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Ideas for today and tomorrow
Strategic Capability
L&T Strategies
Restructuring of companies for better performance, for e.g. ChennaiheadquarteredConstruction Division (Engineering Construction
Corporation) by transforming it from the erstwhile complex model
having 18 Strategic Business Units (SBUs), seven Regional Offices in
India and four abroad, into a new structure with afunctional 4x4 matrix.
L&T forms 5 year plans which decide group focus, strategies, areas of growth and
reduction areas.
Since 2000, L&T has charted two five-year plans to reposition the company
2010-15 Plan:
Previous plan indicated creating three operating companies to look after defense, aerospace
and nuclear power sectors for effective operations.
2016-2021 Plan:
Make L&T a leaner company by reducing complexities and improve ease of doing business
Strategy ( Cont. )
Strategic Alliances
L&T Komatsu Ltd., a joint venture with Komatsu Asia & Pacific Pvt.
Ltd., Singapore, manufactures hydraulic excavators and other such
components.
L&T John Deere Pvt. Ltd., a joint venture with Deere & Co., USA, is
involved in the manufacture and sale of tractors. However, L&T divested
its stake in the latter as part of its strategy to exit non-core businesses.
L&T-Case Equipment Pvt. Ltd., a joint venture with CNH America LLC
manufacture earthmoving and construction machinery.
Defense Systems
Renewable Energy