According to an L&T press statement, the management has given a clear mandate to BCG to suggest definitive measures for value creation through accelerated growth and enhanced profitability. The entire exercise will last a little over three months and the recommendations will be submitted by mid-November this year.

Further, BCG's scope of work would include review of L&T's current portfolio of the businesses and examine the strategic plans of the main activities, review of strategic and operational aspects of each of the core businesses and suggest measures for value-creation through accelerated growth and enhanced profitability and study the existing corporate business unit and administrative structure and suggest changes which will facilitate implementation of overall business strategy.

It islikely to take important decisions on the cement and information technology businesses during the current financial year and through 2000-01. L&T has clearly indicated that engineering, procurement and construction (EPC) will continue to be the backbone of the company as it contributes to nearly 55 per cent of the total turnover.

It may be recalled that restructuring and streamlining of its operations has been an ongoing process at L&T for nearly a decade. The company, at that time, had decided to get out of unprofitable operations (which led to the sale of the shipping division) and form joint ventures for other crucial activities. The idea was to usher in the latest technology which only multinationals could provide.

The construction equipment business at Bangalore was spun off as a 50:50 joint venture with Komatsu of Japan and an encore is expected shortly with the division at Pithampur. Talks were at an advanced stage with Case Corporation of the US which was recently taken over in a worldwideacquisition by New Holland. Other joint ventures for vital operations have been formed with world leaders like Sargent & Lundy, Ramboll, Chiyoda and others.