Indian MNC announces new strategic initiative
MUMBAI: Larsen & Toubro (L&T) has announced a new strategic initiative, L&T Nxt, to define the future of the organization from a fresh perspective, according to a company’s regulatory filing to the stock markets on Friday.
It has been identified as a select initiative in L&T’s five-year strategic plan. Larsen &Toubro, the Indian multinational, which is currently engaged in technology, engineering, construction, manufacturing and financial services with over $18 billion in revenue, operates in over 30 countries worldwide.
“Disruption has become the new order and as we embrace new and frontier technologies, our businesses are leapfrogging into entirely new realms powered by the tremendous benefits of digitalization and analytics,” said SN Subrahmanyan, chief executive officer and managing director, Larsen & Toubro, referring to the sustained and concerted efforts of the company to embrace digitalization.
He said the company is committing significant investments and talent into this strategic effort and is confident that this will be an enabler for business. In consonance with the expectations of a new age industry, L&T -Nxt aims to focus on the areas of Artificial Intelligence (AI) , internet of things (loT), Virtual Reality, Augmented Reality, Geo-spatial solutions and Cyber Security, and leverage the experience that L&T has garnered over the decades.
The company said L&T, through its current construction, EPC and manufacturing businesses, has made one of the largest deployments of loT, analytics and Al in the industrial sector by converting most operational matters online.
Having reached a critical juncture in its developmental cycle, L&T is training its sights towards accelerating top-line and bottom-line growth and, at the same time, expand its potential for value creation by adopting a fresh mind-set and building a new structure ground up.
JD Patil, senior executive vice president (Defence Business) and member of the board feels that the era of cyber-physical systems is just beginning. “With the lines between the physical and digital blurring, Industry 4.0 is being founded,” he noted.
“We see new technology businesses and sunrise enterprises as prime constituents with the latent upside for rapid and substantial value creation.”
L&T claims that it is ideally placed to capitalize on these huge emerging opportunities with its large palette spanning software-to-hardcore engineering, backed by a strong technology base.
“Capability development in some of these select verticals has been in the works under a long-term strategic plan and L&T’s management is focused on incubating and scaling these businesses, mapping the landscape, formulating the road ahead, and achieving the stated goal with go-to-market solutions,” the company further said.