Larsen & Toubro

completed

Established in 1938 by two Danish engineers, Larsen & Toubro Limited (L&T) is today one of the most respected engineering conglomerates in India. Although known for its engineering, construction and cement expertise, L&T has a significant and growing presence in electrical and electronics manufacturing and in information technology and telecommunications. The company is currently undertaking an operational and financial restructuring that will improve operational efficiency of its existing operations (through upgrading, modernization and de-bottlenecking), increase emphasis on international operations and exports, and expand activities in sectors with high growth potential. L&T has requested IFC to provide a corporate loan as a part of this corporate refinancing program. L&T has seven main operating divisions: Engineering and Construction Projects – Its main lines of business are engineering, procurement and construction (EPC) contracts for large industrial, utility and infrastructure projects. As EPC contractor, L&T offers single-point responsibility for process-intensive large-scale turnkey projects focused on the hydrocarbon processing, fertilizer, petrochemical and chemical, food machinery and pharmaceutical, oil and gas, cement, and power sectors. Construction – This division offers construction and erection services and engineered turnkey industrial and infrastructure projects in civil, mechanical, electrical and instrumentation engineering. The range of projects developed include highways and expressways, bridges, seaports/terminals, airports, ropeways, water supply projects, sanitary engineering projects, infotech and industrial parks/estates, petro parks, public car parks, gas/oil pipelines, hydroelectric projects and non-conventional energy projects. L&T's infrastructure holding company invests in special purpose companies and joint ventures that execute large-scale infrastructure projects. Three Special Purpose Companies owned by L&T are now operating two roads and three bridges. L&T is also part of a consortium that has won a BOT (Build Operate Transfer) contract for the Bangalore International Airport. Heavy Engineering – This division manufactures sophisticated high technology products used in large static applications in the process and hydrocarbon industries. Typical products include heat exchangers, pressure vessels, boiler systems, and various types of processing machinery. Electrical and Electronics – In the electrical sector, L&T manufactures low-voltage switchgear and control gear as well as petroleum metering and dispensing pumps. In the field of electronics, L&T manufactures a spectrum of products required by the industrial sector as well as medical equipment. Cement - With an installed capacity of 16.5 million tonnes per annum, L&T is the largest cement producer in India. The company operates 5 integrated cement plants, 5 clinker grinding mills and 4 bulk cement terminals and distributes cement throughout India. L&T is also India's largest exporter of cement and clinker. Information Technology – Through a fully-owned subsidiary of L&T, L&T Infotech Limited offers services to the financial sector, manufacturing sector, communication and utilities, with a common-e-commerce and Enterprise Resource Planning (ERP) focus. Diversified Business – L&T engages in numerous other ventures, such as manufacturing, assembly and marketing, sales and service of construction equipment, that are an outgrowth of its construction business. This division also manufactures containers for the food and beverage industry.