L&T Business Empire (30+ Countries) | How big is L&T? | Larsen & Toubro | AM NaikOn February 13, 2020 by Raul Dinwiddie
In our journey, we have seen many business tycoons. One common habit among these individuals,
is that, they love to read, and, take action. Today’s video is brought to you by a very
special short book, titled “THINKING”. The book is a guide to help you think, like them,
but most importantly it will help you take action. Check out the link in the description;
it is available only on Amazon in 3 formats; Kindle, paperback and audiobook. And now let’s
begin with our video. Hello and welcome to TFC, I am Navin.
This time let’s start our journey, by visiting, a cinema hall.
In this world of movies, from the old to the new we have seen one common theme. Friendship.
While, in the business world, one of the best examples of real-life friendship are these
two, Henning Holck-Larsen & Søren Toubro.
Born in Denmark, they both were school friends, studied engineering and later joined the same
company. In the mid-1930’s, both were sent to India
to aid set up a cement plant. In 1938, on a holiday in Matheran, a hill
station near Mumbai, like many friends planning their future, the two of them decided to start
their own company. Soon they left their job & in Mumbai started
a small partnership firm, they called it Larsen & Toubro.
They began selling dairy equipment imported from Denmark.
But a year later the second world war started and in 1940, Denmark got invaded by Germany.
The imports stopped. They thought their business was over, they
should probably get back to their job. But, they didn’t want to give up, so soon,
they tried again. This time, instead of importing, they began
manufacturing dairy equipment in India. They later started repairing ships and finally
got their first major contract, to build a soda ash plant for the Tata Group.
This major contract began the remarkable journey of Larsen & Toubro.
Now 8 decades later, the revenue of their company is greater than US Steel, Colgate-Palmolive
and around 8 times more than, F. L. Smidth, the company where Larsen & Toubro were earlier
working. Before we begin our journey, one questions
remains to be answered. Who owns L&T?
As of now, LIC is L&T’s biggest shareholder, the second-biggest shareholders of the company
are, its employees. Yes, the L&T employee welfare fund holds around 12% of the company.
So without any further delay, let’s witness the massive business empire of Larsen & Toubro.
We will start our journey in the scenic Barbados. Here, the popular Kensington Oval stadium
was built by L&T. In North America, L&T operates three IT & engineering
services companies, which include L&T Infotech, their newly acquired billion-dollar IT company,
Mindtree and a Technology services company. In all these companies operate over 30 delivery
centres across North America. Let’s move to South America and reach Brazil.
Here L&T has supplied multi-million dollar heavy engineering equipment to Petrobras oil
refinery, while in nearby Suriname, the group has been involved in a 27 km transmission
line project. Now let’s travel to Africa, here L&T has constructed
a major soda ash plant in Kenya; power generation project in Tanzania; and has also been involved
in multiple transmission projects across Africa. In the scenic Mauritius
L & T has constructed Swami Vivekananda Centre, Cyber Tower building, which was renamed as
Shri Atal Bihari Vajpayee Tower, and is currently building a Metro project.
Recently, Phase 1 of the metro was jointly inaugurated by Prime ministers of Mauritius
& India. Moving to Europe,
Here L&T’s IT companies are located in 13 countries and the group owns Essex based marine
solutions company, Servowatch. While in Russia, L&T has constructed a residential township
at Zernograd. Now, let’s move to Asia and land in the vibrant
Malaysia. Here the group owns a Switchgear company and
has also constructed multiple bridges, manufacturing plants and a transmission project in Peninsular
Malaysia. Moving to Central Asia,
We will reach the former soviet country of Uzbekistan. Here the group has constructed
hotels in Samarkand and Bukhara. From chilly Uzbekistan let’s travel to the
sandy middle east, Here L&T has constructed The Diplomat Hotel
in Bahrain, a Stadium in Iraq, Indian embassy building, pipeline & transmission projects
in Kuwait, Hamad Medical City & Al Jazeera Buildings in Qatar.
Here, L&T is also jointly constructing Doha Metro & a football Stadium for the 2022 FIFA
World Cup. Now from the beaches of Doha, let’s take a
boat ride and reach, Oman. Here L&T operates a Modular Fabrication plant,
and has been involved in the construction of New Salalah & Al Duqm airports, Ministry
of Manpower building, a sports complex, road & transmission projects, multiple manufacturing
plants & and is even jointly constructing a five-star hotel in Muscat.
In nearby Saudi Arabia, L&T has been involved in constructing of multiple hospitals, schools,
power transmission projects and also owns a manufacturing plant. Moreover, L&T is also
jointly involved in construction of Riyadh Metro project, while Saudi Aramco is one of
L&T’s major customer. From Saudi let’s move to UAE and reach Abu
Dhabi, Here L&T is involved in construction of NMC
Specialty Hospital, Expansion of Abu Dhabi Airport and Sheikh Khalifa Interchange; while
in nearby Dubai L&T has built multiple residential & commercial complexes, schools, bridges and
power transmission projects. Moreover in Dubai, L&T’s Electrical & Automation
division operates a manufacturing plant. This division of L&T is about to be acquired by
Schneider. Now let’s move to South Asia, here L&T has
constructed a cement plant in Bangladesh, a power plant in Sri Lanka, hydroelectric
project in Bhutan and Nepal and the scenic Taj Resort in Maldives.
As we have reached the picturesque Maldives, let’s take a flight from the Male Airport
and finally reach India. But which airport shall we land in, Bengaluru,
Delhi or Mumbai? All these airports have one thing in common.
You guessed it right, L&T has been jointly involved in the construction of all these
airports. In India, L&T has constructed over 300 highrise
building, over 40 IT parks, over 7800 lane kms of roads, over 30 hospitals, over 15 cements
factories, multiple automobile factories, metros, stadiums, shopping malls, educational
institutions including Indian School of Business in Hyderabad, India’s first monorail, multiple
5-star hotels like Taj, Bangaluru & Sahara Star in Mumbai and has also completed most
of the construction work of the world’s tallest statue, Statue of Unity.
Moreover, L&T is also one of the leading manufacturers of construction & mining equipment, industrial
valves and even operate a financial services company, with over 10 billion dollars asset
under management. Overall in India L&T operates a real estate
company, Hyderabad Metro, over 30 Toll Plazas, over 20 IT delivery centres, a power plant
in Punjab, skill training institutes, multiple manufacturing facilities and is also involved
in ISRO’s space projects. While L&T has also built over 50 defence vessels, which include
Patrol Vessels, Boats and even Submarines. Not only that, but L&T has also been involved
in social projects through its Charitable Trust which runs Health Centres in 10 locations
and also operates 13 Mobile Clinics, impacting 400 villages.
To end this journey started by two friends, eight decades ago, all I can say that, this
is Larsen & Toubro’s massive business empire. Also, a final shout-out to our patron for
today’s video, the publishers of “THINKING”. Like the friends Larsen & Toubro, Start to
think and take action, by building yourself up, step by step. Thank You.