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L&T the engineering and construction conglomerate would be split into nine independent companies.
Each of these, being called `independent companies’, will have a full-fledged CEO, CFO and HR head, and will manage its own profit and loss account. Each will even have its own board of directors with at least three independent directors.
The nine boards that will soon be set up at the independent companies will not have any legal or statutory standing, but will merely advise the CEO and management of these entities.
Ten of the 27 independent directors needed at these nine companies have already been identified.
The L&T board has approved this restructuring, and implementation of the plan is on in full swing.
The Nine Are:
Power,
Hydrocarbon,
Machinery & product,
Switchgear,
Heavy engineering,
Infrastructure,
Building & factories,
Metals & minerals
Electrical businesses
Each is worth a billion dollars in revenue.
No other company in the world is as complex as L&T... not even General Electric. No one chairman can manage such a complex operation. L&T is a jungle where one man (chairman) manages all 64 businesses.
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