L&T's Crown Jewels Larsen & Toubro has spawned dozens of subsidiaries that have grown in value and have scaleable business models across a wide spectrum of associated industries. And the parent plans to list 10 of them in the years ahead.

Business Today, June, 2007 by Mahesh Nayak

Did you know that Larsen & Toubro (L&T), South and South East Asia's largest engineering and construction company, is also one of India's most successful corporate incubators? There's more: over the next eight years, it plans to list at least 10 subsidiaries to unlock value and create shareholder wealth. "We will list subsidiaries only after they achieve scaleable size," says A.M. Naik, Chairman and Managing Director, L&T. Adds Y.M. Deosthalee, CFO, L&T: "Our portfolio (of subsidiaries and associate or S&A companies) spans three broad verticals--manufacturing, services and projects."

These subsidiaries and associates--18 Indian subsidiaries, six foreign ones and 26 associate companies--are sitting on massive untapped value. Together, they account for 18 per cent of the...

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