How does one define a legend in business? A short answer: A. M. Naik. The long-serving boss of multinational conglomerate Larsen & Toubro (L&T), who recently stepped down, is more than just a success story. He is an exceptional entrepreneur, a humanist and most importantly, a nation-builder.
From the shop floor of L&T to its helm, Naik's rise was meteoric. With every leap, Naik took the firm with him. His contributions to L&T can be encapsulated in his own words: "92 per cent of the L&T you see around you was not there in its present shape and size before I stepped in." His colleagues agree. "To the last decimal," they add.
As unjust as it would be to confine the contributions and characteristics of this colossal figure in 223 pages, the book 'A.M. Naik: The Man Who Built Tomorrow', throws light on the genius. Authored by Priya Kumar and Jairam N. Menon, the work focuses on Naik's qualities, both innate and acquired, and work ethic that contributed to building L&T's and India's future.
Naik's stint with L&T began on a sombre note. His boss Gunnar Hansen thought he was too cocky. Nevertheless, he got into L&T, rising through the ranks and becoming the CEO in 1999.
His go-getter attitude and foresight fueled L&T's upward trajectory. A trouble-shooter, Naik found an answer to every problem. When L&T encountered logistical issues transporting heavy machinery from its manufacturing facility in landlocked Powai, Naik took it upon himself to find a solution. He zeroed in on a marshland at Hazira, where L&T's mega engineering complex stands tall today.
The book has another vignette on how Naik solved the firm's high levels of attrition in the IT domain. L&T had begun implementing the enterprise resource software SAP and those trained in it were much sought after in the IT sector. To the dismay of the top leadership, the trained employees kept moving to greener pastures. Naik devised a strategy, he would set up the "greenest pasture going." L&T's own IT company, the LTI was born.
Of his many successful corporate battles, one stands out. In the mid-1980s, as L&T under A M Naik began flourishing, it attracted the eyes of corporate raiders. The firm, however, had a weak spot; it was a loosely-held one with dispersed shareholding. But, Naik didn't. His gumption and passion pushed him to fight for L&T through the corridors of power to avert a takeover. He also made the firm a majorly employee-owned one, protecting it from future takeover bids, a brilliant move that went on to preserve the firm's legacy, ethos and values.
A shrewd businessman, Naik's adeptness at cross-selling was renowned. He is always prepared for one or the other. The book notes an interesting anecdote about a meeting he had with the chairman of Kuwait National Petroleum Corporation (KNPC).
Minutes into the meeting, Naik knew L&T wouldn't bag any turnkey contract in the hydrocarbon sector. He didn't waste time. He told the KNPC chairman: "Let me tell you frankly, your IT systems, such as they are, seem to be outdated. Let me send my IT team and help you modernise."
No mention of Naik's eminence would be complete without talking about his nationalist spirit. In the book's foreword, NSA Ajit Doval describes Naik as a man who "wears India on his sleeve." He was adamant that the company he works for should contribute to nation-building. Be it in Chandrayaan-3, or the making of INS Arihant, India's maiden nuclear-powered submarine, L&T under Naik left an indelible mark.
His commitment to the country was reflected in his equations with national leadership too. Naik's friendship with Shiv Sena founder Balasaheb Thackeray was proof not only of his rapport with leaders but also his advocacy for diversity and inclusion.
The events that solidified their relationship happened during Naik's early days with L&T when the firm ran the industry's first apprentice training schemes. Those who completed the programme were in demand in the industry. All was well until it came to notice that all apprentices who cleared the entrance tests came from a single region of the country. Ironically, none from Maharashtra where the facility was located entered the programme.
This soon came to the notice of Thackeray, who rang up the L&T co-founder. The task fell on Naik to unravel this mystery. His wisdom and troubleshooting skills helped Naik find out how the system was being gamed to accept applications from only a section of people. The issue was sorted in no time and Naik went on to form a good bond with Thackeray, and later his son Uddhav Thackeray too.
As L&T's former finance head, N Sivaraman puts it: "Mr Naik is more than a teacher; he is a syllabus." This book, a summary of Naik's six-decade-long career, asserts those words.
