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Shaming of Tamils by Tamil farmers at Delhi Online not in line with brick and mortar businesses... R Sridhar steps down as CEO of Shriram Capital Secularism and anti-Hinduism Streamlining mandatory third party cover How Air-India loses customs... Wise Presidents CII projects higher growth… The rise and fall of Annamalai University A think tank for Chennai EVM is tamper-proof Tribute – M V Murugappan When nations steal growth from one another… Tatas moving out of urea production... Tough task taking states together More heat than light Liberal imports idling indigenous capacities SoA @ 80 Robber barons everywhere Delhi Chalo... The brown list of Venkitaramanan PC’s preference for professionals Convulsions in The Hindu Tatas moving out of urea production... Things happen by accident and not by design... A yen for wastage… Of course, Gujarat is vibrant Cutting the nose to spite the face Rs.1600 crore paper board plant of TNPL Small units prefers to remain small... Tribute A C Muthiah – his munificent bequeaths to science A proud Madrasi Whistle-Stop Tour of Raghuram Rajan Auto components surge… Roaring Ro-Ro facility Fuel for thought Making ‘my Amaravati’... Don’t seem to feel the pulse… More tributes to GR Like Hinduism: many paths to reach God... Fall in crude prices help in oil sector reform Silver Years of Madras Musings Adapt Vajpayee dinner diplomacy Odisha: spectacular win by Naveen Patnaik Plummeting profits of PSBs Kinetic Karnataka A rich pool of talent not utilised…. An enemy’s enemy is a friend Build close rapport with business leaders IPL type auction for VCs? Telangana in top gear… Excel Generators provide the vital back-up Mu Sigma – is no more Demise of a media baron... TIAM turns a full cycle Land reclamation from sea appears cheaper! Not just in-laws (and outlaws); they’ve renowned academics at the helm! Godspeed, Chief Minister JJ Delhi returns to BJP Russi Mody – a tribute Shale gas and its shallow future Solar thermal shines… When small is no larger beautiful.. Funding the un-funded There was flood of milk. Reason: no milk commissioner! Padma Bhushan for A Ramakrishna Marketing expert Balagopal is no more Increasing non co-operation of state leaders The power-full Hindujas Bihar elections - the Rajaji formula worked More Shakti to resource mobilisation... A Grand Finale for SN’s MS centenary at the US… Eternal support for capitalisation of PS banks The nuclear option PPP mode for upgrading Corporation Hospitals Tribute – UCAL Selvan… TELANGANA at last…BUT GM Technology at last! Poor quality of university VCs TN-leverage strength of BHEL, NLC... Airlines in India: cost and space Inflation: are we emulating Argentina and Brazil? Delhi is distant… New IT products of Ramco in the pipeline… Sweet news for TN sugar mills Paytm karo... 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Computation of GDP – conundrums continue MHC should not return to its old indisciplined ways Align crops to agro climate endowments… Return to king coal for urea... Kulandai was a giant Poor representation for Kerala and TN in Cabinet The balancing act Discoms deserve better… When Ratan Tata visited SRM Fortune for Indian Airlines London, London Narayan Diamond jubilee of Egmore Samskrt School WTO Meet: resolved to meet again L&T- the specialty of special purpose vehicles Dr C Rangarajan returns to Chennai When online building permits work…. More Shakthi to Das’ elbow Remembering Indira Sivasailam... Welcome focus on core competence Music happens He saved millions from starvation... B H Kothari - a tribute Moily’s bold thrust F C Kohli - his concerns all embracing Naidu’s return augurs well for Seemandhra Polls and promises The Gulf aviation boom Cleaning Ganga – relocate tanneries and install electric crematoria West Bengal: mindless malignancy Lalu’s envy, India’s pride The Swadeshi Trump The Ports’ Pasha expands into Tamil Nadu L&T: focus on infrastructure and more infrastructure… Modi and the lady 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 Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated When the President was rendered homeless… CRS, a jewel among managers, is no more. Welcome thrust on trade in Modi’s foreign visits... Gay abandon in pricing Shipping woes of Chennai companies Gas is the way forward The sea- saw battle continues... When TN politicians can emulate Kerala's S Ramanathan – a versatile musician, musicologist Waning interest in public discussions… Road development slows down ONGC at KG Basin A glass full of corruption Insurance companies bleeding, yet no decision on increasing FDI limit! Towards speedy justice Scientists urged to take up farmer-oriented research Mersal magnified Quality education through the PPP mode Alexa – Talking Wikipedia Colour-Chem’s colourful KRVS Strengthen the base... The few handicaps... Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai Revive development banks... A Grand Finale for SN’s MS centenary at the US… Multi-faceted Venkat Recognition to role of NBFCs.... 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Tax agriculture IPL - no surprise this scam Preserving for the future IAS invades NDDB... Focus on quality of power - its only around 170-180V Editor's Says CIPET hqrs to stay at Guindy – for the present? Engineering seats go abegging Quality silica from Neyveli Bihar – Nitish Kumar adopts the Lalu model No mega rail project for Tamil Nadu Readers' Mail A more liberated TN… GNS - 100: our first subscriber Noble nonagenarians... Why land prices zoom in TN? For whom the MIDS bell tolls? For whom the bell tolls? An inexplicable neglect A friendly business group No Maha Koottani in TN... Delhi is distant Tribute – Manikam Ramaswami Welcome changes that testify to Jayalalithaa’s return to health The why of tax incentives Sweeter prospects for sugar The ‘Ayyo-yes’ is no more Protest masters... Building loyalty through the stomach Permanent secretariat for TN GIM All eyes on Sankara Nethralaya The star of Spencers is no more Cement prices continue to rise… The Jan Dhan bonanza Parliament in paralysis... The ‘Jayanthi Tax.’ CSR and CMI: promise of another Srinivasan Ramanujan...
 
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.

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