A. M. NAIK CHAIRMAN & MANAGING DIRECTOR

ELECTRICAL MACHINERY & IT & FINANCE DEVELOPMENT ENGINEERING & CONSTRUCTION & INDUSTRIAL ENGINEERING & PROJECTS & ELECTRONICS PRODUCTS SERVICES HR FINANCIAL SERVICES CIO

K. V. RANGASWAMI K. VENKATARAMANAN M. V. KOTWAL R. N. MUKHIJA J. P. NAYAK V. K. MAGAPU Y. M. DEOSTHALEE

CONSTRUCTION E&C PROJECTS HEAVY INDUSTRY

A.K. CHHATWANI RAVI UPPAL

OPERATING Cos. OPERATING Cos. OPERATING Co. OPERATING Co. OPERATING Cos. OPERATING Co. OPERATING Cos. OPERATING Co. Financial Services Buildings & Factories Upstream Power Development L&T Power Limited Heavy Engineering Electrical & Industrial Products & L&T Infotech • Infrastructure • Institutional & Commercial • Oil & Gas EPC & Construction • Coal-based • Coal Gasifiers Automation Machinery IT Services Finance Buildings Projects • Power Development Supercritical & Thermal Plant • Electrical Standard • Industrial Machinery Verticals • Equipment Finance • Residential Projects • Modular Fabrication • Fuel Source Projects Equipment Products for Paper, Steel, • Manufacturing • Trade Finance • Townships & SEZ & Drilling Rigs Management • Gas-based Projects • Fertilizer & • TAMCO – Medium Bulk Material • Energy, Oil & Gas • Microfinance • Airports • Floating Production • O&M • Boiler Island Petrochemical Voltage Products Handling & Process Industries • Mutual Funds • Hotels & Hospitals Systems • Development & EPC • STG Island Equipment • Electrical Systems & • Rubber Processing • Product • General Insurance • System Housing • Installation Services for Alumina Project • Boiler • Refinery, Cracker Equipment Machinery Engineering • Industrial Plants • Subsea Systems • Water Process Manufacturing Plant and Oil & Gas • Control & Automation • Plastics Processing Services Infrastructure • Formwork & Building Products • L&T Valdel - Technology Facilities Equipment • Metering & Machinery • Insurance Development Engineering • Pulverizing Mills • Weapon Systems Protection Systems • Industrial Valves • Banking & Financial Projects Infrastructure Services (VRM) • Nuclear Power • Welding Products & Services • Roads & Bridges • Ports & Harbours • Turbine Equipment SBU Cutting Tools Horizontals • Ports & Harbours • Bridges Mid & Downstream Manufacturing • Aerospace • Medical Equipment • Foundry Products • ERP – SAP, Oracle • Railways • Roads & Runways • Refineries Facilities & Aviation & Systems • Infrastructure • Hydro Power • Metro Transportation • Petrochemical & • Heavy Foundry • Heavy Structure Management Projects • Hydroelectric Fertilizers • HP Piping • Strategic Electronics Fabrication Services • Transmission • Nuclear Power • Gas Processing Manufacturing Avionics Projects • L&T Rambøll – Engineering • L&T Chiyoda - Facilities Construction SBUs • Water Projects Services Engineering • Axial Fans & Shipbuilding & Machinery Integrated Engineer- • Gas Pipelines Services Air Preheaters Marine Systems • Construction & Mining ing Services • Solar Energy Metallurgical, Material Manufacturing • Naval Machinery • Mechanical & Handling & Water Process Plant Facilities • Merchant • Hydraulic Equipment Mechatronics Urban Infrastructure • Minerals & Metals Construction • Electrostatic • Repair & Refit • Undercarriage and Services Development • Bulk Material Handling Precipitators Material Handling • Embedded Systems • Water Treatment & Pipelines Manufacturing Heavy Forging Systems & Software Distribution Projects • EPC - Cross-country Facilities Facilities • Spares & Service Projects & • Thermal Power Plant Electrical Projects Construction Construction • Transmission Lines • L&T-Gulf Pipeline • L&T Sargent • Substations Engineering & Lundy - • Industrial Electrification Engineering & Instrumentation Services • Railway Construction

Railway Projects • Turnkey Solutions INTERNATIONAL BUSINESS: L&T is consolidating its presence in the Middle East, Africa and South East • Mass Transport Systems Asia by ramping up capabilities in EPC, Construction and Manufacturing. • Rolling Stock - Engineering & Manufacturing Leadership Team

A. M. Naik Chairman & Managing Director

J. P. Nayak Y. M. Deosthalee K. Venkataramanan R. N. Mukhija K. V. Rangaswami President Chief Financial OfÀ cer President President President (Machinery & Industrial (Engineering & Construction (Electrical & Electronics) (Construction) Products) Projects)

V. K. Magapu M. V. Kotwal Ravi Uppal A. K. Chhatwani Senior Executive Senior Executive CEO & MD Senior Executive Vice President Vice President L&T Power Limited Vice President (IT & Technology Services) (Heavy Engineering) (Power Development)

1 Order InÁ ow (Rs. billion) 696 Balance Sheet as at March 31, 2010 Year 2009-10 at a Glance

L&T 516 z New Order infl ow at Rs. 695717.60 million in CY as against Rs. 516215.20 million in PY: 35% growth y-on-y 420 Rs. million z Order Book as at March 31, 2010: Rs. 1002393.40 million as against Rs. 703191.40 million as at March 31, 2009: 43% As at 31.3.2010 As at 31.3.2009 growth y-on-y SOURCES OF FUNDS: z Gross Sales at Rs. 369959.35 million in CY as against Rs. 340450.41 million in PY: 9% growth over 08-09 Shareholders’ funds 183116 124597 z Segment-wise composition of gross revenues:- Loan funds 68008 65560

Engineering & Construction Segment: Deferred tax liabilities 3893 4352 85.3% in CY as against 81.9% in PY 255017 194509 Electrical & Electronics Segment: 7.9% in CY as against 7.9% in PY APPLICATION OF FUNDS: Machinery & Industrial Products Segment: Fixed assets: 2007-2008 2008-2009 2009-2010 5.9% in CY as against 7.1% in PY

Others: 0.9% in CY as against 3.1% in PY Tangible assets 62231 50538 Intangible assets 1427 1408 z PBDIT before exceptional and extraordinary items at Investments 137053 82637 Rs. 57258.07 million in CY as against Rs. 46619.60 million in Gross Sales (Rs. billion) PY – up by 23% Deferred tax assets 3119 3867 370 Net current assets 51187 56056 340 z PAT at Rs. 43755.15 million in CY as against Miscellaneous expenditure 0 3 Rs.34816.57 million in PY – up by 26% 255017 194509 252 z Gross Debt Equity ratio of 0.37 : 1 (previous year 0.53 : 1) Note: Figures in the previous year have been regrouped / reclassifi ed L&T Group wherever necessary. z Gross Sales at Rs. 438542.43 million in CY as against Rs. 406078.69 million in PY – 8% growth over 08-09 PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2010 Rs. million z PAT at Rs. 54507.40 million in CY as against Rs. 37894.60 million in PY – up by 44% 2007-2008 2008-2009 2009-2010 2009-2010 2008-2009

Sales & service (net) 366751 336466 Operational / other income 23846 10317

Larsen & Toubro is a technology, engineering, construction and L&T is regarded as the preeminent infrastructure major - often 390597 346783 manufacturing company. It is acknowledged as one of the leading referred to as the ‘builder of the India of the 21st century’. Its Less: Expenditure: companies in the region, reputed for its engagement in key growth achievements across sectors include: sectors, its ability to respond positively to challenging requirements, Manufacturing, construction and operating ƒ Hydrocarbon projects executed in India, the Middle East and its excellent value system. expenses 284535 262716 and South East Asia Staff expenses 23791 19745 ƒ Power projects executed in India, the Gulf and Sri Lanka. A strong, customer-focussed approach and the constant quest for Sales, administration and other expenses 14265 17703 ƒ The world’s largest coal gasifi er made in India and exported top-class quality have enabled L&T to attain and sustain leadership to China Interest expenses and brokerage 5053 4155 in its major lines of business across seven decades. ƒ The world’s biggest EO reactor for a petrochemical complex in the Gulf Depreciation, amortisation and obsolescence 4146 3060 L&T has an international presence, with a manufacturing footprint ƒ The world’s largest FCC regenerator for a refi nery Profi t before taxes before extraordinary items 58807 39404 in eight countries, a wide network of offi ces, and collaboration ƒ Asia’s highest viaduct agreements with global majors. Within India, L&T has a presence Less: Provision for taxes 16409 12312 ƒ Infrastructure projects in Jordan, U.A.E. and South East Asia in virtually every district with a number of offi ces, factories and Profi t after tax before extraordinary items 42398 27092 ƒ The world’s longest limestone conveyor distribution outlets. Gain on extraordinary items (net of tax) 1357 7725 ƒ India’s widest range of switchgear Profi t after taxes after extraordinary items 43755 34817 ƒ A wide range of construction and mining equipment History Basic earnings per equity share before extraordinary items (Rupees) 71.49 46.30 The evolution of L&T into the country’s largest engineering and This publication presents an overview of the Company’s construction organisation is among the more remarkable success capabilities in diff erent business sectors, and an account of its Diluted earnings per equity share before stories in Indian industry. The company was founded in Bombay (now performance over the last fi nancial year. The contents have extraordinary items (Rupees) 70.15 45.68 Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen been structured in keeping with the Operating Divisions of the and Soren Kristian Toubro -- both of whom were strongly committed Company: Basic earnings per equity share after to developing India’s engineering talent and enabling it to meet the ƒ Engineering & Construction Projects extraordinary items (Rupees) 73.77 59.50 demands of industry. Beginning with the import of machinery from ƒPower Diluted earnings per equity share after Europe, L&T rapidly took on engineering and construction assignments ƒ Heavy Engineering extraordinary items (Rupees) 72.39 58.70 of increasing sophistication. Today, the company sets engineering ƒ Construction Face value per equity share (Rupees) 2.00 2.00 benchmarks in terms of scale and complexity. ƒ Electrical & Electronics ƒ Machinery & Industrial Products Note: Figures in the previous year have been regrouped / reclassifi ed wherever necessary. ƒ IT and Integrated Engineering Services ƒ Financial Services

2 3 Nationwide Network A Global Presence Fabrication Product & Equipment Supply This pictorial representation does not purport pictorial be the political map of India.This representation to Note: Map is broadly representative of L&T’s presence in markets worldwide. presence of L&T’s representative Map Note: is broadly

4 5 Hydrocarbon - Upstream Process platform installation and pipeline modiÀ cation at Heera Complex of ONGC (Capacity: 30 ,000 BPD oil, 20,000 BPD water, and 1.5 MMSCMD gas).

Engineering & installation up to commissioning. L&T’s Limited, L&T-Chiyoda Limited, L&T–Gulf Construction (Projects) offerings are characterized by on-time Private Limited. Engineering teams are delivery, cost-competitiveness, high located at various strategic locations L&T delivers world-class ‘design to quality standards with a focus on best in – Mumbai, Faridabad, Vadodara, build’ EPC solutions in the Oil & Gas, class HSE practices. Bangalore, Chennai and Sharjah. Petrochemicals, Fertiliser, Power and Water technology sectors. In-house Design & Engineering Services: Fabrication Capability: The Modular expertise and experience is synergized The Engineering arm has qualiÀ ed Fabrication Facility in India has with strategic partnerships. Single point and experienced engineering talent, provided a competitive advantage. solutions are offered for every phase of a in-house engineering centers as well Located at Hazira, it is one of the project – right from front end engineering as robust IT infrastructure service largest of its kind in South Asia. Hazira and design through fabrication, complemented by engineering Modular Fabrication Facility meets HA deck & building module for Maersk Oil - Qatar installed at Al Shaheen Field, off Qatar. project management, construction and partners like L&T-Valdel Engineering international quality standards and is 7 Oil & Gas Projects A 290-man heavy-lift-cum-pipelay vessel (LTS 3000) is part of L&T’s capability to offer total turnkey solutions to the upstream hydrocarbon sector, encompassing oil and gas production, processing and transportation.

capable of meeting compressed delivery to the strategic market segments, both International business development: schedules. A new Modular Fabrication domestic East Coast and overseas South The Division has consolidated its Yard at Oman is an all weather yard. East Asia and Australian requirements. presence in the international market, It augments the capability to fabricate establishing itself as an emerging and supply a range of large-size complex Installation Capability: To cater to player in Middle East & South East modules up to 20,000 tonnes. The Yard offshore requirement, a state-of- the- Asia. Manufacturing, project execution has facilities for heavy fabrication, art heavy lift-cum-pipelay vessel (HLPV), capabilities and ofÀ ce establishments sophisticated equipment for testing and ‘LTS – 3000’ has been developed in Joint have been set up in select geographies. load-out facility. Venture with Sapura Crest Petroleum These ofÀ ces are set up in UAE (Abu Berhad (Sapura Crest) of Malaysia. It has Dhabi & Sharjah) & Qatar (Doha). A large Modular Fabrication Yard capability of lifting 3000 tonnes & laying at Kattupalli near Chennai is at an 6”-60” of sub-sea pipelines. Key Strengths BCP-B2 Process Platform and Well-head Complex connected to the pre- existing BPB Complex of ONGC. It is located in the Bassein Gas Field, around advanced stage of developement to cater • Multi-locational engineering, 80 km north-west of Mumbai. 9 Hydrocarbon - Mid & Downstream Aviation Fuel Depot at KAFCO - Kuwait executed by L&T on EPC basis. L&T is rapidly enlarging its presence in the Middle East and has built a reputation for undertaking complex projects while meeting demanding schedules, to global standards.

technology and innovation centers. Hydrocarbon Upstream Operating Hydrocarbon Mid & Downstream • Stringent quality control para-meters Company (Upstream OC) Vertical • Compliance to highest standards Upstream OC provides a range of A wide range of EPC solutions is of health, safety, environment and EPC solutions for offshore oil and gas provided for turnkey projects - green information security. exploration projects such as Process fuel / fuel quality up-gradation, • Usage of web enabled technology in Platforms, Wellhead Platforms, Subsea residue upgradation; cracker complex, the complete cycle of execution of Pipelines, and Floating Systems. During polyoleÀ ns & aromatics projects for EPC projects. the year, it has bagged largest ever petrochemical industry; hydrogen, • Knowledge management system for project order over Rs.53000 million fertilizers, gas processing, reformers providing solutions. from ONGC for an integrated process & cracking furnaces; cross-country oil platform complex. & gas pipelines, gas gathering stations and crude oil terminals. 700 TPD Methanol & 100 TPD Carbon Monoxide Plant for Methanol Chemicals Company (Chemanol) at Al Jubail in Saudi Arabia.

11 Petrochemical Projects Cracking furnaces and associated units for IOCL at Panipat Naphtha Cracker Project. (Capacity : 800,000 TPA of polymer grade ethylene & 504,834 TPA of polymer grade propylene). L&T executed this project in consortium with Toyo Engineering, Japan.

L&T successfully commissioned over Rs 20000 million and from the coupled with the government’s conducive complex projects including the onshore fertilizer sector projects of over policy and regulatory framework gas processing terminal at Kakinada Rs 30000 million. has made investment in the energy - the largest of its kind in India (80 sector attractive. MMSCMD) - and execution of a 592 km Outlook heated and PUF-insulated waxy crude The domestic economy has regained The E&C Projects Division will focus oil pipeline from Barmer in Rajasthan momentum and has shown positive signs on opportunities in key growth areas to Salaya in Gujarat. This is reputed of recovery in terms of industrial growth. such as oil and gas extraction, Á oating to be one of the world’s largest India is emerging as a global reÀ ning hub systems in deepwater, subsea À eld insulated pipelines. thanks to the cost competencies over development, gas processing, fertilizer, other countries. Gas demand in India is and petrochemical and onshore pipeline L&T bagged a large order from ONGC dominated by the power and fertilizer business. The Division is looking Motor Spirit Quality Upgradation Project executed by L&T for IOCL at Panipat. L&T also executed an MSQ project for IOCL at their Mathura ReÀ nery. Mangalore Petrochemical Ltd. of sectors, which are on the rise. This forward to building capabilities in an 13 Pipelines & Processing Terminals Mangala Process Terminal - one of several terminals built by L&T for Cairn Energy India Limited at Barmer in Rajasthan. L&T set up the terminal and associated structures incuding pipelines and substations.

accelerated manner to harness upcoming Enhanced execution capabilities will business opportunities on the east coast drive performance in the coming years. of India, which has large potential for Considering the positive business oil & gas production. It is also building environment, strategic positioning and comprehensive high-end FEED detailed the various initiatives taken by the engineering capabilities for these Division coupled with a healthy order emerging areas by exploring various book at the end of March 2010, the options including inorganic growth and Division expects to perform well in the entering into joint ventures. year ahead.

The Division also plans to enter into new geographies, establishing new clientele 24” dia. x 592-km heated and PUF-insulated waxy crude oil pipeline being laid, along with an 8” gas pipeline. and entering into strategic alliances. 15 Power - Supercritical Coal-based, Gas-Based Power plant executed by L&T on an EPC basis at the complex of Indian Oil Corporation in Panipat.

EPC Power EPC Power division’s offerings comprise The Company has strong engineering, Supercritical Steam Generators, Steam procurement, construction and project EPC Power division has been organised Turbine Generators and Balance of execution capabilities built over the as a separate Operating Company with Plant. The business organisation which past few decades, which underpin effect from April 1, 2009. Financial includes the Joint Venture Companies the foray into EPC for thermal power year 2009/10 has been the À rst year of with Mitsubishi Heavy Industries, plants, especially coal-based generation operation in pursuit of the Company’s Japan, is geared to address the projects. L&T will also leverage its mega vision to become “the most opportunities whichever way tendered capabilities to execute, on an EPC basis, preferred provider of equipment, by the customers. The customer proÀ le large combined cycle gas based plants services and turnkey solutions for fossil- comprises State Utilities, Private Sector up to 1000 MW. fuel-based power plants and a leading IPPs and large corporates seeking to build contributor to the nation’s power captive generation capacity. Engineering capabilities come from Supercritical turbine - part of the critical equipment for power plants - manufactured by L&T. generation capacity”. L&T-Sargent & Lundy, a joint venture 17 Power Coal-À red power plants are recognised as the most viable solution to India’s energy deÀ cit. L&T has the integrated capability, the experience and the expertise to execute complete superthermal power plants on an EPC basis.

company. The upcoming manufacturing Performance highlights Indian Oil Corporation Limited at Panipat, form a major share of fresh capacity facilities at Hazira Complex will establish EPC Power Division secured new orders Andhra Pradesh Power Development addition, the division’s offerings based the capacities to build Steam Turbine of Rs. 13,7965 million. New orders, Company Limited at Krishnapatnam on supercritical technology have Generators, Boiler pressure parts and which spanned the entire range of and GMT Rajamundhry Energy Ltd huge potential. Pulverisers based on MHI technology. offerings, were received from prestigious at Vemagiri. customers such as; GMR Group, The capacity addition target for the In addition, the Company will also Maharashtra State Power Generation, Business Environment 11th À ve year plan ending in 2012 is manufacture Critical piping, Electro- Madhya Pradesh Power Generation, That India needs to build substantial 78,700 MW and for the 12th plan, the static precipitators, Air-preheaters Jayaprakash Group, who are setting up power generation capacity is beyond target is 100,000 MW. It is expected and Axial fans. This would give the mega power plants. question. It is also clear that the reliance that a sizeable capacity will be in coal- company comprehensive capabilities on coal and natural gas as fuel for power based power plants with supercritical to offer world class thermal power During the year, the Division progressed plants will continue for several years. technology. The Power Ministry and L&T offers comprehensive construction services for building hydropower projects. plant solutions. with the execution of its projects for With coal-based plants continuing to the Planning Commission are expected 19 Power 388.5 MW natural-gas-À red combined-cycle power plant built by L&T at Vemagiri. L&T sets up large gas-based utility power-generation projects and independent power projects on an EPC basis, with full compliance to international standards.

to come up with policy measures to international power plant equipment to improve price competitiveness and equipment. This is in the national encourage investment in supercritical producers are also setting up capacities in achieve reliability in project schedules. It interest and should augur well for the technology as well as local manufacture. India. The leading established domestic has set clear targets in this regard to be Division. It is expected that the recourse It is also expected that the outlook for players enjoy leadership position in the realized over the next couple of years. to gas-based power plants to meet gas-based power plants would improve space of power plant equipment. peaking demand shortfall holds good with the successful resolution of issues Outlook prospects for this sector. regarding supply from the east coast Initiatives The Division expects the policy regime gas À elds. The Division has undertaken several to decisively discourage sub-critical With robust demand for power and initiatives such as accelerated technology and support supercritical resultant opportunities for power EPC Power Division faces aggressive indigenization of manufacturing program technology in coal-based generation. generation equipment infrastructure, competition from Chinese players whose for Steam Generators and Steam Turbine PSU-utilities already require EPC Power Division is conÀ dent of faster deliveries and cost advantage Generators, standardization of product establishment of local manufacturing rapidly growing into a major business for Induced draft cooling towers - part of L&T’s comprehesive offerings to the power sector. pose a formidable challenge. Major designs, enlargement of vendor base capacities of power generation the Company. 21 Nuclear Power Plant Equipment Steam generators for pressurised heavy-water reactors being despatched. L&T has been accredited by ASME to use ‘N’ and ‘NPT’ stamps for manufacture of equipment and systems including reactor vessels, reactor heads, steam generators, heat exchangers, control rod drive mechanism and fuel-handling machinery for nuclear power plants.

Heavy Engineering the Indian Navy as well as vessels for sensors and engineering systems is the Indian Coast Guard. The business located at Talegaon in Maharashtra. Overview will also include repair and reÀ t of ships Heavy Engineering Division (HED) and submarines. A Precision Manufacturing Facility at manufactures and supplies custom- Coimbatore in Tamilnadu undertakes designed & engineered critical equipment The Division has manufacturing and precision machined / manufactured & systems to core sector industries like fabrication facilities at Mumbai in components and assemblies. Fertiliser, ReÀ nery, Petrochemical, Maharashtra, Hazira and Vadodara Chemical, Oil & Gas, Thermal & Nuclear in Gujarat, and Visakhapatnam in Design and development of Electronics Power, Aerospace and Defence. The Andhra Pradesh. Systems, which form an integrated part Division’s Ship-building business covers of systems & equipment for Defence, is construction of specialised commercial A Strategic Systems Complex for carried out at the Defence Electronics Piping for passive heat-removal system at Kudankulam Nuclear Power Plant. vessels, warships and submarines for integration & testing of weapon systems, group in Mumbai and a dedicated 23 ReÀ nery Equipment Chrome-Molybdenum-Vanadium Hydrocracker Reactor with 300mm-thick walls, weighing 1000MT, being exported to Greece from Hazira Manufacturing Complex. L&T offers a comprehensive range of critical equipment and systems, including high-pressure heat exchangers, to the hydrocarbon sector worldwide.

Strategic Electronics Center at Bangalore and modern shipyard is in progress at Heavy Equipment & Systems Operating China continues to show promise in the in Karnataka. Kattupalli in Tamilnadu. Company (HES OC) short to medium term. The domestic power plant equipment business shows Technology Development Centers A heavy fabrication facility set up as a Business Environment signiÀ cant potential for growth. have been established in Mumbai to joint venture in Oman was inaugurated HES OC achieved a signiÀ cant increase concentrate on development of new in 2009-2010. It will manufacture in sales in 2009-2010 on the back of a The fertiliser sector is expected to grow products & technologies in the areas equipment for the hydrocarbon & power robust order book at the beginning of given the plans for new fertiliser plants of Process Plant Equipment, Strategic sectors, mainly for the GCC countries. the year. However, new order inÁ ow and the expansion of old ones. New Systems and Electronics. during the year, particularly for export, investment in fertiliser plants is also The Division’s operations are managed was adversely impacted due to the expected in Iran and Brazil. The Division has a well-equipped ship- through two Operating Companies: Heavy global economic meltdown. building yard at Hazira in Gujarat. Equipment & Systems Operating Company, If the announced policy intent of ACN twin reactors enroute to Thailand from Hazira Manufacturing Complex, which has a waterfront facility for despatch of over-dimensioned equipment. In addition, construction of a large and Ship-building Operating Company. The coal-gasiÀ cation business from the government to encourage larger 25 Reactors & High Pressure Exchangers Cr-Mo HDS reactor manufactured at L&T’s Sohar complex in Oman. The complex includes a captive jetty with direct access to the Gulf of Oman.

participation by the private sector is international markets. New projects Capability Building Selective acquisition of talent, including backed by actual implementation, the planned in India, USA, and Europe offer As a part of the Employee Engagement expat consultants, and developing a Defence sector shows deÀ nite promise potential for supply of equipment & systems initiative launched earlier, a program global mindset within the organisation by in the medium to long term. As of now, for new builds and for refurbishment of called “Enterprise-wide Collaboration for placement of individuals on a rotational however, 70% of defence equipment existing nuclear power plants. Alignment with Strategy” (ECAS) enhances basis in US, Europe, China, Russia, Korea continues to be sourced from outside organisational excellence and enables and the GCC have helped in preparing India. Implementation of the offset SigniÀ cant Initiatives optimal use of resources across the the organisation for future challenges. policy has just begun and if made HES OC launched initiatives to maintain division in a collaborative environment. use of as designed, can generate leadership position in the global process The Technology Develop-ment Centers Capacity Augmentation signiÀ cant business. plant equipment market and to gain an focus on continuous development and Apart from the Heavy Fabrication facility early-mover advantage in the Defence adaptation of the latest technologies and recently commissioned at Sohar, Oman, The global nuclear power renaissance equipment sector. development of new products as well as the facilities at Hazira continue to Urea Reactor weighing 210 MT being despatched to a fertiliser plant in Oman. offers growth potential in domestic and product up-gradation. be upgraded. The assembly–integration 27 Reactors & Coal GasiÀ ers SGP Reactors for Qatar Shell gas-to-liquid project ready for despatch. L&T’s Hazira Manufacturing Complex has its own roll-on-roll-off jetty, offering direct access to the Arabian Sea.

capacity for weapon and engineering on setting up this project will mark and execute a large number of projects building market is yet to come out systems at the Strategic Systems the entry of L&T into an exclusive and to improve delivery performance. of the trough. It has been adversely Complex at Talegaon will be doubled by global club of the very few companies impacted by the decreasing demand for the À rst half of 2010-2011. capable of manufacturing ultra-heavy, Automation of design & drawings in the bulk cargo resulting in low freight rates, alloy steel forgings required for the case of Heat Exchangers has substantially a drop in ship prices and negligible Securing Supply Chain Nuclear, Hydrocarbon, Thermal Power & reduced the cycle-time for engineering ordering activity. Shipyards globally During the year, a Joint Venture Steel industries. activities and improved the design were under constant pressure of Agreement was signed with Nuclear process itself. order-cancellations. Power Corporation of India Limited Productivity Improvement Initiatives (NPCIL) to set up a fully integrated The OC continues its focus on operational Ship-building Operating Company By 2011-end, an upward trend is special steel and heavy forgings facility excellence. The Critical Chain Project (SHBD-OC) expected, depending on availability for the hydrocarbon & nuclear power Management methodology based on the Business Environment of À nancing for new builds.Last year, Section of a coal gasiÀ er - one of many supplied to China. L&T has manufactured and supplied the world’s largest coal gasiÀ er to China. sectors. The completion of work Theory of Constraints helps manage, plan The international commercial ship- the Government of India granted a 29 The photograph is for representational purpose only, and does not purport to be a photograph of the actual nuclear-powered submarine built by L&T.

Shipbuilding - Merchant & Naval Pictorial representation of India’s À rst nuclear powered submarine - the INS Arihant - engineered and constructed by L&T. A wide range of equipment and systems for the defence forces encompassing sea, land & air is offered by L&T.

shipbuilding subsidy on all eligible Á eet-expansion program. In 2009-2010, The design team for commercial vessels orders for orders booked prior to a maiden order to construct 36 high- is being strengthened. Resources and August 14, 2007. speed interceptor boats was received. facilities at Hazira for ship-building are A unique feature of this order is being augmented. The Shipbuilders Association of India has that the boats have been designed requested the Government to continue entirely in-house. Outlook the scheme so as to encourage the Overall, the Division envisages good shipbuilding industry in India. SigniÀ cant Initiatives market opportunities and growth The Warship & Submarine Design Center is prospects in the medium to long term. The domestic naval ship-building market being further strengthened to support in- is promising. The Indian Navy has major house design of naval vessels. Cycle-time expansion programs, and the Indian is being reduced by the use of latest 3D Multi-barrel rocket-launch system for India’s defence forces, designed and developed by L&T - largely through in-house R&D. Coast Guard is expected to accelerate its software and virtual reality facilities. 31 Hi-Rise Buildings (B&F OC) The Dubai Marina showcases L&T’s capability in executing ofÀ ce, commercial and residential projects. In the Gulf Co-operation Council countries, L&T has executed several major building projects, switchyards and transmission lines.

Engineering, Construction prized landmark constructions to News Record (ENR)]. The current Buildings & Factories Operating & Contracts its credit, ECCD, India’s largest year’s performance of the Division Company (B&F OC) construction organisation, uses state- reiterates the Company’s global stature B&F OC continues to maintain its Overview of-the-art design tools and project in construction. leadership position in construction of L&T’s Engineering, Construction and management techniques. Supported by major airports, IT parks, turnkey hospitals Contracts Division (ECCD) undertakes a track record of over 65 years covering ECCD consists of Buildings & Factories and residential buildings. Relentless engineering design and construction all types of buildings, industrial sectors Operating Company (B&F OC), business development initiatives along of infrastructure, buildings, factories, and infrastructure development, Infrastructure Operating Company with focus on key account management water supply & metallurgical and the Division undertakes lump-sum (Infra OC), Rail Infrastructure business, and speciÀ c thrust on design-&-build material handling projects covering turnkey construction with single-source Metallurgical Material Handling and projects helped the OC to secure civil, mechanical, and electrical responsibility. The Division secured 35th Water Operating Company (MMHW OC) signiÀ cant order inÁ ows during the year and instrumentation engineering rank amongst construction companies and Electrical & Gulf Projects Operating 2009-2010. ‘Concept to Commissioning’ Hospital in Puducherry built by L&T. disciplines. With many of the Country’s across the globe [source: Engineering Company (E&GP OC). is the theme which continues to drive 33 Airports (B&F OC) Terminal 3 of the Indira Gandhi International Airport, Delhi. The terminal was inaugurated by the Prime Minister of India in time for the Commonwealth Games 2010 hosted by India’s capital. L&T is driving the airports revolution in India, building virtually every major new international airport in the country.

growth. This unique capability along the year include India Tower, Mumbai, Airport. This prestigious project was Infrastructure Operating Company with focus on key account management residential towers for leading promoters widely covered by the media which (Infra OC) helps the OC to retain its customers. like Wadhwa Group, Oberoi Realty, described it as an exemplar of modern Infra OC undertakes construction of B&F OC is technologically geared to Ahuja and DB Realty etc., ESI hospitals Indian infrastructure. At Mumbai roads, runways, bridges, metros, undertake construction of tall towers at Kollam, Coimbatore and Kolkata, IT International airport, Terminal 1C built ports, nuclear / hydropower projects and green buildings. Park and SEZ at Siruseri for Cognizant, on a Design & Build basis has commenced and defence projects. During 2009- JIPMER phase II, Puducherry and factory operations. On the backdrop of a healthy 2010, Infra OC has completed several Creation of business-speciÀ c segments orders from Maruti, Honda, Nestle etc. order book, B&F OC is again poised to prestigious projects, viz. the Vadodara- has further boosted the growth that register satisfactory growth on the Bharuch Road in Gujarat, the Palanpur- helped secure high-value government B&F OC has also reported signiÀ cant revenues during 2010-2011. Swaroopgunj Road in Gujarat & projects (hospitals) and many residential growth in revenues during 2009-2010. Rajasthan, a vessel project at Vizag, projects especially in Mumbai during A major highlight was the completion Alain Duhangan Hydropower project L&T’s offerings in the airports segment include civil, mechanical, electrical and instrumentation, including all associated structures and airport systems meeting 2009-2010. Major orders bagged during of Terminal 3 of the Delhi International in Himachal, etc. Though India’s passenger amenities. 35 Railways & Mass Rapid Transport The Delhi Metro. L&T’s Infrastructure Operating Company provides comprehensive solutions in the urban mass transportation systems like metros, monorails and Light Rail Transport.

Infrastructure Sector witnessed slower nuclear power programme. Infra OC speed up the implementation of various grant of a large number of highway execution growth in 2009-2010, the has set a strong footprint by bagging city metro rail projects in Bangalore, BOT projects and with B.K.Chaturvedi second half of the year showed clear the main plant civil package for the Chennai, Kolkata, Mumbai, etc and Committee recommendations speeding signs of recovery. This was visible in the À rst-ever 2x700 MW nuclear power plant Infra OC has secured elevated packages up highway development. The central transportation infrastructure segments (Indigenous technology) at Kakrapar, of Chennai Metro and Bangalore Metro government has announced aggressive like roads, metros and elevated Gujarat. Incidentally, this was also and underground works for DMRC. targets of developing 20 km of roads corridors which saw a Á urry of activity the largest-ever construction package Infra OC is constructing L&T’s own per day vis-a-vis the current rate of in de-bottlenecking of constraints in conÀ gured by NPCIL in the nuclear power greenÀ eld port-cum-shipyard - Kattupalli 4-5 km. The Company secured two BOT pre-qualiÀ cation and bidding processes. sector. In hydropower sector, Infra OC Port near Chennai. projects – Krishnagiri Walajahpet in Tamil bagged an additional order at Subansiri Nadu and Gandhidham Samakhiali in The year witnessed a resurgence of HEP for surge-tunnel works. Public Private Partnership Projects Gujarat - construction of which will be activities by Nuclear Power Corporation received a huge thrust with the roads undertaken by Infra OC. Successful test run of India’s À rst monorail project in Mumbai. of India (NPCIL) in jet-setting India’s Metro authorities also endeavoured to sector witnessing a revival with the 37 Steel Plants (MMHW OC) Vizag Steel Plant - where L&T carried out engineering, procurement, manufacture, supply, construction and commissioning of the entire project. L&T is also involved in major projects in ferrous and non-ferrous metals, mineral beneÀ ciation and coal washeries.

Rail Infrastructure Business and is leveraging on the Company’s from Tata Steel (coke oven and RMHS); plant for Tata Steel at Jamshedpur and The Company’s Railways Business construction and project management Hindalco (coal-handling plant, pot shell concurrently executing a landmark eight Unit (RLBU) caters to emerging rail skills while executing the current and pot superstructure); BALCO (pot coal handling plants. Its key success infrastructure projects in urban mass two mega projects in the rail shells); UPRVUNL, Adani Power and NTPL factors are high customer-retention, transport systems, railway rolling stock infrastructure sector. (coal-handling plants); Bhushan Steel efÀ cient project management and facility, railway sidings and dedicated (RMHS packages); UP Jal Nigam (water operational excellence. freight corridor systems. With the Metallurgical Material Handling and and sewer projects); and BWSSB (water opening up of rail sector to private Water Operating Company (MMHW OC) supply packages). High growth in the ferrous & non- participation and the growing need for MMHW OC has sustained its growth and ferrous area and the power sector urban mass transport systems, RLBU leadership position again during the MMHW OC has proven its execution and government commitment towards sees tremendous opportunities for À nancial year 2009-2010. The order capabilities by successfully completing infrastructure spending are going to turnkey projects. Accordingly it has built book has increased signiÀ cantly with the projects ahead of time. MMHW OC be the key drivers for the MMHW OC Blast furnace of Bhusan Steel plant, built by L&T. a strong engineering base at Faridabad major breakthrough orders received is currently executing the largest pellet during 2010-2011. A healthy order book 39 Material Handling (MMHW OC) 2730 cu.m.per hour capacity bucket-wheel excavator manufactured and supplied by L&T for the Mines II Expansion Project of Neyveli Lignite Corporation. L&T’s product proÀ le in this segment includes wagon loading systems, stockyard equipment and port-handling equipment and conveyor systems.

gives MMHW OC visibility on the revenue power over long distances with minimum commissioned various projects in India growth for the year 2010-2011. transmission losses. This has given a and the Gulf. À llip to HT transmission line projects Electrical & Gulf Projects Operating and RAPDRP projects in the country. Securing repeat orders from clients like Company (E&GP OC) PGCIL, State Electricity Boards, RVNL, The demand and supply gap in power This OC is focussing on sub-stations, ADWEA in Abu Dhabi, OETC in Oman, drives the business growth of E&GP OC. industrial electriÀ cation, transmission DEWA in Dubai, and KAHRAMAA in Qatar, “Power for all by 2012” is the mission line projects and railway construction testiÀ es to the OC’s superior project statement of the National Electricity on the domestic front, and power execution capabilities and timely Policy, and 11th Power Plan creates transmission and distribution projects in delivery. Breakthrough orders bagged ample power development opportunities Gulf countries. during the year include construction of in India. In addition technological À rst-of-its-kind 1200 kV substation for Giant bucket wheel excavator - part of L&T’s capabilities in bulk material handling. developments help transmitting quality E&GP OC has successfully completed / PGCIL, EHV cabling packages in Delhi 41 Water Systems (MMHW OC) EfÁ uent treatment plant at Ankleshwar. Water constitutes a thrust area for L&T. Advanced technology is adopted by L&T for water/sewage treatment and distribution including desalination.

for DTL, 765 kV substations for PGCIL 1,00,000 MT per annum. The OC has challenging for the construction & UPPCL, and two 800 kV HVDC TL for put up a Transmission Line Research industry as a whole. The overall order PGCIL. Gulf Projects include the À rst & Testing Center (L&T TLRTC) in inÁ ow to the industry has come down 400 kV OHL with Transco - 96km, three Kanchipuram to test the prototypes by about one-fourth in comparison 33 kV S/S & cabling works for Abu Dhabi faster thereby bringing down the overall to the previous year. However, the Ports Company, a breakthrough job in project duration. Gulf operations Government’s focus on Infrastructure is Qatar Petroleum – 132/11 kV S/S and have also reported signiÀ cant growth quite apparent and the initial delays in associated cabling. in revenues. The key success factor awarding of projects are considered to for E&GP OC continues to be superior be more of a temporary phenomenon. With the addition of the third bay in project execution capability. Corroborating this, order inÁ ows started its Puducherry facilities, the installed showing steady improvement towards capacity of the transmission line Business Environment the end of 2009-2010. Desalination plants are part of L&T’s capability spectrum. manufacturing facility has crossed The year 2009-2010 has been quite 43 Ports & Harbours (Infra OC) Dhamra Port on India’s east coast is one of the most modern port complexes in the country, built on PPP model for accelerated turn-around of vessels. L&T carried out complete civil, electrical and mechanical construction for this port. Other maritime structures built by L&T include a port at Mundhra, a breakwater at Karwar and open-sea jetties at Karaikal and Ratnagiri.

For the construction industry, the primary grew by 6.5% in 2009-2010 on top of a With the manufacturing sector drivers of growth remain robust in many growth of 5.9% in 2008-2009. rebounding, there is an increasing areas. the most important drivers are demand of ferrous and non-ferrous (a) infrastructure development; (b) core The Union Budget 2010 lays increasing metals and chemicals. Capacity addition sector capacity enhancement; and (c) emphasis on infrastructure development is thus again in focus. The construction urbanization. These growth drivers are with huge budgetary allocation and industry, especially the larger À rms, is irreversible and are underpinned by India’s increased focus on promoting the set to gain from this. Power remains domestic demand and the existing social private–public-partnership route for the cornerstone for social and economic and physical ‘infrastructure deÀ cit’. À nancing of infrastructure projects. development in a country like India. Therefore, the demand for infrastructure Thus, the strong focus on power would The construction industry is by nature - especially in areas relating to urban continue. Investment Á ow into this sector pro-cyclical. Even with the cyclical infrastructure, power, roads & water - is less sensitive to economic Á uctuations Material-handling systems at the Dhamra Port. downturn in India, construction sector appears sustainable. and forms a stable source of business. 45 Transmission & Distribution (E&GP OC) 400 kV switchyard at a power plant. L&T has excuted a host of such projects in India and the GCC countries. Capabilities cover design, survey, manufacture, supply, erection, testing and commissioning of switchyards and transmission lines for power grids and utilities.

Though real estate in the Middle East has and capacity augmentation in a few revised target for private investment considerably slowed down, the planned manufacturing sectors are expected contribution is 36% in Eleventh Plan investments in infrastructure and oil & to move a bit slower. However, with as compared to 30% in original gas are set to continue and therefore GCC increasing urbanisation, the housing projections and 25% in Tenth Plan. The would continue to offer good potential sector will continue to present opportunities in different sectors / for the Division’s international business growing opportunities. Affordable mass- geographical locations implicitly offer particularly in power transmission & scale housing is one such opportunity to tremendous market potential to all our distribution and infrastructure. be harnessed. business units.

The construction market shows a mixture As per the mid-term appraisal of the SigniÀ cant Initiatives of optimism and a few concerns. Owing Eleventh Five Year Plan, the Government The Engineering & Construction business to reduced demand, some sectors like plans to rely more on private sector has started witnessing the beneÀ ts of 400 kV tranmission line projects executed by L&T at Fujirah-Dhaid, UAE. realty (especially premium housing) infrastructure investment as the creating Operating Companies (OCs), 47 Solar Power (E&GP OC) L&T has embarked on multiple initiatives in the À eld of renewable energy and in the development of solar photovoltaic power. Picture shows farm of solar panels at L&T’s Engineering Design & Research Center in Chennai.

particularly in business development building training centers in all the regions. units concerned are carefully monitoring initiatives. The OCs have identiÀ ed the developments in these countries Business Development Managers to Outlook and will pitch in at the appropriate time. improve the market share in these difÀ cult All Business Units are engaged in times. This initiative very much aligns developing the Strategic Plan for the Overall, the outlook for the Engineering with the vision of enhancing customer next À ve years with clear focus on & Construction business remains good relationships by engaging with clients at increasing the market share, improving owing to robust order book and diversiÀ ed the early stages of project proposals. competitiveness and expanding beyond business portfolio. The Government’s presently operating geographies. commitment to revitalize the economic Focus on multi-skilling / job rotation will Countries such as South Africa, Saudi scenario through investment in get renewed attention and the Division’s Arabia, Qatar and Vietnam offer plenty infrastructure provides immense scope initiative to train and retain workmen of opportunities for many of the Division’s and opportunities to our business units. L&T manufactures large telescopic windmill structures, aiding the exploration of alternative energy solutions. across India has been strengthened by businesses, and therefore the business 49 Switchgear - Low & Medium Voltage L&T offers a broad range of electrical and electronic solutions. The product spectrum encompasses an array of low voltage switchgear and automation products, catering to the industrial and agricultural sectors as well as the segment of buildings and commercial complexes.

Electrical & Electronics (ESE), Control & Automation (C&A) and L&T Electricals Saudi Arabia (LTESA) (EBG) based at Dammam, Saudi Arabia; Metering & Protection Systems (MPS). L&T Electrical Automation Free Zone Overview ESP and ESE have manufacturing facilities Enterprise (LTEAFZE) based at Jebel Electrical & Electronics Division (EBG) at Powai and Ahmednagar in Maharashtra. Ali, UAE; L&T Wuxi (LTW) at Wuxi, comprises Electrical and Automation ESE also has a manufacturing facility in China and TAMCO Switchgear with Operating Company (EAOC) and stand Coimbatore,Tamil Nadu. C&A operates manufacturing facilities in Malaysia, alone business unit, Medical Equipment from its Automation Campus at Navi Indonesia, Australia and China. & Systems (MED). Mumbai and MPS has its base at Mysore, Karnataka. MED operates from a new The Division won many awards during The four Strategic Business Units under manufacturing facility in Mysore. 2009-2010 including the prestigious EAOC are Electrical Standard Products ‘Sword of Honour’ from the British Medium voltage switchgear, made at L&T’s TAMCO facility. (ESP), Electrical Systems & Equipment EBG has four subsidiary companies - Safety Council. ESP won the Golden 51 Electrical Systems & Medical Equipment L&T offers custom-engineered switchboards equipped with both conventional and intelligent protection, control and communication systems.

Peacock National Quality Award 2010, for control system solutions in the metal quality of products. Going through the RamKrishna Bajaj National Quality Award sector and paper industry. LEAN journey, it has focused on Value 2009 and the best product prize for its Stream Mapping (VSM) as well as Value U-Power Omega Air Circuit Breaker at Process Improvement Engineering (VE) that will help improve ELECRAMA 2010. Business operations across the Division the bottom line. were integrated with SAP ECC 6.0 SigniÀ cant Initiatives in 2009-2010 to achieve signiÀ cant New Product Development The Division gave thrust to a pan-India improvement in process capability. Development of new products and advertisement campaign that was aimed technologies continued to be top priority at improving the visibility of its switchgear Furthering the Divison’s Six-Sigma for the Division. ESP completed the products. It signed a preferred integrator program, an initiative was taken to development of U-Power Omega series agreement with Toshiba Mitsubishi monitor and improve ‘product sigma’ for Air Circuit Breakers in 2009-2010 which Medical equipment manufactured by L&T meet international standards and carry the CE mark. Electric Industrial Systems Corporations all the products in order to elevate the won the ‘best product prize’ award in 53 Automation Systems & Energy Meters Supervisory Control And Data Acquisition system designed, supplied and commissioned by L&T for Onshore Control Centers (OCCs) for offshore operations of Oil & Natural Gas Corporation. The system connects 133 wellhead platforms, 13 process complexes and nine drilling rigs to OCC.

ELECRAMA 2010. Development of D-sine MPS launched two new platforms for Intellectual Property Rights (IPR) infrastructure and power sectors. It Moulded Case Circuit Breakers with new single-phase and four new platforms for This Division has continued its seeks to comprehensively address the protection release was also completed. poly-phase meters. commitment towards intellectual industry, utility and building segments Development of new frames of changeover property. In 2009-2010, EBG À led 128 with its products and system solutions. switch, complete range of MO contactors An Advance TrafÀ c Management System patents, 22 trademarks and 22 design On international business front, Gulf and new thermal overload relays, further (ATMS) along with its toll management registrations. 2009-2010 is the third market is expected to show signs of enhanced the product basket. system has been developed by C&A. consecutive year where the division recovery in 2010-2011. À led more than 100 patents, taking total ESE unveiled a new range of Low Voltage In 2009-2010, MED completely revamped number of live patents to 560. The Division aims at expanding its distribution board, T-ERA. It offers its product basket, offering new products products and service offerings in the increased safety, reduced maintenance in the segments of patient monitoring Outlook domestic market, enhancing its capability time and environment-friendly design. system and surgical diathermy. EBG is upbeat on the recovery of to serve power sector and focusing on L&T’s range of electronic energy meters and relays. Indian economy and investments in new geographies outside India. 55 Industrial Products A section of the wide variety of industrial valves marketed by L&T. With manufacturing facilities in India and China, and a global marketing network, L&T offers Á ow control solutions to oil & gas, reÀ ning, petrochemical, thermal and nuclear power sectors worldwide.

Machinery and Industrial Machinery. Industrial Products comprises allied products manufactured by Valves owned subsidiary of LTIFZE, in Yancheng Products (MIPD) Industrial Valves, Welding Products and Manufacturing Unit (VMU), Audco India in Jiangsu province, China, manufactures Cutting Tools. Industrial Machinery Limited (AIL) and Larsen & Toubro industrial valves for global markets. L&T’s Machinery and Industrial Products consists of Machinery for Pulp & Paper, (Jiangsu) Valve Company Limited, Division (MIPD) consists of Industrial Crushing, Mining, Mineral Processing, China, besides a few Indian and overseas VMU’s Coimbatore plant manufactures Products & Machinery Operating Steel and Rubber & Plastic Processing manufacturers. VBU is one of the few valves for the power sector, markets Company (IPM OC) and Construction Industries. IPM OC also contains the select suppliers for global oil majors. valves supplied through contract manu- Machinery Business Sector (CMBS). following Strategic Business Units and facturing in ranges not fully supported Joint Venture Units: AIL, a 50:50 JV with Flowserve by AIL, and provides technology support Industrial Products & Machinery Corporation, USA, manufactures a wide for new product development. (IPM OC) Industrial Products range of industrial valves at its three IPM OC has two distinct business streams Valves Business Unit (VBU) factories in south India. Larsen & Toubro Welding Products Business (WPB): L&T offers a range of advanced application-engineered Eutectic welding alloys, patented processes and systems that help to reclaim critical machine - Industrial Products and Industrial This unit markets industrial valves and (Jiangsu) Valve Company Limited, a 100% WPB markets products manufactured by components. 57 Industrial Machinery A 46” Hydraulic Tyre Curing Press (Tie-Rod design) for passenger car radial tyres. The machine is part of the wide range of rubber-processing machines manufactured by L&T.

EWAC Alloys Limited (a 50:50 joint venture the domestic manufacturing industry castings in the 3T to 28T range. (e.g. limestone, coal), surface miners of L&T and the Messer Eutectic + Castolin covering automobile, engineering and specialised equipment for steel Group of Germany - market leader in R&M and machine tool segments through At its Kansbahal Plant in Odisha, L&T plants (such as torpedo ladle cars) and and welding), inverter-based welding marketing of industrial cutting tools manufactures steel, alloy iron, SG iron machinery for pulp & paper. machines from Fronius, Austria, oxy- manufactured by ISCAR Limited, Israel. and grey iron castings, as well as large fuel equipment from Messer, Germany, wear- and abrasion-resistant castings for LTM Business Unit (LTMBU): indigenously-developed MIG welding Foundry Business: the power and cement sectors. LTMBU manufactures and markets machines and inverter welding machines L&T’s casting manufacturing unit at Rubber Processing Machinery for the tyre and provides comprehensive solutions in Coimbatore has an annual capacity of Industrial Machinery: industry worldwide. It has manufacturing R&M of critical industrial components. 30,000 tonnes to manufacture large-size Rourkela Campus: facilities at Manapakkam, Chennai and SG iron and special iron castings for wind L&T’s Rourkela Campus, which includes Kancheepuram near Chennai. Industrial Cutting Tools (INP) Business: power and other engineering sectors. its Kansbahal Plant, designs, manufactures Ace 250/630 - 1450 GenXt. L&T manufactures a range of plastics processing machines. INP provides metal cutting solutions to The Foundry has the capacity to produce and markets mineral crushing solutions 59 Construction & Mining Equipment L&T-Komatsu PC200-6 Hydraulic Excavator at a work site in Lavassa in western India. The PC200-6 is India’s largest selling Hydraulic Excavator in the 20-ton class. L&T markets construction and mining equipment manufactured by L&T-Komatsu Limited as well as equipment supplied by Komatsu Limited, worldwide.

L&T Plastics Machinery Limited engineering and product development Mining Tipper Trucks. a wholly-owned subsidiary, which (LTPML) support to all MIPD businesses. manufactures and markets under- LTPML, located at Chembarambakkam in • L&T-Komatsu Limited (LTK), the carriage systems for excavators Tamil Nadu, manufactures and markets Construction Machinery Business 50:50 JV with Komatsu that and material-handling systems like injection moulding machines and Sector (CMBS) manufactures Hydraulic Excavators apron conveyors, etc. auxiliary units for the plastics industry. CMBS markets and renders support for and Hydraulic Components, Its products are used in industries like Construction & Mining Equipment. The distributed in India by CMB; Outlook automobile, electrical goods, packaging, sector comprises: • L&T-Case Equipment Private The Indian economy has shown consistent personal care products, writing • Construction & Mining Business Unit Limited (LTCEPL), a 50:50 JV with growth and remarkable resilience instruments & white goods. (CMB) which markets equipment CNH Global N.V., which manufactures after the slump in 2008-2009 and manufactured by L&T- Komatsu and markets loader backhoes and early 2009-2010. India’s power and Product Development Center (PDC) Limited, India and Komatsu’s vibratory compactors; infrastructure sectors are set to witness Scania Tipper Truck Model P380 at an excavation site. These multi-axle trucks manufactured by the Swedish heavy vehicle Based at Coimbatore, the PDC renders worldwide range, as well as Scania • Tractor Engineers Limited (TENGL), strong growth in the coming year with major are distributed in India by L&T. 61 Earthmoving & Road-building Equipment L&T-CASE 770 loader-backhoe is widely used in infrastructure development projects. The machines incorporate improved kinematics and high-powered hydraulics.

a boost from policy measures and Demand for machinery from mineral The demand for construction equip- budgetary allocations. processing industries is expected to ment is expected to improve due to grow in 2010-2011 backed by huge the increase in spending on urban India is emerging as the world’s reÀ ning infrastructure requirements. infrastructure and general construction. hub, with capacity additions planned. The gap between demand and supply of The valves business has promising The outlook for windmill castings is coal provides growing opportunities for medium-term prospects due to the positive, driven by demand and backed mining equipment. government’s focus on exploration and by readiness of L&T’s world-class foundry production to meet India’s growing facility in Coimbatore. Overall,the Division envisages improve- energy needs through NELP, discoveries ment in industrial trends in the coming natural gas on the East Coast and oil in Global tyre manufacturing facilities are year and a return to better growth trends Rajasthan and Gulf of Cambay and cross- moving more towards Asia due to lower in the second half of the year. L&T-CASE Vibratory Compactor model 1107 - part of the range of À eld-proven machines. country pipeline plans. manufacturing costs. 63 Information Technology L&T Infotech - a subsidiary of L&T – leverages the domain knowledge of the parent company to offer end-to-end software solutions and services to clients across the globe.

LARSEN & TOUBRO service areas are application maintenance to curtail their discretionary IT spend. year, registering an increase of 1%. INFOTECH LIMITED & development, application outsourcing, However, with increased focus on building On a consolidated basis including (L&T Infotech) legacy modernization, package implemen- better offsite ratio and taking adequate subsidiaries in Canada, Germany and tations in SAP/Oracle, infrastructure À nancial risk mitigation measures, L&T GDA Technologies Inc., the total income L&T Infotech, a wholly owned subsidiary management services and specialized Infotech was able to improve operating stood at Rs.19150 million in 2009-2010. of L&T, is a global IT services and solutions services like data warehousing and margin during 2009-2010. provider to various industries. The Company business intelligence. These have been ProÀ t after Tax at Rs.2811 million grew offers its comprehensive, end-to-end augmented by newer offerings like testing L&T Infotech has achieved total by 6% as compared to 2008-2009. software solutions and services in industry services, consulting services, business revenues of Rs.18117 million during verticals like banking & À nancial services, analytics and system integration. the year 2009-2010 compared to insurance, energy & petrochemicals, Rs.17986 million (on a comparable manufacturing and product engineering In the wake of global recessionary basis excluding revenues from Headquarters of L&T Infotech at Mumbai. services (Telecom). The Company’s key condition, some large clients have had engineering services achieved last 65 Integrated Engineering Services Knowledge City at Baroda houses several engineering centers. L&T provides integrated design engineering facilities for process engineering, products development, mechanical design and analysis, process evaluation and technology adaptation.

Integrated Engineering Services has Products, Consumer Electronics, Medical engineers from Mechanical and • The Sales force has been over 3,000 employees delivering high- Devices, Consumer Packaged Goods, Avionics domains have come together organised geographically with special quality engineering and design solutions. Pharmaceuticals, Minerals & Metals, Oil to set up a one-stop shop for emphasis on North America, Europe, The end-to-end services portfolio & Gas and Utilities. With an increase in aerospace clients. Asia PaciÀ c, Middle East and Africa. comprises product design, analysis, the volume of work and a challenging prototyping & testing, embedded business environment, IES is keeping • IES has realigned its mechanical Through these and other actions, IES system design, production engineering, ahead of the competition by leveraging engineering and embedded systems continues to reafÀ rm its commitment to plant engineering, buildings & factories the rich engineering heritage of L&T. engineering services in line with the customer satisfaction and its desire to design, asset information management & industry domains, known as Vertical propel itself on the fast track to growth. sourcing support using cutting-edge CAD/ SigniÀ cant initiatives Business Units. VBU ensures that a CAM/CAE techno-logy in the engineering • A Center of Excellence (CoE) of customer from its domain gets all domains of Automotive, Aerospace, Off- Aerospace has been set up at its engineering services needs met L&T IES draws engineering talent from India’s premier academic institutions. highway Machinery, Railway, Industrial Bangalore in which about 70+ from a single window. 67 Infrastructure Financing The Baroda-Bharuch Highway built by L&T on a BOO basis. Development projects executed by L&T in the Public-Private partnership model include highways, ports, hydroelectric projects and thermal power plants.

FINANCIAL SERVICES strategic investments in the sector. It is L&T Finance Limited (LTF) registered with the Reserve Bank of India L&T Capital Holdings Limited as a non-banking À nancial company. Overview (L&TCHL) LTF, a wholly owned subsidiary of L&T Operations & Performance Capital Holdings Limited, is a diversiÀ ed Overview The Company’s investments in its non-banking À nancial company with L&TCHL, a wholly owned subsidiary of subsidiaries and strategic investments product offerings catering to diverse L&T, consolidates L&T’s investments in increased from Rs.10765 million as at segments of the corporate and À nancial services and gives a distinct March 31, 2009 to Rs.16293 million as retail sectors. LTF has a growing identity to the business segment. L&T at March 31, 2010. During the year, the presence in microÀ nance and is also CHL is the holding company for L&T’s Company has reported dividend income engaged in the distribution of various investments in non-banking À nancial of Rs.51 million and ProÀ t after Tax of À nancial products. Bridge over the Narmada - built by L&T on a Build-Own-Operate basis. companies, mutual funds and a few other Rs.28 million. 69 With its pan-India presence backed by a robust credit to Rs.42493 million on March 31, 2010. Commitment to Corporate Sustainability appraisal, operational and credit delivery model, LTF is well • Total income grew from Rs.2960 million in 2008-2009 equipped to cater to customers across the country. to Rs.4504 million in 2009-2010. Corporate Sustainability at L&T is not prescriptive but participative – it is not a set of rules • ProÀ t After Tax (PAT) grew from Rs.765 million in that have been laid down by the management but rather a responsibility that is shared by all. Operations & Performance 2008-2009 to Rs.1109 million in 2009-2010. The concepts of reducing waste, protecting the environment and contributing to social good LTF recorded signiÀ cantly improved performance during the therefore À nd ready champions across the company. À nancial year 2009-2010, in comparison to the preceding Outlook À nancial year. This was facilitated by the growth in India’s The increased focus on infrastructure investment through Building on our long record of fostering development economy, increased investment in infrastructure and higher the public private partnership model on the back of with a human conscience, we have adopted policies and rural incomes. The positive environment for raising resources strong economic fundamentals would provide the required implemented measures that put us at the vanguard of the was also a contributor to the improved performance. growth impetus to LTIFCL. Notwithstanding the increasing sustainability movement within Indian industry. The highlights of the Company’s À nancial performance are competition, LTIFCL, with its ability to offer timely and as below: appropriate solutions to the customer, is positive about We were among the À rst corporates to codify policies covering its growth outlook. While inÁ ationary trends may lead human resources, environment, health and safety. We maintain the highest standards of corporate ethics, with a transparent • Total assets grew to Rs.75672 million on March 31, 2010 to tightening of credit and money supply, it is expected governance structure, and we contribute signiÀ cantly to the from Rs.53274 million on March 31, 2009; that the demand for infrastructure and the Government’s sustainable growth of our neighbouring communities. • Total income grew to Rs.9657 million in 2009-2010 vis-a-vis focus on the sector would provide the required drivers for

Rs.8303 million in 2008-2009; continued growth. We proactively follow the voluntary guidelines on corporate • ProÀ t After Tax grew to Rs.1565 million in 2009-2010 social responsibility issued by the Ministry of Corporate Affairs vis-à vis Rs.988 million in 2008-2009. L&T Capital Company Limited (LTCCL) in December 2009. In fact, L&T was one of the À rst engineering & construction companies in India to report on Corporate Outlook Overview Sustainability performance. L&T’s full Corporate Sustainability Health measures include immunization, mother and child With India’s economic growth likely to gain further momentum LTCCL, a fully owned subsidiary of L&T, is a portfolio manager Report can be viewed on www.larsentoubro.com care, periodic health camps, and HIV/AIDS prevention. in À nancial year 2010-2011 and with the Government’s registered with the Securities and Exchange Board of India, Educational and vocational programmes focus on building self-sustenance and minimizing dependence. We also continued thrust on infrastructure, credit growth off-take with over Rs.16500 million under its fund management. Employee Engagement Our HR programme covers every aspect of an employee’s minimize adverse social impacts at project sites. Through is expected to be robust. Growth of the agricultural sector It is also a mutual fund distributor / advisor. LTCCL holds engagement with the company. Opportunities are created the L&T Charitable Trust, we reach out to rural communities will lead to higher disposable rural incomes which, in turn, and monitors a signiÀ cant portion of the L&T Group’s to widen their horizons in many ways. Cross-over careers at remote locations. would offer continued demand for rural credit. However, strategic investments. give people the chance to enrich different operational areas continued inÁ ationary pressures may lead to monetary with their experience and expertise. Continuous in-house Vocational Training tightening, leading to higher interest rates and pressure on Operations & Performance training opportunities – both classroom and online – keep It is accepted that rapid economic growth will expand job net interest margin. Mutual fund markets were buoyant in 2009-2010. Major them abreast of the latest trends in their sphere of operation opportunities for India’s youth. But in our view, this alone stock market indices and net asset values of most equity as well as impart the soft skills so crucial for accomplishing is unlikely to resolve the problems facing the country’s L&T Infrastructure Finance Company mutual funds improved. The improved capital market had goals in a socially complex environment. Occupational growing population. To remedy this calls for solutions Limited (LTIFCL) its positive impact on LTCCL’s income and proÀ ts. health and safety continues to receive focus. of a different kind. We on our part have done our bit by initiating and facilitating the training of youth. We chose the less privileged as our core target group. (The paradox Overview During 2009-2010, the company’s gross income clocked Corporate Wellness of circumstances making the rich richer and the poor LTIFCL, a wholly owned subsidiary of L&T Capital Holdings at Rs.201 million, registering a jump of 215% over L&T’s efforts in promoting workplace wellness and poorer applies to education as well: the qualiÀ ed seek and Limited is a non-banking À nance company focused on 2008-2009. The ProÀ t After Tax was signiÀ cantly higher at the sustainable enhancement of health and safety secure super specialized training while the unqualiÀ ed À nd standards have received peer recognition. The À nancing of infrastructure projects, covering various sectors. Rs.137 million, an increase of 292% over 2008-2009. The themselves pushed further behind in the race). We see Confederation of Indian Industry has honoured L&T LTIFCL leverages L&T’s domain knowledge in the engineering company declared an interim dividend of Rs. 4 per share the vocational training imparted by the Larsen & Toubro and construction À elds to provide infrastructure À nancing during the year. with its prestigious Corporate Wellness Award for Charitable Trust and our role in several Construction Skills solutions through a mix of debt, sub-debt, quasi-equity and best health practices. Training Institutes (CSTI) as critical in helping society and in equity participation. It also offers project advisory and loan sustaining industry. syndication services. Care extends beyond careers. L&T encourages all-round growth of its people as well as their families. Personality Industry vis a vis the Environment development is enhanced through classes ranging from Operations & Performance At L&T, we do not regard the earth and industry in adversarial transactional analysis to interpersonal relationships. An roles. Indeed, our whole concept of sustainability is built LTIFCL recorded improved performance during 2009-2010, engineering institute has been set up exclusively for the upon the premise that an industry which is responsible and on the strength of the growth momentum of the Indian children of employees. conscientious can answer the energy intensive needs of economy and investment Á ow into infrastructure projects, growth without compromising the earth or its future. supported by a positive environment for resource raising. Social Initiatives The highlights of its À nancial performance are as below: Working closely with community leaders and local NGOs to We are committed to incorporating eco-efÀ ciency into the assess pressing community needs, we undertake long-term core of our business operations.We are also proactively • Total assets grew from Rs.23978 million on March 31, 2009 programmes in health, education and vocational training. monitoring how our operations interact with the environment

70 71 THRUST AREAS ACTIVITIES Renewable Energy Education Constructing schools and Around 13 per cent of L&T’s electricity requirement is classrooms, providing teaching sourced through wind energy. Solar energy is being tapped aids, conducting enrichment at campuses in Powai, Hazira and Mahape. activities, setting up computer and science laboratories and Emissions supporting pre-school centres. Establishing vocational training L&T has achieved a decline in the emission of Green House institutes. Gases on indirect emission by 16.15 per cent and in direct Employee volunteering Initiatives include blood emission by 7.25 per cent. donation, rallying support during natural calamities, fund-raising, Water Management imparting knowledge to youth. Virtually every water outlet across L&T’s campuses – Mother & child health Conducting health check-up coolers, water fountains, washrooms and basins – carry camps in collaboration with graphic messages urging minimal usage. The results have other organizations for women been encouraging. The company has set for itself a target of and children, setting up health centres focusing on reproductive reducing per capita water consumption by 10 per cent. All health for the underprivileged L&T campuses are targeting a zero discharge goal . sections, camps on cataract, anemia, health awareness, Material EfÀ ciency malnutrition mitigation, etc. We are working with our suppliers and contractors to achieve and intervene wherever it is required to implement measures a greener footprint and minimize the chances of accidental that reduce or mitigate any potential adverse impacts. waste. The concept of ‘Reuse, Recycle, Recover’ is being communicated to all our constituents. This year we have looked at ways to: ƒ Minimise energy consumption ENERGY CONSERVATION INITIATIVES ƒ Follow lean manufacturing practices Total Energy Conserved Initiatives/Interventions ƒ Design for minimizing waste during FY 2008-2009(GJ) ƒ Conserve water resources Process redesign 3,328 ƒ Propagate ‘Green Buildings’ Optimisation / operational 6,869 control & efÀ ciency The Environment – a hot button issue Conversion and retroÀ tting Every aspect of environmental protection receives close and 6,682 continuing attention: of equipment Change to CFL lamps 396 Carbon Footprint mapping Change in mainterance / 151 L&T carried out carbon footprint mapping of its facilities, operation schedule caused by direct, indirect and travel emissions. Rationalisation of lighting 3,051 patterns Energy Consumption Others 56 In 2009, direct energy consumption was reduced by 11.75 per cent. Indirect energy consumption was reduced by 10.98 per cent.

‘A watt saved is 3 watts generated’

At L&T, we recognise that small steps go a long way in conserving energy. We are therefore promoting an energy conscious culture among all employees.

L&T’s Management Development Center is in rapid expansion mode - to keep pace with the growth of the Company and the challenges thrown up by the emerging business environment.

Information given in this publication has been excerpted from an analysis of the Division-wise performance of L&T and a À nancial review of the Company. For more exhaustive information, please refer to L&T’s Annual Report 2009-10.

72 Produced by L&T’s Corporate Communications Dept. SPPL/120710 www.silverpointindia.com