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6
Contents
Company Information 7
Organisation Structure 8
Leadership Team 9
L&T’s Nationwide Network & Global Presence 10-11
Standalone Financials - 10 Year Highlights 12
Consolidated Financials - Highlights 13
Graphs 14-15
Corporate Sustainability 16-20
Directors’ Report 21-50
Management Discussion & Analysis 51-104
Auditors’ Report 105-107
Balance Sheet 108
Profit and Loss Account 109
Cashflow Statement 110
Schedules forming part of Accounts 111-136
Notes forming part of Accounts 137-170
Information on Subsidiary Companies 171-177
Auditors’ Report on Consolidated Financial Statements 179
Consolidated Balance Sheet 180
Consolidated Profit and Loss Account 181
Consolidated Cashflow Statement 182
Schedules forming part of Consolidated Accounts 183-202
Notes forming part of Consolidated Accounts 203-228
6
7
Company Information
Board of Directors
A. M. Naik Chairman & Managing Director
J. P. Nayak Whole-time Director & President(Machinery & Industrial Products)
Y. M. Deosthalee Whole-time Director &Chief Financial Officer
K. Venkataramanan Whole-time Director & President(Engineering & Construction Projects)
R. N. Mukhija Whole-time Director & President(Electrical & Electronics)
K. V. Rangaswami Whole-time Director & President(Construction)
V. K. Magapu Whole-time Director & SeniorExecutive Vice President(IT & Technology Services)
M. V. Kotwal Whole-time Director & SeniorExecutive Vice President(Heavy Engineering)
S. Rajgopal Non-Executive Director
S. N. Talwar Non-Executive Director
M. M. Chitale Non-Executive Director
Thomas Mathew T. Nominee - LIC
N. Mohan Raj Nominee - LIC
Subodh Bhargava Non-Executive Director
Bhagyam Ramani (Mrs) Nominee - GIC
A. K. Jain Nominee - SUUTI
J. S. Bindra Non-Executive Director
Company Secretary
N. Hariharan
Registered Office
L&T House, Ballard Estate, Mumbai - 400 001
Auditors
M/s. Sharp & Tannan
Solicitors
M/s Manilal Kher Ambalal & Co.
Registrar & Share Transfer Agents
Sharepro Services (India) Private Limited
65th ANNUAL GENERAL MEETING
AT BIRLA MATUSHRI SABHAGAR
19, MARINE LINES, MUMBAI 400 020
ON THURSDAY, AUGUST 26, 2010
AT 3.00 P.M.
L&T’s registered office in Mumbai.
8
OPE
RAT
ING
Cos
.
Ups
trea
m• O
il &
Gas
EP
C
Pro
ject
s• M
odul
ar F
abric
atio
n &
Dril
ling
Rig
s• F
loat
ing
Pro
duct
ion
S
yste
ms
• Ins
talla
tion
Ser
vice
s• S
ubse
a S
yste
ms
• L&
T Va
ldel
- E
ngin
eerin
g S
ervi
ces
Mid
& D
owns
trea
m• R
efi n
erie
s• P
etro
chem
ical
&
Fer
tiliz
ers
• Gas
Pro
cess
ing
• L&
T C
hiyo
da -
Eng
inee
ring
Ser
vice
s Pr
oces
s Pl
ant
Con
stru
ctio
n
Pipe
lines
• EP
C -
Cro
ss-c
ount
ry
Pro
ject
s &
C
onst
ruct
ion
• L&
T-G
ulf P
ipel
ine
E
ngin
eerin
gE&C
PR
OJE
CTS
K. V
ENK
ATA
RA
MA
NA
N
A. M
. NA
IK
CH
AIR
MA
N &
MA
NAG
ING
DIR
ECTO
R
CO
NST
RU
CTI
ON
K. V
. RA
NG
ASW
AM
I
OPE
RAT
ING
Cos
.
Bui
ldin
gs &
Fac
torie
s• I
nstit
utio
nal &
Com
mer
cial
B
uild
ings
• Res
iden
tial P
roje
cts
• Tow
nshi
ps &
SE
Z• A
irpor
ts• H
otel
s &
Hos
pita
ls• S
yste
m H
ousi
ng• I
ndus
trial
Pla
nts
• For
mw
ork
& B
uild
ing
Pro
duct
s
Infr
astr
uctu
re• P
orts
& H
arbo
urs
• Brid
ges
• Roa
ds &
Run
way
s• M
etro
Tra
nspo
rtatio
n• H
ydro
elec
tric
• Nuc
lear
Pow
er• L
&T
Ram
bøll
– E
ngin
eerin
g
Ser
vice
s
Met
allu
rgic
al, M
ater
ial
Han
dlin
g &
Wat
er• M
iner
als
& M
etal
s• B
ulk
Mat
eria
l Han
dlin
g• W
ater
Tre
atm
ent &
D
istri
butio
n P
roje
cts
Elec
tric
al P
roje
cts
• Tra
nsm
issi
on L
ines
• S
ubst
atio
ns• I
ndus
trial
Ele
ctrifi
cat
ion
& In
stru
men
tatio
n• R
ailw
ay C
onst
ruct
ion
HEA
VY IN
DU
STRY
M. V
. KO
TWA
L
OPE
RAT
ING
Cos
.
Hea
vy E
ngin
eerin
g• C
oal G
asifi
ers
& T
herm
al P
lant
E
quip
men
t• F
ertil
izer
& P
etro
chem
ical
E
quip
men
t• R
efi n
ery,
Cra
cker
P
lant
and
Oil &
Gas
E
quip
men
t• W
eapo
n S
yste
ms
• Nuc
lear
Pow
er
Equ
ipm
ent
• Aer
ospa
ce
& A
viat
ion
• S
trate
gic
Ele
ctro
nics
Avi
onic
s
Ship
build
ing
&
Mar
ine
Syst
ems
• Nav
al
• Mer
chan
t• R
epai
r & R
efi t
Hea
vy F
orgi
ng
Faci
litie
s
R. N
. MU
KH
IJA
ELEC
TRIC
AL
&EL
ECTR
ON
ICS
OPE
RAT
ING
Co.
Elec
tric
al &
A
utom
atio
n• E
lect
rical
Sta
ndar
d
Pro
duct
s• T
AM
CO
– M
ediu
m
Vol
tage
Pro
duct
s• E
lect
rical
Sys
tem
s &
E
quip
men
t• C
ontro
l & A
utom
atio
n• M
eter
ing
&
Pro
tect
ion
Sys
tem
s
SBU
• Med
ical
Equ
ipm
ent
& S
yste
ms
J. P
. NAY
AK
MA
CH
INER
Y &
IN
DU
STR
IAL
PRO
DU
CTS
OPE
RAT
ING
Cos
.
Indu
stria
l Pro
duct
s &
M
achi
nery
• I
ndus
trial
Mac
hine
ry
f
or P
aper
, Ste
el,
Bul
k M
ater
ial
Han
dlin
g • R
ubbe
r Pro
cess
ing
Mac
hine
ry• P
last
ics
Pro
cess
ing
Mac
hine
ry• I
ndus
trial
Val
ves
• Wel
ding
Pro
duct
s &
Cut
ting
Tool
s• F
ound
ry P
rodu
cts
• Hea
vy S
truct
ure
Fa
bric
atio
n
Con
stru
ctio
nM
achi
nery
• Con
stru
ctio
n &
Min
ing
M
achi
nery
• Hyd
raul
ic E
quip
men
t• U
nder
carr
iage
and
M
ater
ial H
andl
ing
Sys
tem
s• S
pare
s &
Ser
vice
Y. M
. DEO
STH
ALE
E
FIN
AN
CE
&
HR
DEV
ELO
PMEN
T PR
OJE
CTS
&
FIN
AN
CIA
L SE
RVI
CES
Fina
ncia
l Se
rvic
es• I
nfra
stru
ctur
e F
inan
ce• E
quip
men
t Fin
ance
• T
rade
Fin
ance
• M
icro
fi nan
ce• M
utua
l Fun
ds• G
ener
al In
sura
nce
Infr
astr
uctu
re
Dev
elop
men
t Pr
ojec
ts• R
oads
& B
ridge
s• P
orts
& H
arbo
urs
• Rai
lway
s• H
ydro
Pow
er
Pro
ject
s• T
rans
mis
sion
P
roje
cts
• Wat
er P
roje
cts
• Gas
Pip
elin
es• S
olar
Ene
rgy
Urb
an In
fras
truc
ture
D
evel
opm
ent
RAV
I UPP
AL
OPE
RAT
ING
Co.
L&T
Pow
er L
imite
d• C
oal-b
ased
S
uper
criti
cal
Pro
ject
s• G
as-b
ased
Pro
ject
s• B
oile
r Isl
and
• STG
Isla
nd• B
oile
r
Man
ufac
turin
g
Fac
ilitie
s• P
ulve
rizin
g M
ills
(
VR
M)
• Tur
bine
M
anuf
actu
ring
F
acili
ties
• Hea
vy F
ound
ry• H
P P
ipin
g
Man
ufac
turin
g
Fac
ilitie
s• A
xial
Fan
s &
Air
Pre
heat
ers
M
anuf
actu
ring
F
acili
ties
• Ele
ctro
stat
ic
P
reci
pita
tors
Man
ufac
turin
g
Faci
litie
s• T
herm
al P
ower
Pla
nt
Con
stru
ctio
n • L
&T
Sar
gent
&
Lun
dy -
Eng
inee
ring
S
ervi
ces
Rai
lway
Pro
ject
s• T
urnk
ey S
olut
ions
• Mas
s Tr
ansp
ort S
yste
ms
• Rol
ling
Sto
ck -
Eng
inee
ring
& M
anuf
actu
ring
INTE
RN
ATIO
NA
L B
USI
NES
S: L
&T
is c
onso
lidat
ing
its p
rese
nce
in th
e M
iddl
e Ea
st, A
fric
a an
d So
uth
East
Asi
a by
ram
ping
up
capa
bilit
ies
in E
PC, C
onst
ruct
ion
and
Man
ufac
turin
g.
V. K
. MA
GA
PU
IT &
EN
GIN
EER
ING
SE
RVI
CES
OPE
RAT
ING
Co.
L&T
Info
tech
IT S
ervi
ces
Vert
ical
s• M
anuf
actu
ring
• Ene
rgy,
Oil
& G
as &
Pro
cess
Indu
strie
s• P
rodu
ct
Eng
inee
ring
Ser
vice
s • I
nsur
ance
• Ban
king
& F
inan
cial
S
ervi
ces
Hor
izon
tals
• ER
P –
SA
P, O
racl
e• I
nfra
stru
ctur
e
Man
agem
ent
S
ervi
ces
SBU
sIn
tegr
ated
Eng
inee
r-in
g Se
rvic
es• M
echa
nica
l &
Mec
hatro
nics
S
ervi
ces
• Em
bedd
ed S
yste
ms
&
Sof
twar
e
CIO
ENG
INEE
RIN
G &
CO
NST
RU
CTI
ON
A.K
. CH
HAT
WA
NI
OPE
RAT
ING
Co.
Pow
er D
evel
opm
ent
& C
onst
ruct
ion
• Pow
er D
evel
opm
ent
• Fue
l Sou
rce
M
anag
emen
t• O
&M
• D
evel
opm
ent &
EP
C
for A
lum
ina
Pro
ject
• W
ater
Pro
cess
T
echn
olog
y
9
Leadership Team
A. M. Naik
Chairman &
Managing Director
J. P. Nayak
President
(Machinery & Industrial
Products)
Y. M. Deosthalee
Chief Financial Officer
K. Venkataramanan
President
(Engineering &
Construction Projects)
R. N. Mukhija
President
(Electrical &
Electronics)
K. V. Rangaswami
President
(Construction)
V. K. Magapu
Senior Executive
Vice President
(IT & Technology
Services)
M. V. Kotwal
Senior Executive
Vice President
(Heavy Engineering)
Ravi Uppal
CEO & MD
L&T Power Limited
A. K. Chhatwani
Senior Executive
Vice President
(Power Development)
10
A Nationwide Network
Note: The pictorial representation does not purport to be the political map of India
11
A Global Presence
Note: Map is broadly representative of L&T’s global presence.
Product & Equipment Supply
Fabrication
12
Rs.crore
Description 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001Profi t and Loss Account Gross sales & service 36996 34045 25187 17901 14966 13255 9807 9870 8167 7825 Other income 2385 1032 676 522 519 732 461 302 277 310 Gross revenues 39381 35077 25863 18423 15485 13987 10268 10172 8444 8135 Net sales & service 36675 33647 24855 17567 14735 13050 9561 9360 7726 7390 PBDIT ^^ 5726 4662 3403 2245 1480 1115 945 1047 1102 1116 Profi t before tax (excluding extraordinary/exceptional items) 4806 3940 3068 1982 1235 933 769 510 401 339 Profi t after tax (excluding extraordinary/exceptional items) 3185 2709 2099 1385 863 631 533 433 347 315 Extraordinary items (net of tax) 136 773 – – 70 – – – – – Exceptional items (net of tax) 1055 – 74 18 79 353 – – – – Profi t after tax (PAT) 4376 3482 2173 1403 1012 984 533 433 347 315 Dividend including dividend distribution tax 880^ 720^ 572 428 349 407 225 211 174 178Balance Sheet Share capital 120 117 58 57 27 26 25 249 249 249 Share application money 25 – – – – – – – – – Reserves 18167 12343 9497 5711 4613 3343 2750 3314 3095 3751 Net worth 18312 12460 9555 5768 4640 3369 2775 3563 3344 4000 Deferred tax liability (net) 77 48 61 40 77 95 114 841 853 – Loan funds 6801 6556 3584 2078 1454 1859 1324 3176 3463 4263 Capital employed 25190 19064 13200 7886 6171 5323 4213 7580 7660 8263 Net fi xed assets 6366 5195 3645 2225 1605 1083 1015 4056 4264 4671 Investments 13705 8264 6922 3104 1920 961 966 1160 918 813 Net working capital (NWC) 5119 5605 2630 2547 2625 3238 2185 2300 2413 2735 Miscellaneous expenditure (to the extent not written-off)
– – 3 10 21 41 47 64 65 44
Ratios and statistics PBDIT incl. other income as % of total income @ 15.09 13.44 13.37 12.43 9.75 8.30 9.43 10.84 13.76 14.49 PAT excluding extraordinary/exceptional items as % of total income $ 8.39 7.81 8.25 7.67 5.71 4.70 5.32 4.48 4.34 4.09 ROCE % * 15.92 18.52 21.12 20.71 16.70 14.63 14.40 7.65 7.47 7.47 RONW % ** 20.73 24.67 28.21 26.84 21.88 21.05 20.66 12.91 9.69 8.18 Gross Debt: Equity ratio 0.37:1 0.53:1 0.38:1 0.36:1 0.32:1 0.56:1 0.49:1 0.92:1 1.07:1 1.09:1 NWC as % of gross sales & service 13.84 16.47 10.44 14.23 17.54 24.43 22.28 23.30 30.42 34.95 Current ratio 1.24 1.34 1.19 1.27 1.38 1.58 1.47 1.58 1.81 2.11 Basic earnings per equity share (Rs.) # 73.77 59.50 37.80 25.11 19.02 19.41 10.71 8.71 6.98 6.34 Book value per equity share (Rs.) ## 303.69 212.31 162.95 101.14 83.50 63.48 54.18 69.57 65.13 78.66 No. of equity shareholders 8,14,678 9,31,362 5,78,177 4,28,504 3,27,778 3,23,908 3,65,824 4,90,628 5,09,922 5,13,562 No. of employees 38,785 37,357 31,941 27,191 23,148 19,848 18,996 21,873 22,922 23,988
Figures for the years 2000-2001 to 2002-2003 include demerged cement business.^^ Profi t before depreciation, interest and tax [PBDIT] (excluding extraordinary/exceptional items) and including other income.^ Includes dividend distribution tax of Rs. 14.77 crore for FY 2009-2010 and Rs.2.69 crore for FY 2008-2009, paid by direct subsidiary companies for
which set off was availed by the parent company as permitted under the Income Tax Act.@ PBDIT as % of total income [(PBDIT excluding extraordinary/exceptional items)/(total income excluding extraordinary/exceptional items)]. $ PAT excluding extraordinary/exceptional items as % of total income [(PAT excluding extraordinary/exceptional items)/(total income excluding
extraordinary/exceptional items)].* ROCE [(PAT excluding extraordinary/exceptional items+interest-tax on interest)/(average capital employed excluding revaluation reserve and
miscellaneous expenditure)].** RONW [(PAT excluding extraordinary/exceptional items)/(average net worth excluding revaluation reserve and miscellaneous expenditure)].# Basic earnings per equity share has been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus
shares/restructuring during the respective years.## After considering issue of bonus shares/restructuring during the respective years.
STANDALONE FINANCIALS-10 YEAR HIGHLIGHTS
13
Rs.crore
Description 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002Profi t and Loss Account Gross sales & service 43854 40608 29561 20700 16747 14599 11107 10857 9195 Other income 3051 916 684 1071 577 696 488 267 239 Gross revenues 46905 41524 30245 21771 17324 15295 11595 11124 9434 Net sales & service 43514 40187 29199 20336 16500 14379 10849 10327 8714 PBDIT ^^ 7198 5600 4097 3013 1904 1404 1271 1240 1341 Profi t before tax (excluding extraordinary/ exceptional items) 5527 4344 3384 2510 1472 1052 921 469 414 Profi t attributable to Group shareholders (excluding extraordinary/exceptional items) 3796 3007 2304 1810 1051 697 600 380 290 Extraordinary items (net of tax) 136 773 – – 70 – – – – Exceptional items (net of tax and minority interest) 1519 9 21 430 196 353 147 – – Profi t attributable to Group shareholders 5451 3789 2325 2240 1317 1050 747 380 290 Dividend including dividend distribution tax 880 720 572 428 349 407 225 211 174Balance Sheet Share capital 120 117 58 57 27 26 25 249 249 Share application money 25 – – – – – – – – Reserves 20846 13871 10773 6865 4937 3290 2622 2968 2889 Net worth 20991 13988 10831 6922 4964 3316 2647 3217 3138 Minority interest 1087 1058 923 646 107 105 54 50 44 Loan funds 22656 18400 12120 6200 3499 3454 2769 4701 4978 Deferred payment liabilities 1951 1970 196 232 – – – – – Deferred tax liability (net) 153 131 122 107 127 138 214 913 928 Capital employed 46838 35547 24192 14107 8697 7013 5684 8881 9088 Net fi xed assets 18979 15618 8523 5440 2973 2215 2140 5539 5824 Investments 9928 6805 5552 2478 1676 615 624 528 358 Loans & advances towards fi nancing activities 10935 7110 6161 2410 1012 406 375 323 218 Net working capital (NWC) 6996 6014 3927 3762 3011 3736 2498 2392 2613 Miscellaneous expenditure (to the extent not written-off)
– – 29 17 25 41 47 99 75
Ratios and statistics PBDIT including other income as % of total income @ 16.09 13.63 13.73 14.41 11.32 9.54 11.21 11.70 14.98 PAT excluding extraordinary/exceptional items as % of total income $ 8.49 7.32 7.72 8.66 6.25 4.73 5.29 3.59 3.24 ROCE % * 12.68 13.82 16.69 20.74 17.62 14.92 14.01 7.16 6.82 RONW % ** 21.75 24.32 26.68 30.71 25.78 23.96 21.24 12.45 9.24 Gross Debt:Equity ratio 1.08:1 1.32:1 1.12:1 0.90:1 0.71:1 1.06:1 1.08:1 1.52:1 1.65:1 Net Debt:Equity ratio 0.51:1 0.84:1 0.57:1 0.44:1 0.49:1 0.89:1 0.76:1 1.27:1 1.53:1 NWC as % to gross sales 15.95 14.81 13.28 18.17 17.98 25.59 22.49 22.03 28.41 Current ratio 1.29 1.31 1.25 1.36 1.40 1.64 1.50 1.55 1.79 Basic earnings per equity share (Rs.) # 91.90 64.76 40.44 40.10 24.75 20.70 15.01 7.65 5.83 Book value per equity share (Rs.) ## 348.06 238.27 184.31 121.39 89.36 62.44 51.58 61.99 60.82
Figures for the years 2001-2002 & 2002-2003 include demerged cement business^^ Profi t before depreciation, interest and tax [PBDIT] (excluding extraordinary/exceptional items) and including other income.@ PBDIT as % of total income [(PBDIT excluding extraordinary/exceptional items)/(total income excluding extraordinary/exceptional items)].$ PAT excluding extraordinary/exceptional items as % of total Income [(PAT excluding extraordinary/exceptional items)/(total income excluding
extraordinary/exceptional item)]* ROCE [(profi t available for appropriation excluding extraordinary/exceptional items+minority interest+interest-tax on interest)/(average capital
employed excluding revaluation reserve,miscellaneous expenditure and borrowed funds of fi nancial services business)]** RONW [(profi t available for appropriation excluding extraordinary/exceptional items)/(average net worth excluding revaluation reserve and
miscellaneous expenditure)]# Basic earnings per equity share has been calculated including extraordinary/exceptional items and adjusted for all the years for issue of bonus
shares/restructuring during the respective years.## After considering issue of bonus shares/restructuring during the respective years.
CONSOLIDATED FINANCIALS - HIGHLIGHTS
14
L&T-ORDER INFLOW
L&T-PAT & EPS
L&T-PBDIT AS % OF TOTAL INCOME
L&T-SALES
L&T-FIXED ASSET TURNOVER RATIO
L&T-INTEREST COVERAGE RATIO
15
L&T-SEGMENT-WISE ORDER INFLOW 2009-2010
L&T-SECTOR-WISE ORDER BOOK AS AT MARCH 31, 2010
L&T-SEGMENT-WISE RESULT
L&T-SEGMENT-WISE SALES 2009-2010
L&T CONSOLIDATED SALES AND PAT
L&T-SEGMENT-WISE EBITDA MARGINS*
16
There are 3 dimensions to progress – the economic, the environmental and thesocial. It is now widely accepted that success on any one parameter alone wouldbe lopsided, unstable and, in the end, unsustainable. We at L&T have a long traditionof believing and acting on the principle that all three dimensions must go hand inhand.
Building on our rich heritage of fostering development with a human conscience,we have now adopted policies and implemented measures that put us at thevanguard of the sustainability movement within Indian industry. We were amongthe first corporates to codify policies covering human resources, environment,health and safety. We maintain the highest standards of corporate ethics, with atransparent governance structure, and we contribute significantly to the sustainablegrowth of our neighbouring communities. We proactively follow the voluntaryguidelines on corporate social responsibility issued by the Ministry of CorporateAffairs in December 2009. In fact, L&T was one of the first engineering & constructioncompanies in India to report on Corporate Sustainability performance. Theseactivities are highlighted in the following pages. The full Corporate SustainabilityReport can be viewed on www.larsentoubro.com
- because progress is best viewed in 3 D
Corporate Sustainability
17
People - those who so proudly
wear the L&T badge, those who
belong to the extended family of
L&T’s supply chain and those who
are part of the community
around us – are all integral to our
future.
Employee Engagement
Our HR programme covers every aspect
of an employee’s engagement with the
company. Opportunities are created to
widen their horizons in many ways.
Cross-over careers give people the
chance to enrich different operational
areas with their experience and
expertise. Continuous in-house training
opportunities – both classroom and
online – keep them abreast of the latest
trends in their sphere of operation as
well as impart the soft skills so crucial
for accomplishing goals in a socially
complex environment. Occupational
health and safety continues to receive
focus.
Corporate Wellness
L&T’s efforts in promoting workplace
wellness and the sustainable
enhancement of health and safety
standards have received peer
recognition. The Confederation of
Indian Industry has honoured L&T with
its prestigious Corporate Wellness Award
for best health practices.
Care extends beyond careers. L&T
encourages all-round growth of its
people as well as their families. Trained
counsellors help them tide over life’s
crises. Personality development is
enhanced through classes ranging from
transactional analysis to interpersonal
relationships. An engineering institute
has been set up exclusively for the
children of employees. Although the
nature of our project, product and
service offerings has resulted in a male-
dominated workforce, the number of
women employees is steadily increasing.
Fostered by the spirit of professionalism
and acceptance by male colleagues, and
aided by facilities like crèches at major
locations, women are enabled to make
a positive contribution to the Company’s
growth.
Education
Employee volunteering
Mother & child health
Constructing schools and classrooms, providing teaching
aids, conducting enrichment activities, setting up
computer and science laboratories and supporting pre-
school centres.
Establishing vocational training institutes.
Initiatives include blood donation, rallying support
during natural calamities, fund-raising, imparting
knowledge to youth.
Conducting health check-up camps in collaboration with
other organizations for women and children, setting up
health centres focusing on reproductive health for the
underprivileged sections, camps on cataract, anemia,
health awareness, malnutrition mitigation, etc.
THRUST AREAS ACTIVITIES
L&T’s Management Development Centre is in rapid expansion mode - to keep pace with the
growth of the Company and the challenges thrown up by the emerging business environment.
L&T views training as a sustainability tool.
Social InitiativesIn the same spirit of viewing progress in
all its dimensions, at L&T, we view social
responsibilities as an extension of our
people initiatives. Working closely with
community leaders and local NGOs to
assess pressing community needs, we
undertake long-term programmes in
health, education and vocational
training. Health measures include
immunization, mother and child care,
periodic health camps, and HIV/AIDS
prevention. Educational and vocational
programmes focus on building self-
sustenance and minimizing dependence.
We also minimize adverse social impact
at project sites. Through the L&T
Charitable Trust, we reach out to rural
communities at remote locations.
Vocational Training
It is accepted that rapid economic
growth will expand job opportunities for
India’s youth. But in our view, this alone
is unlikely to resolve the problems facing
the country’s growing population. As
we see it, the malaise at the heart of
our socio-economic set up is not
unemployment but unemployability. To
remedy this calls for solutions of a
different kind. We on our part have
done our bit by initiating and facilitating
the training of youth. Here again, we
chose the less privileged as our core
target group. (The paradox of
circumstances making the rich richer
and the poor poorer applies to education
as well: the qualified seek and secure
super specialized training while the
unqualified find themselves pushed
further behind in the race). We
therefore see the vocational training
imparted by the Larsen & Toubro
Charitable Trust and our role in several
Construction Skills Training Institutes
(CSTI) as critical in helping society and
in sustaining industry.
Ultra-low sulphur diesel reactor L&T is one of the few companies
in India with the advanced manufacturing capability to design,
engineer and manufacture equipment that meets the demands of
clean fuel technology.
Nuclear Power Plant It is widely acknowledged that the answer to
balancing the need for energy with the need for growth is to opt for
nuclear power. L&T has developed the capability to supply critical
equipment and build complete nuclear power plants.
L&T’S GREEN SPECTRUMProjects & Products that are helping industry go green
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L&T manufactures India’s widest range of electrical and electronic
equipment for control and distribution of power. Part of this range
are intelligent systems that enable users to manage and conserve
energy.
DHDS Units L&T is one of the few companies in India with the
capability to set up diesel hydro de-sulphurisation (or clean fuel)
projects. L&T executed several of such projects around the country
- milestones on our sustainability journey.
Industry vis a vis the Environment
At L&T, we do not regard the earth and
industry in adversarial roles. Indeed,
our whole concept of sustainability is
built upon the premise that an industry
which is responsible and conscientious
can answer the energy intensive needs
of growth without compromising the
earth or its future. But clearly, today’s
problems cannot be resolved if we
continue to apply yesterday’s solutions.
That is why L&T keeps itself abreast of
the latest developments in technology
to apply the most advanced solutions
to today’s needs. We constantly seek
newer, more eco-sensitive and more
efficient answers. Featured below is a
selective representation of ‘green-
enablers’ – products and systems offered
by L&T which are helping industry save
energy, reduce carbon emissions, and
help preserve the environment.
We are committed to incorporating eco-
efficiency into the core of our business
operations.We are also proactively
monitoring how our operations interact
with the environment and intervene
wherever it is required to implement
measures that reduce or mitigate any
potential adverse impacts.
This year we have looked at ways to:
� Minimise energy consumption
� Follow lean manufacturing practices
Initiatives/Interventions Total Energy Conservedduring FY 2008-2009 (GJ)
� Design for minimizing waste
� Conserve water resources
� Propagate ‘Green Buildings’.
Together with all our stakeholders, we
are confident that the colour of
tomorrow will continue to be green.
ENERGY CONSERVATION INITIATIVES
Process redesign 3,328
Optimisation / operational control
& efficiency 6,869
Conversion and retrofitting
of equipment 6,682
Change to CFL lamps 396
Change in maintenance /
operation schedule 151
Rationalisation of lighting
patterns 3,051
Others 56
The products shown here are only an indicative selection of our multipleofferings that contribute to a greener tomorrow. Our main plant equipment,which in a super critical power plant can reduce CO2 emissions from 2.5% to5%, are featured elsewhere in the publication.
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Every aspect of environmental
protection receives close and continuing
attention – energy conservation, water
management, material efficiency….
Carbon Footprint mapping
The management mantra – ‘You cannot
manage what you don’t measure’ is
especially relevant for the environment.
L&T carried out carbon footprint
mapping of its facilities, caused by
direct, indirect factors and travel
emissions.
Energy Consumption
There are two dimensions to
computation of energy consumption –
direct and indirect energy consumption.
L&T has achieved reductions on both
fronts. In 2009, direct energy
consumption was reduced by 11.75 per
cent. Indirect energy consumption was
reduced by 10.98 per cent.
Renewable Energy
Around 13 per cent of L&T’s electricity
requirement is sourced through wind
energy. Solar energy is being tapped at
campuses in Powai, Hazira and Mahape.
Emissions
L&T has achieved a decline in the
emission of Green House Gases on
indirect emission by 16.15 per cent and
in direct emission by 7.25 per cent.
Water Management
Virtually every water outlet across L&T’s
campuses – coolers, water fountains,
washrooms and basins – carry graphic
Corporate Sustainability at L&T is not prescriptive but participative – it
is not a set of rules that have been laid down by the management but
rather a responsibility that is shared by all. The concepts of reducing
waste, protecting the environment and contributing to social good
therefore find ready champions across the company.
The Environment – a hot button issue
‘A watt saved is 3 wattsgenerated’
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.
The Technology Block at Hazira (above) was awarded the Platinum certification under the
internationally recognised LEED (Leadership in Energy & Environmental Design) programme.
L&T’s Engineering Design & Research Centre at Chennai (below) secured a silver rating.
messages urging minimal
usage. The results have
been encouraging. The
company has set for itself a
target of reducing per
capita water consumption
by 10 per cent. All L&T
campuses are targeting a
zero discharge goal.
Material Efficiency
Use of material is
inescapable in business, but
the critical difference lies in the
attitude of responsibility with which
material is sourced, used and
replenished. We are working with our
supplier and contractors to achieve a
greener footprint and minimize the
chances of accidental waste. The
concept of ‘Reuse, Recycle, Recover’ is
being communicated to all our
constituents.
