Restructuring
In January 2011, Mr. A.M. Naik announced that the company will be restructured into nine virtual companies. Each will be called an independent company, and will have a CEO, CFO and HR head, its own profit and loss account, and a board of directors with at least three independent directors. Each board will not have any legal or statutory standing, but will merely advise management. This is similar in organization to the Mitsubishi Group with which L&T has close partnerships.
The nine virtual companies will operate in different segments, The nine sectors for which companies are formed are:
- Building and materials
- Civil Infrastructure
- Mechanical-Metal Handling and Supply of Equipment for steel industry
- Electric Power transmission and distribution
- Hydrocarbon and Chemicals
- Heavy Engineering Catering to defense and Aerospace
- Electrical Equipment and Automation Products
- Mechanical and Industrial Products
- Power Equipment and building Power Plants
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