Engineering and construction giant Larsen & Toubro (L&T) has announced a major restructuring plan that involves splitting the diversified conglomerate into nine different companies.
Aimed at making the company more nimble and flexible, the exercise, under the advice of Bain & Co and McKinsey, is likely to be over in the next one year.
Earlier this month chairman A M Naik told a newspaper that thew country's biggest engineering conglomerate, may be split into nine companies, some of which may be listed by 2015. (See: L&T may be split into nine firms, says chairman Naik)
Yesterday L&T's full-time director and president J P Nayak said in Mumbai that each of these companies will have its own board of eight to nine directors, including at least three independent directors, along with its own chief executive officer, chief financial officer, and human resources head, and will manage its own profit and loss account.
While making a presentation on the restructuring, Nayak told newspersons that the nine distinct business units will be in the area of power, hydrocarbons, machinery and products, switchgear, heavy engineering, infrastructure, building and factories, metals and minerals and electrical businesses.
Though he did not spell out the listing plans, L&T chairman A M Naik has already said that each of the companies will go for separate listing when they feel that the time is right to unlock values, most probably before 2015. Naik is to retire by 2012.