L038;T cements three-pronged export strategy

Larsen Toubro LT has evolved a three-pronged export strategy, completed a revamp of its construction division and sharpened its focus o...

Larsen 038; Toubro L038;T has evolved a three-pronged export strategy, completed a revamp of its construction division and sharpened its focus on international markets, especially China and Brazil. The orders in hand with L038;T8217;s engineering and construction division alone stand at well over Rs 13,600 crore.

The 18 strategic business units SBUs of the construction division have been pruned to four SBUs and four zones. The four new SBUs are building 038; factories, civil 038; transport infrastructure, industrial projects 038; utilities and electrical 038; instrumentation. The entire operation of the division8212;domestic and international8212;will be managed by the four zones. 8216;8216;The west zone will operate from Mumbai and look at opportunities in the Middle East and Africa apart from Mumbai region,8217;8217; the source said.

L038;T Roadmap
8226; Engineering, construction division orders at Rs 13,600 crore 8226; 18 SBUs of construction division pruned to 4 SBUs and 4 zones 8226; Three-pronged action plan to bag exports 8226; Strategic tie-ups with global firms planned to increase international sales from 11-20 now

The east zone, with Kolkata as its base, will cover markets of Nepal, Bhutan, Bangladesh and Myanmar. It will further explore emerging opportunities in Vietnam, Cambodia and China. The north zone, housed in Delhi, will be responsible for developments in Afghanistan, Iran, Kazakhstan, Uzbekistan, Central Asia and CIS countries.

The south zone will cover Chennai, Hyderabad and Bangalore regions domestically and focus on Sri Lanka, Male, Malaysia and Indonesia.

Explaining the rationale behind restructuring, the company source said: 8216;8216;The new structure thus brings multi-pronged and yet focused attention to our objective of increasing international business, especially in the neighbouring countries.8217;8217;

The division has adopted a three-pronged action plan to bag export orders, bidding for international EPC Engineering Procurement Construction contracts in Asia Pacific region, bidding jointly with collaborators or associates in third countries, working as sub-contractors and suppliers for collaborators who have already bagged EPC and supply contracts.

Story continues below this ad

The division plans to forge strategic tie-ups with global firms to increase its international sales to around 20 per cent from the existing level of 11 per cent. L038;T has identified international EPC projects and export of heavy engineering equipment as thrust areas. It is bidding for major oil 038; gas projects in the Middle East and also focusing on high potential countries like Iran, Nigeria, CIS and Far East.

L038;T has four divisions8212;E038;C, Electrical 038; Electronics E038;E, Cement 038; Others and Finance 038; HR.