He will take charge on July 1, 2017

The Board of Directors of Larsen & Toubro (L&T) on Friday elevated S.N. Subrahmanyan as chief executive officer and managing director from the position of deputy managing director and president of the company and appointed Anil Manibhai Naik as non-executive chairman with effect from October 1, 2017, for a period of three years.

‘Business as usual’

Mr. Subrahmanyan will take charge as CEO on July 1, 2017. Mr. Subrahmanyan told The Hindu: “ It will be business as usual and the focus will be to ensure stability and growth. We have identified priority growth areas as our vision for 2021 and will stick to that. Defence, water and digital business are few of them.”

Mr. Naik had given himself a five-year extension in 2012 to restructure the complex businesses, focus on core business, exit non-core businesses and find his successor. His current term as group executive chairman ends on September 30.

Anil Singhvi, founder and chairman, I-Can Investment Advisors said: “The board should pass one line resolution that Mr. Naik should retire at God’s own will, it will be a simple resolution. They are immortals and it has become difficult for some of the Indian chief executives to move on in life. Hope Mr. Subrahmanyan will be given enough room and power to operate as a professional CEO.”

For seamless transition of leadership in an organisation of the scale and complexity of L&T, the Board requested Mr. Naik to provide advice and mentorship to the executive management in the capacity of non-executive chairman, according to a company statement. It said Mr. Naik had acceded to the Board’s request after working with L&T for more than 52 years.

Subodh Bhargava, Chairman of the Nomination and Remuneration Committee said: “Mr. Naik has been the soul of L&T and has given his whole life to L&T. We are delighted that he has agreed to continue to help the company for the next three years.”

“Mr. Subrahmanyan is a top-notch professional of outstanding ability and commitment. Across the last 10 years, and especially after he was identified as the likely successor three years ago I have been personally mentoring Mr. Subrahmanyan. I am confident that under Mr. Subrahmanyan’s high calibre leadership, the company will accelerate its growth momentum,” Mr. Naik said.