Supply Chain Management in L&T (ECC Division)

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Case Details:
Case Code : OPER045
Case Length : 9 Pages
Period : 1990-2004
Organization : L & T
Pub Date : 2005
Teaching Note : Available
Countries : India
Industry : Construction
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Background Note
L&T came into being in 1938 when two Danish engineers, Henning Holk Larsen and
Soren Kristian Toubro, set it up a partnership firm. In 1946, L&T became a
private limited company and in 1950, turned into a public limited one.
It was involved in manufacturing a wide range of engineering products,
earthmoving equipments, chemical and industrial machinery, switchgears, valves,
welding alloys, and cement manufacturing machinery.
In 1981-82, L&T acquired two bulk carriers and diversified into the shipping
business. In 1983-84, it commenced operations at its 1mtpa cement plant at
Awarpur, Maharashtra.
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L&T gained expertise in the area of infrastructure and basic industries and it
dominated the market in four main segments - Engineering and construction,
cement, electrical and construction equipment.
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It also had a 100% subsidiary, L&T Information Technology Limited. In
November 2001, Grasim Industries, the third largest player in the Indian
cement industry, acquired a 10% equity stake in L&T from Reliance
Industries. In January 2002, L&T bought over the share holding of
Caterpillar, USA, in its 50:50 join venture Tractor Engineers (TENGL). In
June 2001, L&T Information Technology Limited became Larsen & Toubro
Infotech Limited.
L&T served core sectors of the economy like power, infrastructure, oil &
gas, refinery, petrochemical, chemical, cement, steel, mining, etc. |
It established a leadership position in most of its
businesses, thanks to its high tech engineering capabilities, commitment to
quality, and distinguished record in customer services. In terms of sales,
assets, and market capitalization, L&T was one of the top ten private players in
the country while in terms of intellectual capital and brand value, it held the
top rank in the Indian market over several years.
L&T earned its reputation through its success in undertaking constructions and
supplies for the infrastructure sector & large scale industries and also through
its sophisticated design and services for critical segments of industries like
Nuclear, Hydro Power & Foundation Engineering, Transportation & Civil
Infrastructure, Power Plant Construction, Hydrocarbon Construction & Pipelines,
Engineering Design & Research, Electrical & Instrumentation / Transmission
Lines, Industrial Projects & Utilities...
Excerpts >>
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