The report stated that some of these companies could be spun out of L&T and listed on the stock markets before 2015.
Each of these companies will have a CEO, CFO and HR head, and will manage its own profit and loss account, said L&T’s Whole time Directorand President J P Nayak while making a presentation on restructuring. Power, hydrocarbon, machinery and products, switchgear, heavy engineering, infrastructure, building and factories, metals and minerals and electrical businesses make up the nine companies, adds report. c The restructuring process is being advised by Bain & Co and Mckinsey. The move aims to streamline the complex structure of the company that has evolved as a result of its numerous business interests over the years.
“As a result of this, managing a company like L&T will become easier and efficient and will benefit investors too,” said Alex Mathew, of Geojit BNP Paribas Financial Services.