Changes in labour migration, sustainability, supply chain and logistics, and energy and digital transition are some of the key challenges companies are having to deal with, SN Subrahmanyan, chairman and MD of Larsen and Toubro (L&T), said on Sunday.
Companies, he said, will need to step up and adapt to these changes to avoid getting lost, he added. “They (companies) would have to become smarter and make dramatic improvements in operations,” he added.
Subrahmanyan was speaking on ‘Growth Opportunities in Indian Infrastructure’ at the 90th annual general meeting of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA) in Pune.
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Getting labour was becoming difficult and companies like L&T were struggling, he said. This was because the economy was doing well and people were not willing to migrate as work was available closer to their homes and direct benefit transfers were also benefiting them, he said. “The Middle East (West Asia) is also becoming attractive for labour to move there for the higher wages,” he added.
On sustainability, he said: “Indian companies will be rated low on the ESG index and be prevented from qualifying for projects. L&T has taken it seriously internally and externally across its factories and campuses, investing to be green.”
There was also a need to be cost-conscious about energy transition.
The L&T Green business is now worth Rs 30,000 crore and is expected to be at Rs 37,000-40,000 crore by next year. “That is the kind of growth we are seeing,” he said, adding that most of this is in the EPC play and the company will also become a developer of green energy solutions.
He further said that L&T has digitised operations and connected around 15,000 pieces of equipment and was able to track this closely in real time. In the finance business, L&T Finance has moved from wholesale to 100% retail finance with microfinance accounting for the biggest share.
From: financialexpress
Financial News
