L&T in strategic alliance with SAP

BANGALORE: Larsen & Toubro Ltd. (L&T), the engineering and
construction conglomerate has previewed its e-business strategy to become a
knowledge-based conglomerate and has struck an alliance with SAP, to focus on
business opportunities in the engineering and construction arena.

L&T managing director and chief executive officer A. M. Naik announced
the transition of L&T into the click-and-mortar era with the launch of
mySAP.com at L&T’s Electrical Business Group (EBG). Mr Naik stated,
"L&T has embarked on putting in place an end—to-end business process
at all its business units by using SAP's R/3 business framework. The EBG of
L&T implemented R/3 with on-line connectivity to over 35 sales offices and
all its manufacturing facilities. With this, L&T was able to implement
Internet-based sales and procurement in less than 35 days, thus bringing
customers and vendors into the extended L&T supply chain."

With mySAP.com connectivity, L&T’s dealers and stockists are in a
position to instantaneously respond to any product requirement, claims a press
release issued by the company. To ensure availability of its products, L&T
had to carry large stocks with the stockists.

According to the press release, this association between L&T and SAP is
expected to produce outstanding results with the launch of www.LNTEGB.com,
a Business-to-Business portal for L&T’s EBG. The LNTEBG.com solution will
enable the company’s stockists across the country to track orders on-line,
from creation to billing, including availability check. Similarly, the entire
gamut of supplier-management activities from purchase-order downloads to
accounts-payable, including on-line tracking of supplies, are enabled for
L&T vendors. L&T’s next step would be to work with SAP in developing
Engineering and Construction Portals with the help of L&T Information
Technology Ltd. (LTITL), L&T’s IT arm. LTITL is an authorized SAP R/3
Implementation Partner and is geared to offer SAP customers worldwide services
to upgrade to mySAP.com.

Other than IT, communications has been declared as a thrust area for L&T
Ltd., based on the recommendations of the international consultants, Boston
Consulting Group. This is evident through L&T's intention to enter the
Internet sector through its wholly owned subsidiary, L&T Netcom Ltd., a
national level Internet Service Provider, and through the incorporation of
L&T Communications Ltd., a network services provider company which will
build broadband networks on a national level. L&T is moving towards meeting
its aim of becoming a knowledge-based conglomerate. The company intends that its
successful existing businesses will increasingly use Internet technologies.