L T Annual Review 2011-12-Spread (1)

7/30/2019 L T Annual Review 2011-12-Spread (1)

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Annual Review2011-2012


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Mr Naik receives the prestigious CNBC TV 18Inrastructure Leader Award in May 2012

Contents

Company Profle 2

Balance Sheet and Proft & Loss Account 3

L&Ts Domestic and International Network 4-5

Hydrocarbon 6

Power 16

Heavy Engineering 22

Shipbuilding - Merchant & Naval 32

Buildings & Factories 34

Inrastructure 40

Water Projects & Solar Energy 46

Metallurgical & Material Handling 48

Power Transmission & Distribution 52

Electrical Systems & Automation Solutions 56

Machinery & Industrial Products 60

Inormation Technology 66

L&T Technology Services Limited 68

Inrastructure - Development 70

Corporate Sustainability 72


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A. M. NaikExecutive Chairman &

Managing Director

V. K. MagapuPresident

(IT, Engineering Services &Corporate Initiatives)

S. N. RoySr. Executive

Vice President(Power Development,

Corporate Aairs)

R. Shankar RamanChie Financial

Ocer

S. N. SubrahmanyanSr. Executive

Vice President(Inrastructure &Construction)

M. V. KotwalPresident

(Heavy Engineering)

S. RaghavanSr. Vice President

(Machinery &Industrial Products)

S. C. BhargavaSr. Vice President

(Electrical &Automation)

K. VenkataramananCEO &

Managing Director

Leadership Team

Ason12.1

2.2

012

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ear 2011-12 at a Glance

&T

Order Book as at March 31, 2012: ` 1457230 million as

against ` 1309486 million as at March 31, 2011: 11%

growth y-on-y

Gross Revenue rom operations at ` 537378 million

in CY as against ` 442961million in PY: 21% growth

over 10-11

Segment-wise composition o gross revenue:-

Engineering & Construction Segment:

86.4 % in CY as against 85.2% in PY

Electrical & Electronics Segment:

6.6% in CY as against 7.1% in PY

Machinery & Industrial Products Segment:

5.2% in CY as against 6.2% in PY

Others: 1.8% in CY as against 1.5% in PY

&T is a technology, engineering, manuacturing, construction

nd nancial services conglomerate. The L&T Groups consolidated

rnover exceeds USD 12.8 billion. It is engaged in key sectors

the economy inrastructure, hydrocarbon, power, deence,

erospace, construction, shipbuilding, electrical & automation,

ining and metallurgy. L&Ts integrated capabilities span the entire

pectrum o design-to-deliver, and it oers turnkey EPC solutions

its major business lines. Its track record covers products, projects

nd processes executed to international benchmarks.

very aspect o L&Ts businesses is characterized by proessionalism

nd high standards o corporate governance. Sustainability is

mbedded into its long-term strategy or growth.

he Company has a global presence, with manuacturing acilities

seven countries besides India. In addition to a nationwide

omestic network, L&T has several international oces and a

upply chain that extends across the globe.

ecord o Achieements&Ts signature o excellence is evident on:

Hydrocarbon projects executed in India, the Middle East and

South East AsiaPower projects executed in India, the Gul and Sri Lanka.

The worlds largest coal gasier made in India and exported

to China

The worlds biggest EO reactor or a petrochemical complex

in the Gul

The worlds largest FCC regenerator or a renery

Asias highest viaduct

Inrastructure projects in Jordan, U.A.E. and South East Asia

The worlds longest limestone conveyor

Indias widest range o switchgear

A wide range o construction and mining equipment

L&T played a critical role in building Indias rst nuclear -

powered submarine

Indias maiden moon mission

response to changing market dynamics, L&T has gone through a

hased process o redening its organization model that acilitates

rowth through greater levels o empowerment. The new structure

built around multiple businesses designated Independent

ompanies or ICs.

he ollowing pages review the operations and highlight the

apabilities o the Companys multiple businesses.

PBDIT beore exceptional and extraordinary items at

` 76209 million in CY as against ` 67870 million in

PY - up by 12%

PAT excluding exceptional and extraordinary items

` 44134 million in CY against ` 36757 million in

PY - up by 20%

Gross Debt:Equity ratio o 0.39:1 (previous year: 0.33:1)

L&T Group

Gross Revenue rom operations at ` 649601 million in

CY as against ` 524702 million in PY - 24% growth

over 10-11

PAT excluding extraordinary and exceptional items at

` 46488 million in CY as against ` 42379 million in PY

is publication does not purport to be the statutory Annual Report o the Company. For an electronic version o the Annual Report, please visit Corporate Publications at www.Larsentoubro.com

BALANCE SHEET AS AT MARCH 31, 2012

` MILLION

As at

31.3.2012

As at

31.3.2011

EQUITY AND LIABILITIES:

Shareholders' unds: 252230 218462

Non-current liabilities: 61142 59634

Current liabilities: 363558 293004

TOTAL 676930 571100

ASSETS:

Non-current assets:

Fixed assets 83637 74155

Non-current investments 90847 74008

Other non-current assets 41699 33179

216183 181342Current assets 460747 389758

TOTAL 676930 571100

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2012

` MILLION

2011-2012 2010-2011

Revenue rom operations (net) 531705 439059

Other income 13383 11474

Total revenue 545088 450533

Less: Expenses:

Manuacturing, construction and operating

expenses 410201 334682

Employee benets expense 36635 28301

Sales, administration and other expenses 22043 19680

Finance costs 6661 6192

Depreciation, amortisation and obsolescence 6995 5992482535 394847

Prot beore exceptional and extraordinary items and tax 62553 55686

Exceptional items 550 2621

Prot beore extraordinary items and tax 63103 58307

Extraordinary items 0 708

Prot beore tax 63103 59015

Tax expenses 18538 19436

Prot ater tax 44565 39579

Basic earnings per equity share beore extraordinary items ( `) 72.92 64.16

Diluted earnings per equity share beore extraordinary items ( `) 72.23 63.20

Basic earnings per equity share ater extraordinary items ( `) 72.92 65.33

Diluted earnings per equity share ater extraordinary items ( `) 72.23 64.35

Face value per equity share (`) 2.00 2.00

Note: Figures in the previous year have been regrouped / reclassifed wherever necessary.

Note: Figures in the previous year have been regrouped / reclassifed wherever necessary.

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Hydrocarbon Upstream

&T Hydrocarbon delivers design-to-build world-class solutions in

e Engineering & Construction space or the oil and gas sector.

-house expertise and experience, synergized with strategic

artnerships enable it to deliver a single-point solution or every

hase o the project rom ront-end design through engineering,

brication, project management, procurement, construction and

stallation right up to commissioning. The Company ensures on-

me delivery, cost-competitiveness and high quality standards with

ocus on best-in-class HSE and IT security practices.

apabilities include in-house engineering, R&D centres, engineering

int ventures with reputed international companies, oshore

stallation, world-class modular abrication, experienced and

ompetent project execution and a saety-oriented work culture.

Geographical Spread: Major work centres in India are located at

Mumbai (Powai), Vadodara, Chennai, Bangalore, Faridabad, Hazira

and Kattupalli, near Chennai. Internationally, the Company has a

presence in key markets through manuacturing acilities in Oman

(Sohar), project execution capabilities in UAE (Abu Dhabi and

Sharjah), Qatar (Doha) and Saudi Arabia (Al-Khobar) and business

development oces in Houston, London, Singapore, Kuala Lumpur,

Rio de Janeiro, Perth, Jakarta and Istanbul. The Company has been

pre-qualied or major projects in Saudi Arabia, UAE, Australia,

South East Asia and Kuwait. In order to venture into newer product

lines like subsea systems and FPSO/MOPU, and to strengthen its

position in areas like ertiliser, it has ormed strategic alliances/

collaborations with world-class technology providers. The Company

is geared to address high-value projects in the GCC through a

&T HYDROCARBONconsortium model with leading EPC players.

L&T Hydrocarbon is structured into three Strategic Business

Groups (SBGs): Hydrocarbon Upstream Hydrocarbon Mid &

Downstream Hydrocarbon Construction & Pipelines.

Hydrocarbon Upstream provides EPIC (Engineering, Procurement,

Installation and Commissioning) solutions covering the ent ire value

chain o oshore oil & gas, encompassing drilling rigs, oshore

platorms and subsea pipelines. Its business portolio includes

well-head platorms, process platorms and modules, subsea

pipelines, brown-eld development, foating systems and

deepwater subsea systems.

L&Ts heavy-lit-cum-pipelay vessel LTS 3000 installing a topside or Neweld Peninsula in Malaysia. L&Ts capabilities cover total solutions or oil & gas production,processing and transportation.

Jack-up rig FD VII reurbished or Lynemouth Drilling SA at L&Ts ModularFabrication Facility at Sohar, Oman.

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Hydrocarbon Upstream

ydrocarbon Upstream has executed large-size projects o the

ast and west coasts o India, the Gul and Arica. The client

ase comprises companies such as ONGC, GSPC, Songas, Qatar

etroleum, Maersk Oil Qatar, Bunduq, PTTEPI, ADMA OPCO.

reakthrough orders or major jack-up rig reurbishment have also

een executed.

ydrocarbon Upstream has three state-o-the-art abrication

cilities oering round-the-year delivery in strategically important

gions. These include Hazira near Surat on the west coast o India,

attupalli near Chennai on the east coast o India, and Sohar in the

ul o Oman with a combined capacity in excess o

50,000 MT per year, catering to abrication o large oil & gas

odules and heavy oshore and onshore structures. In addition,

the yards at Sohar and Kattupalli can execute construction /

reurbishment o jack-up rigs and semis, FPSOs and integrated

decks weighing in excess o 20,000 MT and have water depths o

over 12 metres at the quay wall. Capabilities are urther augmented

with a heavy lit-cum-pipelay installation ves sel LTS 3000.

Hydrocarbon Upstream recently completed installation o the

countrys largest project order secured in 2009 the US $ 1.2 billion

Mumbai High North complex. Here, it achieved several rsts

or Indian oshore such as the largest jacket, heaviest loadout,

heaviest oshore lit, largest oshore living-quarters module and

largest process platorm. The engineering and abrication or the

project was carried out in-house, achieving an end-to-end delivery

capability or such mega projects. The installation vessel, LTS 3000,

was used or installation o jackets, including one weighing

13,500 MT. The project involved a total o 80,000 MT

o abrication.

The Company is pre-qualied by major clients such as Shell,

ConocoPhillips, ExxonMobil, Chevron, Petronas, Saudi Aramco,

Total, Carigali Hess, Apache and Chrysaor or oshore oil & gas

projects in India, the Middle East, South East Asia, Australia, Arica,

North Sea and the Caspian Sea region.

Major well-head platorm orders were secured rom international

clients like PTTEPI, Thailand and ADMA OPCO, Abu Dhabi.

Booster compressor platorm with an interconnecting bridge, built by L&T or Oil & Natural Gas Corporation (ONGC) in South Basin Gas Fields. The project won thePMI Distinguished Project Award rom Project Management Institute, USA.

2000 MT wellhead platorm or Gujarat State Petroleum Corporation sailing out oL&Ts Modular Fabrication Facility at Kattupalli (near Chennai) on the east coast o India.

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Hydrocarbon Mid & Donstream

ydrocarbon Mid & Donstream oers turnkey solutions

ncompassing engineering, procurement, construction and

ommissioning (EPCC) to the petroleum rening, petrochemical,

rtiliser and onshore gas processing sectors.

he Company has experience in project execution involving diverse

chnologies rom process licensors like UOP, Axens, Haldor Topse,

B&I Lummus, Black & Veatch, Ortlo, ExxonMobil, BOC Parsons,

uPont (Invista) and Davy Process Technologies.

he Company has the capability and resources to simultaneously

xecute multiple, large-value, complex projects meeting stringent

elivery schedules and saety norms.

The multi-locational centres o engineering excellence

comprising L&T Chiyoda and in-house design and engineering

centres have over 1500 experienced engineers, equipped to

address the complete spectrum o process and detailed

engineering.

The Company operates rom Mumbai and Vadodara in India. In

the Gul, it has established execution capabilities in Sharjah and

Al-Khobar.

L&T is pre-qualied with major state-owned oil & gas producers in

the Middle East and North Arica and South East Asia, including

PDO, ORPIC, ADNOC, ADMA OPCO, KOC, KJO and Saudi

ARAMCO or upcoming large-value projects.

The Companys track-record covers execution o hydrogen

generation and synthesis gas-generation projects.

Several ast-track renery projects have also been executed,

including diesel hydro-desulphurisation / hydrotreating units and

sulphur recovery units.

During the year, a greeneld gas processing project was secured

rom PDO Oman.

Lube-base oil project built by L&T on an EPC basis or Petronas Penapisans renery at Melaka, Malaysia.

Cracking urnaces & associated units or IOCL at Panipat Naphtha Cracker Project (Capacity:800,000 TPA o polymer grade ethylene & 504,834 TPA o polymer grade propylene).

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Hydrocarbon Mid & Donstream

the domestic gas-processing segment, two projects are under

xecution or additional gas-processing acilities or ONGC at Hazira

nd Uran.

he Company has actively participated in almost all the ertiliser

rojects in India. Strategic alliances with internationally renowned

ompanies provide access to world-class technologies or

anuacture o ammonia and urea.

he Company is executing three ammonia plant modernisation

rojects at Bharuch or Gujarat Narmada Valley Fertilizers

ompany, and at Panipat and Bhatinda or National Fertilizers

mited.

Major jobs completed during the year include commissioning o

hydrogen generation units or GGSR o HMEL at Bhatinda, lube

base oil stock quality upgradation project or HPCL at Mumbai and

mechanical completion o a diesel hydrotreating unit and hydrogen

generation unit or MRPL at Mangalore.

A grassroot paraxylene plant or the aromatic complex o OMPL at

Mangalore and a reactor regenerator package or IOCL at Paradip

are in an advanced stage o completion.

Leveraging its modular abrication acilities, the Company

is in the process o expanding its reach to capitalise on emerging

business opportunities or supplying onshore process modules in

international markets.

Fertilizer plant at Kakinada in South India built by L&T or Nagarjuna Fertilizers & Chemicals Limited. L&T oers turnkey EPCC solutions to the ertilizer industry.

Lube base oil stock quality upgradation project (200,000 MTPA) executed by L&Ton LSTK basis or HPCL, Mumbai.

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Hydrocarbon Construction & Pipelines

ydrocarbon Construction & Pipelines (HCP) undertakes

rnkey construction o reneries, petrochemical, chemical and

rtiliser plants, gas gathering stations, crude oil & gas terminals

s well as underground cavern storage systems or LPG covering

vil, structural, piping, equipment and heavy lit works. It also

ndertakes cross-country pipelines on lump-sum turnkey basis.

ajor capabilities include engineering design centres, heav y lit

ompetency and stringent adherence to HSE and quality. L&T

ul Private Limited, a joint venture with US-based Gul Interstate

ngineering provides engineering or cross- country pipelines. L&Ts

apability to meet global standards in pipeline construction in the

PC mode has been proven in Cairns Barmer-Salaya pipeline

project the worlds longest heated and PUF-insulated pipeline or

waxy crude.

The Companys cluster headquarters at Sharjah and Al Khobar

are supported by plant and machinery, a feet o key construction

equipment including all-terrain cranes, the entire range o pipeline

spreads and earthmoving equipment. To service clients in the MENA

region, the Company has joint ventures with reputed local partners

in Oman, Kuwait and Saudi Arabia. Various projects have been

executed, directly as well as through other EPC contractors, or key

clients such as Saudi ARAMCO and SABIC in Saudi Arabia, KOC

and KAFCO in Kuwait, ADNOC and ENOC in UAE, Qatar Petroleum

in Qatar, and Oil Tanking Odjell Terminals & Co. in Oman.

An EPC contract was secured rom GASCO, UAE or a 52dia x

123 km pipeline. An order was received or CMIE construction o a

polyethylene plant in Saudi Arabia rom Sadara Chemicals (a JV o

Saudi Aramco & Dow Chemical Company).

Pan-L&T Hydrocarbon Saety InitiatiesThe Company has engaged DuPont to strengthen the saety

culture within the organization and lead its saety initiatives.

The saety governance structure has an Apex Saety Committee

comprising senior management personnel. Eight standards on

high-risk activities have been ormulated and approved by the

Committee or implementation across the acilities. A Saety

Innovation School has been set up in Hazira to provide training

in various saety competencies.

Lowering o 36dia. gas pipeline or Qatar Petroleum at Ras Laan. L&Ts EPC scope also included civil, mechanical, electrical and instrumentation worksor three metering stations.

New aviation uel depot and pipelines project executed by L&T on EPCC basis or KuwaitAviation Fuelling Company (KAFCO) in Kuwait.

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Poer

&T oers turnkey solutions or the power sector in India and

verseas with a capability spectrum embracing coal-and gas-based

rojects. The Companys integrated capabilities and in-house

xpertise encompass virtually every aspect o design, engineering,

anuacture, construction and project management.

&T Power builds technologically advanced ultra-supercritical

nd supercritical coal-red power plants.

he Companys integrated manuacturing acility based in Hazira

ear Surat in Gujarat is among the most advanced in the world

r manuacturing state-o-the-art equipment or power plants

boilers, steam turbines, pulverizers, pressure piping, coaxial

ns, air-pre-heaters and electrostatic precipitators. This fagship

manuacturing hub also includes a modern casting and

oundry shop.

Manuacturing acilities or ESP and coaxial ans and air-

pre-heaters were commissioned this year with technology rom

Clyde Bergemann and Howden respectively. Cumulatively, L&Ts

manuacturing shops in Hazira and its service, engineering and

construction arms around the country cater to 85% o a power

plants value chain.

L&Ts considerable internal strengths are complemented by its

strategic tie-ups with global leaders: Mitsubishi Heavy Industries,

Mitsubishi Electric Corporation, Sargent & Lundy, CMI, Clyde

Bergemann and Howden.

&T POwERReieIn 2011-2012, given market conditions, t he Companys prime

ocus was on timely execution o projects in hand. Most projects

entered their critical phase. Phase 2 o the GMR Vemagiri gas-based

combined cycle power plant progressed substantially, with Unit 2

being commissioned in a record 24 months. Mechanical completion

o Unit 3 was also achieved.

A signicant milestone in power projects, Ceiling Girder Final Jack-

up was completed or two units o the JPVL Nigrie project (Madhya

Pradesh), or one unit o the Nabha Power project (Rajpura,

Punjab), as well as at Koradi where L&T Power is building a plant

or Mahagenco.

L&Ts integrated capabilities cover every phase o the power value chain. Supercritical technology oers multiple economic and environmental advantages.

Supercritical turbine being assembled at L&Ts Hazira Campus.

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he year also saw the despatch o ODC consignments and critical

upplies or boilers at the Koradi and Nigrie projects, notably the

enerator stator and related assemblies. A 392 MT generator stator

as erected or the project o Andhra Pradesh Power Development

orporation Limited. Currently, three Balance o Plant projects are

nder execution. These will enter the critical phase o completion

the year 2012-2013.

he gas-based project at Dhuvaran or Gujarat State Electricity

orporation Limited set a record in rapid project execution.

he primary structures o the heat recovery steam generators were

t up in just 14 days.

Signifcant InitiatiesThe Company has taken steps to expand its horizons beyond

India or gas-based power projects. It is exploring opportunities

in Asia (Bangladesh, Sri Lanka, Malaysia, Indonesia and Thailand),

the Middle East (Saudi Arabia, Oman, Qatar) and Arica

(primarily Gabon).

Many o these countries have proven gas reserves, and airly good

gas transportation networks. The move to explore new rontiers will

enable the company to diversiy its project prole and ride on the

growth expected in these markets.

Poer

A Technical Services Support Agreement was entered into with

Mitsubishi Heavy Industries to orm an Engineering & Technology

Group that would assimilate the best practices o MHI in interace

engineering o boiler, turbine generator, Balance o Plant and or

commissioning projects.

Augmenting StrengthsL&Ts strengths in project execution and management are widely

acknowledged across industry. A highlight o L&Ts mode o

operations is the adoption o innovative construction technology,

evident this year at the Vemagiri, Krishnapatnam and Rajpura

project sites.

L&Ts joint venture with Mitsubishi Heavy Industries introduces world-class supercritical technology to India. L&T is rapidly building reerences in India in pursuit o itsmission to become the most preerred provider o equipment, services and turnkey solutions or ossil-uel-based power plants in the home market.

Supercritical boiler manuactured at L&Ts state-o-the-art manuacturing acilitiesat Hazira.

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&T has the distinction o being the rst company in India to

se the strand jack method or generator stator erection at the

rishnapatnam project and boiler erection in the Rajpura project.

uch superior techniques in execution and construction should

ontinue to sharpen the companys competitive edge.

dvanced systems are in place to integrate all execution processes,

roviding clients with unique access to inormation at all stages

om proposal to handover.

With a view to augmenting the pool o talented proessionals

ith sound knowledge o the power industry, technologies and

apabilities, L&T has set up a Power Training Institute at Vadodara.

L&T Power has in place an expert group that handles supply chain

management. Its procurement window is global, and includes Best

Cost Country Sourcing (BCCS), backed by project logistics. During

the year, with the objective o developing and sustaining a strong

and reliable vendor base, the Company organized its rst-ever

vendor meet to identiy, discuss and understand the specic needs

o suppliers.

ProspectsThe ocused initiatives o the Company in overseas markets should

help in securing contracts in Asia or gas-based projects.

The Company also expects orders or civil packages in power

plants rom both the private and public sector. The existing order

Poer

backlog and the expected timely execution o all projects should

ensure sustained growth in sales and protability in 2012-2013.

With all its actories commissioned, the capability to oer energy

ecient solutions, and a robust technology and manpower

base, the Company is poised to capitalize on the opportunities o

the uture.

388.5 MW natural-gas-red combined-cycle power plant built by L&T at Vemagiri in Andhra Pradesh.

Shroud machining o HIP rotor at MHI-Nagasaki or 800 MW turbine or Andhra PradeshPower Development Company.

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&T Heavy Engineering is globally acknowledged as one o the

p ve companies in its domain. The scale and sophistication o

s capabilities are on par with industry worldwide. Its track record

cludes successul handling o assignments o unprecedented

agnitude and extreme complexity under very stringent schedules.

he Companys Process Plant and Nuclear Strategic Business Group

anuactures and supplies custom-designed equipment and

stems or Refnery, Oil & Gas, Fertiliser & Petrochemicals,

oal Gasifcation & Thermal Poer and Nuclear Poer. The

ompanys Deence & Aerospace Strategic Business Group oers

arine Special Projects & Equipment, Weapon and Land Systems,

ght Systems and Strategic Electronics.

State-o-the-art manuacturing acilities geared to meet the

challenges o technology, quality conormance, delivery and cost

competitiveness are based at the ollowing locations:

Mumbai (Powai), Maharashtra: L&Ts nodal complex integrates

design, manuacture and R&D and incorporates a technology

base on par with the best in the industry worldwide

Hazira, Gujarat: A major heavy manuacturing complex with

captive Load-on and Ro-Ro jetties. Its mega-sized capabilities,

its water ront acility and relative proximity to the Gul has

meant that most o L&T Heavy Engineerings over-dimensioned

equipment has been shipped out rom Hazira. This includes the

worlds largest Ethylene Oxide reactor, shipped to Kuwait.

Refnery Equipment

HEAvY ENGINEERINGBaroda, Gujarat: An advanced composite acility that handles

exotic materials

Vishakhapatnam, Andhra Pradesh: A bay, leased by the Indian

Navy, enables L&T to build strategic vessels

Talegaon, Maharashtra: Strategic Systems Complex or integration

and testing o weapons systems, sensors and engineering

systems

Coimbatore, Tamil Nadu: Precision Manuacturing Facility caters

to the needs o precision-machined/manuactured components

and assemblies

Cr-Mo-V orged reactors being despatched by barge rom L&Ts captive jetty at Hazira (near Surat, India) or Kuwait National Petrochemical Corporations Clean FuelsProject. The order or 22 reactors includes one weighing as much as 1540 MT.

The worlds largest coke drum, weighing 630 MT, or Indian Oils renery at Paradip(Orissa, India).

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Sohar, Oman: This is one L&Ts newest acilities and is par t o

L&Ts joint venture with The Zubair Corporation. Located at the

Sohar Industrial Port area, it has a 300-metre jetty and is capable

o handling loadouts heavier than 10000 MT. The acility is

expected to augment the capabilities o L&T Heavy Engineering

to serve the GCC region and North Arica.

apabilitieshe workshops o L&T Heavy Engineering are equipped to

anuacture and supply equipment and systems made o various

aterials such as Cr-Mo-V, stainless steel and dierent types o

on-errous materials including Ni and Cu-based alloys, such as

onel and inconel, to the hydrocarbon industry, including oil and

as, renery, petrochemical, ertiliser, chemical and the power

(thermal and nuclear) plant sect or.

Dedicated production engineering and manuacturing process

development centres support manuacturing at each location.

Detailed design and engineering centres support Project

Management teams at all locations. The Company has three

Technology Development Centres that operate rom Powai or

new product development in process plant equipment and or

strategic equipment and systems, as well as one ocused on

electronic systems/sub-systems. Deence Electronics Systems

design and engineering is supported through a dedicated Strategic

Electronics Centre including a new Product Development Centre at

Bangalore in Karnataka.

Coal Gasifer & Poer Plant Equipment

The Companys Warship Design Centre is equipped with the latest

sotware tools and know-how. Its in-house talent has developed

designs or surace ships such as ast-speed boats, attack crat,

oshore patrol vessels and corvettes.

A heavy abrication acility at Sohar, Oman manuactures a range o

equipment or the hydrocarbon and power sectors.

L&T has set up a joint venture company or the manuacture o

heavy orgings or the hydrocarbon and nuclear power sectors.

Signifcant InitiatiesIn the pursuit or excellence in productivity and working eciency,

a number o initiatives have been undertaken by the Company

A coal-gasier component being exported to Vietnam rom L&Ts Hazira Works. There are opportunities or coal gasication in countries likeVietnam, Indonesia and Australia.

Condensers or Tata Mundra UMPP project.

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rough a campaign titled Udaan which signies fight or

reaking ree rom existing mindsets to scale new heights. This

ampaign has been initiated with the objective o achieving an

xclusive position in the global process plant equipment markets,

nd to ortiy our lead position as supplier o deence equipment

nd systems rom the private sector.

ajor initiatives under Udaan include:

Implementation o Theory o Constraints

Lakshya

Enterprise-wide Collaboration or Alignment with Strategy

Employee Engagement

Innovation

Sustainability

To improve execution and delivery perormance, L&T Heavy

Engineering has been using the Critical Chain Project

Management methodology o the Theory o Constraints. It has

also undertaken the implementation o the Strategy and Tactic

(S&T) Tree in order to achieve operational excellence.

Lakshya is the 5-year strategic plan or identiying strategies and

action plans or their implementation to drive growth during the

plan period.

Enterprise-wide Collaboration or Alignment with Strategy

(ECAS) aims at enhancing Organisational Excellence or improved

perormance and alignment o operations to the strategy o

Customer Intimacy through a collaborative culture.

ertiliser & Petrochemical Equipment

An Employee Engagement initiative by L&T Heavy Engineering

helps in seeking an unbiased employee perception on numerous

dimensions, creating a healthy, customer-ocused and productive

work environment.

A culture o innovation through collaboration and creative

thinking helps in seeking newer and better ways o designing,

manuacturing and execution.

Saety: L&T Heavy Engineering believes that saety is an integral

part o the process o good manuacturing. The Company attributes

its positive saety culture and low accident rate to its on-going

personnel development programmes. A behaviour-based training

approach inuses saety into every aspect o operations. These

Critical equipment or a petrochemical plant being despatched rom L&Ts Sohar complex, Oman.

One o the worlds largest acrylonitrile reactors being despatched to a petrochemicalplant at Thailand rom the roll-on-roll-o jetty at L&Ts Hazira manuacturing complex.

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rogrammes highlight the good practices ollowed in material

andling, hydro-test procedures, maintenance and personal

rotection on the shopfoor. They equip employees with relevant

nowledge on how to stay sae and healthy at the workplace, while

ontributing to the quality o the entire manuacturing process.

echnology & Ne Product Deelopment&T maintains its leadership position through its multiple

echnology and Product Development Centres which are ocused

n process technologies, manuacturing technologies, mechanical

stems technologies and ship and submarine designs.

hese centres provide specic emphasis on welding and metallurgy,

omposite materials, heat transer, computational fuid dynamics,

stress analysis, microwave and RF technologies, embedded systems

and drives technologies.

A large part o the current revenues in the Deence and Aerospace

businesses are the outcome o sustained development o products

in-house in these centres over the years. The current eorts o these

centres would lead to a quantum leap in business volumes in

the uture.

OutlookIn the hydrocarbon sector, business is expected to look up in the

medium term, with expected investments in renery upgrade and

revamp / modication projects. New value-added petrochemical

products, grass root renery projects in the Middle East, Turkey,

Deence & Aerospace Equipment

e photograph is or representation purposes only, and does not purportbe a photograph o the actual nuclear-powered submarine built by L&T.

Vietnam, Taiwan, Latin America, Russia and CIS countries are likely

to come up in 2012-2013. Major oil & gas investments, including

LNG, are also slated in Australia, Qatar and Russia.

The Urea Investment policy cleared recently by the Government

o India and widely welcomed by the ertiliser sector is expected

to provide a major impetus to investment in the domestic market.

Some brown-eld projects are likely to be nalised in the near

uture.

Fertiliser projects are expected in gas-rich regions like Arica, Brazil,

the Middle East, Azerbaijan, Argentina and China. Indian ertiliser

companies are also exploring the possibility o setting up projects in

some o these regions. The Company sees good potential or

L&T made a critical contribution to Indias rst nuclear-powered submarine INS Arihant. L&T oers a wide range o equipment and systems or the deence orces,encompassing sea, air and land.

Indias PSLV C-19 takes o rom SHAR, Sriharikota. L&T has been associated with the ongoingprogramme o the Indian Space Research Organisation (ISRO). (Photo: Courtesy ISRO).

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O/EG and Methanol plant equipment in China. In the backdrop o

sing coal prices vis--vis the lower price o gas, the Company sees

rospects in the GTL market.

the Nuclear Equipment business, post-Fukushima, there is

kely to be a demand spurt or Spent Fuel storage equipment

nd increased opportunities or decommissioning o

eneration II plants.

view o the enhanced budget allocation or Deence and

e rst wave o Make programmes and Buy & Make Indian

rogrammes in Deence, the Company sees major opportunities in

o-development to be ollowed by co-production over the medium

long term. The recent Government guidelines or establishing

joint ventures by Deence Public Sector undertakings in the Public-

Private Partnership mode usher in a range o opportunities or

the Company. The decision by the Government o India to allow

participation o private players in Deence manuacturing was

encouraging. L&T seeks to leverage its 30-year relationship as a

trusted technology partner or Indias armed orces, and meet the

challenge o capability building within India.

L&T is also actively seeking to enlarge its global ootprint. Various

opportunities are being identied and pursued in South East

Asia, the Middle East, South America and Arica. The Companys

potential oerings range rom complete platorms such as naval

ships and ast patrol boats to engineering equipment such as

stabilization systems or ships, air-drop platorms or the army

Nuclear Poer Plant Equipment

and weapon delivery systems. L&T Heavy Engineering is also

targeting modernization and obsolescence management

programmes globally.

With superior technology and state-o-the-art manuacturing

acilities, L&T Heavy Engineering is well-poised to tap upcoming

business opportunities.

End shields or a nuclear power plant being machined by CNC foor-mounted horizontal boring machines at L&Ts Heavy Engineering Workshop at Hazira(near Surat, India).

Steam generators or pressurized heavy water reactors.

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&T has identied shipbuilding as a major thrust area in the

eavy engineering sector. L&T oers total solutions in

hipbuilding rom concept and design to construction and lie-

ycle management.

&T builds specialized commercial ships (multi-purpose heavy

t roll-on-roll-o, semi-submersibles, container ships, LPG/LNG

essels, chemical tankers, dredgers, reeers, cable-layers, etc.), as

ell as deence vessels (warships, submarines and auxiliary vessels).

arine systems and equipment oered include steering gear, n

abilizer systems, propeller shats, electrical distribution network

omponents, helicopter hangar equipment, heat exchangers and

eapon-launch platorms and sensor systems. L&T also undertakes

pair, ret and conversions.

L&T undertakes shipbuilding operations at its Hazira Campus on

Indias west coast and at its upcoming acility at Kattupalli near

Chennai in Tamil Nadu on Indias east coast.

L&Ts Hazira acility is located on the banks o the river Tapti

in Gujarat, with unimpeded access to the Arabian Sea. It has

manuactured several vessels, and has received repeat orders.

L&Ts Kattupalli acility is a shipyard-cum-minor-port developed

and operated by a subsidiary set up or this specic purpose L&T

Shipbuilding Limited (LTSB), which has a joint venture with the Tamil

Nadu Industrial Development Corporation (TIDCO).Construction o

the acility is on schedule. A license and collaboration agreement

with Mitsubishi Heavy Industries Ltd.,

Shipbuilding - Merchant & Naal

Japan will help LTSB to seize new business development

opportunities. The shipyard has one o the worlds ew shiplits

and a ship transer system.

Commitment to global standards and on-schedule delivery

characterise L&Ts oerings in this sector.

The shipyards are committed to meeting or exceeding the quality,

health, saety and environment requirements o its clients. L&Ts

shipbuilding operations are eco-riendly and energy-ecient.

The Companys quality and HSE procedures and accreditation

will ensure that all the required tools are in place to control the

processes and conditions during operations.

L&Ts shipyard at Kattupalli, near Chennai on Indias east coast. The shipyard is part o an integrated complex that includes a port, a modular abrication acility andheavy engineering works.

Shipbuilding at L&Ts Hazira Manuacturing Complex.

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&T Construction is a business brand that encompasses our related

usinesses Buildings & Factories, Inrastructure, Metallurgical

Material Handling, and Power Transmission & Distribution,

cluding a Strategic Business Group or Water & Solar.

n a global scale, L&T Const ruction ranks among the worlds top

0 leading contractors.

&T Construction has consistently improved upon its rankings

cross the last ve years.

he ollowing pages highlight the capabilities, the perormance

cord and the prospects o each o the individual businesses.

Buildings & FactoriesL&T Buildings & Factories is recognized as Indias premier company

or the successul, rapid-paced construction o landmark projects

that dominate city skylines. Increasingly, its capabilities are also

winning recognition in international markets such the Middle

East and North Arica. Its ocus on expanding both segment and

customer base with Concept to Commissioning solutions has

enabled it to sustain leadership position, retain key customers and

secure major orders.

The Companys capability spectrum is wide. It covers engineering,

design and construction o airports,IT oce spaces and institutional

buildings, malls, hypermarts and mixed-use developments,

hospitals, hotels, residential buildings, actories and cement

Buildings & Factories

&T CONSTRUCTIONplants. L&T has built virtually everything urban planners would

need high-rises, low-cost houses, industrialized system housing,

condominiums and entire townships, complete with inrastructure

acilities.

Groth RecordL&Ts Buildings & Factories business recorded signicant growth,

with multiple major orders, including an order or the expansion

o the prestigious Terminal 1 o Bangalore Inter national Airport

Limited, to be executed by L&T on a Design-and-Build model.

IT Parks are the nurseries o the new-age economy. They need an

enabling environment to grow, and L&T has established itsel as

a major builder o the inrastructure that drives the IT revolution.

L&T builds state-o-the-art airports in India and abroad. In India, L&T has been involved in the construction o modern airports, including at New Delhi, Bangalore,Hyderabad and Mumbai. Currently, L&T is executing the Salalah International Airport at Oman.

In the heart o Chennai, L&T has constructed ITCs 600-room ve-star hotel one oIndias largest.

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2011-12, L&T continued to dominate the IT Parks and oces

ctor. Orders were received rom IT majors s uch as TCS, Cognizant

nd HCL at Kochi and Chennai. The Company received mixed-use

evelopment orders rom DLF and RMZ at Noida and Bangalore.

aining a strong oothold in the hypermart sector, the Company

btained pan-India orders rom Reliance Industries. Strengthening

s presence in Mumbais booming residential segment, it is slated

execute projects or a host o marquee names in the real estate

pace Omkar, Oberoi Realty and Lodha Crown Build Mart. Many

these buildings are certain to emerge as iconic landmarks or

dias commercial capital.

&T is executing residential projects in Chennai, Mumbai, Bangalore

and Mangalore or organisations such as DLF, Prestige Estates

Projects, Essar and SKS Netgate. The Companys actories segment

secured orders rom Renault Nissan, Birla Suriya and Arshiya.

Repeat orders rom organisations such as Cognizant, TCS, Omkar,

DLF, Apollo, MIOT, JIPMER and ESIC arm the Companys capability

to undertake projects to the satisaction o its customers.

The track record o completed projects increased signicantly

during the year. Key projects completed include the Punjab War

Memorial and the airside work o the Mumbai airport or Mumbai

International Airport Limited. The completion o these prestigious

projects within stringent timelines demonstrates our superior

capabilities in the areas o project management and project


execution, which enable the Company to handle large-design

build and turnkey projects.

The elite and luxury housing segment in the metro cities,

commercial complexes or retail and the IT industry provided

promising opportunities to the business during 2011-2012.

On the technology ront, L&Ts Buildings & Factories business is

ully geared to undertake projects adopting new trends in civil

engineering and construction technology. These projects include

high-rise towers, green buildings, maintenance, repair and

operations (MRO) acilities and precast housing. Various initiatives,

including technology tie-ups, have been implemented to improve

the execution and delivery capabilities or complex and large-

value orders.

L&T is changing the skylines o urban spaces in India and abroad. The Dubai Marina showcases L&Ts capability in executing oce, commercial andresidential projects, globally.

Automobile actory o Maruti at Manesar, Haryana. L&T has built plants or virtually everyautomobile brand in India.

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Green Capabilities

reen buildings represent a thrust area or the Company, and

qually or the conglomerate o which it is a part. L&T views

s expertise and experience in this domain as a prime value

roposition, and critical to sustaining its position as a leader in

e construction space.

&T Buildings & Factories has constructed over 10 million

quare eet o certied green building space the largest by any

ngineering and construction company in India.

ecognising that a holistic approach is essential or any successul

ndeavour in environmental protection, the Company is orging tie-

ps with green building material manuacturers and suppliers.

Several o the buildings in L&Ts campuses across the country are

green. These work spaces are designed to utilize natural resources

to a signicantly lesser degree. They also generate less waste and

provide a saer and healthier environment or the Companys

employees and those with whom it does business.

ProspectsIn the uture, key drivers or the growth or L&Ts Buildings &

Factories business will emerge rom opportunities in airports

through domestic expansions and international projects, IT campus

development, the Governments thrust on healthcare, retail, the

ever-increasing demand or housing, actories and cement plant

expansion plans o major players.


The construction market is also expected to remain attractive in

countries in the Middle East and North Arica.

L&Ts Buildings & Factories business is poised to register satisactory

growth in revenues during the year 2012-2013 as a result o its

healthy order book and its track record.

Asias largest sotware development campus or Tata Consultancy Services in Chennai, constructed by L&T Indias largest builder o IT inrastructure.

Iconic venue o exciting cricket matches, Mumbais Wankhede Stadium was reurbishedby L&T.

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rastructure is widely acknowledged as a key enabler o economic

evelopment. In the Indian context, the gap between supply and

emand is proving to be a growth deterrent o wide-ranging

mpact. Further, the quality o existing inrastructure needs

gnicant and sustained upgradation to meet global norms.

&T Constructions Inrastructure business is participating in this

hallenge. Its successul eorts in constructing critical inrastructure

rojects around the country have led to it being described by the

edia as the builder o the India o the 21 st century. In addition

being the dominant domestic construction company, L&T has

so secured international recognition through a host o projects

xtending rom the Caribbean Islands, through Jordan, the Gul

nd South East Asia.

The Companys capabilities include design, engineering and

construction o projects in the sectors o roads and runways,

elevated corridors, metros, tunnels, ports, special bridges,

hydropower, nuclear power, deence and railway inrastructure.

Heay Ciil InrastructurePortsL&T constructed its own port at Kattupalli near Chennai on Indias

east coast. It is part o a larger complex Indias largest integrated

marine acility that includes a shipbuilding and repair yard, a

modular abrication acility and a heavy engineering workshop.

L&T built a port at Dhamra in Orissa on the BOOST (Build-Own-

Operate-Share-Transer) basis in a joint venture with a leading

corporate, Tata Steel. The ports deep drat, coupled with its

nrastructure

proximity to the mineral belt o Orissa, Jharkhand and West Bengal

make it the most cost-eective port on Indias east coast, with

minimal environmental impact.

L&Ts earlier record in this space includes construction o a

breakwater or a prestigious naval project on Indias east coast,

ports at Adani (Gujarat) and Indias rst open sea jetty at Ratnagiri.

MetrosIndias prestigious Delhi Metro is widely acknowledged to have

changed the way Indias capital commutes. Large sections o the

Delhi Metro were constructed by L&T, meeting stringent standards

and schedules.

L&T is constructing Indias rst monorail corridor in Mumbai Indias commercial capital. The project involves design, construction, installation, testing andcommissioning the 19.7-km corridor on a turnkey basis. This includes project management, civil works, DC traction systems, interace management, automatic arecollection system, as well as E&M services.

L&T constructed key sections o the prestigious Delhi Metro, and is building sections o theChennai and Bangalore Metros, and all sections o the Hyderabad Metro.

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Andhra Pradesh, L&T is currently poised to display its ability to

xecute projects o large magnitude with the Hyderabad Metro.

his mass rapid transit system will provide the people o the IT

ub o Hyderabad with a speedy, green intra-city transport

ternative. The 71.16-km Phase I o the project is on schedule, and

ubstantial completion o Stage 1 (approx. 8 km) is expected by the

nd o the next scal. L&T is also executing various underground

nd elevated metro projects in Chennai, Bangalore, Kolkata, and

hase II packages in Delhi.

ydelhe hydropower sector has good potential in India or renewable

nergy. L&T has a signicant presence in this sector, and has played

key role with its EPC services. L&T is involved in construction o

hydel power projects with a capacity o 8092 MW and is currently

executing complex projects under extreme weather conditions

Srinagar, Punatsanchhu (Bhutan), Singoli-Bhatwani, Subansiri,

Tapovan Vishnugad, Parbati and Sawalkote hydro-electric projects.

Nuclear ConstructionIn armation o its expertise in executing nuclear power projects,

L&T secured orders or common service packages or Kakrapar and

Rajasthan Atomic Power Projects.

Transportation InrastructureRoads & Elevated Corridors

The National Highway Authority o India remains the prime driver

o growth in this vital sector through the Public-Private Partnership

nrastructure

model. L&T recently secured major orders or road projects,

including the sectors o Hosur-Krishnagiri, Bewar-Pindwara,

Kishangarh-Ahmedabad, Shivpuri-Dewas projects, Maharashtra-

Karnataka border to Sangareddy and VIP fyover in Kolkata. Key

projects completed include Halol-Godhara-Shamlaji and the Rajkot-

Jamnagar-Vadinar sectors.

International InfrastructureTwo orders or construction o roads in the Sultanate o Oman

have been secured.

RailwaysKey projects completed during the year include railway

electrication o the Moradabad-Roza and Barauni-Chappra

Artists impression o the Sheikh Khalia Interchange a major inrastructure project linking the emirates o Abu Dhabi and Dubai being built by L&T. The projectinvolves construction o our bridges and a 63-m tunnel.

L&Ts capabilities in bridge-building cover design and construction o many types o bridgesin dierent span lengths using innovative techniques and construction methods.

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ctions, gauge conversion o the Nagore-Karaikal section and port

onnectivity or the Bharuch-Dahej section.

Mass Transit Systemsumbai Indias commercial capital, and economic nerve centre

as had to contend with a transportation system that is inadequate

meet the needs o its burgeoning population. A key project

itiated by Mumbais civic authorities is Indias rst monorail

stem, being built by L&T. Other cities are likely to adopt similar

ansit systems that deliver high utility on a small ootprint. Ater

ompletion o Phases 1 and 2, the monorail will be t he worlds

cond-longest. A eeder service to the citys arterial suburban rail

etwork, the 19.54-km monorail is slated to become operational

uring this scal.

Signifcant InitiatiesSeveral initiatives were undertaken with a clear ocus on the areas

o supply chain management, cost competitiveness, operational

excellence, value engineering and improved capacity utilisation.

Attracting and retaining talent with requisite competencies and

ocus on training and development to enhance productivity are also

being done continuously to support business needs.

The FutureGiven the huge gap between inrastructure demand and supply

in a growing economy like India, all businesses relating to urban

inrastructure, power, roads and water are expected to witness

signicant growth over a sustained period. The Union Budget 2012-

2013 also lays greater emphasis on inrastructure development.

nrastructure

Inrastructure and economic development are always inter-linked.

Progress in the latter has to be preceded, accompanied and

ollowed by progress in the ormer.

L&T Inrastructure is ocussing on capitalising on the current

market trend. With a specic and continuous thrust on business

development, L&Ts Inrastructure business is looking at new

opportunities. A healthy Order Book gives it the condence o

registering good growth in revenues during the year 2012-2013.

Geo-technical SericesL&Ts capabilities in inrastructure construction are c omplemented

by its oerings in geo-technical services which give clients the

assurance o single-point responsibility.

Natural drat cooling towers executed by L&T or Rajasthan Atomic Power Plant. L&T supplied critical equipment and built virtually every nuclear power plant in India.

192 MW Alain Duhangan Hydroelectric Power Project in Himachal Pradesh. L&Tscapabilities encompass construction services or hydropower and irrigation projects.

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&Ts Water & Solar business caters to the entire value chain o

ater and solar EPC businesses. The water and efuent treatment

usiness covers water intake, transmission, treatment and

stribution including industrial waste water treatment & disposal

nd ordinary waste water treatment & reuse segments. The water

chnology business uses advanced water treatment technologies

r complex treatment projects largely in the Middle East.

&Ts solar EPC business comprises solar photovoltaic (PV),

oncentrated solar power (CSP).

Major ordersWater: Orders secured by the Company include the combined

ater supply scheme to Attur, Melur & Vellore Package or Tamil

adu Water Supply & Sewerage Board, a pipeline or Gujarat Water

Inrastructure Limited; utility development works o Kamal Vihar or

Raipur Development Authority, Chhattisgarh; utility development

works o Aerocity or Greater Mohali Area Development Authority,

Punjab; and Halyal Lit Irrigation Scheme or Karnataka Neeravari

Nigam Limited.

Solar:Orders were won or construction o a 125 MW solar CSPpower plant at Pokhran, Rajasthan or Reliance Inra; a 23 MW

solar PV power plant in Rajasthan; and a 5.75 MW solar PV tracker-

based power plant in Gujarat.

Orders executedWater:Orders completed were water supply scheme or 392villages or Ananthapur Phase III Water Supply Project, a water

supply scheme or Jindal Steel Plant at Bellary in Karnataka, and a

water Projects & Solar Energy

pumped water supply scheme or NC 24 Water Supply

Project, Gujarat.

Solar: The business set a record by putting up the largest solar

power plant in India, and emerged as the top EPC player, providing

solutions or various solar technologies. L&Ts Solar business is rated

SP1 A by CARE, and MNRE has certied it as a channel partner

under RESCO and System Integrator categories. Major orders

executed include a 40 MW solar PV power plant or Reliance Power

at Pokhran in Rajasthan, a 10 MW solar PV tracker-based power

plant or Millenium Synergy at Dhama, Surendranagar in Gujarat,

a 25 MW solar PV power plant or SunEdison at Charankha in

Gujarat, and a 20 MW solar PV power plant or Kiran Energy at

Charankha in Gujarat.

Water treatment plant executed by L&T at Okhla near Delhi. L&T has extensive experience in oering design and construction services or water processing, transmissionand distribution acilities.

Indias largest solar plant, executed by L&T in Rajasthan. L&Ts capability spectrumcovers development o economically viable and technically superior solutions o solarenergy projects on Engineering, Procurement and Construction (EPC) basis.

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he Company is Indias market leader in Engineering, Procurement

Construction o projects in the errous (iron & steel making) and

on-errous (aluminium, copper, lead & zinc) sector, as well as

ulk material & ash-handling systems in the power, port, steel and

ining sectors. Its abrication unit at Kancheepuram (Chennai) is

eared to meet the specic needs o a large customer base.

trategic Alliances&T has strategic alliances with leading global technologists as part

business-line diversication in the errous segment:

Paul Wurth or blast urnace, coke oven and by-product plant

SMS Siemag or steel melt shop and thin slab caster

Outotec or sinter plant and pellet plant

Nippon Steel or coke-dry-quenching and continuous annealing

and processing line

METSO or iron ore beneciation

Alliances have been entered into with the ollowing global

technologists to avail o new concepts and technologies or

increased capacity in the material handling sector:

Ashton Bulk, U.K. or crescent type wagon tipplers, high

capacity side-arm-chargers and ducking tripper type stacker

reclaimers

Norwest, U.S or coal washeries

FLCE, France or long belt conveyors

UCC, U.S or ash-handling systems

Metallurgical & Material Handling

Groth RecordThe Companys slew o signicant orders includes:

Blast urnace, coke oven, raw material handling system, civil

& structural work or steel melt shop, hot strip mill and power

distribution system at Kalinganagar, rebuild o blast urnace F&G

at Jamshedpur rom Tata Steel

Civil and structural works or coke dry quenching and direct

reduction o iron plant at Bellary rom JSW Steel

Civil and structural works or alumina renery (1.5 mtpa) at

Rayagada rom Utkal Alumina

Civil and structural works or basic oxygen urnace, slab caster

or Phase III at Angul rom Bhushan Steel

Civil and structural works or Phase II at Amravati and Nashik

rom Indiabulls

Open stockyard equipped with rail-mounted stacker-reclaimers at Indias multi-purpose river valley project or Damodar Valley Corporations Koderma Thermal PowerProject in Jharkhand.

Coal-handling plant or National Thermal Power Corporations Simhadri Power Plant(Stage II).

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Raw material handling system at Tuticorin rom Sterlite

Coal handling plant at Bara rom Jaypee

Supply and erection o coal handling plant at Parsa-Kente

Mines rom Adani

&T completed Indias largest pellet plant (6 MTPA), LD-3 and

in slab caster rolling mill at Jamshedpur, bedding and blending

stem or iron ore mines at Noamundi, yard machines at Joda

ines or Tata Steel, Blast Furnace-4 at Bellary or JSW Steel, coal

andling plant or stage II at Simhadri or National Thermal Power

orporation, coal handling plant at Koderma or DVC and at Tiroda

r Powergen Inrastructure.

The Company is currently executing iron-making and steel-making

acilities or Tata Steel at Kalinganagar, or Steel Authority o India

Limited at Bhilai, or Bhushan Steel at Angul, or JSW Steel at

Bellary, an alumina renery or Utkal Alumina at Rayagada, and 13

coal-handling plants concurrently a landmark achievement.

The Company is also involved in the abrication o coke oven

battery equipment including primary gas cooler or Tata Steel and

Bhushan Steel; blast urnace shell, lower tower structures and hot

stove shell including dome or SAILs Bhilai Plant; surace condensers

or power plants; N2 vessels or the steel plants o SAIL (at Bhilai)

and Tata Steel (at Jamshedpur); wagon shiter or Indiabulls and pot

shells or Hindalco.

Metallurgical & Material Handling

OutlookL&T is condent that its high degree o customer retention,

operational eciency and consistent perormance will sustain

its growth trajectory in this business. Developments in the eld

o errous and non-errous, the power sector and government

commitment towards inrastructure spending are regarded as

key drivers or the Company. A healthy order book gives L&T

Metallurgical & Material Handling the condence o achieving

revenue growth or the year 2012-13.

One o Indias largest blast urnaces, commissioned by L&T. The Company undertakes detailed engineering, procurement, manuacture, supply, construction, erectionand commissioning o projects in the areas o errous and non-errous metals and mineral beneciation.

Sinter plant project or Steel Authority o Indias Rourkela Steel Plant.

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&Ts Power Transmission & Distribution business, with a ootprint

India and GCC countries, is one o the major players in the EPC

pace or high-voltage substations, industrial electrication and

ower transmission lines.

he industrial electrication business provides turnkey electrical,

strumentation and communication solutions or major power

ants including thermal and nuclear plants, process plants

nd inrastructure projects. The substation and transmission

ne businesses cater to the needs o power transmission and

stribution in domestic and international markets, boosted by its

ate-o-the-art tower testing acility at Kancheepuram and tower

anuacturing units at Puducherry and Pithampur, with

n installed capacity o 1,00,000 tpa.

Over the last ew years, the Company has established a strong

presence in the GCC countries, and is now set to expand

across Arica.

Major OrdersMajor orders secured include transmission lines projects rom

PGCIL or the Varanasi-Kanpur, Raipur-Wardha, and Wardha-

Aurangabad sectors; substation projects at Phagi rom RRVPNL;

E-BOP or 2 x 660 MW thermal power plant or Abhijeeth Power

in Bihar.

International orders include EHV substations and cabling projects

rom Qatar General Electricity & Water Authority, Abu Dhabi

Transmission & Dispatch Company, substation or Abu Dhabi Port

Poer Transmission & Distribution

Company and EHV substation rom the Ministry o Electricity &

Water, Kuwait.

L&T commissioned Indias rst 765 kV substation or Uttar Pradesh

Power Transmission Corporation Limited at Unnao, charged

1200 kV transormer or PGCILs Bina test station (the rst o its

kind). Other completed projects include a 400 kV GIS substation

or PGCIL at Gurgaon, 15 EHV substations at various locations,

synchronization o Unit-1 o 2 x 500 MW thermal power plant

or NTECL at Vellore, electrical works o a 330 MW power project

or Adani Power Limited, Mundra-Shandong Electric Power

Construction Corporation.

Industrial electrication at Hindustan Zinc at Chanderiya. L&T oers complete project electrication solutions covering plant electrication, instrumentation andextra-high-voltage cabling works or the whole gamut o industries.

Tower testing at L&Ts own Transmission Line Testing & Research Station one oIndias largest testing stations at Kancheepuram, near Chennai. It is accredited by theNational Accreditation Board or Testing & Calibration Laboratories.

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&T also commissioned the 400 kV D/C Karcham Wangtoo-

bdullapur transmission line in the toughest terrain o Himachal

adesh, as well as 34 substations/package units and 89 km o

verhead transmission lines in the Gul.

he business demonstrated an impressive growth o about

0% in order intake t his nancial year, and is well-positioned to

ontinue the momentum next year, owing to the increased private

ayer participation, domestic demand or power transmission

nd opportunities overseas. L&T is also ambitious about its GCC

perations where T&D investments in strengthening o

ansmission grids provide signicant business opportunities.

Signifcant InitiatiesL&T took several initiatives to improve operational excellence, retain

competitiveness and improve their market share.

Dedicated Business Initiative cells have been established at

strategic locations and to improve proximity to customers

with cluster operations.

The Right o Way (ROW) team at the cluster level, especially or

transmission line business, has been strengthened or speedy

project execution.

The business is targeting portolio expansion in the GCC

countries along with orays into new geographies and new lines

o business.

Poer Transmission & Distribution

Indias power shortage scenario is expected to intensiy the

Governments ocus on improving power transmission and

distribution. Utilities like PGCIL, NTPC and State Electricity Boards

are likely to proceed with their investments in power transmission

and distribution.

With high crude oil prices, GCC public nances will remain

reassuringly strong. The ocus on inrastructure development and

boost to tourism in most o the Middle East countries augur well

or business expansion.

Transmission line towers designed and installed by L&T traverse the deserts o the Gul. L&T provides comprehensive engineering and construction services or powertransmission and distribution projects in domestic and international markets.

One o the many gas-insulated substations installed by L&T in Dubai and Abu Dhabi.

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ontrolgear, Powergear, Industrial Automation and Building

utomation categories, with a ocus on aspects o saety,

nvironment and innovation.

2011-2012, ESP launched Moulded Case Circuit Breakers

MCCBs) with Matrix release which oers a wide range o fexibility

protection and current metering with add-on modules or

splay. Compact and cost-eective versions o MCCBs, viz., DN0,

N1 and DU250 were also added to the ESP basket during the year.

the industrial automation category, ESP launched the A1000 AC

rive with embedded crane control sotware.

residential and commercial segments, L&Ts ORIS range o

odular switches uses high-quality re-retardant polycarbonate

and high-perormance electrical components.

The Company introduced the T-ERA range o switchboards that

highlighted saety and reliability through a compact, space-saving

design. A new, indigenously developed motor protection relay,

MCOMP, with the capability o protecting all motors rom low to

the highest ratings, was launched.

The Company introduced a sotware-based Resource Management

Solution i VisionmaxResourze that would help acilities to

monitor measures or energy, water, electricity and gas. In the eld

o renewable energy, it developed new product solutions or solar

thermal and photo-voltaic systems. Other sotware based solutions

such as i Visionmax PMS or Power Management and i Visionmax

Electrical Systems & Automation Solutions

I-TAS or Terminal Automation were successully implemented at

various sites.

In the medium-voltage category, Tamco developed 33 new

products, completed the type test or 40kA AIS amily (lowest

width), successully tested the most compact 12/24kV GIS and

the cost-competitive design o 36kV AIS.

Intellectual Property (IP) RightsIn 2011-2012, the Company led 162 patent applications, 16

trademark applications, 10 design registrations and 9 copyrights

as well as 10 international patent applications through PCT (Patent

Cooperation Treaty). This was the 5 th consecutive year that the

Company has led more than 100 patent applications.

L&Ts custom-engineered switchboards are equipped with both conventional and intelligent protection, control and communication systems.

Control hub o a process plant. L&Ts control and automation systems refect theconvergence o electrical, communication and automation technologies.

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jection moulding machines and auxiliary units or the plastics

dustry are manuactured and marketed by L&T Plastics Machinery

its unit at Chembarambakkam near Chennai.

ndustrial Products&T markets valves and allied products manuactured by L &T, its

int venture Audco India Limited, Larsen & Toubro (Jiangsu) Valve

ompany, China and other Indian and overseas manuacturers.

t Coimbatore, L&T manuactures valves or the power sector and

rovides technology support or new product development.

WAC Alloys manuactures a wide range o maintenance and repair

onsumables at its plant at Ankleshwar. The principal products

nd services comprise Maintenance & Repair (M&R) consumables,

specication grade electrodes, fux-cored welding wires, wear

plates/parts, welding and cutting equipment.

L&Ts Industrial Cutting Tools business provides metal cutting

solutions manuactured by ISCAR to the automobile, engineering

and machine tool segments.

Business EnironmentRoad and general construction activities have sustained the

construction equipment business. L&Ts oray into large mining

equipment has been well-received. Capacity additions in Indias

cement and power sector realised revenue growth or Kansbahals

Industrial Machinery business through the supply o limestone and

coal-crushing plants. Adoption o more energy-ecient processes

Machinery & Industrial Products

in the Indian steel industry increased demand or torpedo ladle cars.

Renewed State Government ocus on non-conventional energy

avoured investment in wind turbines. EWAC and the Cutting

Tools businesses benetted rom growth in the automotive and

engineering sectors.

The domestic market experienced greeneld investment in o-the-

road tyres (OTR). A large order was secured or OTR tyre curing

presses against tough Chinese competition. Orders were also

received rom Japanese and European tyre companies or supplies

to Brazil and Russia. The valves business benetted rom sustained

oil & gas projects in the Middle East, North Arica and Australia.

Long-term relationships with key end-users and EPCs in the Middle

East and Far East enhanced our market presence. Renewed thrust

L&T oers fow-control solutions or the hydrocarbon and power sectors worldwide. High-pressure valves or supercritical and nuclear power plants comprise a vitalshare o its product portolio.

L&T ball valves or critical applications in the oil & gas industry meet internationalsystematic integrity requirements (SIL-3 Saety Integrity Level).

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the projects helped us achieve targets by closely working with

PCs. L&T obtained a breakthrough order or ultra-high pressure

alves or a supercritical power plant in India. While the business

xpanded into deence, the ertiliser and power sectors also

ered potential. L&T maintained its leadership position in

onstruction and mining equipment, and supplied over 100

ump trucks o various sizes.

gnifcant Initiatiesjoint venture was ormed to provide world-class internal mixers

nd twin screw extruders. A new range o tyre-building machines

as introduced which catered to the truck and OTR tyre markets.

&Ts Valves obtained increased approvals rom key international oil

companies. Personnel were added in key growing overseas markets

(e.g. the Middle East and South Arica) and domestic channels.

Critical products were certied or Saety Integrity Level as per

international standards.

Designed, manuactured and tested prototypes o new-generation

ball and butterfy valves that replace conventional products and

orders have been secured. Eorts towards developing new products

continue at the Product Development Center at Coimbatore.

New cutting-tool products or drilling, milling and turning were

launched successully.

OutlookRenewed ocus on inrastructure development in India will augment

Machinery & Industrial Products

the demand or hydraulic excavators. The Mining Equipment

business will continue growing as a result o investments to

augment coal production and the demand or metals like iron ore

and zinc. Mining prospects hinge on the Governments resolution

o environmental concerns and land acquisition issues. L&T is well-

positioned to supply large mining equipment to coal companies.

The demand or industrial machinery rom the mineral-processing

and inrastructure segments should benet our Crushing &

Screening segment and wheel loaders.

Moderate improvement in industrial growth indices is expected

to enable our businesses to register better growth trends.

Hydraulic tyre-curing press part o L&Ts wide range, manuactured and supplied to tyre manuacturers in India and overseas.

Limestone crusher manuactured at L&Ts KansbahalWorks.

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arsen & Toubro Inotech Limited, one o the astest growing IT

rvices companies, is a wholly-owned s ubsidiary o L&T. Ranked

y NASSCOM as the 9th-largest sotware and services exporter

om India and among the top 20 IT BPO employers in 2010-2011,

&T Inotech provides end-to-end solutions and services in the

llowing verticals: Banking & Financial Services, Insurance, Energy

Petrochemicals, Manuacturing (CPG/retail, high-tech, industrial

roducts, automotive), and Product Engineering Ser vices (Telecom).

&T Inotech is also well-positioned in the Media & Entertainment,

nd Lie Sciences & Healthcare space.

L&T Inotech has introduced new and cutting-edge oerings in

the technology space including an end-to-end cloud computing

adoption toolkit and cloud advisory consulting services as well as

enterprise mobility solutions covering a smart access platorm, big

data advisory services and in-memory computing. L&T Inotech

has developed intellectual properties (IPs) in all the vertical and

horizontal service lines and leverages them to provide IP-led

solutions.

L&T Inotech also delivers business solutions to its clients in the

ollowing horizontals/service lines: SAP, Oracle, inrastructure

management services, application outsourcing (testing, application

normation Technology

&T INFOTECHdevelopment, maintenance & support, legacy modernization,

BI/DW), domain services, architecture consulting, EAI & SI, ser vice-

oriented architecture, sotware-as-a-service (SaaS), and Product

Liecycle Management. An innovative CIO-thought partnership

programme gives clients a value-driven edge.

Headquartered in Mumbai, India, L&T Inotech has a global

presence across continents. A culture o training and mentoring,

coupled with a work ethos that encourages innovation ensures

that L&T Inotech lists high among the best companies to work or.

L&T Inotech is dierentiated by its unique Business-to-IT Connect

which emerges out o its rich corporate heritage.

Global headquarters o L&T Inotech at Powai, Mumbai. This L&T subsidiary oers domain-led solutions to global clients in BFSI, Manuacturing and Energy &Petrochemicals industry verticals.

L&T Inotechs Bangalore acility.

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&T Technology Services Limited provides leading-edge engineering

olutions to multiple industry sectors like automotive, aerospace,

onsumer electronics, consumer packaged goods, marine, medical

evices, o-highway equipment, railways, pharmaceuticals, oil &

as, utilities, inrastructure and industrial products.

With its global headquarters at Vadodara, India, the Company

perates rom dedicated oshore engineering centres at Vadodara,

ysore, Mumbai, Chennai and Bangalore in tandem with onsite

ams worldwide to cater to the engineering requirements o global

ants. Its client base includes several Fortune 500 Companies.

ver 4,000 dedicated associates deliver high-quality engineering

nd technology solutions.

The Company has taken multiple initiatives in the domains

o consumer electronics, medical devices, aerospace, process

engineering (pharmaceutical, chemical, energy and inrastructure),

transportation and o-highway and industrial products to tap

emerging opportunities and register a signicant increase in

revenues and margins.

Recent initiatives include:

Integration o portolios, which position the organisation as a

single-point solution or customers

Exploring new markets in Europe, the Middle East, Arica

and Asia

Focused attention leading to enhanced global brand recognition

L&T Technology Serices Limited

Augmenting the capability portolio by adding services

like railway engineering, manuacturing engineering, technical

publication and design consultancy

Knowledge City at Vadodara. The campus houses the global headquarters o L&T Technology Services Limited.

Engineering talent is drawn rom Indias premier academic institutions.

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&T leverages its established domain expertise in inrastructure

roject execution and nancial services to develop major projects

key sectors. The Company was among the rst to take part in

road project executed in India on BOOT (Build, Own, Operate

nd Transer) basis, and has since been an active participant in

any such projects involving the Government o India, State

overnments and private players.

&T Inrastructure Deelopment Projects LimitedL&T IDPL)his subsidiary o L&T identies, develops, operates and maintains

rastructure projects such as roads & bridges, ports, metro rail,

ansmission lines and water treatment plants. It holds leadership

osition in the development o transportation inrastructure in

India. The Company has nineteen road projects, one metro rail

project and two port projects in its portolio.

Roads & BridgesIn 2012, L&T IDPL commenced tolling operations on two road

projects in Tamil Nadu and Gujarat, ormed two new SPVs

or implementing projects in Rajasthan, Andhra Pradesh and

Karnataka, and won two new projects in Maharashtra. Ten SPVs in

the road sector are operational and nine are under implementation.

Major projects are under implementation in Maharashtra, Gujarat,

Rajasthan, Andhra Pradesh, Karnat aka and Tamil Nadu.

Metro RailL&T Metro Rail (Hyderabad) Ltd. has envisaged the completion

nrastructure - Deelopment

o the Hyderabad Metro rail project in six stages. Construction o

the elevated corridor or the rst two stages totalling 15 km has

commenced. The nalisation o suppliers or major systems is at an

advanced stage. The entire project is scheduled to be commissioned

by November 2016.

PortsDhamra Port Company Limited a joint venture o L&T IDPL and

Tata Steel has built a deepwater all-weather port at Dhamra

on BOOST basis, with a 34-year concession. The port can

accommodate cape-size vessels o up to 1,80,000 DWT. The project

includes 62.5 km o rail c onnectivity. It commenced commercial

operations in May 2011.

Artists impression o the Hyderabad Metro Rail Project being developed by L&T IDPL in partnership with the Andhra Pradesh Government. This project will drastically cutdown commuting time and enhance the quality o lie in Hyderabad.

L&Ts marine capabilities cover construction o ports and harbours.

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At L&T green thinking is part o the Companys business agenda.

We are going green in multiple ways. Equally important, we are

enabling other companies and the community along on the

green march.

Aligned with the Indian Governments National Action Plan on

Climate Change (NAPCC), L&Ts energy-ecient initiatives have

enlarged its green ootprint.

Our green portolio ranges rom supercritical power plantequipment through renery systems to switchgear products.

Corporate Sustainability

Since the economic perormance o the Company is highlighted in

other sections o this publication, this section ocuses only on the

environmental and social aspects o sustainability.

A Company ith a Social ConscienceL&Ts social interactions take place at many levels, and through

multiple initiatives. These cover:

Construction Skills Training Institutes:Eight such units havebeen set up by L&T on its own, and six by L&T in collaboration with

dierent State Governments. Each institute provides training ree

o cost in basic trades such as masonry, carpentry, bar bending, etc.

Health Care: Health Centres in Mumbai (at Andheri and Thane),

Ahmednagar, Chennai, Surat (Hazira), Kansbahal (near Rourkela)

and Coimbatore provide diagnostic services ree o charge to the

community.

Education: L&T assists schools around its acilities with teaching

aids. A growing number o L&T-ites volunteer to teach pupils.

L&T Public Charitable Trust: It unctions as an apex body or

several NGOs and assists them in several areas including (apart

rom those listed above) in building check dams and rural uplit.

(Details o initiatives undertaken this year and inormation about L&Ts

green portolio are published in our Sustainability Report. For the e-version

o the Report, please visit www.Larsentoubro.com)

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We have reduced carbon emission to less than

22,000 tonnes since 2008

More than 12 per cent o our energy requirement is sourced

rom renewable energy

Several o L&Ts buildings are certied green buildings. Over

hal o L&Ts locations are zero-wastewater-discharge units.

15 o our campuses have achieved zero-wastewater-

discharge status

Total water consumption reduced by 5 per cent by L&T units

L&T nurtures over 150,000 ull-grown trees acrossits campuses

Additionally, L&T helps sustain the ragile Himalayan

ecosystem by planting saplings on the slopes

Spreading smiles through social interventions.

One o L&Ts many certied green buildings, its LEED-certied (platinum-rated)technology block at Hazira.


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Information given in this publication has been excerpted from an analysis of the performance of the Companyas stated in L&Ts Annual Report 2011-12. For more exhaustive information, please refer to the Annual Report.


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