AM Naik (81) may be stepping down as the Non-Executive Chairman of Larsen & Toubro (L&T) on September 30, passing on the baton to SN Subrahmanyan, but he will continue to be involved with the company as chairman of the employees’ trust, an advisor to the board, and chairman of the two information technology (IT) subsidiaries.
In an exclusive interview with Moneycontrol, Naik said that he will give up all his other roles only by 2025.
"I am still the Consul General of Denmark until 2025. I have told the ambassador I can't continue beyond 2025. I am still the chairman of both IT companies for one year. I am still the advisor for L&T up to 2025. I have decided that by 2025, I will give up everything and only run the trust and my two trust social work ventures," Naik said.
Naik is the Honorary Consul General for Denmark.
Naik, who has worked at L&T for six decades, was appointed chief executive officer (CEO) in 1999 and chairman in 2003. The octogenarian has been conferred the status of chairman emeritus by the board.
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Naik, a veteran business leader, has been credited with thwarting two attempts at hostile takeover of L&T. He was instrumental in creating the Larsen & Toubro Employee Trust (LTET), which is the single largest shareholder of the company.
"We saved L&T and formed an employees’ trust like the Tata Trust. This employees’ trust is the biggest shareholder, and its value has grown from nothing to Rs 52,000 crore. We have ring-fenced L&T to the extent possible," he said.
SN Subrahmanyan, who is currently the CEO and Managing Director (MD) of the company, will take over as Chairman and Managing Director (CMD) with effect from October 1. He was promoted to the roles of CEO and MD in 2017 after a rigorous selection process. Naik groomed him for the top job for three years before his elevation.
"The trust is running many schemes to help retired L&T people as well as current L&T people beyond what the company can do out of its own medical scheme. It is promoting sports, and so on. A lot of creative work needs to be done at the trust, which I am doing," he said.
"I am always a well-wisher for L&T. I keep talking to them. I will continue to talk to our chairman, Mr S N Subrahmanyan. Being the chairman of the trust, I am sure whoever is there will always be happy to talk to me," he added.
Naik led L&T’s many diversifications, most notably in IT, as well as the initial public offerings (IPOs) of its subsidiaries. He will continue to be the chairman of LTI Mindtree and L&T Technology Services.
Naik was the first professional manager to make it to the top 10 in the EdelGive Hurun India Philanthropy List 2022. He founded two charitable trusts — the Naik Charitable Trust for education and skill training, and the Nirali Memorial Medical Trust. The latter was named after his granddaughter, who died of cancer in 2007.
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