Larsen & Toubro is an Indian multinational conglomerate company with business interests in diversified sectors. In this article, we take you through the Danish duo’s legacy in India from its inception to how it became the L&T of today’s era.
In the year preceding to World War II, two Danish engineers Henning Holck-Larsen and Soren Kristian Toubro started a company as a representative manufacturer of Dairy products and allied services.
The blockage in trade lines due to World War II and Germany’s invasion of Denmark in 1940 forced them to start a small workshop to undertake jobs and provide service facilities.
The Second World War needed a workforce to repair, refit, and degauss ships. Also, in India, A few German engineers working on the Soda ash project were subject to internment in British India. This gave an opportunity to L&T to enter the field of installation. This was the beginning of an empire.
Six years later, ECC (Engineering Construction & Contracts) was established to completely focus on construction projects. They also represented British manufacturers of equipment used in the FMCG sector for producing soaps, biscuits, and hydrogenated oils.
Towards the end of World War II, L&T had begun its foreign collaborations. In 1947, a collaboration was signed with Caterpillar Tractor Company of USA for marketing their Earth moving equipment.
Post World War II, large numbers of surplus caterpillar equipment were available for very attractive prices but the financial capacity of German partners fell short. This led to raising of additional equity capital, leading to the incorporation of Larsen & Toubro Private Limited in February 1946.
After India got independence from British rule in 1947, L&T set up offices in Kolkata, Chennai, and New Delhi. The following year, they bought a huge land at Powai, Mumbai.
Later, in 1950, the company went public getting a paid-up capital of about ₹20,00,000. The same year the sale turnover was close to ₹1cr.
In 1955, post-inauguration of Amul’s plant in Gujarat by then PM, Jawaharlal Nehru, L&T manufactured the plant’s key equipment which called for a success gathering. The co-founder Tuobro was invited.
A major mission came ahead in 1965 when Dr. Homi Bhabha, then chairman of the Atomic Energy Commission(AEC), approached them to seek help in fabricating critical components for the Nuclear Reactors. Since then, they have been the chosen partner for nuclear reactors of India’s Nuclear program.
In the 1970s, the Indian Space Research Organization(ISRO) contracted L&T to work with the organization. In 1972, after the launch of the space program, ISRO called the company to participate in the program. Vikram Sarabhai, then chairman chose L&T as his first choice.
Six years down the lane, ECC as a standalone firm bid for Abu Dabhi’s airport. Due to the failure of the balance sheet’s financial requirements, L&T had to pitch in. This accounts for the company’s largest chunk of annual revenue even today. This merger transformed ECC into L&T Construction.
Later, L&T after their designs and drawings, built trust with Defence Research and Development Organization(DRDO). After a series of successes and in accordance with policy initiatives, they started making a range of weapons and missile systems, command and control systems, and Submarines.
Currently, L&T with its subsidiaries spread across sectors is a gigantic organization. It is an employer with more than 31000 employees. From big structures to massive stadium L&T have stamped its mark on them. Lastly, Anil Manibhai Naik, the backbone of L&T, saw many ups and downs but stood like a rock and helped L&T grow to the stage where it is today.
S N Subrahmanyan, Chairman & MD, said “The future is closer than you think. There are basic and massive changes occurring in the ecosystem, energy change, sustainability as a way of life and digitalization are impacting every aspect of business. We must be future-ready, and deliver excellence to our customers.”
L&T Share Price History
| Year | Share Price | Gain / Loss |
|---|---|---|
| 1990 | ₹ 15.88 | |
| 1991 | ₹ 19.06 | + 20.0% |
| 1992 | ₹ 30.22 | + 58.6% |
| 1993 | ₹ 38.74 | + 28.2% |
| 1994 | ₹ 40.29 | + 4.0% |
| 1995 | ₹ 39.98 | - 0.8% |
| 1996 | ₹ 33.90 | - 15.2% |
| 1997 | ₹ 31.42 | - 7.3% |
| 1998 | ₹ 24.87 | - 20.8% |
| 1999 | ₹ 86.14 | + 246.4% |
| 2000 | ₹ 30.32 | - 64.8% |
| 2001 | ₹ 29.66 | - 2.2% |
| 2002 | ₹ 33.09 | + 11.6% |
| 2003 | ₹ 81.72 | + 147.0% |
| 2004 | ₹ 109.11 | + 33.5% |
| 2005 | ₹ 204.91 | + 87.8% |
| 2006 | ₹ 320.66 | + 56.5% |
| 2007 | ₹ 927.08 | + 189.1% |
| 2008 | ₹ 344.18 | - 62.9% |
| 2009 | ₹ 746.40 | + 116.9% |
| 2010 | ₹ 879.58 | + 17.8% |
| 2011 | ₹ 433.87 | - 50.7% |
| 2012 | ₹ 700.16 | + 61.4% |
| 2013 | ₹ 699.72 | - 0.1% |
| 2014 | ₹ 978.72 | + 39.9% |
| 2015 | ₹ 834.28 | - 14.8% |
| 2016 | ₹ 882.52 | + 5.8% |
| 2017 | ₹ 1,233.08 | + 39.7% |
| 2018 | ₹ 1,411.18 | + 14.4% |
| 2019 | ₹ 1,274.28 | - 9.7% |
| 2020 | ₹ 1,287.55 | + 1.0% |
| 2021 | ₹ 1,895.00 | + 47.2% |
| 2022 | ₹ 2,086.30 | + 10.1% |
| 2023 | ₹ 3,520.00 | + 68.7% |
| 2024 | ₹ 3,647.00 | + 3.6% |
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- During 1990, the share price of Larsen & Tuobro Ltd was ₹ 15.88.
- If you had bought shares worth ₹ 2500 in 1990, you would have 1574 shares today.
- At the end of 2024, the current value of your shares would be ₹ 5741499.
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