It would be a pity to squander

Soon after this, the company hived off its cement,

shipping and glass ventures. Years of painstaking cost

controls and renewed core business focus of the

company into engineering and construction (E&C) and

electricals and electronics (E&E) divisions helped L&T

record a compound annual growth rate (CAGR) of 33%

over a period of last four years.
However clichéd it might be, L&T should remember the

basics of sticking to the core while expanding globally.

The engineering and construction divisions still contribute

84.7% of the total revenue and any move away from this

would spell disaster surely.
L&T’s recent collaboration with Dubai Aluminium

Company, the attention towards China and Middle East

expansions, divestment of its dairy business have all

come in a relatively short span of time.
The past four

years have just about seen L&T consolidate and move

forward, and it would be a pity to squander a hard-earned

advantage. L&T seems to be going strong, but this is the

appropriate time to not repeat the mistakes of the past

and expand in a hurry.

Advertisement