L&T aims at revenue of Rs 2 lakh cr by 2021

The engineering and construction major L&T plans to achieve a revenue of Rs 2 lakh crores ($30 billion at current exchange rates) and order inflow in excess of Rs 2.5 lakh crores per annum by 2021. This is to be done without compromising on its margins. While releasing the five-year strategic plan at the 71st annual general meeting here today, the company CMD AM Naik said the theme is "Technology Leadership" and it is at the heart of the new L&T.

"Our mission is profitable growth through technology leadership - year after year. As you know, your company has always been aligned with the nation's priorities, developing capabilities to meet India's needs. As the country surges forward, with a focus on technology-led initiatives, your company is future ready," Naik said. He informed the shareholders that the company has identified select growth businesses in broad portfolio. These include IT, technology services, defence, water management.

According to Naik, India is at the cusp of a turnaround. All indicators are positive. With a projected GDP growth rate of 7.4% in 2016 -17, India is the fastest growing large economy in the world. "The Government's thrust on infrastructure and its 'Make in India' initiatives provide a range of opportunities for your Company," he noted.

"Our Strategic Plan involves re-allocation of resources - both talent and capital - to businesses with visible value creation potential. As most of these are also asset-light businesses, the initiative will be in line with our larger objective of building an asset- light organization," Naik said. As part of extending operational excellence across the company, Naik said the company is setting up a separate digital group that will ideate and implement solutions across functions.

"In the coming years, digital levers on profitability and growth will extend deeper into the organisation, alter processes and yield dramatically superior outcomes," Naik said. "Our Group Companies, L&T Infotech and L&T Technology Services, will play a key role in this process. For our technology arms, these enterprise-wide initiatives will act as a ready-to-market showcase, enhancing client confidence in their capabilities. Another focus area is leadership development, he said.

Further, Naik said the company has a unique seven-step leadership programme designed to build a robust pipeline of future leaders. The stages include training by some of the world's leading business schools like IIM-A, Ross, INSEAD and Harvard and at the final stage, mentoring by him. "I have personally mentored over 50 future leaders and equipped them with the competencies and strength of character to steer your Company through the challenges of the future," he informed.

Other imperatives include managing portfolio risks and conducting a portfolio churn, so as to transform your company into an asset-light organisation.