July 5, 2007
India's L&T poised to set up shipbuilding unit
Larsen & Toubro (L&T), India's largest engineering conglomerate, is poised to set up L&T Shipbuilding, as a separate company, within two weeks. The shipbuilding company will announce the location of its large new shipyard in August.
Formation of the shipbuilding company is part of what Chairman A M Naik told India's Business Standard is a "verticalization" effort under which at least five new companies will be set up. The companies will operate in L&T's new business areas of power projects, boilers, turbines, water and shipbuilding.
Each of these companies will have a CEO, a board, and finance and human resource management teams. L&T has also launched a global hunt for CEOs.
These CEOs will be a part of the group corporate management committee but would not initially sit on the L&T board. "We hope that some of the CEOs will eventually get into the main company's board," he said.
The companies will operate in L&T's new business areas of power projects, boilers, turbines, water and shipbuilding.