AM Naik, the outgoing Chairman of L&T, on Monday, spoke about what he considers his “single biggest, most vital contribution” to his company. Naik was speaking at a ceremony, where he handed over the baton (L&T’s flag) to the incoming Chairman, SN Subrahmanyam. 

Looking back at his 20 years as the Chairman, Naik said his single-biggest contribution to the company was having “protected the identity of L&T”. 

“We faced a takeover threat from one of the largest industrial conglomerates in the country. You know, Mahatma Gandhi had stayed in their house in Delhi,” said Naik, pointing out that four generations of the industrial conglomerate had high connections. 

While Naik didn’t name the industrial house, he was referring to Birla (Kumara Mangalam Birla). He said deft action by him thwarted the takeover bid, even though the industrial house got what it wanted — the cement business. “If they had succeeded [in taking over L&T], L&T would not have existed today,” said Naik, evoking thunderous applause from the audience. 

When Dubai-based Manu Chhabria, who owned Shaw Wallace and Dunlop India, started picking up stakes in L&T from the market with a view to taking it over, Reliance Industries stepped in at L&T’s behest to counter the effort. Reliance ended up with 18 per cent in L&T and later sold it to Kumara Mangalam Birla, whose eye was on L&T’s cement business —now Ultratech. Naik formed an Employees Trust and negotiated with Birla to sell his stake to the Trust. 

Naik recounted his early career how he joined L&T at much lesser salary than he was drawing in his previous job, and his “15-hours a day, 7 days a week” work schedule that helped him rise to the top. 

Related Topics
comment COMMENT NOW