It is not shocking that Larsen & Toubro (L&T) is involved a lot more with Anil Manibhai Naik or A M Naik instead than the two Danish founders – Henning Holck-Larsen and Soren Kristian Toubro. And, rightly so.
Following all, now the conglomerate with enterprise pursuits in engineering, building, production, technologies, facts technological innovation and economical services stands tall because of his sheer tenacity.
Naik joined L&T as a junior engineer in the mid-1960s and went on to grow to be its MD and CEO – the to start with skilled – in 1999. 4 many years later on, he grew to become the chairman – a placement he held till 2017.
The quantities speak for by themselves. When Naik became the MD & CEO in 1999, the company’s revenues stood at Rs 7,666 crore and net profits ended up at Rs 369 crore. When he stepped down as executive chairman in 2017, the revenues experienced zoomed toRs 1.19 trillion and net gain at Rs 7,151 crore. Similarly, the share price has moved fromRs 48/share to Rs 1,310/share.
Having said that, it wasn’t an easy trip. Naik was struggle-scarred early in career as MD & CEO when he had to confront fight-hardened and politically very well-connected Indian corporate giants these as the Birlas and Ambanis – ones that threatened to stop the existence of L&T as a organization.
After a unsuccessful try by Reliance Industries to just take above the business owing to governing administration intervention, he gained a get in touch with from Anil Ambani who explained ‘Anilbhai (Naik) you under no circumstances desired us. So we are likely. We have bought the entire shareholding of Reliance in L&T to Kumar Mangalam Birla’.
Shortly soon after that, this time from Kumar Mangalam Birla, who reported “you did not appear to us Naikji. So we have come to you.” Incidentally, Birla and his father were being hoping to employ the service of Naik for years.
“In the end, we retained L&T unbiased. We ringfenced it from potential takeover attempts by location up the L&T workers welfare basis that inevitably bought Birlas’ stake. And the Birlas bought our demerged cement business enterprise that extra to their cement creation potential,” Naik remembered at the start of his reserve, “The Nationalist”.
The option: An L&T employees’ welfare basis that at some point purchased Birlas’ stake. The foundation’s structure does not allow it to provide the shares. So, as lengthy as the firm has the assistance of Indian fiscal institutions, it will often be controlled by the management. Naik produced L&T’s have edition of the ‘poison pill’ to safeguard the enterprise from predators.
Born on June 9, 1942 to a spouse and children of academics in Gujarat, Naik’s father made use of to instruct at a school in Mumbai but decided to head back to his village of Endhal in Gujarat, the place he accomplished his education. He graduated with a bachelor’s diploma in mechanical engineering from Birla Vishvakarma Mahavidyalaya Engineering school in Vallabh Vidyanagar in Gujarat.
Naik also served as the chairman of the Nationwide Talent Enhancement Corporation from November 2018 to April 2022. He was awarded the Padma Vibhushan, 1 of the country’s maximum civilian honours (honours record of January 26, 2019), Padma Bhushan (March 31, 2009), Gujarat Garima (Satisfaction of Gujarat on January 13, 2009) and Danish Knighthood: Conferred rank of Knight of the Get of the Dannebrog (2008). In 2015, he was awarded the Purchase of the Dannebrog Knight To start with Course.
He is also regarded in the field for his philanthropic actions, primarily executed by way of two trusts established up in 2009 – the Nirali Memorial Professional medical Belief (in the memory of his two-year-aged granddaughter who succumbed to most cancers) and the Naik Charitable Have confidence in. Later on in 2016, he had pledged to dedicate 75% of his life span profits to charity.
So, when he actions down as non-executive chairman in September 2023, he would have still left a legacy which any skilled would be immensely happy of, and of course, nearly extremely hard to emulate, as admitted by L&T complete-time director & CFO R Shankar Raman. “These are pretty huge sneakers to fill in,” he explained.
The corporation has re-specified SN Subrahmanyan, at this time CEO & MD, as chairman and MD, productive Oct 1.
Replying to no matter whether Naik will continue to be connected with the team, Raman additional: “He is an everlasting adviser and I do not believe he demands an formal job for that. You can’t take Mr Naik out of L&T”.