SN Subrahmanyan, deputy managing director and president of Larsen & Toubro (L&T), will be taking over as the chief executive officer and managing director of the $16-billion heavy engineering-to-finance major with effect from July 1. The announcement was made on Friday following a board meeting of the company.
Meanwhile, AM Naik’s tenure as group executive chairman will come to an end on September 30, after which he will become non-executive chairman of the company from October 1 for three years.
Naik, who has served L&T for 52 years, became chairman and managing director in December 2003 and in April 2012 was made the group executive chairman for a period of five years by bifurcating the post of chairman and managing director.
Calling Subrahmanyan a “top-notch professional of outstanding ability and commitment”, Naik said, “I am confident that under his (Subrahmanyan) high-calibre leadership, the company will accelerate its growth momentum and continue to play a vital role in building the nation.”
Commenting on his appointment, Subrahmanyan said, “It is an onerous responsibility to manage and grow such a huge and highly diversified engineering, project, manufacturing and services conglomerate. Further, stepping into the shoes of a visionary and industry doyen like Naik is not easy. However, I have been blessed that Naik has agreed to continue as a non-executive chairman. This will bring continuity and stability into the organisation during this transition period.”
Outlining his priorities to FE after the announcement on Friday, Subrahmanyan said decisions and the strategic plan of the company are well known to all, and the change in the management structure will not make a difference to those plans. In his speech at the annual general meeting held in August 2016, Naik had said that L&T’s goal is to achieve a revenue of Rs 2 lakh crore by 2021 without compromising on margins and achieving an order inflow in excess of Rs 2.5 lakh crore per annum.
Subrahmanyan also said that the company would not shy away from hiring new people wherever there is a requirement, and in fact had added 15,000 employees last year to its workforce.
Subrahmanyan joined L&T in 1984 and has a degree in civil engineering and a postgraduate qualification in business management. In the past, he has been at the helm of L&T’s largest infrastructure projects including airports in major cities, and metro and freight corridor projects across India and West Asia. He was inducted into the L&T board in 2011. Under his leadership, the L&T construction business has grown multi-fold over the last six years to rank among the top 25 global contractors and by far the largest EPC player in the country.