L&T Aims to Double Revenue to Rs 2 Lakh Crore by 2021: AM Naik
Engineering giant Larsen and Toubro Ltd., has set a revenue goal of Rs 2 lakh crore for the year 2021, without compromising on margins, chairman AM Naik said in an address to shareholders at the annual general meeting.
The company also targets an order inflow in excess of Rs 2.5 lakh crore per annum, he added.
Naik, who is expected to step down a year from now, said that the target is ‘ambitious' but achievable, given the current favourable economic conditions.
We believe that the economic conditions are now starting to turn in favour of your company. Combined with the right strategy and on-ground execution, our target, though ambitious, is achievable.AM Naik, Chairman, Larsen & Toubro
Rising Sectors
Naik expects the opening up of two particular sectors to provide fruitful business opportunities – defence and nuclear power.
The defence sector can provide opportunities worth Rs 13 lakh crore over the next 10 years, Naik said. The nuclear power sector too is expected to grow significantly with the resolution of issues related to fuel supply, and better understanding of nuclear liabilities. The estimated opportunity from the sector over the next 10 years is up to Rs 50,000 crore, he added.
Naik also stressed on opportunities in the infrastructure sector given the government's bullishness on the real estate sector and Prime Minister Narendra Modi's plan to convert 100 Indian cities into ‘smart cities'.
The infrastructure sector has over a thousand projects in the pipeline with an estimated consolidated value of over Rs 14 lakh crore, Naik stated.
Focus Areas
Naik mentioned three key focus areas that will help the company achieve its target.
1. Identifying a few ‘growth businesses' which include information technology, technology services, defence, smart world and water management. It will re-allocate resources to these businesses that show potential for value creation, Naik said.
2. The company set up a separate digital group which will formulate and implement solutions across functions, with an aim to extend operational excellence.
In the coming years, digital levers on profitability and growth will extend deeper into the organisation, alter processes and yield dramatically superior outcomes.AM Naik, Chairman, Larsen and Toubro
3. Focus on leadership development for which the company has a seven-step leadership programme in place for its employees.
Also Read: AM Naik's Parting Shot: Strategic Plan to Consolidate Group Into Four Core Businesses
Post Retirement Philanthropy
Without going into details, Naik said he would continue with his philanthropic work and hinted at opening a CBSE school in Powai, Mumbai. He also plans to open up a hospital in the same area next year.
“I got motivated by my grandfather who did everything for the poor. Even my father worked for the poor,” said Naik.
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