Malini Bhupta
A generational shift is currently underway at engineering and construction behemoth, Larsen & Toubro, even before group chairman Anil Manibhai Naik hangs up his boots in October. His successor SN Subrahmanyan, Deputy Managing Director and President, will take charge as CEO on 1 July, Naik told Moneycontrol in an exclusive interview.
“I have a plan now, we still have nine months. What he will take over on April 1 with a proper director appointed and a whole structure very well laid out, July 1 and October 1,” Naik said.
“I hope by October 1, he would have been running the company as such, obviously, he will become stronger by the day as he gets more and more experience. But I have full faith in him, he is the best man we have. I think he will do a good job.”
Naik said there would be an overlap until October 1, when he retires, but added that he would stay connected with the company after that as well.
“There will be an overlap but even otherwise post October 1 also, there are more than one ways we will keep connecting anyway because I am so concerned about L&T, I take it as if it is my own,” he said.
The search for Naik’s successor ended two years ago, when the company’s board identified Subrahmanyan, better known as SNS, as the CEO designate. SNS has spearheaded the company’s construction division and its foray into global markets. In order to ensure a smooth handover, Naik has been handing over various businesses to SNS over the last few months. Subrahmanyan is the chairman of Hyderabad Metro and has been instrumental in securing and managing EPC contracts to construct the international airports at Bengaluru, Hyderabad, Delhi and Mumbai.
Naik first came in contact with SNS nearly a decade ago while negotiating to bid for the Delhi Airport. It was after that meeting that Naik zeroed in on him and started grooming him. SNS started his career with L&T over 30 years ago and was a general manager in the construction division of the company. He rose rapidly within the system even though he was several years younger than many others in the company. Naik believes that he is leaving L&T behind in good hands as SNS not only has tremendous drive and entrepreneurial zeal, but is also well liked.
Subrahmanyan has led the construction division at L&T and it has grown in double digits over the last few years, when the capex cycle in India hit the slow lane.The contract for the Delhi International Airport is the largest secured by L&T till date. He has also played a critical role in driving the dedicated freight corridor project, which is set to change the way freight moves within the country.
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