Jagdish Pandurang Nayak, currently whole-time director & president (machinery & industrial products) will retire on March 31, after 46 years with India's top engineering and construction firm, Larsen & Toubro (L&T). But the end of one chapter marks the beginning of another for Nayak, as he will take on the role of advisor to the newly created L&T corporate centre. The centre will oversee the operations of L&T’s recently restructured nine business divisions, which will function as independent companies.
A mechanical engineer with additional degrees from Mid-Essex College of Technology in the UK and underwent training in manufacturing management from Parkinson Commonwealth Bursary, the new task will prove a challenging one for Nayak. His primary responsibility will be to transform the corporate centre into the group’s apex decision-making body and central think tank to drive the future growth of the nine divisions.
"Maybe only an A M Naik (CMD) can manage L&T under the old structure, since it requires superhuman effort. The Rs 42,000-crore L&T now operates in 152 different businesses and has grown three-fold in the last three years, which necessitated a restructuring," says Nayak.
But Nayak is no stranger to huge challenges. He was closely involved in the de-merger – then the biggest of its kind in corporate India -- and subsequent divestment of L&T's cement business to Grasim. To Nayak's advantage, there are not many within L&T who know the company better. Nayak joined L&T in 1965 with Tractor Engineers (a JV with Caterpillar Tractor of the US), the same year in which Naik joined the company as a junior engineer.
In 1980, Nayak took charge of the construction equipment manufacturing unit of L&T in Bangalore and, later, as group general manager of L&T's construction equipment group in 1987 with responsibility for both manufacturing and marketing. During this period, he oversaw the formation of joint ventures with global majors like Komatsu, Deere & Company, and CNH. He joined the L&T board in 1995.
For the time being, Nayak is concentrating his skills and energies on establishing the L&T corporate centre, its structure and functions. The immediate task before him is to find board members for the nine business divisions in the next two months.
