Restructuring and streamlining of operations has been an ongoing process at L&T for nearly a decade. The company, at that time, had decided to get out of unprofitable operations (which led to the sale of the shipping division) and form joint ventures for other crucial activities. The idea was tousher in the latest technology which only multinationals could provide.

Thus, the construction equipment business at Bangalore was spun off as a 50:50 joint venture with Komatsu of Japan and an encore is expected shortly with the division at Pithampur. Talks were at an advanced stage with Case Corporation of the US, which was recently taken over in a worldwide acquisition by New Holland. Other joint ventures for vital operations have been formed with world leaders like Sargent & Lundy, Ramboll, Chiyoda and others.

Some important decisions on the cement and information-technology businesses are expected to be taken during the current financial year and through 2000-01. L&T has clearly indicated that engineering, procurement and construction will continue to be the backbone of the company as it contributes to nearly 55 per cent of total turnover.

L&T bags Rs 196cr contract

L&T, along with Engineers India (EIL), has won a $45.45-million (around Rs 196 crore) contract from the Oil & Natural GasCorporation for its clamp-on related modification and pipelines project. The combine, according to a release, has won this in the face of stiff international competitive bidding. The objective of this project is to enhance oil production and augment water-injection network.