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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (5893)	8/26/1999 2:31:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 12475

At L&T only performance is rewarded -Plans two subsidiaries. larsentoubro.com According to newspaper reports, Larsen and Toubro (L&T) has denied a salary hike to its non-performing employees, amounting to 2% of the total work force of 27,000. L & T is the largest engineering, procurement and construction (EPC) company (58% of total revenues) in India. The company also has major business interests in cement (24% of total revenues, capacity 12 mtpa), and software. The decision by the management to deny the increment in salary to non-performers is a break from tradition where all employees were rewarded. Under the previous system, the non-performers piggybacked on other employees to earn their increments. This did not go down too favourably with the 'performers'. The company has put on offer a voluntary retirement scheme, which it expects will help it to reduce the employee strength to 25,000. Moreover, it has commissioned William Mercer, an international human resource development (HRD) consultant, to review its policies pertaining to compensation and performance review. This move will help the company in attracting and retaining the best talent in the company. Moreover, the rationalisation of the workforce will help the company in becoming more competitive. Market View: Most analysts have rated the stock as a 'BUY' on account of the rising cement prices. As the other divisions of the company are already performing well, the turnaround in the cement division is expected to give a boost to the bottomline of the company. 26 August, 1999 (Courtesy:Probity) ===================== L&T plans two subsidiaries. Engineering and construction giant Larsen & Toubro Ltd. is planning to set up separate units to handle projects relating to power and infrastructure. A.M. Naik the company's managing director and chief executive officer addressing the shareholders in Mumbai said, "In order to leverage our financial resources we plan to set up two independent subsidiaries for power and infrastructure projects." (Courtesy:EquityMaster)