Larsen & Toubro Ltd. (LT) named company veteran K. Venkataramanan as chief executive officer, as India’s biggest builder of power networks and airports undertakes a reorganization to boost growth.
Venkataramanan, a director on the board and head of Mumbai- based Larsen’s hydrocarbon business, will become the CEO and managing director from April 1, the company said in a statement today. A.M. Naik, chairman and managing director, will become executive chairman for five years.
Venkataramanan will oversee the builder’s attempt to revamp operations into 10 independent businesses as it seeks to improve focus on segments that include heavy engineering, shipbuilding, computer software and electrical equipment. He will also face the challenge of boosting orders from overseas as growth slows at home.
“I will focus on cost reduction, looking at geographies beyond the Middle East and Southeast Asia, and on time completion of projects,” Venkataramanan said at a press conference in Mumbai today.
Venkataramanan will remain in his position till 2015, Naik said at the press conference. A search for a new CEO will begin from Jan. 1, 2015, he said.
Larsen rose 5.2 percent to 1,302.35 rupees at the close in Mumbai trading, the biggest jump since Feb. 15. The stock has gained 31 percent this year.
Venkataramanan, a chemical engineering graduate from Indian Institute of Technology, Delhi, joined Larsen in 1969 as a trainee, according to the company’s website.
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