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