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