InvestorQ : Will the reappointment of former CEO, A M Naik, to the board be a positive for Larsen & Toubro?
Deepa Salunkhe made post

Will the reappointment of former CEO, A M Naik, to the board be a positive for Larsen & Toubro?

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diksha shah answered.
3 months ago


(Quote) In a way, Naik has been synonymous with the growth of L&T in the last 30 years including the famed battles when Reliance tried to take over the company. His key contribution to L&T was to change the focus to profitable growth and has been consistently ranked among the world’s best performing leaders. (Unquote)

In fact, I totally agree with the above comment posted by Juvina. I still recollect how Naik managed to ward off the threat of Reliance trying to take over L&T in the 1990s and how Naik played a key role in thwarting the bid by taking the help of institutional investors. Naik was also the brain behind expanding the global business of L&T substantially. His continuation will surely be a plus for L&T.


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preetam lenka answered.
3 months ago


L&T board of directors on Saturday gave its approval for reappointment of AM Naik as the company's non-executive chairman for three years beginning October 1, 2020. The engineering and construction major announced in a regulatory filing to Bombay Stock Exchange (BSE) that Naik's current term is due to end on September 30, 2020. The conglomerate's board also gave its nod to extend the tenure of whole-time Director Dip Kis**** Sen.

L&T's board approved the proposals in its meeting held on June 5, 2020. The company said in its filing that the approvals were given basis the recommendation of the Nomination and Remuneration Committee, subject to the necessary approval of the shareholders of the company.

The board gave its nod to the re-appointment of directors whose current tenures end on September 30, 2020, the company added in its statement.

"Under Naik's leadership, L&T overcame multiple challenges and emerged stronger with a sharper focus on profitable growth. Media surveys and peer group assessments rank him as among the world's best performing business leaders," the conglomerate said.

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Joining the company as a Junior Engineer in 1965, Naik rapidly rose to positions of increasing responsibility as he moved from General Manager to Managing Director and CEO, leading to his appointment as Chairman and Managing Director on December 29, 2003. He was the Group Executive Chairman of L&T from 2012 to 2017. In October 2017, he stepped down from executive responsibilities and was appointed Group Chairman.


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Juvina Maggie answered.
3 months ago


L&T board has approved the reappointment of A M Naik as non-executive chairman of the company for a period of three years from October 1, 2020 as the current tenure ends in Sep-20. In a way, Naik has been synonymous with the growth of L&T in the last 30 years including the famed battles when Reliance tried to take over the company. His key contribution to L&T was to change the focus to profitable growth and has been consistently ranked among the world’s best performing leaders. Naik became the MD of L&T in 2003. Apart from growing L&T in sales and assets, Naik was also instrumental in ensuring that L&T got its fair share in terms of stock market value. Naik had started the process of indigenizing defence manufacture and in the current juncture when the government looks at becoming “Atma Nirbhar”, his contribution becomes all the more relevant.