Mumbai, April 07, 2003: L&T has restructured its Chennai-headquartered Construction Division (ECC) by transforming it from the erstwhile complex model having 18 Strategic Business Units (SBUs), seven Regional Offices in India and four abroad, into a new structure with a functional 4x4 matrix.
ECC's strategic plan for 2005-06 envisages achievement of a planned turnover of Rs. 9,000 crores with Profit Before Interest & Tax (PBIT) of more than 9% and manpower strength of less than 9000.

Mr. A. Ramakrishna, L&T's Deputy Managing Director, explained the restructuring thus: "From the earlier 18 SBUs, we have regrouped the Divisions on a four-business sector-model, based on four core-technology fronts: Buildings and factories, Civil and Transport Infrastructure, Industrial Projects & Utilities and Electrical & Instrumentation."

ECC is India's largest construction organization and backed by the capabilities of L&T's allied Divisions, it offers EPC solutions with a single-source project-execution responsibility, from concept to commissioning. The Division is ranked 67th among the world's 100 top contractors and has an important role to play in achieving L&T's Corporate Vision of becoming an Indian Multinational.

ECC's aim is to be a leader in construction in the Indian Ocean Rim by spreading and consolidating business in:

Geographically, the entire market is now divided into 4 zones: The West Zone will operate from Mumbai and will look at opportunities in the Middle East and Africa apart from the Mumbai Region.
The Kolkata-based East Zone will cover the Kolkata Region, markets of Nepal, Bhutan, Bangladesh, and Myanmar to further explore emerging opportunities in Vietnam, Cambodia, Indonesia and China.
The North Zone will operate from Delhi to oversee projects in the Delhi and Ahmedabad Regions and Afghanistan, Central Asia, Uzbekistan, and Russian Federation.
The South Zone will include the Chennai, Hyderabad and Bangalore Regions while spreading operations in Sri Lanka, Male, Malaysia and Indonesia.

The Global Operations will be operating through these four Zones for a seamless flow of resources across the Division. Zones will be an extended arm of Head Quarters with two important thrust areas, viz.

"We have created a Global Resources and Supply Chain Management team and it will be responsible for Asset and Resources Management, Vendor / Sub-Contract Development in terms of standardization, sustaining systems, classification, ratings, materials planning and procurement. This will leverage the Division to reach world-class standards in Project Management and will ably support the newly designed organization structure, by providing optimal inputs of all resources in terms of project timeliness, quality and cost," Mr Ramakrishna said.

Background:

For over five decades, ECC has built up proven capability of executing projects of large magnitude on a turnkey basis. ECC offers specialized construction services for specific projects, which cover every sphere of industry. Its well-structured quality assurance systems ensure project quality, safety and reliability at every stage of engineering, procurement, fabrication, assembly, erection and commissioning. ECC's construction capabilities have secured wide recognition, including ISO 9001 certification for its work-process. ECC was recently conferred the American Society of Concrete Contractors (ASCC) prestigious ASCC-2002 Safety Award. ECC has executed many prestigious road and highway projects and expressways under the Prime Minister's Golden Quadrilateral programme.

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