 "SN Subrahmanyan")
For long, investors and observers have wondered whether Anil Manibhai Naik, chairman of Larsen & Toubro, would ever find anyone who could step into his big shoes. The answer to that question has been answered in no uncertain terms this week, with the elevation of SN Subrahmanyan as the deputy managing director and president of the company. With the change, a generational shift is now under way at L&T.
The 54-year-old is an old hand at India's largest engineering and construction enterprise, and has been with the company for over 30 years. Even internally, Subrahmanyan is known more for his drive and business acumen than anything else. He may not be another Naik, but he has the same drive and entrepreneurial zeal that drove Naik to grow the company into a Rs 92,762-crore diversified conglomerate.
Subrahmanyan owes his rapid rise to his mentor, Naik, who identified him over a decade ago when he 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. His growth has been remarkable not only because Naik handpicked him, but because of his tremendous drive and entrepreneurial zeal to grow the businesses.
Over the last couple of years, whenever he was questioned on the succession plan, all Naik had to say was that a CEO would be in place a year before his retirement in 2017. The first step in that direction has been taken. Commenting on his protegee, Naik says: "He (Subrahmanyan) has been with the company for 30 years, running the infrastructure business. He has been proactive and dynamic and I am sure given his track record, he will do the same in his future role."
Inside L&T, Subrahmanyan, or SNS as he called, is known for the landmark infrastructure projects he has won and executed. He has led from the front while bidding for all the marquee projects for the company. L&T, which was largely known for engineering and construction projects, not only entered new geographies under his stewardship but also forayed into businesses like transmission & distribution and heavy civil projects in West Asia with the Riyadh and Qatar Metro. Whilst bidding for these projects, Subrahmanyan also re-engineered the company's capabilities to include design along with its engineering and building capabilities.
Insiders say that of L&T's Rs 232,000 crore order book, the construction segment accounts for Rs 160,000 crore. In a time when other infrastructure companies have struggled to grow order books, Subrahmanyan's vertical has grown steadily in double digits. Currently, he is leading the smart city project as it would give L&T the opportunity to exhibit the length and breadth of its expertise.
Subrahmanyan has played a crucial role in securing and managing EPC contracts to construct the international airports at Bengaluru, Hyderabad, Delhi and Mumbai. The contract for the Delhi International Airport is the largest secured by L&T till date. He is currently driving the dedicated freight corridor project that will change the way freight moves within the country.
