L&T To Set Up 5 New Companies

Mumbai: In a major revamping exercise, Larsen & Toubro (L&T), the country''s largest engineering conglomerate, is establishing at least five new companies. The verticalisation effort is targeted at ensuring better corporate governance as well as attracting talent to the 70-year-old company. L&T has also unveiled a global hunt for CEOs. These CEOs will be a part of the group corporate management committee but would not get a berth on the L&T board. The companies will operate in L&T''s new business areas of power projects, boilers, turbines, water and shipbuilding. The new structure will also open up opportunities for L&T insiders to move up the ladder. L&T has been facing a high attrition rate, forcing the company to go in for extensions to existing employees. L&T has a complex structure having 62 different areas of operation.