The track record includes some of the most prestigious
projects in India and abroad for various, urban, municipal and rural and
industrial clients. Company offers EPC services for projects in water sector
covering:
v Water
transmission / distribution
v Water
treatment
v Industrial
effluents/wastewater treatment and disposal
v Common
effluent treatment plants
v Leak
detection and rectification of water distribution systems
v L and
T Water Vision
Company Water Process Technology Business Unit, based at
Vadodara is expanding its technical expertise and process capability
to address the demand of high-end water technologies and markets. The
thrust is on providing knowledge-based water solutions, such as:
Desalination of water (sea water, brackish water, normal
water) utilizing technologies like membrane processes – reverse osmosis,
ultra-filtration, thermal processes – MSF, MED and VC and advanced technologies
like nano filtration, eletrodialysis, etc.
Water recycling and re-use
Ultra pure water for selected industries
Advanced technologies for physical, chemical and biological
treatment
Zero discharge technologies
Cement and Allied Machinery:
Company offers design, engineering, project management,
procurement, construction and commissioning services - with ISO 9001 accreditation
- for cement plants, mineral, alumina and other allied machinery projects.
Company is having proven track record of turnkey project management from
individual units to total plant and up gradation of existing cement plants.
Company has executed over 60 cement plant orders - a record in itself.
To meet the growing demand of energy optimization in Cement
industry, company also offers Waste Heat Recovery packages operating on exhaust
gases from clinker cooler, preheated etc. On the mineral processing, they offer
packages for Alumina refinery and smelter mentioned above on EPC basis based on
customer requirements.
Companies Cement Machinery business unit offers a
comprehensive range of services from concept to commissioning for setting up a
new cement plant.
Offer:
Complete range - from crushing to packing plants covering
equipments such as Crusher and Material Handling equipments, vertical roller
mills for raw materials and cement grinding, fuel efficient kiln and cooler
systems, energy efficient milling systems, modern calcination systems for low
reactive coal and low Nox, homogenization and separator for plant capacity from
1,000 TPD to 10,000 TPD.
Over 50 plants supplied - a major market share in
India.
First to introduce 10,000 TPD cement plant in India.
State-of-the-art technology in following areas:-
A)
Investigation of raw materials.
B)
Process, system and equipment design and layouts.
C)
Manufacture and supply of mechanical, electrical and electronic equipment for
the complete range including:
·
Crushing.
·
Conveying.
·
Raw material and coal storage and pre-blending.
·
Raw material grinding.
·
Coal grinding.
·
Raw meal homogenization.
·
Pyro-processing.
·
Cement grinding.
·
Storages.
·
Cement packing and dispatch.
·
Civil engineering, design and civil construction.
·
Proven turnkey project management.
·
Erection and commissioning of plant.
·
Training of plant personnel.
·
After sales services and spare parts supplies.
·
Export of machinery.
Engineering Services:
Company Engineering Services/ consulting group are staffed
with a well-focused and vibrant work force of over 1200 professionals having
cross-industry experience. Using cutting-edge technology, Company provides
end-to-end engineering solutions to various verticals including oil and gas,
refinery, petrochemicals, fertilizers, chemicals, power etc.
Company Engineering is supported by specialized engineering
groups namely FEED Group (Front End Engineering and Design), Technology and
Innovation Center (TIC) and Research and Development Department (R and D). The
FEED group provides the basic engineering and process engineering support. L
and T also has joint venture engineering companies namely : L and T - Chiyoda
Limited (LTC) for hydrocarbon process plants and L and T - Sargent and Lundy
Limited (LTSL) for power plants, both located at Baroda, and L and T Valdel,
based at Bangalore, which specializes in engineering for off-shore/ on-shore
platforms, pipelines etc.
Offerings
include:
- Technology Evaluation and Feasibility Study.
- Preparation of Pre-FEED/FEED (Front End Engineering and Design)
Package
- Steady State and Dynamic Simulation
- Computational Fluid Dynamic Studies
- Advanced Process Control and Optimization
- Materials Science and Corrosion Engineering
- Detail Engineering
- Plant and Piping Engineering
- Machinery and Equipment Engineering
- Civil and Structural Engineering
- Electrical Engineering
- Control and Instrumentation Engineering
- Preparation of Specifications and Drawings
- Preparation of Material Take Off
- Procurement Assistance
- Project Management
- Project Planning and Monitoring
- Pre-commissioning and commissioning assistance
- Asset Management
- Value Proposition
- Rich Domain Knowledge
- Flexible Working / Operating Models
- More than 3000 person-years of experience
- Commitment to Quality
- Commitment to Schedule
- Strong Financial Background
- Effective Knowledge Management System and Talent Retention
- Ability to adapt to Customer Processes and Methodologies
- Readily Available Infrastructure
- Excellent Project Management skills
- Ability to Ramp up big team
- Data and Information Security
Railway Project:
The railways are the lifeline of progress. Historically, it was
the railways that brought the far-flung peoples of India together. Today, the
rail sector is poised to fulfill another significant role - answer the growing
demands of a surging economy and a vibrant nation. The Indian Railways has
achieved a historic turnaround, and is now making major investments for the
future.
Indigenous capability is the most viable long-term answer to
India's needs. Companies India's rail sector can find the partner that it
needs. Company has the requisite capability and the commitment. The Company's
track record indicates its involvement in projects of national importance
Company is, and has been a virtual private sector partner to the nation in
providing the technology, engineering and construction capability in the areas
of infrastructure development, hydrocarbon projects, space research, defence,
steel, etc.
Companies engineering and construction track record consists
of successful implementation of turnkey projects in major core and
infrastructure sectors of Indian industry. Company has integrated strengths in
process technology, basic and detailed engineering, equipment fabrication,
procurement, project management, erection, construction and commissioning. This
broad spectrum of capabilities enables Company to offer single-point
responsibility and successfully meet stringent quality standards and delivery
schedules. Company enters into strategic alliances with world leaders to expand
its capabilities and remain on the cutting edge of change.
Press Release:
L and T Bags Rs.50000-million Orders in Buildings and
Factories Segment
Mumbai, September 24, 2008: L and
T's newly formed Buildings and Factories Operating Company – part of its
Construction Vertical – has bagged several large-value orders aggregating to
around Rs.50000 millions in the second quarter of 2008-09 for the construction
of a slew of institutional, commercial, residential and factory buildings. The
orders have been received from major players around the country including NESCO
Limited, Godrej Properties Limited, PBEL Property Development (India) Private
Limited Om Prakash Jindal Grahmin Jan Kalyan Sansthan, and Mahi Cement.
These orders boost a growth trend that earlier saw the
Company securing major design-and-build orders in the airports, IT Parks and
commercial space. L and T has been engaged in virtually all the modern airports
in India that have been built or are under execution including those at
Hyderabad, Bangalore, Delhi and Mumbai.
L and T’s
Capability Spectrum
Larsen and Toubro Group (L and T) is $7 billion
technology-driven engineering and construction organisation, and one of the
largest companies in India’s private sector. It has further interests in
manufacturing, services and Information Technology. A strong, customer-focused
approach and the constant quest for top-class quality have enabled the Company
to attain and sustain leadership in its major lines of business across seven
decades.
As a technology-driven engineering conglomerate,
L and T’s capabilities cover large process plants, construction, electrical
distribution, electronics and information technology. L and T is in a position
to offer its customers a single window for meeting a variety of industrial
requirements. L and T has a successful track record in building plant and equipment
used in the oil and gas sector, refineries, infrastructure and power projects,
and has technology relationships with world leaders that have enabled it to
execute world-class projects.
L and T bags largest Brazilian equipment order
Mumbai,
September 10,
2008: Larsen and Toubro Limited’s (L and T) Heavy Engineering
Division has been awarded an order to manufacture and supply of ten
Hydrotreating Reactors and twelve Coke Drums for Petrobras’ prestigious 200,000
bpd North-east Refinery Project in Brazil.
The total value of the order is
approx US$160 million. This is the largest order ever received by L and T from
South America.
The reactors will be
manufactured from advanced technology steels containing Chromium, Molybdenum
and Vanadium, whilst the coke drums will be manufactured using Cr-Mo Steel.
These reactors and coke drums will be delivered to the refinery in Brazil in
the financial year 2010-11.
Anticipating the developments in
the global hydrocarbon industry, L and T has proactively embarked on a major
expansion programme at its state-of-the-art manufacturing facility at Hazira,
which is rated as one of the largest and most modern integrated manufacturing
complexes situated on a water front with easy access to the sea.
In addition, a new heavy
fabrication facility is under construction at Sohar, Oman. This facility will
be a first-of-its-kind venture in the G.C.C. region and will have the
capability to manufacture critical equipment for refineries, petrochemicals and
fertiliser projects apart from other process industries.
Background:
L and T is a USD 7 billion
technology, engineering and construction company with global operations. It is
one of the largest and most respected companies in India’s private sector.
A strong, customer-focused
approach and the constant quest for top-class quality have enabled L and T to
attain and sustain leadership in its major lines of business across seven
decades. L and T has distinguished records of achievements including the
world’s largest coal gasifier made in India and exported to China, India’s
first indigenous hydrocracker reactor, oil and gas platform projects executed
to global benchmarks and the world’s largest Continuous Catalyst Regeneration
reactor.
L and T-Scomi to Build India’s First Monorail System, Consortium Bags
Rs. 24.6 Billion order
Mumbai, November
10, 2008: A consortium led by Larsen and Toubro with
Scomi Engineering Bhd, Malaysia has bagged a Rs. 24.6 Billion (Rs. 24600
Millions) order from the Mumbai Metropolitan Region Development Authority
(MMRDA) to implement the country’s first Monorail System in Mumbai.
Larsen and Toubro is India’s leading
Technology, Engineering and Construction Company and is a premier builder of
infrastructure projects in India with track record of successful implementation
of several large turnkey projects. Scomi Engineering is one of the world’s top
three monorail manufacturers, and offers urban transportation solutions by
providing the latest monorail electro-mechanical systems and rolling stock.
The project involves Designing,
Constructing, Installation, Testing and Commissioning and Integrated Testing
including Train Trail with initial Operation and Maintenance from Gadge Maharaj
Chowk (Jacob Circle) to Wadala (approx. 11 km) and Wadala to Chembur via Mahul
(approx. 9 km) corridor on a Lump Sum Turnkey (LSTK) basis. The Monorail will
have 18 stations enroute. The project is to be completed in a tight schedule of
30 months.
The Straddle type Monorail System complies with
the highest international standards of safety and reliability. It is a modern
urban transport system where the cars move on a single beam in an elevated
corridor. The design makes it possible to execute the project on a fast-track
as it requires a small foot- print and facilitates implementation with minimal
demolition of structures. Other advantages include greater reliability, high
manoeuverability, lower cost and an eco-friendly design. These factors make
Monorails an attractive option for Mumbai where land is a scarce resource. The
Monorail also helps in negotiating sharp curves and can handle gradients up to
6%. The Monorail is a quiet system with sleek exteriors, and air-conditioned
cars, adding to commuter comfort.
This will be the first Monorail System in
India and is expected to ease the congestion in the highly crowded Jacob
Circle, Wadala and Chembur area. The monorail will provide interconnectivity to
the existing suburban railway (Mahalaxmi and Lower Parel Stations of Western
Railway, Curry Road, Dadar and Wadala Stations of Central Railway, etc) and
forthcoming Metro Rail as a part of multi-modal transport system and on being
commissioned will be a boon to the citizens of Mumbai.
Background: A year ago, L and
T, as a part of its new initiatives, launched a dedicated Railway Business Unit
with the objective of targeting the emerging opportunities in Rail Sector such
as Dedicated Freight Corridor, Railway Station Modernization, Merry-Go-Round
Systems for Power Plants, Ports, Steel Plants, rail based Urban Mass
Transportation systems like Monorails, Metros and Light Rail Transport Systems,
etc. Design and Project engineering capability have been developed in L and T’s
Railway Business Unit to address various rail sector projects in an integrated
and comprehensive manner and to provide one stop shop for all types of railway
related requirements. L and T is also looking at participating in various
upcoming PPP projects in rail sector viz., Rolling Stock Manufacturing, Station
Redevelopment, Urban Mass transit systems, etc.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.46 |
|
UK Pound |
1 |
Rs.73.17 |
|
Euro |
1 |
Rs.62.96 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
10 |
|
PAID-UP CAPITAL |
1~10 |
10 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
10 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
10 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
---- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
86 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|