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L&T (Larsen & Toubro) Case Study – Business Model, Acquisitions and Performance

L&T (Larsen & Toubro) Case Study – Introduction

After the service sector (53.89%), the industrial sector is the second biggest contributor to India’s GDP with a share of 25.92% followed by the agriculture and allied sectors, which contribute 20.19%. While there are government bodies, L&T is one of the key private players contributing not just to the industrial, but agricultural and manufacturing sectors as well.

Larsen & Toubro Limited, better known as L&T, is one of India’s renowned conglomerates headquartered in Mumbai, India with major business in the EPC (Engineering, Procurement & Construction) segment for industries like minerals, metals, and mining. However, the services and products of L&T are not just limited to engineering and construction but also range to financial and IT services.

This L&T case study comprehensively covers the company’s history, business model, notable acquisitions, and market performance to help you understand how L&T functions and generates revenue. 

L&T (Larsen & Toubro) Case Study

History and Overview

Larsen & Toubro was established in the lanes of Bombay on 7th February 1946 by two Danish engineers, Henning Holck-Larsen, and Soren Kristian Toubro. Initially, the company manufactured dairy equipment but with the beginning of the second world war in 1939, the company started manufacturing and repairing industrial and defence tools. Later in 1950, L&T became a public firm with an initial capital of Rs. 20Lakh (equivalent to over 20 crores or $2.42 million in 2023).

Soon L&T became a trustworthy name for government projects and contracts as well with its first-ever association with ISRO in 1970 and later with DRDO in 1985. Since then, the company has expanded its business to various segments – construction, manufacturing, heavy engineering, defence, supply chains and transportation, power and energy, minerals and metals, mining & metallurgy, aerospace, agriculture, IT services and finance.

L&T group has over 93 subsidiaries, 5 associate companies, and 27 joint ventures and has clocked a revenue of 23 billion USD, as of March 2023. Let us now look at L&T Business Model as we move further in this L&T case study.

L&T Business Model

L&T’s business model is one of the most successful business models present today. Let us look at some of the major components of the L&T business model:

Customer Segment

L&T provides multi-segment products and services including infrastructure and construction, manufacturing of machinery and heavy plants, IT services and banking & finance services.

Value Proposition

L&T’s value proposition states that the company focuses on providing high-quality and robust solutions and services to its clients and customers. The company provides services that meet the end goals of its customers. L&T is known for its business model innovation and research and development, where they continuously improve their products and stay ahead of the constitution.


L&T’s channels include the sales team, dealer & distributor network, company website, and social media.

Customer Relationship

The company believes in building strong and familiar relationships with its customers with the help of on-demand training and robust customer support.

Revenue Streams

L&T revenue streams majorly include project-based revenue, revenue from product sales, financial services, and IT & software services.

L&T Revenue & Profit/Loss

As we move ahead with the L&T case study, let us look at the financial report of L&T which will give us a better idea of its performance over the last few years. Here are the Revenue and Profit/Loss stats of L&T for the last 5 years:


*All values in Rs. Cr

YoY Growth in Revenue17.17%15.51%-6.87%7.56%12.98%

L&T’s major sources of generating revenue include the selling of manufactured goods and services and government projects. L&T has been quite efficient in generating revenue over the last 5 years except in 2020-2021, as it was the pandemic year. Overall, L&T has given a CAGR of around 9.27% in its revenue.


*All values in Rs. Cr

YoY Growth in Profit/Loss20.78%-25.15%21.30%7.23%20.84%

LTI incurred a loss of around 25% in its Profit in 2022 despite an increase of 15% in revenue majorly because of discontinued operations and exceptional expenses. However, over the last 5 years, the company has managed to generate a CAGR of 9% in profit.

L&T Major Acquisitions

L&T Infotech, an IT services division of Larsen & Toubro Limited has carried out around 9 acquisitions since its listing in 2016 with capital totalling over US$87 million. Let us look at some of its recent notable acquisitions:

Mindtree (2019)

Mindtree started as an Indian multinational technology and consulting services firm in 1999 with a team of ten IT professionals in Bangalore. However, in 2019, L&T acquired the company with an initial stake of 20.4% and an additional stake of 31% afterwards. Later in 2022, LTI and Mindtree merged to form a single entity, which also became the 5th largest IT firm by market cap. Currently, L&T owns around 61% stake in the company.

Nielson+Partner (2019)

L&T Infotech (now LTIMindtree) acquired the Germany-based IT consulting and software engineering firm Nielson+Partner in a US $32 million deal in 2019. N+P is a leading partner of Temenos, a world leader in banking software from Europe. LTI aimed to provide class-apart services to its banking clients with this acquisition.

Cuelogic Technologies

LTI acquired a 100% share in Pune-based Cuelogic Technologies on July 7, 2021, in a US$8.4 million deal. Cuelogic specializes in developing cloud-based native web and mobile applications and providing outsourcing services.


L&T is one of the biggest and strongest players in the manufacturing, construction, infrastructure, technology, and finance sector. The company holds over 8 decades of presence in the Indian market and serves all sorts of consumers ranging from government bodies to corporate houses and from defence personnel to land farmers. In a nutshell, with a strong customer-centric approach and robust business planning, L&T is expected to contribute significantly to India’s growth in the coming years.

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