S. N. Subrahmanyan, Deputy Managing Director and President, Larsen & Toubro (L&T) will take over as the chairman of the $16 billion engineering and construction powerhouse from Mr. A.M.Naik.
“He will succeed me from October 1, 2017. There’s no doubt,” said Mr.Naik (74) introducing Mr. Subrahmanyan to the shareholders at the company’s 71st AGM. “Now, he will take things forward. Ask all your questions to him,” he said.
Sources at L&T confirmed Mr. Subrahmanyan will be elevated as Managing Director.
Mr. Naik, who has been with L&T for over 50 years now, said the company is eyeing to double its revenue to Rs.2 lakh crore by 2021 banking on India’s success story. He expected his successor to take up the unfinished agenda for completion.
“Our goal is to achieve revenue of Rs.2 lakh crore by 2021 without compromising on our margins and achieving an order inflow in excess of Rs.2.5 lakh crore per annum,” said Mr. Naik addressing the shareholders. On unfinished agenda, Mr. Naik said, “Unfinished agenda are many but I have a good successor and he will finish them.”
When asked about the unfinished agenda, Mr. Naik told The Hindu, “Unfinished agenda are many but I have a good successor and he will finish them. When asked things he wanted to finish himself beforeb hanging his boots, Naik said, “It is a very difficult question because there is so much to be done. But one thing is asset light. We have put on top gear all restructing that is left, small business to be sold, there is a lot of restructing work. I have done mentoring of 50 leaders, they are today the board, and they are all mentored by me. Now I have taken the next level of 20 young people I will do a pretty good job.”
Banking on India’s growth story Naik said, “India is at the cusp of a turnaround. All indicators are positive. With a projected GDP growth rate of 7.4% in 2016 -17, India is the fastest growing large economy in the world. The Government's thrust on Infrastructure and its 'Make in India' initiatives provide a range of opportunities for your company.”
“We believe that the economic conditions are now starting to turn in favour of your Company. Combined with the right strategy and on-ground execution, our target, though ambitious, is achievable,” said Mr. Naik.
Banking on defence sector Mr. Naik said, “The opening up of the Defence sector will lead to business opportunities worth Rs. 13 lakh crores over the next 10 years. With the resolution of issues relating to fuel supply and a clearer understanding on nuclear liability issues, the Nuclear Power sector is expected to grow significantly in the years ahead. The estimated opportunity from this sector over the next 10 years is up to Rs. 50,000 crores.”
Mr. Naik also wanted L&T to make missilies. “We would like to make missiles hopefully we will make one day. One day meaning as soon as they allow us to do it othersie I would like to go ahead now.”
