L&T announces strategic initiative for digital transformation
29 Mar 2019
Engineering and technology conglomerate Larsen & Toubro today announced a new strategic initiative, L&TNxt that would redefine the future of the organisation and bring about a major transformation of the company over the next five years.
From now on, L&T will at business in a fresh perspective, focusing on the areas of Artificial Intelligence, IoT, Virtual Reality, Augmented Reality, Geo-spatial enterprises and Cyber Security.
Under the strategic initiative, L&T will leverage the experience that it has garnered over the decades to leapfrog into entirely new realms powered by the tremendous benefits of digitalisation and analytics.
L&T, through its current construction, EPC and manufacturing businesses, has already made some of the largest deployments of IoT, analytics and AI in the industrial sector by converting most operational matters online, providing smart, affordable and extremely efficient solutions in finance, human resources, labour, plant, material etc.
“Disruption has become the new order and as we embrace new and frontier technologies, our businesses are leapfrogging into entirely new realms powered by the tremendous benefits of digitalisation and analytics,” SN Subrahmanyan, Chief Executive Officer and managing director, Larsen & Toubro, said.
“We are committing significant investments and talent into this strategic effort and are confident that this will be an enabler for business,” he added.
“Having reached a critical juncture in its developmental cycle, L&T is training its sights towards accelerating top line and bottom-line growth and, at the same time, expand its potential for value creation by adopting a fresh mind-set and building a new structure ground up,” as per L&TNext.
JD Patil, senior executive vice president (Defence Business) and member of the board feels that the era of cyber-physical systems is just beginning. “With the lines between the physical and digital blurring, Industry 4.0 is being founded,” he said, adding, “We see new technology businesses and sunrise enterprises as prime constituents with the latent upside for rapid and substantial value creation.”
With some of the largest deployments of IoT, analytics and AI in the industrial sector, through its current construction, EPC and manufacturing businesses, L&T is in the cusp of Industrial revolution 4.0, L&T is ideally placed to capitalize on these huge emerging opportunities with its large palette spanning software-to-hard core engineering, backed by a strong technology base.
Capability development in some of these select verticals has been in the works under a longterm strategic plan and L&T’s management is focused on incubating and scaling these business, mapping the landscape, formulating the road ahead, and achieving the stated goal with go to market solutions, says L&T Next.
With a multinational footprint, revenues of over $18 billion and operations in 30 countries, Larsen & Toubro is engaged in technology, engineering, construction, manufacturing and financial services worldwide.
Some of L&T’s larger global peers such as Siemens, Hitachi, ABB and General Electric are already powering the Fourth Industrial Revolution - Industry 4.0 – and are focused on providing digitalisation and automation solutions to reduce costs, improve efficiency and help industries to comply with rising expectations of quality, environmental and safety regulations.