Larsen & Toubro Ltd.

After months of suspense, Larsen & Toubroannounced its much-awaited succession plan that largely opted for continuity atthe top, easing investor concerns and sending the group’s stocks higher. Thecompany has decided to split the post of chairman and managing director. WhileA M Naik will continue as executive chairman for five years, long-timelieutenant K Venkataramanan will take over as managing director and chiefexecutive officer on April 1. Venkataramanan is currently the president ofL&T’s hydrocarbon division. The company also approved the appointment ofShailendra Roy, senior vice-president (power business division) as a whole-timedirector on the board.

While Venkataramanan will be responsible forrunning the company’s business, Naik will focus on completing portfoliorestructuring, institutionalising independent companies and structures, andmentoring and developing the leadership team and future leaders. Theannouncement of Naik’s successor comes at a time when the group is combatingthe twin factors of sluggish demand at home and a downturn in overseas markets.