The Larsen & Toubro board today decided to induct Ravi Uppal as a whole-time director, a little over one-and-a-half years after he joined the company as managing director of L&T Power.
At 58, Uppal will also be the youngest board member of India’s largest engineering firm, for a period of five years from November 1. The decision of appointing Uppal reaffirms the buzz around L&T’s succession plans, as chairman & MD A M Naik retires in September 2012.
Since Uppal joined L&T 20 months ago after his stint with Swiss major ABB, he was being considered as a successor to Naik. Till now, Uppal was only a member of the corporate management committee. He succeeds R N Mukhija, whole time director & president (electrical &electronics), who steps down on October 23.
Naik had gone on record to say that his successor would be chosen by March 2012. The time is crucial because by then most of L&T’s present board members, except CFO Y M Deosthalee and Senior Executive VP (Heavy Engineer) M V Kotwal, would have retired.
While Kotwal has been reappointed for five years, Deosthalee has not sought re-election and will be heading L&T Finance Holding as its chairman, a company which is also in the process of raising Rs 1,500 crores from capital markets through an IPO.
Uppal could not be reached for comments. Observers said Uppal has both age and experience on his side. The retirement age in L&T is between 67 and 70 years. Uppal’s global experience after spending 18 years in ABB will also help. No wonder L&T sources said he is best placed to become either the CEO or the MD of the company, while Naik continues as the chairman emeritus after 2012.
