L&T to float five new companies

In a major restructuring exercise, Larsen & Toubro (L&T), the country’s largest engineering conglomerate, is setting up at least five new companies.

Chairman A M Naik told Business Standard the “verticalisation” effort is aimed at ensuring better corporate governance as well as attracting talent to the 70-year-old company.Each of these companies will have a CEO, a board, and finance and human resource management teams. L&T has also launched a global hunt for CEOs.

These CEOs will be a part of the group corporate management committee but would not get a berth on the L&T board. “We hope that some of the CEOs will eventually get into the main company’s board,” he said.

The companies will operate in L&T’s new business areas of power projects, boilers, turbines, water and shipbuilding. An exercise is on to identify other areas. The new structure will also open up opportunities for L&T insiders to move up the ladder.

Read more in The Business Standard article.