1. SN Subrahmanyan’s elevation signals L&T succession plan

SN Subrahmanyan’s elevation signals L&T succession plan

Larsen & Toubro on Monday set in motion the process that may later culminate in a much-awaited succession plan at the country’s largest heavy engineering and infrastructure firm.

By: | Mumbai | Updated: September 22, 2015 12:55 AM
Larsen & Toubro announced the appointment of SN Subrahmanyan as deputy managing director and president of the company, with effect from October 1.

Larsen & Toubro announced the appointment of SN Subrahmanyan as deputy managing director and president of the company, with effect from October 1.

Larsen & Toubro on Monday set in motion the process that may later culminate in a much-awaited succession plan at the country’s largest heavy engineering and infrastructure firm. The company’s board, which met earlier in the day, announced the appointment of SN Subrahmanyan as deputy managing director and president of the company, with effect from October 1. Subrahmanyan, 54, currently is senior executive vice-president at the company and has been on its board since 2011. The board on Monday also appointed DK Sen as a whole-time director and senior executive vice-president (infrastructure).

“These appointments are in line with our plans for succession and seamless transition of leadership. Both Subrahmanyan and Sen have decades of experience in the company and proven track records of performance,” group executive chairman AM Naik said in a statement.

The appointments come ahead of current chief executive officer and managing director KV Venkataramanan’s retirement at the end of this month.

After the company’s annual general meeting on September 9, Naik had hinted that with the superannuation of Venkataramanan the company may not appoint a chief executive officer and managing director as there were different heads to handle the various divisions of the company with the group executive chairman holding the overall reins.

“Normally, when the chairman is a non-executive chairman, the CEO and MD’s position is a must. But when there is a group executive chairman, the company may think of a different kind of structure. Whether that means that a CEO and MD is required or not, the board has not yet applied its mind to it. It will in due course,” Naik had then said. “We are going to do a lot of thinking for the succession planning over the next few months. So in two-three months we should have an answer,” he had added.

L&T, in April 2012, had split the post of chairman and managing director with Naik becoming group executive chairman and continuing to hold executive powers. Venkataramanan, the then whole-time director and president of the hydrocarbon business, was elevated as CEO and MD. Naik had been appointed chairman and managing director in 2003 but since 2012, Venkataramanan has been looking after the company’s day-to-day business.

Naik has on many occasions indicated that he has been grooming two insiders for the top job as well as working on building an entire team.

Naik is among the oldest executive professionals in the corporate sector having turned 73 in June and five years older than Yogesh Chander Deveshwar, chairman at Kolkata-headquartered ITC, who turned 68 in February. He has said that he would step down once he turns 75, which gives him two years at the helm of the company’s affairs.

Currently, Subrahmanyan oversees a large chunk of L&T’s fast-growing businesses which account for half the company’s consolidated revenues of Rs 92,761.66 crore. He has a degree in civil engineering and a postgraduate qualification in business management. Commencing his professional career with L&T in 1984 as a project planning engineer, he has over the last 30 years played a critical role in driving many of the company’s infrastructure and construction projects.

  1. H
    Harry Potter
    Sep 22, 2015 at 3:19 pm
    CAUTION – Big Danger Ahead - LnT top-bres were on selling spree, Chairman Mr Naik sold his LnT shares (Rs 1200 apiece) worth 70 crores in 20 days - March 2014. Post Q1-2014 results LnT plunged by 8 %, biggest intra-day decline since July 2009. Post Q2 results LnT share plummeted from high of 1673 to low of 1450 (17 Dec, 2014). Post Q3 – 2014 results another big intra-day fall of 7.44 per cent. Post Q1 – 2015 tumbled by 5 per cent in early hours trade, Q1 profit tanked 37 per cent. Average of lows of last 12 years (Jan to Dec, 2004 till 2012) is Rs 622. Average of highs of last 12 years is Rs 1124. Averages to Rs 875 apiece. Closed today at 1485. Inherent malignancies – Hydrocarbon and Ship Building losses of Rs 900 cr each, Hyderabad Metro cost overruns Rs 4k crores, Rs 5k crores stagnating investment in Defence. Aging CXO-MD potion of septuagenarians, leading the pack 73 yrs old Chairman Mr Naik completed 50 yrs with LnT as Paid Employee. Post Q2-2015 results - 3 year low of 722 or 6 year low of 386? State owned LIC/UTI are biggest stakeholders at LnT. PM Mr Modi, should intervene to fix retirement age at LnT from SCANDALOUS 75 to 60 - ASAP!!----------------------------------------------------------------------------------To quote Mr Naik "there is no bloody owner at L&T". Its not just Mr Naik L&T is personal fiefdom of a old-men club, it is divided between septuagenarians vertical wise. CEO Mr Vekataramanan responsible for Hydrocarbon business and its heavy losses. Mr Magapu is responsible for stagnating IT business L&T Infotech and L&T Tech services, Mr Deosthali is CEO of L&T Finance holding, Mr MV Kotwal man in charge of L&T's defence forays. All these gentleman are nearly or above 70. Career span of 50 years as paid employees in a company where state owned LIC/UTI are biggest stake holders - SCANDOLOUS - in a country where millions are job less. PM Mr Modi, should intervene to fix retirement age at LnT from SCANDALOUS 75 to 60 - ASAP!!--------------------------------------------------------------------------------------------------------------------------------------------------At LnT (BSE heavy weight, (proxy of Indian Economy etc), the top-bres (schizophrenic Egyptian Mummies) have displa geriatric trait of biting more than they can chew and digest. Were they not aware of the Telangana movement before bidding for Hyderabad Metro - now they want VGF of 3k crores? Why they want to play in Defence, LnT's 5k crores of what they call ahead in time investment in defence is at risk - now they want fixed orders from GoI - is this what they call business. 900 crore losses in Ship Buliding. 900 crores losses in International Hydrocarbon projects. They accept it as error of judgement - can they ask for Viability Gap Funding? How many cotton farmers get this VGF before suicide? Now they want cheap money to stay afloat -no risk/loss only profits at the cost of tax payers money is their Business Mantra - PPP. State owned LIC/UTI are biggest stakeholders at LnT. PM Mr Modi, should intervene to fix retirement age at LnT from SCANDALOUS 75 to 60 - ASAP!------------------------------------------------CAUTION – Danger Ahead ! - LnT top-bres were on selling spree, Chairman Mr Naik sold his LnT shares (Rs 1200 apiece) worth 70 crores in 20 days - March 2014. Post Q1-2014 results LnT plunged by 8 %, biggest intra-day decline since July 2009. Post Q2 results LnT share plummeted from high of 1673 to low of 1450 (17 Dec, 2014). Post Q3 – 2014 results another big intra-day fall of 7.44 per cent. Post Q1 – 2015 tumbled by 5 per cent in early hours trade, Q1 profit tanked 37 per cent. Average of lows of last 12 years (Jan to Dec, 2004 till 2012) is Rs 622. Average of highs of last 12 years is Rs 1124. Averages to Rs 875 apiece. Inherent malignancies – Hydrocarbon and Ship Building losses of Rs 900 cr each, Hyderabad Metro cost overruns Rs 4k crores, Rs 5k crores stagnating investment in Defence. Aging CXO-MD potion of septuagenarians, leading the pack 73 yrs old Chairman Mr Naik completed 50 yrs with LnT as Paid Employee. Post Q2-2015 results - 3 year low of 722 or 6 year low of 386? State owned LIC/UTI are biggest stakeholders at LnT. PM Mr Modi, should intervene to fix retirement age at LnT from SCANDALOUS 75 to 60 - ASAP!!------------------------------------------------What are codes of conduct and standards of corporate governance, code of ethics? Any CXO/MD level official ever got fired (or behind bars) in last 10 years - What happened in this case - any logical conclusion, any culpability established? Please refer TOI article – "whistleblower was right: CBI". Excerpts – "CBI confirmed slain National Highway project engineer Satyendra Dubey's allegation --illegally sub-contracted the multi-crore works awarded to them in the Golden Quadrilateral Project -- M/s L&T had misrepresented the facts". BS Article – "Rajya Sabha nods for whistle blowers bill". To quote Mr Naik "there is no bloody owner at L&T". Please GOOGLE ---Cl Action Suit Seeks $100 Million for Pregnancy Discrimination, Other Violations-.Can employees, investors, analyst TRUST these dinosaurs? All 60 leave! Got slapped with ban by World Bank – please refer ET article – -World Bank bars LnT for 6 months over forgery-. LIC/UTI GOI should intervene to Save LnT, fix retirement age to 60 NOW! ----------------------------Its not just Mr Naik, L&T is personal fiefdom of an old-men club, it is divided between septuagenarians vertical wise. Like BCCI, LnT is no less cozy club, an Old-Men club enjoying Fire Proof jobs and stratospheric compensation. Expensive CXO Maha Kumbh Mela at LnT - what is the number of CEOs at LnT and all its subsidiaries (138), their CTC? How far higher, this is to manage LnT group revenues of $14 bln than Mr Sikka (aged 46) of Infosys highest paid professional CEO (Rs 30 cr) in India, entrusted with business worth $ 8 bln in revenues. At LnT, just Chairman Mr Naik (aged 72) and group CEO Mr Vankatramanan are pegged at 21 and 14 crores. Information Age leaders, top-man of TATA group, Infosys, Microsoft are in their 40s, why this super 70s at LnT? ---------------------------------------------------------------------------------------Chairman Mr Naik's jaw-dropping musings on succession – QUOTE- You find a man in the world who will kill himself four times a day, has worked for more than a hundred years-- There is no such person.-- None of us here (at senior level) are working for money -UNQUOTE. Please refer ToI article – Vibrant Gujarat summit Day 1: 25 private jets bring high-flyers. Excerpts –Cabinet ministers arrived via scheduled flights -- private jet of AM Naik left immediately after arriving –. Mr Naik should learn to walk the talk if he cannot set example he can follow the one set by Mr Murthy, Mr Murthy worked for a token ry of INR 1 during his second stint at Infosys, very company that he founded. How about donating all his earnings stock and barrel here is one example of not working for money - Vyakarnam Anjenaya Sastry, 71, had joined Infosys in 1990, donated half of his holdings to the Infosys Employee Welfare Trust while leaving the company in 1996. If he had held on to the shares, they would have been worth about Rs 1,850 crore (1% of Infosys). Mr Naik please walk the talk! ------------------------------------------------Mr Naik says that in new economy he would have given a line of successors, okay than what Mr Magapu and Mr Deosthali are doing at L&T Finance and L&T Infotech, L&T Tech services, why not a leader in his/her 40s? Its a Catch-22 situation young insiders are not good enough for the top jobs at LnT and its subsidiaries, outsiders (laterals) cant with stand Despotic Gritocracy the old-men club. Top-men-eater Egyptian Mummies. Infotech ex-CEO Mr Banerji, two last joint CEOs Mr Chopra and Dr Aghi – QUIT. Mr Ravi Uppal CEO LnT Power (Mr Naik's potential successor)–QUIT. CEO LnT General Insurance Mr Joydeep Roy – QUIT. CEO LnT MF Mr Sanjay Sinha – QUIT. Old-men club is singing this bad chorus and opera a distorted version remix of Brayan Adams songs - 18 till I die and Summer off 69 - oh ya!. The band joined LnT some time in 60s. This public sponsored deafening cacophony and distortion should be stopped.--------------------------------------------------------------------------------------- GoI should intervene to stem the rot at LnT. Geriatric top-bres (Egyptian Mummies) at LnT have displa uncanny geriatric knack biting more than they can chew and digest. They have implemented major international hydrocarbon projects at losses; some sort of international CSR. Please allow me to give you all a glimpse (trailer) of a public sponsored circus - Gymnastics by 70 ton Gorillas and not-ready-to-extinct Dinosaurs at LnT. Please refer BS articles - LnT: International orders worth Rs 30,000 cr at risk - and - why analysts are angry with LnT. Exotic and despotic nonsense by geriatric in chief - why Mr Naik is slogging at 73 to find successor - - you find a man in the world who will kill himself four times a day, has worked for more than a hundred years;--There is no such person-. ------------------------------------On one hand Executive Chairman Mr. Naik and top-bres (Egyptian Mummies) are taking their compensation and retirement to the highest level possible peaks of 75 years and 21 crores, forget about hundreds of crores in stocks, on other hand FIRING young talented employees - Please GOOGLE ---Cl Action Suit Seeks $100 Million for Pregnancy Discrimination, Other Violations-.Can employees, investors, analyst TRUST these dinosaurs? All 60 leave! Got slapped with ban by World Bank – please refer ET article – -World Bank bars LnT for 6 months over forgery-. LIC/UTI GOI should intervene to Save LnT, fix retirement age to 60 NOW!
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    1. H
      Harry Potter
      Oct 6, 2015 at 11:00 am
      L&T in melting - devil or the deep blue sea - stake or post losses. Complete stake at Dhamra Port (Rs 2500 crores) to Adani group saved LnT from posting losses in q1-2014. LnT Inra stake to Canadian FII (2000 crores) saved LnT from posting losses in q2-2014. LnT Finance not made any money for shareholders in 6-7 yrs, 10% stake sold to Bains, 1300 crores. Kuttapali Port deal final with Adani. On a look out to sell Rajpura Power plant – cost 9600 crores. Plans to sell 15% stake at LnT Infotech to raise 2k crores. Threatened to pull out from Hyderabad Metro 16 k crores, LnT opts out of GAIL tender to build LNG carrier, ss Kachchigarh Gujarat port project. L&T’s commercial real estate project in Chandigarh sold to Carnival Group – Rs 1785 crores. LnT Halol Shamlaji Tollway defaults on Rs 1014 crore loan. LnT Chennai Tada Tollway defaults on Rs 475 crore loan. Inherent malignancies – Hydrocarbon and Ship Building losses of Rs 900 cr each, Hyderabad Metro cost overruns Rs 4k crores, Rs 5k crores stagnating investment in Defence. Financial mismanagement charges see a dozen leaving L&T Hydrocarbon arm. Aging CXO-MD potion of septuagenarians, leading the pack 73 yrs old Chairman Mr Naik completed 50 yrs with LnT as Paid Employee. LnT stock touched 18 month low of 1412, from all-time and 3 months peak of 1879. Total consolidated debt 2014-15, 90.7 thousand crores. Lost whopping 20 percent in last 3 months ! Post Q2-2015 results 3 yr low of 722 ?? Another Satyam in making - L&T like Satyam was barred by World Bank over FORGERY !
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