S.N. Subrahmanyan, the current deputy managing director and president of Larsen and Toubro Ltd (L&T), has been named managing director and chief executive officer, marking the first change of guard at the top of India’s largest engineering and construction corporation in 18 years. S.N. Subramanyam will replace A.M. Naik as the CEO of the company.
- L&T said that A.M. Naik, the company’s long-serving chairman, has been named non-executive chairman for three years to ensure a smooth transition of leadership and to provide direction and mentorship to management.
- The present term of Naik as group executive chairman expires on September 30. He had been given a five-year extension till the company’s annual general meeting in 2017, which he had received in 2012.
- During Naik’s 18-year tenure, the $16 billion-in-revenue L&T has gone global, waged bitter battles with competitors, avoided a hostile acquisition, and diversified into various new sectors, including defence equipment manufacturing.
- Subrahmanyan also takes over at a difficult time: private investment demand in India hasn’t taken off, West Asia is slowing due to low oil prices, and the company has a high working capital and low return on equity.
About Larsen & Toubro:
Larsen & Toubro Ltd, or L&T, is an Indian multinational conglomerate headquartered in Mumbai with interests in engineering, construction, manufacturing, technology, and financial services. The firm is one of the top five construction firms in the globe. It was formed in India by two Danish engineers who had sought asylum there. L&T Group has 118 subsidiaries, 6 associates, 25 joint-venture and 35 joint operations firms as of 2020, with operations in basic and heavy engineering, real estate, capital goods manufacturing, information technology, and financial services.